Vizsla Silver reports more high-grade at Panuco in Mexico

Drilling at the Copala vein at Vizsla Silver’s (TSXV: VZLA; NYSE: VZLA) Panuco project in southern Sinaloa, Mexico has yielded high grades over broad intervals near surface with intercepts grading over 1,000 grams silver-equivalent per tonne.

The results expand the high-grade mineralized footprint to over 900 metres along strike by 400 metres down dip and highlights from its news release today include 706 grams silver per tonne and 4.93 grams gold per tonne (1,011 grams silver-equivalent per tonne) over 12.52 metres true width starting from 348.20 metres downhole in CS-22-191. The hole also returned 4,804 grams silver and 14.23 grams gold (5,491 grams silver-equivalent) over a true width of 3.28 metres from 370.95 metres.

Other intercepts of significance were in drillhole CS-22-159 (2,011 grams silver and 8.60 grams gold or 2,489 grams silver-equivalent over a 2.66metres true width 187.70 metres downhole and in drillhole CS-22-181 (832 grams silver and 3.85 grams gold or 1,051 grams silver-equivalent) over a true width of 3.44 metres starting from 281.15 metres.

The company has completed more than 140,000 metres of drilling at Panuco, which has resulted in the discovery of several new high-grade veins. This year Viszla plans to drill a total of 120,000 metres to upgrade and expand its initial resource, which was based on the Napoleon and Tajitos veins. It has nine drill rigs turning and according to the company, only 33% of its known targets at Panuco have been drill tested so far.

Vizsla completed its first resource estimate centering on the western portion of the project earlier this year. (A miscalculation in the first estimate released in February was corrected and released again in March.) Currently Panuco has indicated resources of 5 million tonnes grading 191 grams silver per tonne, 2.08 grams gold per tonne, 0.26% lead and 0.50% zinc (383 grams silver-equivalent per tonne). Inferred resources measure 4.1 million tonnes grading 187 grams silver, 1.79 grams gold, 0.13% lead and 0.30% zinc (345 grams silver-equivalent).

The resource estimate was based on a total database of 445 holes (124,915 metres) that Vizsla drilled between November 2019 and December 2021.

The flagship asset near the city of Mazatlan is about 80 km from First Majestic Silver’s (TSX: FR; NYSE: AG) San Dimas mine and is in a district that first produced silver in the 1500s.

Over the last year the company has traded in a range of $1.19 and $3.45 per share and at presstime in Toronto was changing hands at $1.72. Vizsla has about 154.9 million common shares outstanding for a market cap of about $266.4 million.