Vizsla Silver Advances Panuco Project as Silver Hits $120

• Silver reached a peak of $121.67 per ounce on January 29, 2026, up 64% year-to-date and approximately 272% year-over-year, driven by industrial demand and supply deficits of 95 million ounces in 2025, marking the fifth consecutive year of deficit with a cumulative five-year shortfall of approximately 820 million ounces.
• Vizsla Silver secured over $450 million in cash through equity and convertible debt financing, exceeding the project's initial capital requirement by nearly 2x.
• The November 2025 Feasibility Study projects an after-tax NPV of $1.8 billion and 111% IRR based on $35.50 per ounce silver and $3,100 per ounce gold, which are below current market prices.
• The company expects to receive its MIA permit mid-2026, commence construction shortly thereafter, and achieve first silver production in the second half of 2027, with planned output of 20.1 million ounces AgEq annually for the first five years.
• Ongoing underground drilling targets over 25 million ounces of inferred mineralization not included in the current mine plan, while new discoveries like the Animas target (897 g/t AgEq over 5.8 meters) represent additional growth potential.

Silver reached record highs above $121 per ounce on January 29th, 2026, posting a 64% year-to-date gain amid supply shortages and surging industrial demand. Wth Vizsla Silver advancing its flagship Panuco project in Sinaloa, Mexico toward construction following a Feasibility Study and project financing completion, the company hopes to capitalize on the strong silver price.

Physical demand for 1-kilogram bars surged over 500% since late 2025, while the global silver market recorded its fifth consecutive annual deficit. The Silver Institute reports that 2025 ended with a deficit of 95 million ounces, contributing to a cumulative five-year shortfall of approximately 820 million ounces. Global mined supply remained flat at 813 million ounces. Vizsla Silver completed project financing when silver prices rose substantially above the conservative economic assumptions used in its feasibility analysis.

Gold surging past $5,400 per ounce and geopolitical tensions have provided additional support. Vizsla Silver's progress toward production, with the company advancing detailed engineering and permitting.

About Vizsla Silver

Vizsla Silver is a Vancouver-based mineral development company focused on its 100% owned Panuco silver-gold project in Sinaloa, Mexico. The property encompasses over 9,000 hectares within Mexico's historic mining belts. The company transitioned from exploration to development status following drilling campaigns that established a mineral resource base and culminated in a Feasibility Study published in November 2025.

President and CEO Michael Konnert leads management alongside Chief Geologist Jesus Velador, Ph.D. The company has executed a de-risking strategy encompassing resource expansion, metallurgical optimization, community engagement, and financial positioning. The company's Mexican subsidiary, Minera CANAM, has received the Socially Responsible Company Distinction for four consecutive years.

The company developed a test mine that has advanced over 700 meters down the decline, providing geotechnical data, underground drilling platforms, and bulk sample material. The company maintains dual listings on the Toronto and New York Stock Exchanges, with average daily trading volume increasing 217% year-over-year to 6.8 million shares.

Key Development: Project Financing Completed in 2025

One of Vizsla Silver's 2025 achievements was securing project financing. The company closed 2025 with over $450 million in cash, representing nearly twice the initial capital expenditure requirement outlined in the Feasibility Study. This resulted from two capital raises executed during the year: a $160 million equity offering including a $115.5 million bought deal at $3.00 per share in June, and a $300 million project financing facility structured as a five-year, cash-settled capped call convertible notes issuance in November.

The convertible financing structure represents the largest transaction of its type completed by a Canadian silver-focused development company. The instrument carries a 5% coupon and an effective conversion price of $10.54 per share. President and CEO Michael Konnert stated: 

"With a current cash position of over US$450M, the project is now fully financed, and we are ready to build and ready to grow following receipt of our MIA permit expected sometime mid-year."

The financial positioning addresses capital availability concerns that affect development-stage mining companies. The company secured funding to complete construction while maintaining capacity for expansion initiatives. The company's financial position also provides negotiating leverage with contractors and equipment suppliers during procurement and construction phases.

Strategic Significance: Silver Supply & Demand Dynamics

Vizsla Silver's development timeline coincides with structural shifts in silver supply and demand. Industrial applications increasingly drive consumption, with solar manufacturing, artificial intelligence infrastructure, and advanced electronics requiring substantial quantities. The Silver Institute projects that 2025 marked the fifth consecutive year of supply deficits, with the annual shortfall reaching 95 million ounces. The cumulative five-year deficit from 2021 to 2025 totals approximately 820 million ounces, representing more than an entire year of global mine output.

