Vizsla Silver Corp. [VZLA-TSXV] on Wednesday May 19 released more impressive drill results from its Panuco silver-gold epithermal vein project in Mexico.
Vizsla is a company that was formed to acquire metal projects in Canada and Mexico. Its portfolio includes the 20,265-hectare Blueberry Project, which lies on a copper-porphyry trend southwest of Houston, British Columbia.
The district-scale Panuco project represents the consolidation of mining concessions covering 9,386.5 hectares in a producing camp outside of Concordia, Sinaloa.
Back in September 13, 2019, Vizsla snapped up Canam Alpine Ventures Ltd., a company that held options to acquire a 100% interest in the Panuco mining concessions and related infrastructure and processing facilities. Canam could exercise its options by completing US$3.4 million in work commitments and making payments of US$43 million over a 72-month period.
The option allows for the acquisition of over 75 kilometres of total vein extent, a 500 ton-per-day mill, 35 km of underground mines, tailings facilities, roads, power and permits.
Results released on Wednesday are from 10 new holes that targeted the Tajitos vein zone, which is located along the Cinco Senores Corridor where drilling in 2020 and 2021 has returned high grade mineralization.
The company is undertaking resource drilling on approximate 50-metre centres to define the extent of mineralization which now has over 575 metres of strike length.
Drilling highlights include hole NP-21-29, which returned 513 g/t silver equivalent (390.7 g/t silver and 1.56 g/t gold over 7.76 metres true width from 207.45 metres, including 1,423 g/t silver equivalent (1,156.8 g/t silver and 3.60 g/t gold) over 1.22 metres true width from 208. 65 metres.
The company said 32 holes show an average vein width of 3.08 metres true width and a weighted average grade of 505 g/t silver equivalent (329.0 g/t silver and 2.10 g/t gold).
On Wednesday, Vizsla shares eased 8.1% or $0.23 to $2.61 on volume of 668,140. The shares are currently trading in a 52-week range of $2.93 and 39.5 cents.
“Today’s results from Tajitos demonstrate a second significant zone of mineralization in addition to the Napoleon Vein,” said Vizsla President and CEO Michael Konnert. “These averages further demonstrate the excellent vein widths and high grades at Tajitos and the company is drilling to find the edges of the mineralization ahead of completing a maiden resource estimate,” said.
Based on the success of drilling, a second rig was moved to Tajitos in early May to accelerate resource drilling at the target.
The Panuco district has been producing since the 1500s, but has never seen systematic modern exploration due to fragmentation of ownership. Vizsla has said it believes there is significant high-grade silver and gold discovery potential on the property.
Vizsla has said active and historical surface mapping implies that there is more than 75 km of cumulative vein strike on the property and more than 31 active historic mines within the veins. Historic production from these mines has not been recorded.