Vizsla Silver Unveils Promising Feasibility Study for Panuco Silver-Gold Project in Mexico

Vizsla Silver Corp., a prominent player in the mining sector, has recently announced the positive outcomes from its independent feasibility study (FS) on its flagship Panuco silver-gold project, located in Sinaloa, Mexico. This comprehensive analysis confirms the project's potential as a high-margin underground mining operation with favorable economic outlooks.

The feasibility study, carried out by Ausenco Engineering Canada ULC, with additional insights from Mining Plus Canada Consulting Ltd. and SGS Canada Inc., paints a robust picture of the project's viability. It outlines an after-tax Net Present Value (NPV) of $1.8 billion with a remarkable Internal Rate of Return (IRR) of 111%. Furthermore, the initial capital expenditure is estimated at $173 million, establishing a promising base for economic success.

Vizsla's project anticipates an impressive average annual production of 17.4 million ounces of silver equivalent (AgEq). This figure significantly surpasses the previous estimates found in the Preliminary Economic Assessment (PEA), underscoring the feasibility study's strength and the efficiency of the company's operational approach. In the first five years of operation, the Panuco project is expected to deliver more than 20 million ounces of silver equivalent per year, driven by its high-grade resource outputs.

In his comments, Simon Cmrlec, COO of Vizsla Silver, highlighted the dedication and expertise of the Vizsla team and their consultants in conducting the feasibility study. A testament to this effort is the advanced engineering and procurement processes already in place, demonstrated by the ongoing performance of the test mine operations. The study indicates not only solid projections for production but also a rapid payback period of just seven months, assuming prices of $35.50 per ounce for silver and $3,100 per ounce for gold. This rapid payback is particularly appealing to investors and stakeholders in the mining sector.

In a statement, Michael Konnert, President and CEO of Vizsla Silver, emphasized how this feasibility study builds on the impressive economic indicators outlined in the PEA published in the summer of 2024. By leveraging updated resource estimates and improved commodity price assumptions, the study affirms Panuco's position as a potential large-scale silver producer in Mexico. The reported mineral resources include significant contributions from both the Copala and Napoleon deposits, with estimated grades of 318 g/t Ag and 2.05 g/t Au from Copala and 139 g/t Ag and 1.95 g/t Au from Napoleon, respectively.

The operating costs remain competitive, with life-of-mine cash costs expected to be around $8.56 per ounce of payable silver equivalent, and all-in sustaining costs projected at $10.61 per ounce. The feasibility study also notes that production will commence with a daily throughput of 3,300 tonnes, which will later increase to 4,000 tonnes in the fourth year.

As Vizsla Silver continues to advance its permitting and project financing initiatives, the company is optimistic about making final decisions regarding construction pending the necessary regulatory approvals. The project not only promises robust financial returns but also aims to foster community engagement through ongoing partnerships with local stakeholders in the five neighboring Ejidos.

In efforts to maintain transparency and keep stakeholders informed, Vizsla Silver is set to host a webcast on November 24th to discuss the results of the feasibility study. This initiative reflects the company's commitment to engaging with the investment community and providing comprehensive updates on its project milestones.

In conclusion, the positive outcomes of the Panuco feasibility study mark a significant milestone for Vizsla Silver Corp., showcasing the project as a beacon of potential growth and profitability in the silver industry. With its strategic approach, the company is poised to transform Panuco into a leading silver-gold mining operation in Mexico, setting the stage for a new era of sustainable mining practices and economic development in the region.