Vizsla Silver (TSX: VZLA) is expanding its land holdings within Mexico, announcing this morning that is has optioned the Santa Fe project. The project is said to include both production and exploration concessions, and contains a fully permitted flotation plant currently producing silver and gold.
The arrangement will see 12,229 hectares of claim acquired that are 22 kilometres to the south of Vizsla’s Panuco project. The project is also contiguous to the San Enrique project, which Vizsla acquired last month.
The entire project is said to be fully covered with LiDAR and high-resolution aero-magnetic and radiometric surveys, alongside IP geophysics and detailed mapping around the mine area.
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The mine itself has processed 370,366 tonnes of ore, with average head grades of 203 g/t silver and 2.17 g/t gold since it went into production in 2020. Processing comes from a 350 tonne per day flotation plant, with production coming from a northwest trending epithermal vein. Mine production and drilling is said to cover less than 12% of the property package.
“With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver has the potential to bolster its overall production profile well beyond the 20.2 million ounces AgEq of initial annual production envisioned for Panuco Project #1. This is supported by permitted operating infrastructure including a 350 tpd flotation plant and open-ended mineralized vein structures located right at surface,” commented Michael Konnert, CEO of Vizsla.
Vizsla has not indicated whether it intends to keep the currently operating mine in production.
The purchase arrangement for the Santa Fe project consists of two parts. First is an option agreement for the production concessions, which will see Vizsla incur US$4.0 million in exploration expenses over a five year period, alongside cash consideration of US$1.5 million and the issuance of 1.4 million shares over that same five year period. The exploration concessions meanwhile will be acquired in exchange for 2.7 million shares of Vizsla and cash consideration of US$1.4 million, alongside the payment of 50% of mining duties due on the exploration concessions, which amounts to US$394,682.
Vizsla Silver last traded at $3.13 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
