Vizsla Silver Corp. (TSX: VZLA; NYSE: VZLA) has announced positive results from its independent Feasibility Study for the 100%-owned Panuco silver-gold project in Sinaloa, Mexico, outlining a high-margin, low-CAPEX underground operation with rapid payback.
The study, led by Ausenco and supported by Mining Plus and SGS, confirms strong economics and operational resilience for Panuco, positioning it as a potential large-scale silver-primary producer in Mexico.
Key Highlights
- After-tax NPV (5%): US$1.8 billion
- After-tax IRR: 111%
- Initial Costs: US$173 million
- Payback: 7 months
- Average Annual Production: 17.4 Moz AgEq at AISC of US$10.61/oz
- Years 1–5: 20 Moz AgEq annually
- Mine Life: 9.4 years
- Pre-production CAPEX: US$238.7 million
Simon Cmrlec, COO of Vizsla Silver commented, “The strength of the Feasibility Study reflects the technical excellence and commitment of the Vizsla Silver team and all of our consultants. The engineering and procurement for the project was significantly advanced during the Feasibility Study, which coupled with the actual performance of the ongoing test mine provides confidence in the results of the study. Project CAPEX and OPEX remain in line with the PEA, and the study demonstrates the project will produce more than 20 million silver equivalent ounces annually over the first five years, averaging 17.4 million ounces over the life of the project, significantly exceeding the production profile outlined in the PEA.”
Project Overview
- Two contiguous underground mines: Copala and Napoleon
- Initial throughput: 3,300 tpd, expanding to 4,000 tpd in Year 4
- Proven & Probable Reserves: 12.81 Mt @ 249 g/t Ag and 2.01 g/t Au (416 g/t AgEq)
- Processing: Whole-ore leach circuit with Merrill Crowe recovery, expanding to flotation in Phase 2
The study assumes metal prices of US$35.50/oz Ag and US$3,100/oz Au, and excludes inferred resources. Sensitivity analysis shows strong economics even under significant price and cost variations.
Vizsla is advancing permitting and project financing, with construction targeted post-approval. Opportunities remain to extend mine life and upgrade inferred resources through continued exploration.
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