Vizsla Provides Drilling Update and Discovers High Grades in Outcrop Samples (VZLA-TSX-V)
Vizsla Provides Drilling Update and Discovers High Grades in Outcrop
Samples
(VZLA-TSX-V)
VANCOUVER, May 12, 2020 /CNW/ - Vizsla Resources Corp. (TSX-V: VZLA)
(OTCQB: VIZSF) (Frankfurt: 0G3) ("Vizsla" or the "Company") is pleased to announce
the latest results from the Company's exploration program at the Panuco silver-gold
district in Mexico. Seven holes have been completed on the Honduras Vein with high
grade intercepts returned. Infill surface and underground sampling of the Animas,
Cordon del Oro and Napoleon vein corridors are also reported. To date, the Company
has completed 25% of its initial discovery drill campaign for 3,639 metres of a total
14,500 metre drilling program. Drilling is expected to restart at the Panuco project
shortly.
Drilling continues to define sizeable widths and good grades on the veins, particularly
on the northern section of the extensively mined Animas vein corridor. The Company is
also highly encouraged by the results of sampling on the Cordon del Oro corridor, the
next vein corridor to the west of Animas. Cordon del Oro has never been drilled and is
essentially unexplored yet is demonstrating thick vein widths and high grades. Vizsla's
review of data generated over the past months has determined that this corridor offers
an excellent opportunity to make significant discoveries. With more than $2.5 million in
cash, Vizsla is well-funded for this work and looks forward to reporting results as soon
as possible.
Drilling Highlights
• 4.35 metres at 275 g/t silver equivalent (208.5 grams per tonne ("g/t") silver and
0.83 g/t gold) in hole AMS-20-08 – Honduras Vein including;
o 556 g/t silver equivalent (432.0 g/t silver and 1.55 g/t gold) over 1.0 metres
• 2.6 metres at 232 g/t silver equivalent (150.6 g/t silver and 1.02 g/t gold) in hole
AMS-20-12 – Honduras Vein including;
o 461 g/t silver equivalent (294.0 g/t silver and 2.09 g/t gold) over 0.7 metres
Note: All numbers are rounded and widths represent downhole lengths. True widths are estimated at between 57-82% of
downhole lengths. Silver equivalent is calculated by multiplying the gold grade by 80 and adding it to the silver grade. All
calculations assume 100% metallurgical recovery.
Sampling Highlights
• 3.2 metres at 1,365 g/t silver equivalent (44.1 g/t silver and 16.52 g/t gold) at
Mojocuan 2 prospect on Cordon del Oro Vein including;
o 3,131.8 g/t silver equivalent (75.8 g/t silver and 38.2 g/t gold) over 1.0
metres
• 11.9 metres at 273.4 g/t silver equivalent (140.0 g/t silver and 1.67 g/t gold) at
Rosarito prospect – Animas Vein including;
o 556.6 g/t silver equivalent (249.2 g/t silver and 3.84 g/t gold) over 2.9
metres
• 4.2 metres at 479.9 g/t silver equivalent (229.7 g/t silver and 3.13 g/t gold) at
Napoleon 4 prospect – Napoleon Vein including;
o 1,467.0 g/t silver equivalent (655.0 g/t silver and 10.15 g/t gold) over 1.2
metres
Note: All numbers are rounded, and widths represent true widths. Silver equivalent is calculated by multiplying the gold grade by
80 and adding it to the silver grade. All calculations assume 100% metallurgical recovery.
Vizsla continues to aggressively explore the Panuco project with a systematic program
of vein prospecting, detailed surface and underground mapping and sampling, and
discovery-oriented drilling. Drill holes AMS-20-08 and AMS-20-12 at the Honduras Vein
show the continuation of high-grade mineralization from surface though the specific
geometry of mineralization to depth is not yet well understood. Vein prospecting has
generated several new areas requiring immediate follow up while detailed mapping has
generated spectacular assays that upgrade targets along the Cordon del Oro and
Napoleon vein corridors.
CEO Michael Konnert stated "The Panuco silver district continues to offer excellent
results and significant discovery potential. Detailed mapping has still only been
completed on 19% of the cumulative vein strike length and both Vizsla and historical
drilling on 10%, demonstrating the impressive scale of this silver district. The Cordon del
Oro and Napoleon veins have never been drilled. These two veins will be the first
targets drilled when drilling resumes. The Concordia district, where Panuco is located, is
fortunate to have no COVID-19 cases and the Company is working with local authorities
to recommence drilling in mid to late May if infection rates remain low."