The Panuco project offers production scale within this environment. The Feasibility Study projects annual production of 17.4 million ounces silver equivalent over a 9.4-year mine life, with the first five years averaging 20.1 million ounces AgEq annually. This output would position Vizsla Silver among primary silver producers globally. Physical demand indicators show tight conditions, with 1-kilogram bar demand up over 500% since late 2025. Global mined silver supply remained flat year-over-year at 813 million ounces in 2025, while total silver demand reached approximately 1.20 billion ounces.

Vizsla Silver's Feasibility Study had priced silver per ounce at $35.50 and $3,100 per ounce gold, which are below current spot prices of approximately $120 silver and $5,400 gold. This baseline creates price sensitivity to current market conditions. The Feasibility Study's base case projects a 7-month capital payback and 111% internal rate of return; returns at current prices would differ from these metrics. The project economics also incorporate assumptions about operating costs, capital expenditures, and metallurgical recoveries that will be tested during construction and operation.

Current Activities: Engineering & Exploration Programs in 2026

Vizsla Silver has established a 2026 work program focused on detailed engineering, underground development, and district-scale exploration. The test mine program has progressed to the 460-meter level, where crews will extract a 10,000-tonne bulk sample for metallurgical testing. This material will support optimization of silver and gold recovery, reagent usage, and tailings properties. The test mine has established two of three planned underground drill bays, enabling infill drilling at the Copala and Christiano zones.

Engineering activities center on detailed design and contractor selection for construction and mining operations. The company is conducting competitive processes for bulk earthworks, electrical systems, piping infrastructure, and underground mining services. CEO Konnert stated the company aims to "continue derisking and enhancing project value for shareholders" through ongoing optimization work.

Vizsla Silver has budgeted approximately 60,000 meters of diamond drilling across the Panuco district for 2026. This program encompasses underground drilling at Copala, Christiano, and Tajitos targeting over 25 million ounces of inferred mineralization not currently in the mine plan; surface exploration drilling in central and eastern portions; geotechnical drilling at Napoleon and La Lusia; and reconnaissance drilling at Santa Fe and La Garra properties. The 2025 Animas discovery of 897 g/t AgEq over 5.8 meters will receive follow-up drilling. The company also plans updated airborne electromagnetic and magnetic surveys, alongside LiDAR mapping on recently acquired claims totaling 14,607 hectares

For Investors

Vizsla Silver is a development-stage company advancing toward production. The company has addressed traditional development risks including securing project financing, advancing detailed engineering, validating metallurgy through bulk sampling, and maintaining community relations. The anticipated mid-2026 receipt of the MIA environmental permit represents a remaining approval required for construction commencement, after which the company expects first production in the second half of 2027.

Investors must weigh opportunity against inherent development and commodity price risks. Construction projects can encounter cost overruns, schedule delays, or technical challenges that affect economics relative to feasibility study projections. While the test mine program and capital estimates address some concerns, execution risk remains until commercial production.

The current silver price environment presents both opportunity and volatility. Bank of America has identified silver as overheated, estimating prices approximately 30% above long-term fundamentals. The gold-silver ratio stands at approximately 47:1, among the lowest levels in 14 years. Silver has experienced significant volatility this month, with spot prices reaching a peak of $121.67 per ounce before dropping over 8% to approximately $109 per ounce. Vizsla's economics remain viable at lower silver prices, but valuations reflect current market conditions.

The company's share price increased 220% during 2025, from $1.71 to $5.47 per share. This appreciation reflects sector momentum and company milestones including the Feasibility Study and project financing. Vizsla Silver's exploration program across over 9,000 hectares provides potential for resource expansion.

TL;DR 

Vizsla Silver is advancing its funded Panuco silver project in Mexico toward mid-2026 construction and H2 2027 production, targeting 20 million ounces AgEq annually. The November 2025 Feasibility Study shows $1.8 billion NPV and 111% IRR at $35.50 silver versus current $120 spot (peak $121.67 on January 29, 2026), creating price sensitivity. Risks include construction execution, permit timing, and silver price volatility after 64% YTD gains and 272% year-over-year increase. The company holds $450M cash (2x required capital) and conducts 60,000 meters of 2026 drilling to expand resources. Silver market recorded a fifth consecutive annual deficit of 95 million ounces in 2025, with a cumulative five-year shortfall of 820 million ounces.

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