Canadian miner Vizsla Silver (TSX, NYSE: VZLA) plans to finish a feasibility study for its Panuco project in Sinaloa, Mexico, by the end of the year. The study will help management reach a construction decision and first silver by 2027, CEO Michael Konnert says.
The Panuco district hosts the world’s largest undeveloped, high‑grade silver resource. It holds 13 million tonnes measured and indicated at 2.5 grams gold and 307 grams silver per tonne for 1 million oz. gold and 127 million oz. silver for 222.4 million oz. silver-equivalent. It also has 10.5 million tonnes inferred at 1.9 grams gold and 219 grams silver per tonne for 660,000 oz. gold and 73.6 million oz. silver, or 138.7 million oz. silver-equivalent, including lead and zinc credits.
The 2024 preliminary economic assessment shows a post‑tax net present value at a 5% discount of $1.14 billion (C$1.6 billion). It uses $26-per-oz.-silver and $1,975-per-oz.-gold to achieve an 86% internal rate of return, a nine‑month payback and a capex ratio of 5.1 to 1.
“At today’s prices those economics are even more eye‑watering,” Konnert told The Northern Miner at an industry event early this month.
Vizsla has over $200 million in cash and royalties. This includes a new $100-million equity tranche. With this amount, they can fund feasibility, permitting and initial construction without further dilution, the executive said.
Fresh targets are lined up for 15,000 – 20,000 metres of drilling this year to feed expansion toward a 50 million‑oz. profile by 2035.
Watch below the full chat with The Northern Miner’s western editor, Henry Lazenby.
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