Complete table of drillhole intersections
Prospect Drillhole FROM To Width Silver Gold
Silver
Equivalent
(m) (M) (m) (g/t) (g/t) (g/t)
Honduras AMS-20-08 170.80 175.15 4.35 208.5 0.83 274.7
Incl. 171.80 172.80 1.0 432.0 1.55 556.0
AMS-20-09 215.00 215.50 0.5 67.4 0.24 86.2
AMS-19-10 No Significant Intersection
AMS-19-11 No Significant Intersection
AMS-20-12 138.30 140.90 2.6 150.6 1.02 231.8
Incl. 138.80 139.50 0.7 294 2.09 461.2
AMS-20-13 No Significant Intersection
AMS-20-14 203.50 204.40 0.9 78.5 0.82 143.9
And 260.60 261.00 0.4 18.7 1.48 136.7
Table 1: Downhole drill intersections from the holes completed at the Honduras Vein,
Panuco.
All numbers are rounded and widths represent downhole lengths. True widths are
estimated at between 57-82% of downhole lengths. Silver equivalent is calculated by
multiplying the gold grade by 80 and adding it to the silver grade. All calculations
assume 100% metallurgical recovery.
Selected surface and underground sample results
Vein Prospect Location Width
(m)
Silver
(g/t)
Gold
(g/t)
Silver
Equivalent
(g/t)
Cordon del Oro Mojocuan 2 Surface 3.2 44.1 16.52 1,365.4
Incl. 1.0 75.8 38.20 3,131.8
Mojocuan 2 Surface 5.9 248.5 1.64 379.5
Incl. 1.4 412.0 3.42 685.6
Mojocuan 2 Surface 1.4 426.0 2.43 620.4
Peralta Surface 2.0 879.6 0.63 929.6
Incl. 1.3 959.0 0.65 1,011.1
Animas Pecari Surface 0.7 721.7 5.05 1,125.7
Rosarito Underground 11.9 140.0 1.67 273.4
Incl. 2.9 249.2 3.84 556.6
Rosarito Underground 8.65 205.3 0.77 267.0
Incl. 2.4 558.0 1.48 676.4
Rosarito Surface 4.5 171.0 1.75 311.1
Incl. 1.5 264.0 3.19 519.2
Rosarito Underground 4.0 232.3 2.54 435.2
La Gallina Surface 0.8 46.0 6.96 602.8
Esperanza Surface 0.6 620.0 3.34 887.2
Chinacates Underground 0.7 673.0 1.64 803.8
El Aventurero Underground 0.5 628.0 5.95 1,104.0
El Tiempo Underground 0.8 443.0 3.16 695.8
El Tiempo Underground 2.2 261.9 1.80 406.1
Incl. 1.2 316.0 2.58 522.4
Napoleon Napoleon-04 Surface 4.2 229.7 3.13 479.9
Incl. 1.2 655.0 10.15 1,467.0 Napoleon-07 Surface 1.0 320.0 6.48 838.4
Table 2: Selected vein sampling results from Surface and Underground mapping,
Panuco.
Note: All numbers are rounded and sample widths are estimated at 85%-100% of true widths. Silver equivalent is calculated by
multiplying the gold grade by 80 and adding it to the silver grade. All calculations assume 100% metallurgical recovery.
Figure 1: Plan map showing sampling results and Honduras location with selected
results labelled. (CNW Group/Vizsla Resources Corp.)
Drilling Detail
Drill holes AMS-20-08 through AMS-20-14 were drilled from two drills pads to test the
Honduras vein which is located just to the north of the town of Panuco. The Honduras
vein is a near vertical vein that saw limited shallow mining in the late 1800's. These drill
holes tested beneath the northern part of those mines and further north along strike.
Very encouraging surface values were reported in the Company's press release on
March 9, 2020. AMS-20-08 was the first test hole and returned 4.35m at 275 g/t silver
equivalent (208.5 g/t silver and 0.83 g/t gold). That intercept included 556 g/t silver
equivalent (432.0 g/t silver and 1.55 g/t gold) over 1.0m approximately 70m below
surface. The mineralization was in a massive quartz vein with irregular patches of very
fine-grained argentite. AMS-20-09 was drilled 50m to the north and returned 86.2 g/t
silver equivalent over 0.5m. Drill holes AMS-20-10 and 11 were drilled 50m to the south
and down dip of the first hole and returned no significant intersections.
