Vizsla Silver updates Copala test mine at Panuco Project, Mexico

Vizsla Silver Corp. [TSX: VZLA; NYSE: VZLA; FSE: 0G3] provided an update on the ongoing development of its Copala test mine at its 100%-owned Panuco silver-gold project, located in Sinaloa, Mexico.

The test mine program marks a major step forward in de-risking the Panuco Project, as the company transitions from exploration to development. The Copala portal, established as part of this program, is expected to serve as the primary access to underground mining operations following a construction decision.

“We’re now testing underground at Panuco and executing the test mine development according to plan, at the historic Copala district,” commented COO Simon Cmrlec. “Our crews are performing well, advancing safely, installing all required ventilation and ground support, and we are meeting planned development rates. Our team is currently focused on optimising advance rates and testing contractor capabilities.

“This portal will ultimately become the main access for future mining. Every meter brings us closer to the 10,000-tonne bulk sample location and positions us for efficient resource conversion/expansion drilling from underground, and for the ultimate mine development and ramp-up. We are on track to complete the fully funded test mine program by year-end.”

Test Mine Progress: Vizsla Silver has now advanced approximately 125 metres along the Copala decline. The decline is advancing in favorable ground conditions at a 15% grade with dimensions of 5.5 metres wide by 5.5 metres tall. A 10,000-tonne bulk sample will be taken from the 460 level which is approximately 70 metres vertically below the surface. The decline is currently progressing at a rate of 4 metres per day, with drilling and mucking currently being optimised to achieve two blasts per day and advance rates of around 8 metres per day.

Upon reaching the ore zone, Vizsla Silver will extract a 10,000-tonne bulk sample and stockpile it on surface without impacting the environment by utilising previously disturbed areas. This material will ultimately be used for paste fill and cemented rockfill (CRF) testing to support backfill planning; rock competency and structural consistency analysis to optimize mine design and cost models related to support requirements and grade reconciliation with the block model.

Technical Observations & Future Opportunities: The Copala test mine portal is situated approximately 300 metres north of the proposed processing facility. Waste stockpiles and ore staging areas are located within 200 metres of the portal, with all current activities using existing roads and confined to previously disturbed areas from historic mining.

Underground access will enable low-cost drilling from underground stations, supporting the conversion of existing resources to higher-confidence categories. Several high-priority targets have already been outlined and are expected to be tested as the decline advances.

Mapped parallel structures on the surface highlight near-mine exploration upside.

The onsite workforce continues to grow, with an emphasis on hiring from the local community. Newly constructed infrastructure – including first aid facilities, staff buildings, and workshops – not only supports operational efficiency, but also enhances safety protocols and emergency response capabilities.

The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 7,189.5-hectare, past producing district benefits from over 86 km of total vein extent, 35 km of underground mines, roads, power, and permits.

The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.

On January 6, 2025, the company announced an updated mineral resource estimate for Panuco which includes an estimated in-situ combined measured and indicated mineral resource of 222.4 Moz AgEq and an in-situ inferred resource of 138.7 Moz AgEq (please refer to Vizsla’s press release dated January 6, 2025).

Vizsla Silver is focused on advancing its flagship Panuco silver-gold project. The company recently completed a Preliminary Economic Study for Panuco in July 2024 which highlights 15.2 Moz AgEq of annual production over an initial 10.6-year mine life, an after-tax NPV5% of US$1.1B, 86% IRR and a nine-month payback at US$26/oz Ag and US$1,975/oz Au. Vizsla Silver aims to become the world’s leading silver company by implementing a dual track development approach at Panuco, advancing mine development, while continuing district scale exploration through low-cost means.

Drill core samples were shipped to ALS Limited in Zacatecas, Zacatecas, Mexico and in North Vancouver, Canada for sample preparation and for analysis at the ALS laboratory in North Vancouver and rock samples were shipped to SGS Lab in Durango Mexico for sample preparation and analysis.