#Canada #Vancouver #mining #Vizsla Silver #Santa Fe Project

Vizsla Silver Expands Its Mining Portfolio

Introduction

Vizsla Silver Corp., a prominent Canadian mineral exploration and development firm, has announced its strategic acquisition of the Santa Fe Project, located southeast of its flagship Panuco project. This acquisition represents a significant step towards enhancing the company's assets in the Sinaloa Silver Belt, a region known for its rich deposits of silver and gold.

The Acquisition Details

Executed on May 14, 2025, the agreement allows Vizsla Silver to acquire both production and exploration rights associated with 12,229 hectares of land. This includes the Santa Fe mine, which has an operational mill capable of processing 350 tonnes of ore per day, situated along the promising Panuco – San Dimas mining corridor. The project not only provides immediate production capabilities but also possesses significant exploration potential, indicated by comprehensive up-to-date geophysical surveys covering the area.

Historical Context and Production Insights

Historically, mining at Santa Fe traces back to the Spanish era, as evidenced by remnants of shafts and smelting operations uncovered in past explorations. The project has seen considerable activity from various operators, notably Mr. Eduardo de La Peña, who initiated the first mining operations on historical waste dumps in 2008, managing to process about 20,000 tonnes of material containing average grades of 2.0 g/t gold and 200 g/t silver.

From 2020 to 2024, the Santa Fe mine has been fruitful, extracting 370,366 tonnes of ore at impressive averages of 203 g/t silver and 2.17 g/t gold. This indicates not only the operational success of the mine but also its potential for future output and profitability.

Exploration Potential and Next Steps

The exploration aspects of the acquisition are equally encouraging. Previous drilling campaigns conducted by various organizations revealed high-grade silver intercepts and identified multiple target areas. Remarkably, only 12% of the total property has been mined to date, suggesting considerable resources remain untapped. Vizsla Silver's management is optimistic about leveraging sophisticated exploration techniques to identify new extraction sites that could substantially bolster their output.

Transaction Structure

The acquisition consists of an option agreement allowing Vizsla Silver the right to acquire a 100% interest in the production concessions over five years. To achieve this, the company commits to a total of $4 million in exploration expenditures and $1.5 million in cash payments, coupled with issuing a series of common shares to the optionors.

Future Outlook

President and CEO Michael Konnert expressed that this acquisition not only strengthens Vizsla's operational footprint in western Mexico but also enhances the overall production profile projected for the Panuco Project. As the company is gearing up to release a feasibility study for Panuco later this year, the Santa Fe Project is expected to play a critical role in achieving their ambitious production goals. With ongoing initiatives aimed at achieving the first silver production at Panuco by 2027, the strategic decision to acquire the Santa Fe project supports the broader vision of positioning Vizsla Silver at the forefront of the silver mining industry.

Conclusion

The acquisition of the Santa Fe Project is a pivotal development for Vizsla Silver Corp. as it not only enhances their mineral holdings but also positions the company favorably in a competitive market. With a blend of immediate production capabilities and exploration upside, Vizsla Silver is poised for significant growth in the near future.