NYSE: VZLA TSX-V:
VZLA
VANCOUVER, BC, Dec. 19,
2023 /CNW/ - Vizsla Silver Corp. (TSXV: VZLA)
(NYSE: VZLA) (Frankfurt: 0G3)
("Vizsla" or the "Company") is pleased to provide a
year-end summary of its activities at its flagship
Panuco silver-gold property (the
"Property" or "Panuco") located in Sinaloa, Mexico and outline the Company's key
objectives/milestones for 2024.
"2023 was yet another exciting year of exploration and growth
at Panuco," commented
Michael Konnert, President &
CEO. "We started off the year with the achievement of an
important milestone by announcing a significant update to the
maiden resource which highlighted a material increase in both
project grade and contained ounces. Drilling throughout the year
continued to expand know mineralization particularly at
Copala which has now doubled in
strike length relative to the January
2023 MRE. Additionally, the exploration team was successful
in making two new discoveries at La Luisa and El Molino, both of
which represent wide, high-grade, near-surface structures with the
potential to add resources within proximity to the main
Copala and Napoleon resource
areas. In early 2023, Vizsla successfully raised $45M to fund its ongoing operational objectives
and more recently, we were delighted to welcome Mexican Mining Hall
of Fame member Eduardo Luna to the
Board of Directors. For 2024, Vizsla remains focused on delivering
value to stakeholders and benefiting the communities in which it
operates. At the project, our goal is to further de-risk the
resource through updated technical studies including a fully
permitted bulk sample and test mine program at Copala and Napoleon. Concurrently, we will
continue exploring new areas of the district with both low-cost
mapping/geophysical surveys and 65,000 meters of planned drilling.
On the corporate side, we expect a series of potential catalysts
will add near-term credibility and value to the Company including
new technical hires to support the next phase of project
development and a spinout of a wholly owned royalty on the
Property. We look forward to another safe and exciting year for
Vizsla and thank everyone for their hard work and continued
support."
Key objectives for 2024
- Deliver an updated MRE for the project in January 2024
- Potential royalty spinout
- Deliver maiden PEA in H1 2024
- Complete updated metallurgical testing in H2 2024
- Advance Bulk Sample / Test Mine program
- Complete +65,000 meters of resource/discovery focused
drilling
- Complete a ~1,100 line-kilometre EM survey and acquire
high-resolution multispectral satellite imagery for the whole
district
2023 Highlights &
Discoveries:
In 2023, Vizsla completed over 98,000 metres of diamond core
drilling designed to expand and upgrade mineral resources in the
western portion of the Panuco
district, particularly at the Copala and Napoleon areas. Mineralization at
Copala has now been traced over
1,770 metres along strike, ~450 metres down dip, and remains open
to the north and southeast. This represents approximately a 97%
increase to the measured strike length of Copala, relative to the 2023 MRE. In addition
to Copala's significant lateral
growth, it continues to be the thickest vein structure discovered
to date in the district, measuring ~9.7 metres (~31 feet) on
average for the entire length of the resource wireframe.
Copala currently hosts an
indicated resource of 51 Moz AgEq and inferred resource of 55 Moz
AgEq based on 80 holes completed to September 2022 (data cut-off for 2023 MRE).
At the Napoleon area, drilling throughout 2023 continued to
demonstrate mineral continuity via infill drilling along the main
Napoleon structure as well as help further define a series of
high-grade splay veins. The Napoleon structure currently hosts an
indicated resource of 37 Moz AgEq and inferred resource of 17 Moz
AgEq based on 258 holes completed to September 2022 (data cut-off for 2023 MRE).
Other notable discoveries include the Luisa Vein and the Molino
Vein. La Luisa is a high-grade structure located ~700 metres west
of Napoleon. To date, 44 holes completed at Luisa have traced
mineralization along 1,670 metres of strike length and to an
average depth of 450 metres. Luisa has an average width of 3.21
metres and a weighted average grade of 497 g/t AgEq El Molino Vein,
situated in between the Copala and
Napoleon resource areas, is a near-surface vein that was discovered
during preliminary condemnation drilling. El Molino is marked by
high precious metal grades up to 1,552 g/t Ag and 8.37 g/t Au over
1.65 metres.
