• Vizsla Silver has secured $220 million in project financing and commenced test mining operations at the Copala deposit, providing the financial foundation and operational experience necessary to advance toward full production while eliminating near-term dilution concerns.
• The company achieved a 43% increase in measured and indicated resources at Copala through systematic infill drilling, establishing the first measured resource in the high-grade central core area that will anchor initial production years with enhanced certainty.
• Within the 7,200-hectare Panuco district, Vizsla has identified over 150 vein targets using advanced exploration technologies but has only drilled approximately 30 targets, representing less than 20% penetration and substantial discovery potential across the consolidated 40,000-hectare land package.
• The company has doubled its drilling capacity to four rigs and plans to complete over 20,000 meters of discovery-oriented drilling in 2025, targeting expansion of the recently discovered Pipa zone, deeper exploration of the 7-kilometer Animas vein system, and testing of electromagnetic anomalies.
• Vizsla's dual-track strategy combines near-term development of proven Copala-Napoleon deposits with systematic exploration for additional resource centers, maximizing both immediate cash flow generation and long-term growth potential within a district-scale opportunity.

Vizsla Silver has achieved a critical milestone with the securing of $220 million in project financing, providing the financial foundation necessary to advance the Panuco project into production. This financing package demonstrates institutional confidence in the project's economics and management's ability to execute on development plans. The funding eliminates near-term dilution concerns while providing sufficient capital to complete construction and begin generating cash flow.

Vice President of Exploration Jesus Velador confirmed the company's advancement toward production, stating:

"We have the plan of developing the mine in Copala-Napoleon this year. So we started already with a test mine and developing of the decline to access the high-grade mineralization in Copala."

This test mining operation provides valuable operational data while generating early cash flow, reducing execution risk for the broader development program.

Substantial Resource Base with High-Grade Characteristics

The Panuco project benefits from an exceptional resource base built through systematic drilling campaigns. Since acquiring the project in late 2019, Vizsla has completed nearly 400,000 meters of drilling across more than 1,000 drill holes, establishing one of the most comprehensive datasets in the Mexican silver sector. This extensive drilling program has focused on converting inferred resources to higher-confidence categories essential for mine planning.

Recent infill drilling at the Copala deposit yielded impressive results, with Velador noting:

"Comparing the resource that we put out this year versus the one from the previous year there was a substantial increase of 43% in the measure and indicated category and for the first time we put out a measure resource in the core of the high-grade central portion of Copala where we are going to have our initial production years."

This 43% increase in measured and indicated resources provides greater certainty for early production years while demonstrating the continuity of high-grade mineralization. The Copala deposit serves as the cornerstone of initial production plans, featuring the project's highest grades and widest mineralization zones. This concentration of high-grade material in the early mine plan enhances project economics and provides strong cash flow generation potential during the critical early production period.

Extensive Exploration Upside Within Consolidated Land Package

Beyond the established resource base, Vizsla has consolidated an exceptional exploration portfolio spanning over 40,000 hectares along the San Dimas-Panuco corridor. Within the core 7,200-hectare Panuco district alone, the company has identified over 150 vein targets through advanced exploration techniques including LiDAR mapping, geochemistry, and structural analysis.

The scale of unexplored potential becomes apparent when considering drilling penetration across identified targets. Velador emphasised this opportunity:

"We have over 150 vein targets that we have either mapped or discovered through the application of different mapping tools. Of which we have drilled only approximately 30."

This represents less than 20% drilling penetration across known targets, indicating substantial discovery potential within the existing land package.

Surface sampling results across these targets demonstrate consistently anomalous mineralization, with Velador explaining: "Pretty much all the red and magenta samples are over 200 or even over 500 grams silver equivalent... there are lots of veins with those kinds of samples right on surface." These surface expressions suggest significant mineralization extends throughout the district, supporting the potential for additional resource centers.

Interview with VP Exploration Jesus Velador

Strategic Dual-Track Approach

Vizsla has adopted a sophisticated dual-track strategy that maximises both near-term production potential and long-term growth prospects. The first track focuses on developing the proven Copala-Napoleon deposits, where resource definition work is essentially complete and development activities are underway. This approach ensures near-term cash flow generation while minimizing execution risk.

The second strategic pillar emphasises discovery-oriented exploration designed to identify additional resource centers within the broader district. Velador outlined this approach:

"Our second objective or our what we call our project two is to continue exploring and with the objective of finding or making a discovery of an additional center of mass or a mineralised center in the project."

This dual strategy maximises capital efficiency by focusing development capital on proven deposits while deploying exploration capital across high-potential targets. The approach reduces overall project risk while maintaining significant upside potential through new discoveries.

Advanced Exploration Technology and Methodology

Vizsla's exploration program incorporates advanced technologies that enhance discovery potential while reducing exploration costs. The company employs LiDAR elevation modelling, high-resolution multispectral satellite imagery, geophysics, and Terraspec alteration mineralogy analysis to identify and prioritize targets systematically.

