“Panuco blows previous our estimates,” mining analyst Craig Stanley at Raymond James mentioned in a observe on Wednesday. The PEA “confirms Panuco as one of many high undeveloped silver tasks,” he mentioned.
The proposed underground mine in Sinaloa state might produce 162.1 million silver-equivalent oz. over an preliminary 10.6-year life, the examine confirmed. It was based mostly on costs of $26 per oz. silver and $1,975 per oz. gold.
A feasibility examine is scheduled for the second half of subsequent 12 months and the corporate is well-funded with C$38 million in money and C$53 million in working capital as of April 30, Stanley mentioned.
“We proceed to mannequin development commencing in first quarter 2026 and first manufacturing in third quarter 2027,” he mentioned.
Shares rise
Shares in Vizsla Silver gained 3.8% to C$2.72 apiece by mid-Wednesday in Toronto for a market capitalization of C$657.7 million. The inventory has traded between C$1.26 and C$3.02 over the previous 52 weeks.
Vizsla proposes contractor mining to scale back upfront capital prices and obtain increased productiveness. Panuco could have all-in sustaining prices of $9.40 per oz., in keeping with the early-stage examine. Whole capital prices together with sustaining capital, growth, contingencies and closure amongst different objects quantities to almost $500 million.
The examine envisions a 3,300-tonnes-per-day manufacturing fee for the primary three years earlier than increasing to 4,000 tonnes a day.
It might produce 9.3 million oz. silver and 78,000 oz. gold per 12 months, equalling 15.2 million oz. silver-equivalent, Vizsla mentioned. The primary two years would common 13.8 million oz. silver and 85,000 oz. gold for 20.2 million oz. silver-equivalent, it mentioned.
The “high-margin” venture would supply “distinctive free money move, significantly within the early years, permitting for a really speedy payback of the estimated low capital spending,” president and CEO Michael Konnert mentioned in a launch.
Two areas
Panuco is a group of silver-gold deposits from floor to depths of greater than 600 metres. The deposits vary in thickness from 1.5 metres to better than 20 metres, Vizsla mentioned.
The examine considers two contiguous underground mines, Copala and Napoleon. Copala, the bigger of the 2, would entry the Copala, Cristiano and Tajitos deposits. Napoleon, west of Copala, would mine the Napoleon, La Luisa, Cruz Negra and Josephine deposits.
The mines are to be contractor-operated utilizing ramp entry and a mixture of long-hole stoping and drift-and-fill mining strategies, the corporate mentioned.
Ore is to be processed via a three-stage crushing and grinding circuit, together with a leach and Merrill Crowe circuit to provide silver-gold doré bars, in keeping with the examine.
Mineral useful resource
In January, Vizsla up to date Panuco’s indicated useful resource to 7.5 million tonnes grading 243 grams silver per tonne, 2.12 grams gold, 0.23% lead and 0.71% zinc for contained metallic of 58.3 million oz. of silver, 508,000 oz. gold, 17,000 tonnes lead and 53,300 tonnes zinc.
The corporate highlighted the 71% improve in indicated contained silver-equivalent to 104.8 million oz. from 61.1 million oz. reported in March final 12 months.
Lower than a 3rd of Panuco’s land package deal, which is in a 72-sq.-km. district internet hosting previous producing mines, has been explored, CEO Konnert mentioned.
“It’s essential to notice that this PEA represents solely a snapshot of the potential worth of Panuco,” he mentioned.
“Moreover, ongoing drilling with two drill rigs continues to develop and convert high-grade veins in and across the proposed mine plan, enhancing the potential for improved economics.”