Table of Top 10 Drill Composites of 2023, ordered from
highest to lowest grade AgEq
Drillhole
|
From
|
To
|
Downhole
Length
|
Estimated
True width
|
Ag
|
Au
|
Pb
|
Zn
|
AgEq
|
AgEq
(g/t)*metre
(TW)
|
Vein
|
|
|
|
|
(m)
|
(m)
|
(m)
|
(m)
|
(g/t)
|
(g/t)
|
%
|
%
|
(g/t)
|
|
|
CS-23-265
|
380.6
|
388.95
|
8.35
|
5.89
|
1,403
|
4.24
|
-
|
-
|
1,576
|
9,281
|
Copala
|
|
|
NP-23-395
|
657.1
|
669.3
|
12.2
|
11.2
|
229
|
7.14
|
0.34
|
1.64
|
764
|
8,560
|
La Luisa
Main
|
|
|
NP-23-358
|
501.3
|
513.9
|
12.6
|
5.6
|
257
|
11.13
|
0.42
|
2.03
|
1,076
|
6,027
|
La Luisa
Main
|
|
|
CS-23-254
|
535.4
|
538.3
|
2.9
|
2.14
|
1,319
|
22.46
|
-
|
-
|
2,784
|
5,955
|
Copala
|
|
|
CS-23-253
|
295.4
|
297.5
|
2.1
|
2.1
|
1,920
|
10.91
|
-
|
-
|
2,517
|
5,285
|
Copala
|
|
|
CS-23-304
|
468
|
471.3
|
3.3
|
2.8
|
1,366
|
6.8
|
-
|
-
|
1,722
|
4,821
|
Copala
|
|
|
CS-23-290
|
557.8
|
588.7
|
30.9
|
5.05
|
565
|
3.48
|
-
|
-
|
760
|
3,836
|
Copala 2
|
|
|
NP-23-359
|
80
|
82.05
|
2.05
|
1.65
|
1,552
|
8.37
|
0.47
|
1.22
|
2,066
|
3,409
|
El Molino
|
|
|
NP-23-391
|
526.15
|
528.2
|
2.05
|
1.9
|
908
|
7.37
|
1.62
|
4.91
|
1,568
|
2,979
|
Napoleon
FW2
|
|
|
NP-23-362
|
618.25
|
626.3
|
8.05
|
3.05
|
372
|
5.82
|
2.15
|
3.15
|
916
|
2,795
|
Luisa HW 2
|
|
|
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. Metallurgical recoveries assumed are 93% for silver, 90%
for gold, 94% for lead and 94% for zinc for Napoleon, La Luisa and
El Molino vein intercepts (see press release dated February 17,
2022) and 91% for silver and 94% for gold for the Copala, Copala 2
and Cristiano vein intercepts (see press release dated August 16,
2023).
|
In addition to targeted resource expansion and conversion
drilling aimed at complementing a near-term mine plan, Vizsla
continued to de-risk the Project through ongoing engineering and
environmental programs, including geotechnical and hydrological
studies.
Other notable project level and corporate accomplishments
include:
- Achieved a safety record of 1.8 million working hours without a
lost time incident in 2023. Vizsla's Mexican subsidiary, Minera
CANAM, was also awarded the Socially Responsible Company
Distinction (ESR) for the second year in a row. This is
Mexico's highest corporate social
responsibility recognition, awarded jointly by the Mexican Center
for Philanthropy (CEMEFI) and the Foundation for Sustainability and
Equity (ALIARSE). It is given to companies that are leaders in
their sector for their commitment to integrating social and
environmental values into their operations. In addition, Minera
CANAM received the ELSSA distinction award for the first year,
given to companies with healthy and safe workplace
environments.
- Vizsla announced its inaugural ESG Sustainability report,
highlighting the Company's commitment to sustainable practices and
responsible corporate citizenship.
- District-wide detailed geological mapping (~60% of the district
has been mapped at a scale of 1:1,000)
- During 2023, Vizsla invested approximately US$2.0M in the Coco Plant facility reclamation
project including the initial construction of deviation channels.
The channels will be finished in the first half of 2024.
- Since 2022, Vizsla and its consultants have completed six
environmental monitoring campaigns at the Project.
- Continued property expansion through acquisition, eight claims
for a combined 290.6 ha were acquired.
- Vizsla Silver and Minera CANAM outreach support programs
included four Health Fairs, covering the central communities around
the project, whereby more than 300 people in each campaign could
access medical care from doctors, nurses, psychologists, and other
medical professionals.
- On the corporate side, Vizsla further strengthened its
management team and board in 2023 by adding several experienced
mining professionals including Eduardo
Luna (Director), Michael
Pettingell (promoted to SVP, Business Development &
Strategy), Hernando Rueda (promoted
to Director, Mexico) and
Fernando Martinez (Director,
Projects).
