Vizsla Silver (TSXV: VZLA) has completed a preliminary economic assessment for its flagship Panuco silver-gold project in Mexico, which outlines a net present value (5% discount) of US$1.14 billion on an after-tax basis.
The study also estimated an after-tax IRR of 85.7%, which estimates initial capex requirements of just US$224 million. The payback period is said to sit at just 9 months.
The figures are based on a proposed underground precious metals operation, with two contiguous underground mines which would have an average annual output of 15.2 million silver equivalent ounces at an all-in sustaining cost of just US$9.40 per ounce, with the operation processing 3,300 tonnes per day over an 11-year mine life.
“It’s important to note, that this PEA represents only a snapshot of the potential value of Panuco, as we have only explored less than 30% of the known targets in the district. Furthermore, ongoing drilling with two drill rigs continues to expand and convert high-grade veins in and around the proposed mine plan, enhancing the potential for improved economics in a feasibility study planned for the second half of 2025,” commented Vizsla CEO Michael Konnert.
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The estimate is based on US$26 per ounce silver and US$1,975 per ounce gold.
As part of the study, the company updated its mineral resource estimate for the project. Panuco is estimated to contain 88.2 million ounces of silver and 736,000 ounces of gold on an indicated basis, and a further 93.7 million ounces of silver and 758,000 ounces of gold on an inferred basis.
Vizsla has said that with the PEA now completed, it will now move towards conducting a feasibility study, which is targeting completion in the second half of 2025. A construction decision will be made only in the event of a positive feasibility study. A bulk sample test-mine meanwhile is expected to begin at Copala in the fourth quarter of 2024, which will provide data for the feasibility study.
Vizsla Silver last traded at $2.62 on the TSX Venture.
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.
