Vizsla Silver Announces Major Mineral Resource Update FOR Panuco Silver-GOLD Project Driven BY Significant Growth at the Copala Vein
VIZSLA SILVER ANNOUNCES MAJOR
MINERAL RESOURCE UPDATE FOR PANUCO
SILVER-GOLD PROJECT DRIVEN BY
SIGNIFICANT GROWTH AT THE COPALA VEIN
NYSE: VZLA TSX-V: VZLA
VANCOUVER, BC
,
Jan. 24, 2023
/CNW/ -
Vizsla Silver Corp.
(NYSE: VZLA) (TSXV: VZLA)
(
Frankfurt
: 0G3) ("
Vizsla Silver
" or the "
Company
") is pleased to announce an updated mineral
resource estimate ("
Updated
Mineral Resource Estimate
") for its flagship, 100% owned
Panuco
silver-gold project (the "
Project
" or "
Panuco
") located in
Sinaloa, Mexico
. The Updated Mineral
Resource Estimate was completed by
Allan Armitage
, Ph.D., P.Geo., of SGS Geological Services.
Highlights of the Updated Mineral Resource Estimate including comparison to
the maiden mineral resource estimate released in
March 2022
:
71% increase in indicated mineral resources from 61.1 to 104.8 Moz AgEq
150% increase in inferred mineral resources from 45.6 to 114.1 Moz AgEq
14% increase in average indicated mineral resource grade from 383 to 437 g/t AgEq
42% increase in average inferred mineral resource grade from 345 to 491 g/t AgEq
Copala Structure
Copala
indicated mineral resources hosts 51.1 Moz AgEq an increase of 701%, at a
grade of 516 g/t AgEq
Copala
inferred mineral resources hosts 55.4 Moz AgEq an increase of 198%, at a grade
of 617 g/t AgEq
Copala
wireframe averages
10m
in thickness
Key Statistics
93% of the value of the Updated Mineral Resource Estimate is comprised of precious
metals, including 59% from silver
A total of 10 epithermal veins were included in the Updated Mineral Resource Estimate,
representing ~10% of the known vein strike in the district
Total all-in exploration cost of
US$0.19
/oz AgEq discovered (
US$0.15
/oz AgEq
discovered since
March 2022
)
Indicated Mineral Resources
are estimated at 7.5 million tonnes ("Mt") grading 243 grams per
tonne ("g/t") silver, 2.12 g/t gold, 0.23% lead, and 0.71% zinc (
437 g/t silver equivalent
("AgEq")).
The Updated Mineral Resource Estimate includes indicated mineral resources of 58.3 million ounces
("Moz") of silver, 508 thousand ounces ("koz") of gold, 17.0 kilo tonnes ("kt") of lead, and 53.3 kt of
zinc (
104.8 Moz AgEq
).
Inferred Mineral Resources
are estimated at 7.2 Mt grading 304 g/t silver, 2.14 g/t gold, 0.19%
lead, and 0.54% zinc (
491 g/t AgEq
). The Updated Mineral Resource Estimate includes inferred
mineral resources of 70.7 Moz of silver, 496 koz of gold, 13.6 kt of lead, and 39.3 kt of zinc (
114.1
Moz AgEq
).
The Updated Mineral Resource Estimate is centred on the western portion of
Panuco
,
encompassing ~8 km of the known 86 km of cumulative vein strike in the district. The Updated
Mineral Resource Estimate includes 198 new infill/expansion holes (82,140 metres) completed by
Vizsla Silver between
December 2021
and
September 2022
. In total, the updated Mineral Resource
Estimate is based on a total drill database of 644 holes (202,709 metres) completed by Vizsla Silver
since
November 2019
.
"We are very pleased to deliver this updated resource, representing yet another major milestone
for Vizsla Silver as we continue to grow and de-risk the high-grade mineralization at
Panuco
,"
commented
Michael Konnert
, President and CEO
. "We have now delineated approximately 60
million ounces of silver and 508 thousand ounces of gold in the indicated category and 70 million
ounces of silver and 496 thousand ounces of gold in the inferred category with significant upside
potential remaining in the district. Most impressive is the material growth to the precious metals-
rich
Copala
structure, where successful drilling throughout 2022 contributed to a 701% increase in
indicated mineral resources to 51.1Moz AgEq and a 198% increase in inferred mineral resources
to 55.4 Moz AgEq. Additionally, the inclusion of the high-grade Cristiano structure, which can
conceptually be developed alongside
Copala
, represents a near surface high grade feed source.
