Vizsla Silver updates Panuco resource tonnage in Mexico by 50%

Vizsla Silver?EUR?(TSXV: VZLA; NYSE: VZLA) has increased?EUR?the indicated mineral resource tonnage by half at its Panuco?EUR?silver-gold project in?EUR?Sinaloa, western Mexico.

The indicated mineral resource rose to 7.5 million tonnes grading 243 grams silver per tonne, 2.12 grams gold per tonne, 0.23% lead and 0.71% zinc (437 grams silver-equivalent per tonne) for contained metal of 58.3 million oz. of silver, 508,000 oz. gold, 17,000 tonnes lead and 53,300 tonnes zinc (104.8 million oz. silver-equivalent), Vizsla said in a news release on Tuesday.

That compares with the project's first indicated resource estimate in March last year showing 5 million tonnes grading 191 grams silver, 2.08 grams gold, 0.26% lead and 0.5% zinc (383 grams silver-equivalent ) for contained metal of 30.5 million oz. silver, 331,000 oz. gold, 13,000 tonnes lead and 24,600 tonnes zinc, Vizsla said.

Vancouver-based Vizsla says it has spent US$41.8 million on exploration at the 68-sq.-km project on Mexico's west coast near the city of Mazatl??n about 1,000 km northwest of Mexico City. It has drilled more than 250,000 metres and plans an additional 90,000 metres, with another resource update due later this year.

Vizsla Silver plans to update resources at Panuco in Mexico again this year. Credit: Vizsla

This month's updated mineral resource centred on the western portion of?EUR?Panuco encompassing about 8 km of the area's 86-km vein strike, the company said.

"Most impressive is the material growth to the precious metals-rich?EUR?Copala?EUR?structure," Vizsla President and CEO Michael Konnert said in the release. "Additionally, the inclusion of the high-grade Cristiano structure, which can conceptually be developed alongside?EUR?Copala, represents a near surface high grade feed source." Vizsla highlighted the update's 71% increase in indicated mineral resources to 104.8 million oz. silver-equivalent from 61.1 million oz. and a 14% increase in average indicated mineral resource grade to 437 grams silver-equivalent per tonne from 383 grams per tonne.

Panuco's inferred mineral resource increased to 7.2 million tonnes grading 304 grams silver, 2.14 grams gold, 0.19% lead and 0.54% zinc (491 grams silver-equivalent) for contained metal of 70.7 million oz. silver, 496,000 oz. gold, 13,600 tonnes lead and 39,300 tonnes zinc (114.1 million silver-equivalent ounces).

That compares with the earlier inferred resource estimate showing 4.1 million oz. grading 187 grams silver, 1.79 grams gold, 0.13% lead and 0.3% zinc (345 grams silver-equivalent) for contained metal of 24.7 million oz. silver, 236,000 oz. gold 5,300 tonnes lead and 12,400 tonnes zinc (45.6 million oz. silver-equivalent).

The update marked a 150% increase in inferred mineral resources to 114.1 million oz. silver-equivalent from 45.6 million oz. and a 42% increase in average inferred mineral resource grade to 491 grams silver-equivalent per tonne from from 345 grams per tonne, Vizsla said.

"The company plans to continue its ongoing aggressive exploration of the district with seven drill rigs focused on category conversion, incremental expansion and testing new targets," Konnert said. "This, along with previous drilling completed to date, will support a potential mineral resource estimate update in the second half of 2023."

Shares in Vizsla rose 9% Tuesday in Toronto to $1.92 each before falling to close at $1.73, within a 52-week range of $1.19 to $2.85, valuing the company at $268 million.