Vizsla Silver Announces Significant Increase IN Contained Ounces and Increase IN Grade of Indicated Category to 551 G/T Ageq IN Updated Mineral Resources Estimate
VIZSLA SILVER ANNOUNCES SIGNIFICANT
INCREASE IN CONTAINED OUNCES AND
INCREASE IN GRADE OF INDICATED
CATEGORY TO 551 G/T AGEQ IN UPDATED
MINERAL RESOURCES ESTIMATE
VANCOUVER, BC
,
Jan. 8, 2024
/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 a comparison to the
previous mineral resource estimate released in
January 2023
:
48.7% increase in indicated mineral resources from 104.8 to 155.8 Moz AgEq
48.7% increase in inferred mineral resources from 114.1 to 169.6 Moz AgEq
17% increase in average indicated mineral resource grade from 437 to 511 g/t AgEq
New addition of La Luisa containing 4.0 Moz AgEq indicated and 25.3 Moz AgEq of
Inferred Resources
Key Statistics:
The Updated Mineral Resource represents less than 10% of the known vein strike of the
newly consolidated district
90% of the value of the Updated Mineral Resource Estimate is comprised of precious
metals, including 56% from silver
A total of 11 epithermal veins were included in the Updated Mineral Resource Estimate
Total all-in exploration cost of
US$0.32
/oz AgEq discovered
Indicated Mineral Resources
are estimated at 9.5 million tonnes ("Mt") grading 289 grams per
tonne ("g/t") silver, 2.41 g/t gold, 0.27% lead, and 0.84% zinc (
511 g/t silver equivalent
("AgEq")).
The Updated Mineral Resource Estimate includes indicated mineral resources of 88.2 million ounces
("Moz") of silver, 736 thousand ounces ("koz") of gold, 25.4 kilotonnes ("kt") of lead, and 79.9 kt of
zinc (
155.8 Moz AgEq
).
Inferred Mineral Resources
are estimated at 12.2 Mt grading 239 g/t silver, 1.93 g/t gold, 0.29%
lead, and 1.03% zinc (
433 g/t AgEq
). The Updated Mineral Resource Estimate includes inferred
mineral resources of 93.7 Moz of silver, 758 koz of gold, 35.4 kt of lead, and 125.3 kt of zinc (
169.6
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 178 new infill/expansion holes (100,222 metres) completed by
Vizsla Silver between
September 2022
and
September 2023
. In total, the Updated Mineral
Resource Estimate is based on a total drill database of 822 holes (302,931 metres) completed by
Vizsla Silver since
November 2019
.
"We are pleased to announce another significant resource update milestone for the high-grade
Panuco
silver gold district,"
commented
Michael Konnert
, President and CEO
. "Although
substantial, this update represents only a moment in time at the Project, as drills continue to turn in
2024."
"The Project's indicated resource now stands at 88 million ounces of silver and 736 thousand
ounces of gold, while the inferred resource contains 94 million ounces of silver and 758 thousand
ounces of gold. This represents a 49% increase in both indicated and inferred ounces and a 17%
increase in indicated grade relative to the previous estimate. Resource focused drilling throughout
2023 was successful in converting almost half of the
January 2023
inferred resource to the
indicated category while exploration drilling added new resources at both
Copala
and Napoleon.
The bulk of this year's resource growth came from the Napoleon Area, largely driven by the
inclusion of La Luisa, which added an additional 25Moz AgEq in inferred mineralization."
"What's most impressive is that although we continue to expand the Project's mineral inventory
year after year, our current resource still accounts for less than 10% of the known veins we have in
the district. Going forward, we will focus on de-risking and advancing the high-grade resource in
the west towards development, taking advantage of the Project's incredible infrastructure, while
simultaneously hunting for the next epicenter of mineralization in the central and eastern portions
of the district. This is an outstanding achievement that comes as a result of hard work and
perseverance. I want to thank everyone from the entire Vizsla team, including our contractors and
local communities, and look forward to another successful year in 2024."