The updated resource estimate comes only 10 months from the maiden resource estimate at a
discovery cost of
US$0.15
per added ounce and is based on a total of 10 veins representing only
10% of the known vein strike in the district. Going forward, 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. This, along with previous drilling completed toto
date, will support a potential mineral resource estimate update in the second half of 2023. This is
an incredible achievement that required substantial effort from the entire Vizsla Silver team,
including our contractors and local communities. I want to thank everyone involved for their
commitment and contribution to this achievement and look forward to another successful year of
growth and discovery in 2023."
Vizsla Silver will be hosting a webcast to discuss the Updated Mineral Resource Estimate at
8:00am PT on
Wednesday, January 25, 2023
.
To register, please click
here
.
A technical report is being prepared on the Updated Mineral Resource Estimate in accordance with
National Instrument 43-101 ("
NI-43-101
") and will be available on the Company's website and
SEDAR within 45 days of the date of this release. The effective date of the Updated Mineral
Resource Estimate is
January 12, 2023
.
Panuco Project Resource Summary –
January 2023
(150 g/t AgEq cut-off)
Classification
Tonnes
Average Grade
Contained Metal
Ag
Au
Pb
Zn
AgEq
Ag
Au
Pb
Zn
AgEq
(Mt)
(g/t)
(g/t)
( %)
( %)
(g/t)
(koz)
(koz)
(kt)
(kt)
(koz)
Maiden Mineral Resource Estimate
1
Indicated
5.0
191
2.08
0.26
0.50
383
30,501
331
13.0
24.6
61,137
Inferred
4.1
187
1.79
0.13
0.30
345
24,704
236
5.3
12.4
45,555
Updated Mineral Resource Estimate
2
Indicated
7.5
243
2.12
0.23
0.71
437
58,330
508
17.0
53.3
104,793
Inferred
7.2
304
2.14
0.19
0.54
491
70,672
496
13.6
39.3
114,113
1
AgEq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram). Metal price assumptions are $20.70/oz silver, $1,655/oz gold, $1,902/t
lead, $2,505/t zinc.
2
AgEq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram). Metal price assumptions are $24.00/oz silver, $1,800/oz gold, $2,425/t
lead and $2,976/t zinc.
Panuco Project Indicated & Inferred Mineral Resource Summary by Vein (150 g/t AgEq cut-
off)
Classification
Tonnes
Average Grade
Contained Metal
Ag
Au
Pb
Zn
AgEq
Au Eq
Ag
Au
Pb
Zn
AgEq
AuEq
(Mt)
(g/t)
(g/t)
( %)
( %)
(g/t)
(g/t)
(koz)
(koz)
(kt)
(kt)
(koz)
(koz)
Indicated
Copala
3.1
343
2.22
0.06
0.12
516
6.88
33,999
220
1.9
3.6
51,106
681
Tajitos
0.6
329
2.09
0.10
0.17
496
6.62
6,197
39
0.6
1.0
9,337
124
Cristiano
0.2
414
2.54
0.08
0.19
614
8.19
2,022
12
0.1
0.3
3,003
40
Copala Area Total
3.8
344
2.21
0.07
0.13
517
6.89
42,218
271
2.6
4.9
63,446
846
Napoleon
3.3
135
1.99
0.41
1.39
351
4.68
14,186
209
13.5
45.2
36,814
491
Napoleon HW
0.3
151
1.45
0.22
0.79
298
3.97
1,407
14
0.6
2.3
2,767
37
Josephine
0.1
179
5.13
0.33
0.94
610
8.13
519
15
0.3
0.8
1,766