2024 Outlook
Vizsla Silver's focus for 2024 is to de-risk the robust resource
base located in the western portion of the district ahead of a
development decision. Simultaneously, Vizsla will continue
exploring other prospective areas of the district for new centers
of high-grade mineralization. Key de-risking initiatives planned
for 2024 include:
- Bulk Sample / Test Mine: Vizsla has received
permits to develop and operate a test mine program at its
Panuco project to extract a
combined 25,000 tonne bulk sample from the Copala and Napoleon structures. Initial
engineering for the bulk sample test mine has already begun with
plans to begin underground development in early 2024.
- Tight Spaced Definition Drilling: Of the 65,000
metres of total drilling planned for 2024, ~10% will be dedicated
to tight spaced (12.5 metre center) definition drilling targeting
both Copala and Napoleon.
- Optimized Metallurgy: Ongoing metallurgical test
work aimed at simplifying the process flowsheet design.
For 2024, a total of +65,000 metres of drilling is planned
between infill, Engineering (PEA studies), expansion, and
exploration programs. Six diamond drill rigs will be active on the
property (four focused on upgrading and expanding the current
resource base in the western portion of the district ahead of the
PEA and two devoted to exploration). Exploration drills will focus
on priority targets proximal to current resources in the west, as
well as on other high-priority targets in the eastern portion of
the district.
Resource Extension
Targets
- The Copala structure remains open along strike to the
north and down dip to the south. In 2024, Vizsla plans to continue
1) upgrading inferred resources in south Copala and 2) continue expanding Copala and its footwall splays down dip.
- At Napoleon, Vizsla plans to upgrade inferred resources
and to conduct resource expansion drilling along the hanging wall-4
vein (HW4) to the east, as well as to explore three potential vein
feeders along the main Napoleon structure at depth.
Proximal Targets
- At La Luisa, the team plans to continue expanding the
footprint of the high-grade shoot on the south and infill drilling
the recently defined 400 metre gap between the northern most
drill-hole intercepts and the high-grade shoot on the south.
- The EL Molino Vein reported significant silver and gold
grades close to surface, and Vizsla plans to explore the vein along
strike and at depth to add additional high-grade resources close to
planned infrastructure in 2024.
- Vizsla plans to drill-test a conceptual target at the projected
northern intersection of the Copala fault with the Napoleon vein system
near La Estrella area.
District Targets
New mapping efforts completed in 2023 have highlighted an
abundance of historic workings in the southeastern portion of the
district. This new area named "Camelia" is marked by serval
high-grade surface samples grading up to 400 g/t Ag and 5.0 g/t Au.
Given, the overall density of veins mapped on surface and the
abundance of surface samples related to historic workings this has
become a high priority district target in the east.
Key objectives for 2024
- Deliver an updated MRE for the project in January 2024
- Potential royalty spinout
- Deliver maiden PEA in H1 2024
- Complete updated metallurgical testing in H2 2024
- Advance Bulk Sample / Test Mine program
- Complete +65,000 meters of resource/discovery focused
drilling
- Complete a ~1,100 line-kilometre EM survey and acquire
high-resolution multispectral satellite imagery for the whole
district
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.
The Panuco Project hosts an estimated in-situ indicated mineral
resource of 104.8 Moz AgEq and an in-situ inferred resource of
114.1 Moz AgEq. An updated NI 43-101 technical report titled
"Technical Report on the Mineral Resource Estimate Update for the
Panuco Ag-Au-Pb-Zn Project, Sinaloa State, Mexico" was filed on SEDAR on March 10, 2023, with an effective date of
January 19, 2023 was prepared
by Allan Armitage, Ph. D., P. Geo., Ben Eggers, MAIG,
P.Geo. and Yann Camus, P.Eng. of SGS Geological
Services.
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
In accordance with NI 43-101, Martin
Dupuis, P.Geo., COO, is the Qualified Person for the Company
and has reviewed and approved the technical and scientific content
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 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.
Canadian standards, including the CIM Definition Standards and
NI 43-101, differ significantly from standards in the SEC Industry
Guide 7. Effective February 25, 2019,
the SEC adopted new mining disclosure rules under subpart 1300 of
Regulation S-K of the United States Securities Act of 1933, as
amended (the "SEC Modernization Rules"), with compliance required
for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules
replace the historical property disclosure requirements included in
SEC Industry Guide 7. 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". Information regarding mineral resources
contained or referenced herein may not be comparable to similar
information made public by companies that report according to U.S.
standards. 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 plans for
resource/discovery-based drilling, designed to upgrade, and expand
the maiden resource as well as test other high priority targets
across the district.
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.