The next three holes were drilled from a pad 200m to the NNE of the first holes. AMS-
20-12 returned 2.6m at 232 g/t silver equivalent (150.6 g/t silver and 1.02 g/t gold),
including 461 g/t silver equivalent (294.0 g/t silver and 2.09 g/t gold) over 0.7m. The
mineralization in this hole was mainly massive white quartz with minor fine-grained
argentite and minor bands of amethyst. Hole AMS-20-13 was drilled approximately 70m
beneath this hole and intersected a wide (12.8m) vein though failed to return significant
values. Hole AMS-20-14 was drilled 50m to the south and returned 143 g/t silver
equivalent over 0.9m and 136.7 g/t silver equivalent over 0.4m.
Mineralization is open between the drilled areas and to the north and further drilling is
required to understand the controls on higher grade mineralization.
Figure 2: Honduras Longsection looking to the northwest. (CNW Group/Vizsla
Resources Corp.)
Detailed Mapping and Sampling
Detailed mapping has continued at the Panuco project to follow-up initial prospecting
results at the northern end of the Animas Vein, along Cordon del Oro and along
Napoleon. The work has been undertaken to finalise drill targeting and prioritisation.
In the northern end of the Animas Vein Corridor, a number of narrow, but often high-
grade, northeast trending veins have been sampled including the Pecari, Chinacates,
La Gallina, El Aventurero and El Tiempo. Some of these veins have seen significant
underground development.
Where the La Gallina vein intersects the main Animas vein a large mined out area
known as the Rosarito mine has been sampled. That sampling has revealed a vein up
to 11.9 metres wide with consistent mineralisation. Drilling this target beneath the lowest
level of mine workings will be the next target along the Animas vein corridor.
The Cordon del Oro vein has never been drilled and presents as an over six-kilometre-
long vein with locally significant widths. The vein dips steeply to the northeast and is
interpreted to exploit the opposite side of a graben basin fault to the Animas Vein.
Locally it has workings down to 50 metres below surface in at least three mines. The
higher overall elevation and higher gold content indicate it could be a fully preserved
analogue to the Animas vein.
Within the Cordon del Oro corridor the Mojocuan 2 prospect returned excellent gold
results over a 1.4-5.9m wide vein in systematic sampling. It will be the first target drilled
along the trend once man portable drill pads have been constructed. Further along the
trend to the southeast zones of mineralization at Mojocuan 1, Cobriza, El Creston and
Peralta have a regular periodicity along trend suggesting potential for repeated zones of
dilation. In the far south very high grades from Peralta strongly upgrade this target.
Detailed mapping and the compilation of historic sampling from the Napoleon 7 mine
have refined drill targets along the corridor. The Napoleon vein locally splits into two
0.5-2m wide veins with locally very high grades that remain open at the lowest level of
the mine. Drilling at the Napoleon 7 and Napoleon 4 prospects has been prioritised and
will be the first targets drilled on upon resumption of the program.
COVID-19 Update and Restart of Drilling Program
In compliance with government requirements, work on the Panuco project has been on
hold due to the COVID-19 pandemic. The government of Mexico has announced
municipalities with no or a very low number of COVID-19 cases can transition back to
work beginning on the 18th of May. The Concordia municipality has yet to record a
COVID-19 case, and as such the Company is planning to recommence drilling next
week. The Company will start with one drill rig and supporting crew and then will safely
ramp up to prior levels.
The Company plans on adding a second rig to the Panuco project to complete the
announced 14,500 metre program and is planning for a second drill rig to be operating
at the beginning of June. With two drill rigs the Company expects to maintain its
previously stated goal of completing its discovery-oriented drilling program in 2020 and
upon success resource drilling will be the 2021 focus.
Drill Collar Table
Prospect
Drillhole
Name
Easting
(m)
NORTHING
(m)
ELEVATION
(M)
DIP
(o)
Azimuth
(o)
HOLE
DEPTH
(M)
Honduras AMS-20-08 408183.6 2591417.8 657.0 -45 300 216.0
AMS-20-09 408184.3 2591418.8 657.0 -45 323 226.5
AMS-19-10 408184.0 2591415.2 657.0 -45 269 177.4
AMS-19-11 408184.4 2591416.9 656.9 -57 301 287.9
AMS-20-12 408233.3 2591613.0 702.7 -55 315 334.5
AMS-20-13 408233.3 2591613.0 702.7 -68 315 247.5 AMS-20-14 408232.0 2591611.0 702.7 -68.5 280 307.5
Table 3: Drill hole details. Coordinates in WGS84, Zone 13.