24
NP Area Total
3.6
138
2.02
0.40
1.33
353
4.71
16,112
237
14.4
48.3
41,347
551
Total Indicated
7.5
243
2.12
0.23
0.71
437
5.83
58,330
508
17.0
53.3
104,793
1,397
Inferred
Copala
2.8
433
2.31
0.11
0.21
617
8.23
38,838
207
3.2
5.7
55,409
739
Tajitos
0.7
340
2.08
0.20
0.32
514
6.85
7,740
47
1.4
2.3
11,713
156
Cristiano
0.4
604
3.82
0.18
0.32
908
12.11
7,494
47
0.7
1.2
11,273
150
Copala Area Total
3.9
433
2.42
0.14
0.24
627
8.36
54,072
302
5.3
9.3
78,395
1,045
Napoleon
1.7
149
1.59
0.29
1.06
318
4.24
8,129
87
4.9
18.1
17,393
232
Napoleon HW
0.4
176
1.58
0.23
1.00
341
4.54
2,025
18
0.8
3.6
3,910
52
Josephine
0.2
110
3.28
0.24
0.67
389
5.19
817
24
0.5
1.6
2,891
39
Cruz
0.4
123
2.62
0.24
1.16
371
4.95
1,490
32
0.9
4.4
4,514
60
NP Area Total
2.7
145
1.88
0.27
1.03
335
4.46
12,461
161
7.2
27.6
28,708
383
San Antonio
0.3
226
1.30
0.01
0.03
325
4.33
2,038
12
0.0
0.1
2,936
39
*Animas
0.4
169
1.68
0.29
0.60
327
4.37
2,101
21
1.1
2.3
4,074
54
Total Inferred
7.2
304
2.14
0.19
0.54
491
6.55
70,672
496
13.6
39.3
114,113
1,521
*Animas is Rosarito and Cuevillas veins
Note:
AgEq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram). Metal price assumptions are $24.00/oz silver, $1,800/oz gold, $2,425/t lead
and $2,976/t zinc.
AuEq = Au ppm + (((Ag ppm x Ag price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Au price/gram). Metal price assumptions are $24.00/oz silver, $1,800/oz gold, $2,425/t lead
and $2,976/t zinc.
Panuco Project Indicated & Inferred Mineral Resource Sensitivity Table
Classification
COG AgEq
Tonnes
Average Grade
Contained Metal
Ag
Au
Pb
Zn
AgEq
Ag
Au
Pb
Zn
AgEq
(Mt)
(g/t)
(koz)
( %)
( %)
(g/t)
(koz)
(koz)
(kt)
(kt)
(koz)
Indicated:
>=300 ppm
3.8
380
3.28
0.24
0.70
661
45,989
397
9.1
26.5
79,969
>=250 ppm
4.6
339
2.92
0.24
0.73
594
49,543
428
10.8
33.2
86,858
>=200 ppm
5.7
294
2.54
0.24
0.73
520
53,574
464
13.4
41.4
94,831
>=150 ppm
7.5
243
2.12
0.23
0.71
437
58,330
508
17.0
53.3
104,793
>=120 ppm
9.0
213
1.86
0.22
0.69
386
61,400
537
19.5
61.7
111,255
>100 ppm
10.2
194
1.70
0.21
0.66
354
63,419
554
21.1
67.3
115,469
Inferred:
>=300 ppm
4.0
456
3.13
0.20
0.47
716
59,148
406
8.3
18.9
92,784
>=250 ppm
4.8
410
2.83
0.20
0.48
647
62,677
433
9.6
23.1
98,968
>=200 ppm
5.7
362
2.51
0.20
0.52
576
66,412
461
11.1
29.5
105,757
>=150 ppm
7.2
304
2.14
0.19
0.54
491
70,672
496
13.6
39.3
114,113
>=120 ppm
8.6
268
1.89
0.18
0.53
436
73,709
519
15.3
45.5
119,802
>100 ppm
9.8
241
1.71
0.17
0.52
394
75,803
538
17.1
50.7
124,190
Panuco Project Updated Mineral Resource Estimate Notes:
The classification of the Updated Mineral Resource Estimate into indicated and inferred mineral
resources is consistent with current 2014 CIM Definition Standards for Mineral Resources and
Mineral Reserves. The effective date for the Updated Mineral Resource Estimate is
January 12,
2023
.
All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add
due to rounding.
