Significant Results from Vizsla Silver's Panuco Project Feasibility Study
NYSE: VZLA, TSX: VZLA
The recently concluded feasibility study for the Panuco silver-gold project, conducted by Vizsla Silver Corp., has uncovered promising results, projecting an after-tax NPV (5%) of US$1.8 billion, an IRR of 111%, and average annual production of 17.4 million ounces of silver equivalent at an AISC of US$10.61 per ounce. Initial capital costs are estimated at US$173 million, underscoring the project's potential for lucrative returns.
Panuco Project Overview
Located in Sinaloa, Mexico, the 100%-owned Panuco project showcases an economic model that emphasizes efficient exploration and development strategies. The focus of the feasibility study, performed by Ausenco Engineering, Mining Plus, and SGS Canada, demonstrates the project’s capability to operate as a high-margin underground precious metals mine.
Key Outcomes of the Feasibility Study
The feasibility study has advanced the project by enabling permitting and financing initiatives, setting sights on a construction decision pending required approvals. Simon Cmrlec, COO of Vizsla, expressed confidence in the study's technical prowess driven by the collective efforts of their team and consulting partners.
It was noted that the findings of the study affirmed the project will yield over 20 million silver equivalent ounces annually during its initial five years, surpassing earlier production estimates presented in the Preliminary Economic Assessment (PEA).
Operational Details and Economic Metrics
Operation plans include a production rate of 3,300 tonnes per day initially, increasing to 4,000 tpd in year four, alongside an average cash cost of US$8.56 per ounce payable AgEq. The study also identifies robust mining practices through a combination of long-hole stoping and drift-and-fill methods. Overall, the financial framework is supported by conservative price estimates of US$35.50 per ounce for silver and US$3,100 per ounce for gold.
Future Prospects and Project Enhancements
Looking ahead, Vizsla Silver aims to explore additional opportunities to upgrade resources at the Panuco site through continued drilling and exploration efforts. The company has also planned enhancements in project infrastructure, including an extensive water management plan utilizing on-site resources.
The project is currently run under exploration permits from environmental authorities, with additional permits submitted for the construction phase that is currently under review. Community engagement and environmental considerations remain at the forefront of Vizsla's development strategy, with agreements in place with local Ejidos.
Upcoming Webcast
Vizsla Silver is set to host a webcast to discuss these findings in detail. This presentation will give stakeholders further insights into the roadmap ahead as Panuco transitions towards production. Interested parties can register for the session to learn more about the future implications of these study results.
Frequently Asked Questions
What were the key financial outcomes of the Feasibility Study?
The study revealed an after-tax NPV of US$1.8 billion and an IRR of 111%, indicating a strong potential return on investment.
How much silver equivalent production is expected annually?
Average annual production is projected at 17.4 million ounces of silver equivalent in the initial years of operation.
What mining methods will be utilized at the Panuco Project?
The main mining methods include long-hole stoping combined with drift-and-fill techniques, optimizing resource extraction while managing operational costs.
What is the estimated initial capital cost for the project?
The initial capital costs are estimated at US$173 million, with additional funding needed for potential expansions.
What environmental measures are being taken for the project?
Vizsla Silver is adhering to stringent environmental processes, protecting local ecosystems and obtaining necessary permits for continued operations while engaging with local communities.