About the Panuco project
Vizsla has an option to acquire 100% of the newly consolidated 9,386.5 Ha Panuco
district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the
acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 kms of underground
mines, tailings facilities, roads, power and permits.
The district contains intermediate to low sulfidation epithermal silver and gold deposits
related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host
rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.
Quality Assurance / Quality Control
Drill core and rock samples were shipped to ALS Limited in Zacatecas, Zacatecas,
Mexico and in North Vancouver, B.C. Canada for sample preparation and for analysis at
the ALS laboratory in North Vancouver. The ALS Zacatecas and North Vancouver
facilities are ISO 9001 and ISO/IEC 17025 certified. Silver and base metals were
analyzed using a four-acid digestion with an ICP finish and gold was assayed by 30-
gram fire assay with atomic absorption ("AA") spectroscopy finish. Overlimits analyses
for silver, lead and zinc were re-assayed using an ore-grade four-acid digestion with AA
finish.
Control samples comprising certified reference samples, duplicates and blank samples
were systematically inserted into the sample stream and analyzed as part of the
Company's quality assurance / quality control protocol.
Qualified Person
The technical or scientific information in this press release has been reviewed and
approved by Stewart Harris, P.Geo. for the Company. Mr. Harris serves as a Qualified
Person under the definition of National Instrument 43-101.
Investor Relations
Vizsla would also like to disclose that it has retained Peak Investor Marketing Corp.
Peak provides full service marketing and consulting services focused on the junior
mining sector. Peak will assist Vizsla Resources Corp. with marketing strategy and
planning, corporate communications and public relations, with the goal of increasing
market awareness of the company. Under the terms of the Agreement, the Company
will compensate Peak Investor Marketing $10,000 per month on a month to month
basis. The Company has also issued Peak 175,000 stock options.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward‐Looking Statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and "forward‐looking
information" under applicable Canadian securities laws. When used in this news
release, the words "anticipate", "believe", "estimate", "expect", "target", "plan",
"forecast", "may", "would", "could", "schedule" and similar words or expressions, identify
forward‐looking statements or information. These forward‐looking statements or
information relate to, among other things: the development of Panuco, including
potential drill targets; future mineral exploration, development and production including
the identification of drill targets and commencement of drilling; and completion of a
maiden drilling program
Forward‐looking statements and forward‐looking information relating to any future
mineral production, liquidity, enhanced value and capital markets profile of Vizsla, future
growth potential for Vizsla and its business, and future exploration plans are based on
management's reasonable assumptions, estimates, expectations, analyses and
opinions, which are based on management's experience and perception of trends,
current conditions and expected developments, and other factors that management
believes are relevant and reasonable in the circumstances, but which may prove to be
incorrect. Assumptions have been made regarding, among other things, the price of
silver, gold and other metals; costs of exploration and development; the estimated costs
of development of exploration projects; Vizsla's ability to operate in a safe and effective
manner and its ability to obtain financing on reasonable terms.
These statements reflect Vizsla's respective current views with respect to future events
and are necessarily based upon a number of other assumptions and estimates that,
while considered reasonable by management, are inherently subject to significant
business, economic, competitive, political and social uncertainties and contingencies.
Many factors, both known and unknown, could cause actual results, performance or
achievements to be materially different from the results, performance or achievements
that are or may be expressed or implied by such forward‐looking statements or forward-
looking information and Vizsla has made assumptions and estimates based on or
related to many of these factors. Such factors include, without limitation: satisfaction or
waiver of all applicable conditions to closing of the Acquisition including, without
limitation, receipt of all necessary approvals or consents and lack of material changes
with respect to Vizsla and Canam and their respective businesses, all as more
particularly set forth in the Acquisition agreement; the synergies expected from the
Acquisition not being realized; business integration risks; fluctuations in general macro‐
economic conditions; fluctuations in securities markets and the market price of Vizsla's
common shares; and the factors identified under the caption "Risk Factors" in Vizsla's
management discussion and analysis. Readers are cautioned against attributing undue
certainty to forward‐looking statements or forward-looking information. Although Vizsla
has attempted to identify important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be anticipated, estimated
or intended. Vizsla does not intend, and does not assume any obligation, to update
these forward‐looking statements or forward-looking information to reflect changes in
assumptions or changes in circumstances or any other events affecting such
statements or information, other than as required by applicable law.
SOURCE Vizsla Resources Corp.
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CO: Vizsla Resources Corp.
CNW 07:00e 12-MAY-20