All mineral resources are presented undiluted and in situ, constrained by continuous 3D
wireframe models, and are considered to have reasonable prospects for eventual economic
extraction.
Mineral resources are not mineral reserves. Mineral resources which are not mineral reserves
do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral Resource and must not be converted to a
Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued exploration.
The database comprises a total of 644 drill holes for 202,709 metres of drilling completed by
Vizsla Silver between
November 2019
and
September 2022
.
The mineral resource estimate is based on 21 three-dimensional ("3D") resource models,
constructed in Leapfrog, representing the Napoleon area (10 wireframes), the
Copala
area (4
wireframes),
Tajitos
(1 wireframe), Animas (5 wireframes) and
San Antonio
(1 wireframe).
Silver, gold, lead and zinc were estimated for each mineralization domain in the Panuco Project.
Blocks within each mineralized domain were interpolated using 1.5 metre capped composites
assigned to that domain. To generate grade within the blocks, the inverse distance squared
(ID
2
) interpolation method was used for all domains. All estimates are based on variable block
dimensions (by deposit area) and estimation search parameters (by domain).
Average density values were assigned per zone based on 511 samples analysed by ALS in
Zacatecas, Mexico
or inhouse with 5% checks by ALS.
It is envisioned that the Panuco Project deposits may be mined using underground mining
methods. Mineral resources are reported at a base case cut-off grade of 150 g/t AgEq. The
mineral resource grade blocks were quantified above the base case cut-off grade, below
surface and within the constraining mineralized wireframes.
The base-case AgEq Cut-off grade considers metal prices of
$24.00
/oz Ag,
$1800
/oz Au,
$2425
/t Pb and
$2976
/t Zn and considers metal recoveries of 93% for silver, 90% for gold,
94% for Pb and 94% for Zn.
The base case cut-off grade of 150 g/t AgEq considers a mining cost of
US$45.00
/t rock and
processing, treatment and refining, transportation and G&A cost of
US$50.00
/t of mineralized
material.
The Updated Mineral Resource Estimate may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
The Company remains well-funded to complete its ongoing 90,000-metre 2023 drill program with
seven drill rigs designed to upgrade and expand the Project's resource base and test high priority
targets located in the west, central and eastern areas of the district. Dependent on ongoing
exploration success, the Company plans to publish a further update to the Updated Mineral
Resource Estimate in the second half of 2023.
Discovery Costs
To date, the Company has incurred an aggregate of approximately
US$41.8 million
in exploration
expenditures over the life of the Project. This equates to an estimated discovery cost per silver
equivalent ounce of
US$0.19
for resources defined in the Updated Mineral Resource Estimate.
About the
Panuco
project
The newly consolidated
Panuco
silver-gold project is an emerging high-grade discovery located in
southern
Sinaloa, Mexico
, near the city of Mazatlán. The 6,761-hectare, past producing district
benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, 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.
About Vizsla Silver
Vizsla Silver is a Canadian mineral exploration and development company headquartered in
Vancouver, BC
, focused on advancing its flagship, 100%-owned
Panuco
silver-gold project located
in
Sinaloa, Mexico
. To date, Vizsla Silver has completed over 250,000 metres of drilling at
Panuco
leading to the discovery of several new high-grade veins. For 2023, Vizsla Silver has budgeted
90,000 metres of resource/discovery-based drilling, designed to upgrade, and expand the mineral
resource as well as test other high priority targets across the district.
Quality Assurance / Quality Control
Drill core and rock samples were shipped to ALS Limited in
Zacatecas
,
Zacatecas, Mexico
and in
North Vancouver, 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. Over
limit 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 Updated Mineral Resource Estimate was completed by
Allan Armitage
, Ph.D., P.Geo., of SGS
Geological Services. Mr. Armitage is an independent Qualified Person as defined by NI 43-101. Mr.
Armitage has reviewed and approved the technical contents of this news release.
