Shares of Vizsla Silver Corp. (TSE: VZLA) (NYSE AMERICAN: VZLA) (Frankfurt: 0G3) rose by nearly 12 per cent on Monday on the basis of a positive increase in measured and indicated resources at its Panuco project in Mexico.
Vizsla has been actively involved in exploring and developing this asset, which spans over 17,000 hectares in a historic mining district known for its high-grade silver and gold potential.
The company announced a 43 per cent increase in measured and indicated mineral resources at Panuco. This update includes the first measured resource estimate for the project. This has 46 million ounces grading at 640 grams per tonne of silver equivalent (AgEq). This substantial increase in resource confidence and volume is a key milestone for the project. It also brings the total resources close to 400 million ounces AgEq.
Additionally, the company has commenced test mining and a bulk sample program at Panuco. The aim for which is validating geotechnical models and gaining operational insights. This initiative moves the project closer to a potential construction decision by providing practical data on mining conditions and resource models.
Vizsla Silver has been focusing on converting resources into higher confidence categories, which is part of its strategy to enhance the project’s overall grade profile. The infrastructure at Panuco includes established roads, power, and permits, which support the project’s advancement. The company has also moved forward with a feasibility study, targeting completion in the second half of 2025.
The surge in silver prices past the USD$30 mark, influenced by global economic factors like a weakening US dollar and expectations of tariff relief, has positioned silver mining projects like Panuco advantageously.
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Vizsla to transition Panuco from exploration to development
The market sentiment for silver appears bullish, with analysts predicting further price increases, which could significantly benefit Vizsla Silver’s project economics. This backdrop of increasing silver value, combined with Vizsla’s operational progress, suggests a promising future for the company’s stock and project development.
Vizsla Silver has also highlighted its commitment to sustainable practices through its inaugural Sustainability Report, focusing on responsible corporate citizenship. This aspect is gaining importance in the mining sector as stakeholders increasingly demand environmentally and socially responsible operations.
With the ongoing feasibility study, Vizsla Silver aims to transition Panuco from exploration to development and potentially into production by 2027. The company’s aggressive exploration and development strategy, coupled with a robust increase in resources, positions Panuco as a potentially leading silver asset. However, like all mining endeavours, it’s subject to various risks including market volatility, operational challenges, and regulatory hurdles in Mexico.
Vizsla Silver centred the Updated Mineral Resource Estimate on the western portion of Panuco, including the high-priority Copala area, which remains a key contributor to the district’s resource potential.
“This update reflects the excellent mineralized continuity that exists at Copala,” said Michael Konnert, Vizsla’s president and CEO.
“Reducing the space between drill holes at Copala to 25 metres has resulted in a significantly higher-grade profile in the upper levels of the resource and PEA mine plan.”
The estimate covers approximately 8.6 km of the district’s 86 km of known cumulative vein strike. It incorporates data from 157 new infill and expansion drill holes (69,754 metres) completed between September 2023 and September 2024. In total, Vizsla Silver based the estimate on a drill database of 979 holes (372,685 metres) conducted since November 2019, with Copala playing a significant role in these updates.
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