NYSE: VZLA TSX:
VZLA
VANCOUVER, BC, Dec. 11,
2024 /PRNewswire/ - Vizsla Silver
Corp. (TSX: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) ("Vizsla" or the
"Company") is pleased to announce the commencement of its
fully funded and fully permitted test mining and bulk sample
program (the "Program") at its flagship, 100%-owned
Panuco silver-gold project
("Panuco" or the
"Project"), located in Sinaloa,
Mexico.
The primary objectives for the Program will be to 1) reconcile
actual geotechnical conditions at Copala with the current geotechnical model in
preparation for full-scale development & operations, 2) provide
initial reconciliation of resource models against actual grades and
tonnes, and 3) build operational experience for the Panuco team.
"The commencement of test mining and bulk sampling at
Panuco is a significant milestone
in our journey toward full-scale production," commented Simon
Cmrlec, Chief Operating Officer. "This major de-risking
initiative not only allows us to validate development rates and
conduct preliminary reconciliation to the resource block models and
geotechnical models but also provides invaluable operational
insights for our team as we advance the Project towards
development. The information collected over the next six to eight
months will serve to support the Feasibility Study planned for H2
2025, which combined with the pending updated mineral resource
estimate slated for early Q1 2025, will place the Project one step
closer to a construction decision."
Program Highlights
- Comprehensive Test Mining: Focused on underground ramp
development, lateral access, and ore extraction from the 460-level
zone on the Copala
structure.
- Bulk Sampling: Approximately 10,000 tonnes of high grade
material is planned to be mined as part of the development. This
material will be stockpiled on site and may be used for future
metallurgical testing.
- Surface Infrastructure Development: Includes
construction of portal facilities, access roads, and laydown areas,
supporting efficient test mining operations.
Program Overview
The test mining program at Panuco, is focused on key areas of underground
development and surface infrastructure designed to support the
ultimate extraction and processing of bulk mineralization from
Copala. The underground scope
includes approximately 1,071 meters of ramp and lateral
development, with 169 meters dedicated to ore development. Mining
methods include portal and ramp preparation as well as ore
development tunnels, designed for safe and efficient bulk
sampling.
The Company commenced the Program on November 28, 2024 with the award of a bulk
earthworks contract for the preparation of site roads, office and
workshop locations, ore, waste and topsoil stockpile locations and
the initial stripping of the box cut for the Copala portal.
The underground mining contract was awarded on 5 December and
the contractor is currently mobilising to site with the first
personnel arriving on 9 December.
Both the earthworks and mining contracts have been awarded to
well established Mexican contractors including:
- Earthworks Contract: Awarded to Electro Construcciones
Ontiveros, S.A De C.V ("Econsa"), an experienced local contractor
with proven capabilities in large-scale projects. Vizsla has been
working with Econsa for the last 2 years for the rehabilitation of
the historic El Coco mill site
located within the Project boundary.
- Underground Mining Contract: Awarded to Obras Mineras y
Tiros del Centro S.A. de C.V.
("OMyTC") a highly experienced underground mining contractor with a
strong track record in Mexico.
OMyTC will oversee ramp development, ore extraction, and
underground infrastructure, ensuring the program's operational
success.
Exploration update
In addition to the test mining and bulk sample program, Vizsla
continues its ongoing exploration efforts in the eastern portion of
the district with two drill rigs. The fully funded 10,000 metre
discovery-based drill campaign is focused on locating new centres
of high-grade mineralization outboard of the current PEA mine plan.
Moreover, the Company has just awarded a contract to Geofisica TMC
S.A. de C.V. to conduct a ground HLEM survey on six selected areas
within Panuco project to further
enhance the possibilities of finding new mineralization.
About the Panuco Project
The newly consolidated Panuco
silver-gold project is an emerging high-grade discovery located in
southern Sinaloa, Mexico, near the
city of Mazatlán. The 17,856.5-hectare, past producing district
benefits from over 86 kilometres of total vein extent, 35
kilometres 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 8, 2024, the Company
announced an updated mineral resource estimate for Panuco which includes an estimated in-situ
indicated mineral resource of 155.8 Moz AgEq and an in-situ
inferred resource of 169.6 Moz AgEq (please refer to our Technical
Report on Updated Mineral Resource Estimate for the Panuco
Ag-Au-Pb-Zn Project, Sinaloa State, Mexico, by Allan
Armitage, Ben Eggers and
Peter Mehrfert, dated February 12,
2024 and to our Company´s press release dated January 8, 2024).
About Vizsla Silver
Vizsla Silver is a Canadian mineral exploration and development
company headquartered in Vancouver,
BC, focused on advancing its flagship, 100%-owned
Panuco silver-gold project located
in Sinaloa, Mexico. 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 9-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.
Quality Assurance / Quality Control
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. The ALS Zacatecas,
North Vancouver facilities and SGS
lab are ISO 9001 and ISO/IEC 17025 certified. Silver and base
metals were analyzed using a four-acid digestion with an ICP finish
and gold was assayed by 30-gram fire assay with atomic absorption
("AA") spectroscopy finish. Over limit analyses for silver, lead
and zinc were re-assayed using an ore-grade four-acid digestion
with AA finish.
Control samples comprising certified reference samples,
duplicates and blank samples were systematically inserted into the
sample stream and analyzed as part of the Company's quality
assurance / quality control protocol.
Qualified Person
In accordance with NI 43-101, Jesus
Velador, Ph.D. MMSA QP, Vice President of Exploration, is
the Qualified Person for the Company and has reviewed and approved
the technical and scientific content of this news release.
