Vizsla Silver Awards Major Equipment Supply Agreement for Panuco, Advancing Project Towards Production

Vizsla Silver Corp. has awarded FLSmidth the equipment supply agreement for its wholly owned Panuco silver-gold project in Sinaloa, Mexico, covering 8 major process plant equipment packages across the full proposed flowsheet and remaining in line with the 2025 Feasibility Study capital budget. 

Company Overview

Vizsla Silver Corp. (TSX: VZLA | NYSE: VZLA | Frankfurt: 0G31) is a Canadian mineral exploration and development company headquartered in Vancouver, British Columbia, focused on advancing its wholly owned flagship Panuco silver-gold project in Sinaloa, Mexico. The company completed a Feasibility Study for Panuco in November 2025, which highlights 17.4 million ounces of silver equivalent of annual production over an initial 9.4-year mine life, an after-tax net present value at a 5% discount rate (NPV5%) of US$1.8 billion, an internal rate of return (IRR) of 111%, and a 7-month payback at US$35.50 per ounce silver and US$3,100 per ounce gold. Vizsla Silver targets a dual-track development approach at Panuco, advancing mine development while continuing district-scale exploration through low-cost means.

A Key Procurement Milestone

Vizsla Silver has awarded the equipment supply agreement to FLSmidth (FLS), a global mineral processing technology and equipment supplier, for its wholly owned Panuco silver-gold project in Sinaloa, Mexico. The agreement covers the engineering and supply of major process plant equipment for the entire proposed process flowsheet outlined in the company's 2025 Feasibility Study (FS).

The agreement encompasses 8 major equipment packages across the crushing, grinding, thickening, counter current decantation, Merrill Crowe, and refining circuits of the proposed process plant at Panuco. Engineering work has commenced immediately under a limited notice to proceed agreement (LNTP), which authorises early engineering and procurement activities while the definitive terms of the equipment supply agreement are being finalised. Formal Notice to Proceed is anticipated in the coming months to initiate equipment manufacturing.

Chief Operating Officer of Vizsla Silver, Simon Cmrlec, described the significance of the award:

"The award of this major equipment package to FLS represents a key procurement milestone for the Panuco Project. We are pleased to be working with the FLS team, who has provided us with a technically robust equipment package for the Project which supports both the initial Phase 1 plant design and future Phase 2 expansion plans while remaining in line with the process plant capital budget outlined in the Feasibility Study. FLS's Life-Cycle Service Offering will provide us with a high level of support throughout the commissioning, ramp-up and operations phases of the Panuco facility."

Scalability & Napoleon Integration Built In

The equipment has been specified to support both the initial Phase 1 operation at 3,300 tonnes per day and the planned Phase 2 expansion to 4,000 tonnes per day, as outlined in the 2025 FS. The contract structure and equipment configuration are also designed to facilitate future process plant modifications associated with the planned integration of the Napoleon mine in Year 4, with minimal operational downtime. This built-in scalability positions the Panuco process plant to accommodate the project's longer-term production growth without requiring a disruptive rebuild of core infrastructure.

FLS's Perspective

Products Business Line President at FLS, Qasim Abrahams, commented on the partnership:

"We are excited to be selected as Vizsla Silver's key technology partner for their complete silver processing flowsheet. With our leading technologies and life-cycle service offerings, we look forward to helping Vizsla Silver maximise silver recovery and production throughout the life cycle of this new operation."

FLS is a leading supplier of mineral processing technology, process equipment, and service solutions to the global mining industry, covering the full flowsheet from comminution and classification to flotation, thickening, dewatering, refining, and tailings management. The company supports thousands of mining operations across more than 125 countries and has extensive experience in Mexico, backed by local service and after-sales capabilities, including a service centre in Zacatecas.

Next Steps

With the LNTP in place and engineering work now underway, Vizsla Silver is targeting the issuance of a formal Notice to Proceed in the coming months to initiate equipment manufacturing for Panuco. No production decision has been made for the project; a decision to proceed with construction will be made only after the completion and review of detailed engineering and financing arrangements, and receipt of all required permits and approvals.