(VZLA-TSX-V)
VANCOUVER, BC, Aug. 13, 2020 /CNW/ - Vizsla Resources
Corp. (TSXV: VZLA) (OTCQB: VIZSF) (Frankfurt: 0G3) ("Vizsla" or the
"Company") is pleased to announce a new discovery with the
Company's first drill results from the San Carlos Mine on the
Animas Vein Corridor at the Panuco
silver-gold project ("Panuco") in Mexico. A total of three holes have been
completed to date at San Carlos
with results from the first two reported in this release. The
intersections are from holes testing beneath the water table of the
existing mine workings. The San Carlos Mine is over 6 km east of
the recent discovery at the Napoleon vein corridor.
Drilling Highlight
AM-20-16
- 421 g/t silver equivalent (231.0 grams per tonne
("g/t") silver and 2.19 g/t gold) over 6.75 metres ("m") from
286.40m including;
-
- 1,245 g/t silver equivalent (821.0 g/t silver and
5.08 g/t gold) over 1.5m from
286.4 m.
Note: All numbers are
rounded and widths represent downhole lengths. True widths
are estimated at 56% of the downhole lengths. Silver
equivalent is calculated using the following formula:
Silver-equivalent = ((Au_g/t x 52.48) + (Ag_g/t x 0.5289) /
0.5627). Metal price assumptions are $17.50 g/t silver and
$1,700 g/t gold, recoveries assumptions are 96% gold and 94%
silver, based on similar deposit types.
|
Vice President of Exploration, Charles
Funk, commented: "This discovery of high grades and good
widths at San Carlos further
demonstrates the potential of the Panuco project. With discoveries at two
vein corridors over 6 km apart and four drill rigs in operation,
the scale of the district is being revealed. Drilling under
existing workings continues to prove a viable method for new
discoveries. San Carlos has been
mined down to the water table and underground sampling defined high
grade mineralization that was open beneath the mine workings and
this hole intersected the vein 55m
below known workings."
Figure 1: Plan map showing location of
drill holes, mapped veins and surface and underground sampling at
the San Carlos Mine on the Animas vein. Inset shows detail of
drill collar locations.
Drilling detail
The San Carlos segment of the
Animas Vein Corridor is a roughly north-south trending vein that
dips approximately 50 degrees to the west. This represents a
significant change in orientation compared to the general northwest
trend of the Animas corridor and is likely related to a north –
south trending structure that offsets the main trend and localizes
mineralization at San Carlos. The geological sequence
includes an intrusive diorite unit that structurally overlies an
andesitic lapilli tuff unit. The lower contact of the lapilli
tuff appears to have been intruded by another diorite unit, and the
entire package has been intruded by various andesite to rhyolite
dikes.
The mineralized zone of San
Carlos is bounded by faults, which typically have clay fault
gouge and are themselves bounded by crackle breccia zones away from
the mineralization. The mineralized zone is commonly quite
wide (up to 30 m) and consists of
white quartz hydrothermal breccias with variable amounts of host
lithic clasts or locally re-brecciated quartz vein clasts.
Multiple pulses of veining have occurred with the best grade
material having a grey quartz matrix supporting white or grey vein
clasts that cuts the main white quartz breccia zone. The grey
quartz has very fine-grained argentite and fine-grained
disseminated pyrite, while the white quartz material has lesser
irregular amounts of both argentite and pyrite. Locally there
are patches with amethyst that is likely a later fracturing
event. Once past the footwall fault, there is a zone of
decreasing crackle breccia with quartz fill giving way to calcite
fill and with weak chlorite alteration of the host diorite or
andesite.
Complete table of drillhole intersections
Drillhole
|
From
|
To
|
Width
|
Silver
|
Gold
|
Silver
Equivalent
|
(m)
|
(m)
|
(m)
|
(g/t)
|
(g/t)
|
(g/t)
|
AM-20-15
|
270.95
|
271.30
|
0.35
|
93.5
|
0.61
|
144.9
|
AM-20-16
|
285.45
|
301.70
|
16.25
|
130.5
|
1.14
|
229.0
|
Incl.
|
286.40
|
293.15
|
6.75
|
231.0
|
2.19
|
421.4
|
Incl.
|
286.40
|
287.90
|
1.50
|
821.0
|
5.08
|
1,245.5
|
Table 1: Downhole drill intersections from
the holes completed at San Carlos
on the Animas vein corridor.
Note: All numbers are
rounded and widths represent downhole lengths. True widths
are estimated at between 56-84% of downhole lengths. Silver
equivalent is calculated using the following formula:
Silver-equivalent = ((Au_g/t x 52.48) + (Ag_g/t x 0.5289) /
0.5627). Metal price assumptions are $17.50 g/t silver and
$1,700 g/t gold, recoveries assumptions are 96% gold and 94% silver
based on similar deposit types. The Company is disclosing results
on a silver equivalent basis due to the overall silver dominant
nature of mineralization at the Panuco project.
|
Drilling has been previously completed at the San Carlos Mine by
Silverstone Resources Corp. in the mid 2000's. The core is
stored at the project and has been reviewed by company geologists,
though it was not included in Silverstone's technical
reports. It is unclear if the drilling shows the vein
continuing at depth with lower grades or the drill holes missed the
mineralized zone.
Hole AM-20-15 was drilled to test for a possible shallow
northerly plunge to the mineralized zone and intersected a narrow,
mineralized vein in the hangingwall and a 4.75m intersection of the main vein. The
vein is a well-developed quartz vein but has only anomalous
mineralization
Hole AM-20-16 was drilled to test for a more vertical plunge to
mineralization and intersected a broad well mineralized vein.
Hole AM-20-17 has been completed but assays are yet to be
received. It was designed to test 25m north of the initial discovery and has
intersected a similar vein to AM-20-06
Hole AM-20-18 is in progress and is designed to test
25m to the south of the initial
discovery.
Figure 2: San Carlos long section, looking
east showing underground sampling and the location of Vizsla drill
holes.
Prospect
|
Drillhole
|
Easting
|
Northing
|
Elevation
|
Dip
|
Azimuth
|
Hole
Depth
|
Napoleon
|
AM-20-15
|
409581
|
2588566
|
855
|
-63
|
90
|
348.0
|
|
AM-20-16
|
409581
|
2588566
|
855
|
-45
|
130
|
358.5
|
Table 2: 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, 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 Company's disclosure of technical or scientific information
in this press release has been reviewed and approved by
Stewart Harris, P.Geo., an
independent consultant for the Company. Mr. Harris is a Qualified
Person as defined under the terms of National Instrument
43-101.
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 drilling
activities; future mineral exploration, development and production;
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; no escalation in the severity of the
COVID-19 pandemic; 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: 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'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.