Information Concerning Estimates of Mineral Resources
The scientific and technical information in this news release was prepared in accordance with NI 43-
101 which differs significantly from the requirements of the U.S. Securities and Exchange
Commission (the "
SEC
"). The terms "measured mineral resource", "indicated mineral resource" and
"inferred mineral resource" used herein are in reference to the mining terms defined in the Canadian
Institute of Mining, Metallurgy and Petroleum Standards (the "CIM Definition Standards"), which
definitions have been adopted by NI 43-101. Accordingly, information contained herein providing
descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar
information made public by other U.S. companies subject to
the United States
federal securities laws
and the rules and regulations thereunder.
You are cautioned not to assume that any part or all of the mineral resources will ever be converted
into reserves. Pursuant to CIM Definition Standards, "inferred mineral resources" are that part of a
mineral resource for which quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Such geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An inferred mineral resource has a lower level of
confidence than that applying to an indicated mineral resource and must not be converted to a
mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources
could be upgraded to indicated mineral resources with continued exploration. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. Investors are cautioned not to assume that all or any part of an
inferred mineral resource is economically or legally mineable. Disclosure of "contained ounces" in a
resource is permitted disclosure under Canadian regulations; however, the SEC normally only
permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in
place tonnage and grade without reference to unit measures.
The SEC adopted new mining disclosure rules Pursuant to subpart 1300 of Regulation S-K of the
United States Securities Act of 1933, as amended (the "SEC Modernization Rules"). As a result of
the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "measured
mineral resources", "indicated mineral resources" and "inferred mineral resources". As an eligible
issuer under the Multijurisdictional Disclosure System the Company is exempt from compliance with
the SEC Modernization Rules and information regarding mineral resources contained or referenced
herein may not be comparable to similar information made public by companies that report according
tothe SEC Modernization Rules. While the SEC Modernization Rules are purported to be
"substantially similar" to the CIM Definition Standards, readers are cautioned that there are
differences between the SEC Modernization Rules and the CIM Definitions Standards. Accordingly,
there is no assurance any mineral resources that the Company may report as "measured mineral
resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be
the same had the Company prepared the resource estimates under the standards adopted under
the SEC Modernization Rules.
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 exploration, development, and
production at
Panuco
, including drilling programs, the mobilization of drill rigs
;
and the potential for
underground mining methods; the preparation of a technical report on the Updated Mineral Resource
Estimate; and the potential further update to the Updated Mineral Resource Estimate in the second
half of 2023.
Forward–looking statements and forward–looking information relating to any future mineral
production, liquidity, enhanced value and capital markets profile of Vizsla Silver, future growth
potential for Vizsla Silver 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; no escalation in the severity of the COVID-19 pandemic;
costs of exploration and development; the estimated costs of development of exploration projects;
Vizsla Silver's ability to operate in a safe and effective manner and its ability to obtain financing on
reasonable terms.
These statements reflect Vizsla Silver'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 Silver has made assumptions and estimates
based on or related to many of these factors. Such factors include, without limitation: the Company's
dependence on one mineral project; precious metals price volatility; risks associated with the
conduct of the Company's mining activities in
Mexico
; regulatory, consent or permitting delays; risks
relating to reliance on the Company's management team and outside contractors; risks regarding
mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a
commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate
sufficient cash flow from operations; risks relating to project financing and equity issuances; risks
and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources,
metallurgical recoveries and capital and operating costs of such projects; contests over title to
properties, particularly title to undeveloped properties; laws and regulations governing the
environment, health and safety; the ability of the communities in which the Company operates to
manage and cope with the implications of COVID-19; the economic and financial implications of
COVID-19 to the Company; operating or technical difficulties in connection with mining or
development activities; employee relations, labour unrest or unavailability; the Company's
interactions with surrounding communities and artisanal miners; the Company's ability to successfully
integrate acquired assets; the speculative nature of exploration and development, including the risks
of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among
certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and
the factors identified under the caption "Risk Factors" in Vizsla Silver's management discussion and
analysis. Readers are cautioned against attributing undue certainty to forward–looking statements or
forward-looking information. Although Vizsla Silver 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 Silver 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 Silver Corp.
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For further information:
to sign-up to the mailing list, please contact: Michael Konnert, President
and Chief Executive Officer, Tel: (604) 364-2215, Email: [email protected], Website:
www.vizslasilvercorp.ca
CO: Vizsla Silver Corp.
CNW 06:00e 24-JAN-23