Information Concerning Estimates of Mineral Resources
The scientific and technical information in this news release
was prepared in accordance with NI 43-101 which differs
significantly from the requirements of the U.S. Securities and
Exchange Commission (the "SEC"). The terms "measured mineral
resource", "indicated mineral resource" and "inferred mineral
resource" used herein are in reference to the mining terms defined
in the Canadian Institute of Mining, Metallurgy and Petroleum
Standards (the "CIM Definition Standards"), which definitions have
been adopted by NI 43-101. Accordingly, information contained
herein providing descriptions of our mineral deposits in accordance
with NI 43-101 may not be comparable to similar information made
public by other U.S. companies subject to the United States federal securities laws and
the rules and regulations thereunder.
You are cautioned not to assume that any part or all of mineral
resources will ever be converted into reserves. Pursuant to CIM
Definition Standards, "inferred mineral resources" are that part of
a mineral resource for which quantity and grade or quality are
estimated on the basis of limited geological evidence and sampling.
Such geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An inferred mineral
resource has a lower level of confidence than that applying to an
indicated mineral resource and must not be converted to a mineral
reserve. However, it is reasonably expected that the majority of
inferred mineral resources could be upgraded to indicated mineral
resources with continued exploration. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
Investors are cautioned not to assume that all or any part of an
inferred mineral resource is economically or legally mineable.
Disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Canadian standards, including the CIM Definition Standards and
NI 43-101, differ significantly from standards in the SEC Industry
Guide 7. Effective February 25, 2019,
the SEC adopted new mining disclosure rules under subpart 1300 of
Regulation S-K of the United States Securities Act of 1933, as
amended (the "SEC Modernization Rules"), with compliance required
for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules
replace the historical property disclosure requirements included in
SEC Industry Guide 7. As a result of the adoption of the SEC
Modernization Rules, the SEC now recognizes estimates of "measured
mineral resources", "indicated mineral resources" and "inferred
mineral resources". Information regarding mineral resources
contained or referenced herein may not be comparable to similar
information made public by companies that report according to U.S.
standards. While the SEC Modernization Rules are purported to be
"substantially similar" to the CIM Definition Standards, readers
are cautioned that there are differences between the SEC
Modernization Rules and the CIM Definitions Standards. Accordingly,
there is no assurance any mineral resources that the Company may
report as "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the resource estimates under
the standards adopted under the SEC Modernization Rules.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward–Looking Statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and "forward–looking information"
under applicable Canadian securities laws. When used in this news
release, the words "anticipate", "believe", "estimate", "expect",
"target", "plan", "forecast", "may", "would", "could", "schedule"
and similar words or expressions, identify forward–looking
statements or information. These forward–looking statements or
information relate to, among other things: the exploration,
development, and production at Panuco, including plans for
resource/discovery-based drilling, designed to upgrade, and expand
the maiden resource as well as test other high priority targets
across the district.
Forward–looking statements and forward–looking information
relating to any future mineral production, liquidity, enhanced
value and capital markets profile of Vizsla Silver, future growth
potential for Vizsla Silver and its business, and future
exploration plans are based on management's reasonable assumptions,
estimates, expectations, analyses and opinions, which are based on
management's experience and perception of trends, current
conditions and expected developments, and other factors that
management believes are relevant and reasonable in the
circumstances, but which may prove to be incorrect. Assumptions
have been made regarding, among other things, the price of silver,
gold, and other metals; no escalation in the severity of the
COVID-19 pandemic; costs of exploration and development; the
estimated costs of development of exploration projects; Vizsla
Silver's ability to operate in a safe and effective manner and its
ability to obtain financing on reasonable terms.
These statements reflect Vizsla Silver's respective current
views with respect to future events and are necessarily based upon
a number of other assumptions and estimates that, while considered
reasonable by management, are inherently subject to significant
business, economic, competitive, political and social uncertainties
and contingencies. Many factors, both known and unknown, could
cause actual results, performance, or achievements to be materially
different from the results, performance or achievements that are or
may be expressed or implied by such forward–looking statements or
forward-looking information and Vizsla Silver has made assumptions
and estimates based on or related to many of these factors. Such
factors include, without limitation: the Company's dependence on
one mineral project; precious metals price volatility; risks
associated with the conduct of the Company's mining activities in
Mexico; regulatory, consent or
permitting delays; risks relating to reliance on the Company's
management team and outside contractors; risks regarding mineral
resources and reserves; the Company's inability to obtain insurance
to cover all risks, on a commercially reasonable basis or at all;
currency fluctuations; risks regarding the failure to generate
sufficient cash flow from operations; risks relating to project
financing and equity issuances; risks and unknowns inherent in all
mining projects, including the inaccuracy of reserves and
resources, metallurgical recoveries and capital and operating costs
of such projects; contests over title to properties, particularly
title to undeveloped properties; laws and regulations governing the
environment, health and safety; the ability of the communities in
which the Company operates to manage and cope with the implications
of COVID-19; the economic and financial implications of COVID-19 to
the Company; operating or technical difficulties in connection with
mining or development activities; employee relations, labour unrest
or unavailability; the Company's interactions with surrounding
communities and artisanal miners; the Company's ability to
successfully integrate acquired assets; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; stock market volatility;
conflicts of interest among certain directors and officers; lack of
liquidity for shareholders of the Company; litigation risk; and the
factors identified under the caption "Risk Factors" in Vizsla
Silver's management discussion and analysis. Readers are cautioned
against attributing undue certainty to forward–looking statements
or forward-looking information. Although Vizsla Silver has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be anticipated, estimated or intended. Vizsla Silver
does not intend, and does not assume any obligation, to update
these forward–looking statements or forward-looking information to
reflect changes in assumptions or changes in circumstances or any
other events affecting such statements or information, other than
as required by applicable law.
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SOURCE Vizsla Silver Corp.