Vizsla Silver Corp (TSE: VZLA) (NYSEAMERICAN: VZLA) (FRA: 0G31) slid by almost 15 per cent during Thursday trading hours after news broke that 10 employees from the company’s Panuco project were kidnapped in Sinaloa. Shareholder anxiety rose right before the price of silver suffered a historic 31 per cent crash the following day.
Mexican Security Secretary Omar García Harfuch has linked the abduction to the Los Chapitos faction of the Sinaloa Cartel, a group loyal to the sons of infamous drug lord Joaquín “El Chapo” Guzmán. The incident occurred on Jan. 23 when a group of armed men broke into the mining company’s “La Clementina” accommodations and forcibly removed a group comprised of geologists, engineers, security staff and others. They are mostly Mexican nationals.
Local authorities have identified a cell leader from the cartel in the area they believe to be involved and are currently pursuing them. As of early February, search operations have escalated significantly with federal and state forces deploying 1,600 troops to assist.
Vizsla has activated crisis and security teams and temporarily suspended certain activities at the site for the time being.
“We express our deep concern over the illegal deprivation of liberty, by unknown individuals, of 10 professionals from the mining industry,” said The Association of Mining Engineers, Metallurgists and Geologists of Mexico in a statement.
Although the company is headquartered in Vancouver, Global Affairs Canada has confirmed that no Canadians were among the victims.
Vizsla’s flagship Panuco project in Sinaloa’s Concordia area is focused on exploring high-grade silver and gold deposits while also having significant lead mining potential. First silver production is slated for H2, 2027. The operation serves as a cornerstone for the company’s growth goals.
Unfortunately though, Sinaloa dangers are no joke. Cartel violence in the state has claimed thousands of lives since 2024 and armed groups have been known to extort mine workers, hijack shipments and as evidenced last month, kidnap personnel. Mining companies face severe risks in Mexico’s most volatile regions.
Mexico produces more silver than any other country in the world.
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