Vizsla Silver will be hosting a webcast to discuss the Updated Mineral Resource Estimate at
10:00am PT on Thursday, January 11th, 2024.
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 September 1, 2023.
Panuco Project Resource Summary (150 g/t AgEq cut-off)
Updated MRE
Previous MRE
Variance
Resource Class
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Tonnes (MT)
9.5
12.2
7.5
7.2
2.0
5.0
Au g/t
2.41
1.93
2.12
2.14
0.29
-0.21
Ag g/t
289
239
243
304
46
-65
Pb %
0.27
0.29
0.23
0.19
0.04
0.10
Zn %
0.84
1.03
0.71
0.54
0.13
0.49
AgEq (g/t)
511
433
437
491
74
-58
AuEq (g/t)
6.81
5.76
5.82
6.55
0.99
-0.79
Au (koz)
736
758
508
496
228
262
Ag (koz)
88,192
93,653
58,330
70,672
29,862
22,981
Pb (kt)
56.0
35.4
17.2
13.7
38.8
21.7
Zn (kt)
79.9
125.3
53.3
38.9
26.6
86.4
1
AgEq (koz)
155,841
169,647
104,793
114,113
51,048
55,534
2
AuEq (koz)
2,076
2,261
1,404
1,516
672
745
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
1
AgEq
2
AuEq
(Mt)
(g/t)
(g/t)
( %)
( %)
(g/t)
(g/t)
(koz)
(koz)
(kt)
(kt)
(koz)
(koz)
Indicated
Copala
4.5
380
2.46
0.08
0.15
573
7.64
55,201
358
3.7
6.9
83,270
1,110
Tajitos
0.6
358
2.24
0.12
0.21
538
7.18
7,295
46
0.7
1.3
10,953
146
Cristiano
0.2
581
3.37
0.25
0.43
858
11.45
3,961
23
0.5
0.9
5,851
78
Copala Area
Total
5.4
385
2.48
0.09
0.17
580
7.74
66,457
427
5.0
9.2
100,074
1,343
Napoleon
3.3
162
2.39
0.52
1.73
425
5.66
17,276
255
17.2
57.4
45,223
603
Napoleon HW
0.4
164
1.72
0.42
1.53
365
4.87
2,259
24
1.8
6.5
5,029
67
Luisa
0.3
177
2.56
0.39
2.01
459
6.12
1556
22
1.1
5.5
4,027
54
Josephine
0.1
221
2.88
0.39
1.11
492
6.56
491
6
0.3
0.8
1,092
15
Cruz
0.0
144
2.01
0.37
1.71
373
4.97
153
2
0.1
0.6
396
5
NP Area
Total
4.1
164
2.34
0.50
1.72
421
5.66
21,735
309
20.4
70.7
55,767
743
Total
Indicated
9.5
289
2.41
0.27
0.84
511
6.81
88,192
736
25.4
79.9
155,841
2,076
Inferred
Copala
3.2
332
1.77
0.12
0.20
476
6.34
33,722
179
3.7
6.2
48,320
644
Tajitos
1.0
365
2.04
0.22
0.39
540
7.21
12,260
69
2.3
4.0
18,140
242
Cristiano
0.7
443
2.54
0.15
0.29
650
8.66
10,213
59
1.1
2.0
14,974
200
Copala Area
Total
4.9
355
1.94
0.15
0.25
515
6.86
56,195
307
7.1
12.3
81,434
1,081
Napoleon
3.2
137
1.64
0.45
1.76
342
4.57
14,045
168
14.4
55.9
35,063
467
Napoleon HW
0.8
220
2.17
0.59
2.02
479
6.39
5,976
59
5.0
17.0
13,027
174
La Luisa
2.0
159
2.13
0.30
1.51
386
5.15
10,439
139
6.0
30.8
25,326
338
Josephine
0.2
161
2.05
0.33
1.00
364
4.85
1161
15
0.7
2.2
2,618
35
Cruz
0.3
170
3.75
0.31
1.48
519
6.91
1698
37
1.0
4.6
5,169
69
NP Area
Total
6.6
157
1.97
0.41
1.68
383
5.10
33,319
418
27.1
110.6
81,203
1,082
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
12.2
239
1.93
0.29
1.03
433
5.76
93,653
758
35.4
125.3
169,647
2,261
*Animas is Rosarito and Cuevillas veins
Panuco Project Indicated & Inferred Mineral Resource Sensitivity Table
Classification
Tonnes
Average Grade
Contained Metal
COG AgEq
Ag
Au
Pb
Zn
AgEq
AuEq
Ag
Au
Pb
Zn
1
AgEq
2
AuEq
(Mt)
(g/t)
(koz)
( %)
( %)
(g/t)
(g/t)
(koz)
(koz)
(kt)
(kt)
(koz)
(koz)
Indicated:
300
5.58
415
3.41
0.31
0.96
718
9.57
74,501
612
17.2
53.5
128,810
1,716
250
6.54
375
3.09
0.3
0.95
653
8.70
78,809
651
19.5
62.2
137,286
1,830
200
7.86
331
2.75
0.29
0.9
581
7.75
83,610
694
22.2
70.8
146,774
1,958
150
9.48
289
2.41
0.27
0.84
511
6.81
88,192
736
25.4
79.9
155,841
2,076
120
10.75
263
2.2
0.25
0.79
467
6.22
91,066
759
26.8
85.3
161,308
2,149
100
11.74
246
2.05
0.24
0.75
437
5.82
92,965
773
27.7
88.5
164,833
2,195
Inferred:
300
6.47
355
2.82
0.36
1.23
634
8.34
73,931
587
23.1
79.4
131,930
1,734
250
7.9
317
2.54
0.34
1.17
565
7.51
80,365
644
26.8
92.1
143,338
1,908
200
9.7
278
2.24
0.32
1.12
499
6.66
86,784
698
30.9
108.4
155,748
2,076
150
12.19
239
1.93
0.29
1.03
433
5.76
93,653
758
35.4
125.2
169,647
2,261
120
14.04
216
1.75
0.28
0.97
393
5.25
97,502
791
38.6
136.1
177,648
2,368
100
15.47
201
1.63
0.26
0.92
367
4.89
99,985
812
40.8
142.9
182,671
2,433
Note:
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 $24.00/oz silver, $1,800/oz gold, $2,425/t lead
and $2,976/t zinc.
2
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 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
September
1, 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 822 drill holes for 302,931 metres of drilling completed by
Vizsla Silver between
November 2019
and
September 2023
.
The mineral resource estimate is based on 28 three-dimensional ("3D") resource models,
constructed in Leapfrog, representing the Napoleon area (15 wireframes), the
Copala
area (7
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 1,919 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 for its ongoing +65,000 metre 2024 drill program with four 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 2024.
Discovery Costs
To date, the Company has incurred an aggregate of approximately
US$103.0 million
in exploration
expenditures over the life of the Project. This equates to an estimated discovery cost per silver
equivalent ounce of
US$0.32
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 7,189.5 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 310,000 metres of drilling at
Panuco
leading to the discovery of several new high-grade veins. For 2024, Vizsla Silver is focused on de-
risking the resource base located in the western portion of the district ahead of a development
decision. Additionally, Vizsla has budgeted +65,000 metres of resource/discovery-based drilling
designed to upgrade and expand the Project's 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
to the 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.
Contact Information:
For more information and to sign-up to the mailing list, please contact:
Michael Konnert
, President and Chief Executive Officer
Tel: (604) 364-2215
Email:
Website:
www.vizslasilvercorp.ca
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:
Michael Konnert, President and Chief Executive Officer, Tel: (604) 364-
2215, Email: [email protected]
CO: Vizsla Silver Corp.
CNW 07:00e 08-JAN-24