Vizsla Silver – Silver Lining
Despite the restrictions and challenges imposed by the global pandemic, Vizsla Silver is pushing to progress its silver mining project in Mexico as planned.
Vizsla Silver Corporation, a junior exploration company founded only four years ago, has achieved impressive results during the few years of its existence. Led by an experienced management team, the company has an option to acquire 100 per cent of the newly consolidated, 9,386.5-hectare Panuco district in southern Sinaloa, Mexico. The property covers the historic Panuco-Copala silver and gold mining district that has been in production for over 450 years. Recent results from the project have shown high-grade silver and gold results.
Company President and CEO Michael Konnert, an experienced businessman who incorporated the company in 2017, explains that although the company also has other activities, the current focus is on its flagship asset in Mexico.
He says: “Vizsla started as a small company with an $800,000 IPO in 2018. In late 2019 we announced the acquisition of the option to acquire the entire Panuco silver district, and in 2020 we were able to transform the company with exploration success on the back of more than 28,000 metres drilled.”
“To summarize the business in a nutshell, one might say that we are an explorer that can move rapidly into production. As opposed to large mining companies we have the advantage of being nimble and small, but most importantly, of having a team of people that I believe are the best in the industry. We can move faster than many other companies, we are more persistent, and we are motivated by maximising the value of the project, which has the potential to become a major silver producer.”
The Copala-Panuco district has a long history of silver production dating back to the 1500s and only recently has been consolidated and systematically explored by Vizsla. Currently, the company is exploring multiple drill rigs across three major vein corridors; the Napoleon, Cordon del Oro, and Tajitos veins. Significant infrastructure at the Copala-Panuco project includes a 500 TPD mill, two highways running through the project and high-tension power at the site.
Vizsla believes there is significant high-grade silver and gold discovery potential at Panuco, a region that has not seen modern exploration except for drilling complete between 2006 to 2008 on a portion of the district.
“We have a mill that is set to move to production very rapidly, and at the same time we are progressing with exploration that has never been done before, using cutting-edge exploration techniques including aerial surveys and electromagnetic surveys combined with classic drilling and prospecting,” says Mr Konnert.
He points out that the location of the asset could not be better, situated off a major highway, in the Sierra Madre epithermal belt, 80 km from First Majestic’s San Dimas mine. The district-scale camp has substantial infrastructure including roads, permits, power and a skilled workforce in neighbouring towns.
“The beginnings were not without challenges, though,” Mr Konnert admits. “Initially, the biggest challenge was getting the deal done, and when we got started, immediate results were not successful. Then COVID-19 came and we had to shut down for over a month, not knowing whether the enterprise was going to continue. However, shortly after, we made a significant discovery, on the second hole we drilled.”
He affirms that the project has been well accepted by local communities providing employment and an improvement in living standards, including improved access to medical care during the pandemic – a valuable contribution.
“Vizsla performed incredibly well through 2020, which was a difficult year in many ways. Despite the issues brought on by COVID-19, we were able to execute our plan and successfully deliver against our key performance indicators, including share price performance, fundraising and discovery, and making one of Mexico’s most significant precious metals discovery at the Napoleon’s vein at the Panuco project,” says Mr Konnert.
Set for success
Progress has been fast over the last few months. Recent drilling results show promising potential. “The Panuco silver district is impressive, and the latest results demonstrate the significant potential of these vein corridors. Vizsla is well-funded and is aggressively unlocking value with eight rigs turning right now.”
In April 2021, the company announced that an additional drill rig has arrived at the site bringing the total rig count to eight. The Company also announced that it has entered into an equity distribution agreement with Canaccord Genuity Corp. and filed a prospectus supplement in respect of an at-the-market equity programme. The ATM programme gives the company an avenue for raising funds at its discretion.
Michael Konnert stated: “With the eighth drill rig mobilized to the site the company is well-positioned to maximize its drill programme for 2021. We continue to see positive results from the company’s drilling programme. Vizsla is excited to continue to show the potential of the prospective targets at the Panuco project and look forward to the eighth rig starting to drill at the La Bomba mine soon.”
For the first six months of 2021, the company expects to drill more than 40,000 metres of diamond drill holes. By the end of the year, the plan is to do in excess of 80 km of diamond drilling that will make the Panuco project Mexico’s most aggressive junior exploration programme this year.
“We are very active and well-funded and will be steadily progressing towards the production stage over the next 12 to 18 months. As always, we are committed to continuing to operate through 2021 in a sustainable and safe manner that positively impacts the communities that we work in,” Mr Konnert affirms in concluding.