Vizsla Silver (TSXV: VZLA; NYSE: VZLA) has increased the indicated mineral resource by half at its Panuco silver-gold project in Sinaloa, western Mexico.
The indicated mineral resource rose to 7.5 million tonnes grading 243 grams silver per tonne, 2.12 grams gold per tonne, 0.23% lead and 0.71% zinc (437 grams silver-equivalent per tonne) for contained metal of 58.3 million oz. of silver, 508,000 oz. gold, 17,000 tonnes lead and 53,300 tonnes zinc (104.8 million oz. silver-equivalent), Vizsla said in a news release on Tuesday.
That compares with the project’s first indicated resource estimate in March last year showing 5 million tonnes grading 191 grams silver, 2.08 grams gold, 0.26% lead and 0.5% zinc (383 grams silver-equivalent ) for contained metal of 30.5 million oz. silver, 331,000 oz. gold, 13,000 tonnes lead and 24,600 tonnes zinc, Vizsla said.
Vancouver-based Vizsla says it has spent $41.8 million on exploration at the 68-sqkm project on Mexico’s west coast near the city of Mazatlán about 1,000 km northwest of Mexico City. It has drilled more than 250,000 metres and plans an additional 90,000 metres, with another resource update due later this year.
This month’s updated mineral resource centred on the western portion of Panuco encompassing about 8 km of the area’s 86-km vein strike, the company said.
“Most impressive is the material growth to the precious metals-rich Copala structure,” Vizsla President and CEO Michael Konnert said in the release. “Additionally, the inclusion of the high-grade Cristiano structure, which can conceptually be developed alongside Copala, represents a near surface high grade feed source.”
Panuco’s inferred mineral resource increased to 7.2 million tonnes grading 304 grams silver, 2.14 grams gold, 0.19% lead and 0.54% zinc (491 grams silver-equivalent) for contained metal of 70.7 million oz. silver, 496,000 oz. gold, 13,600 tonnes lead and 39,300 tonnes zinc (114.1 million silver-equivalent ounces).
That compares with the earlier inferred resource estimate showing 4.1 million oz. grading 187 grams silver, 1.79 grams gold, 0.13% lead and 0.3% zinc (345 grams silver-equivalent) for contained metal of 24.7 million oz. silver, 236,000 oz. gold 5,300 tonnes lead and 12,400 tonnes zinc (45.6 million oz. silver-equivalent).
“The company plans to continue its ongoing aggressive exploration of the district with seven drill rigs focused on category conversion, incremental expansion and testing new targets,” Konnert said. “This, along with previous drilling completed to date, will support a potential mineral resource estimate update in the second half of 2023.”
Shares in Vizsla rose 9% Tuesday in Toronto to C$1.92 each before falling in afternoon trading to C$1.76, valuing the company at C$272 million.