The effectiveness of these techniques is demonstrated by recent discoveries, including the La Pipa zone in the central district portion. This discovery validates the company's exploration methodology while confirming the district's potential for hosting multiple resource centers. Ground electromagnetic surveys have identified additional anomalies requiring testing, with Velador stating:

"We recently completed a geophysical ground EM geophysical survey in the western portion of the district. We resolve some interesting anomalies."

These anomalies represent near-term drill targets that could yield additional discoveries within established infrastructure corridors.

Animas Vein System: Exceptional Exploration Target

Among the district's exploration targets, the Animas vein system stands out as particularly compelling due to its scale and historical production profile. This 7-kilometer-long vein system hosted extensive historical mining but only to shallow depths, leaving significant potential at depth.

Velador described the Animas opportunity:

"It's a very impressive vein system. It's a 7 kilometer long vein in the district and it contains multiple high-grade shoots but those shoots have been mined pretty much very close to surface. the top 100-200 meters from surface is what has been mined."

Recent drilling approximately 200 meters below historical workings has encountered mineralization, suggesting the potential for telescoping high-grade shoots at depth.

The Animas system exemplifies the district's exploration potential, where extensive historical mining provides proof of concept while modern exploration techniques can access previously unreachable mineralization. This combination of historical validation and modern exploration capability creates compelling risk-adjusted discovery potential.

Accelerated Drilling Program

Recognising the opportunity within the district, Vizsla has accelerated exploration activities by doubling its drill capacity. The company recently added two drill rigs to its exploration program, bringing the total to four rigs dedicated to discovery-oriented drilling.

Velador explained the rationale:

"Just last week we added a couple of more rigs. We started the drilling this year with two rigs, but as of last week, we added two more rigs, with the whole objective of completing over 20,000 meters by the end of the year, which is going to be discovery oriented."

This acceleration demonstrates management's confidence in discovery potential while ensuring adequate testing of priority targets within the current exploration cycle.

The increased drilling capacity allows simultaneous testing of multiple target areas, including expansion of the La Pipa discovery, testing of electromagnetic anomalies, and deeper exploration of the Animas system. This multi-target approach maximises discovery probability while providing multiple catalysts for share price appreciation.

Feasibility Study and Production Timeline

The company is advancing toward a comprehensive feasibility study expected toward year-end, which will provide detailed production profiles, cost estimates, and economic returns for the Copala-Napoleon development. This study represents a critical milestone that should enhance project financing options and provide clarity on production timelines and cash flow projections.

The test mining operation currently underway provides real-world operational data that enhances feasibility study accuracy while demonstrating the project's technical viability. This operational experience reduces execution risk while providing early cash flow contribution to project economics.

The Investment Thesis for Vizsla Silver

• Near-term production catalyst: With $220 million in secured financing and test mining underway, Vizsla offers immediate exposure to silver production in a favourable jurisdiction with established infrastructure.
• High-grade resource base: The 43% increase in measured and indicated resources at Copala provides enhanced certainty for early production years, supporting strong cash flow generation and project economics.
• Exceptional exploration leverage: With only 30 of 150+ identified vein targets drilled, investors gain exposure to significant discovery potential within a consolidated 40,000-hectare land package.
• Proven exploration methodology: Recent discoveries including the La Pipa zone validate the company's systematic approach using advanced technologies, increasing confidence in future discovery success.
• Strategic dual-track approach: The combination of near-term development and long-term exploration maximises both cash flow generation and growth potential while managing execution risk.
• Scalable infrastructure potential: The district-scale opportunity allows for multiple production centers sharing infrastructure, enhancing project economics and supporting long-term growth.
• Accelerated drilling program: The doubling of drill capacity to four rigs provides multiple near-term catalysts for discovery announcements and resource expansion.

The combination of secured financing, proven high-grade resources, and exceptional exploration potential positions Vizsla Silver as a compelling investment opportunity in the silver sector. The company's systematic approach to development and exploration, supported by advanced technologies and experienced management, provides investors with exposure to both immediate production potential and long-term discovery upside. As silver markets respond to macroeconomic tailwinds, Vizsla's unique combination of near-term cash flow generation and exploration leverage offers an attractive risk-adjusted return profile for precious metals investors.

TL;DR

Vizsla Silver combines immediate silver production potential with massive exploration upside in Mexico's premier district. With $220 million secured financing, test mining underway, and only 30 of 150+ vein targets drilled across 40,000 hectares, the company offers rare exposure to both near-term cash flow and district-scale discovery potential. Recent 43% resource increase and doubled drilling capacity provide multiple catalysts while silver's favourable industrial and monetary demand dynamics support the investment thesis.

FAQ's AI-Generated

Q: What makes Vizsla Silver's financing different from typical mining project funding?

‍A: The $220 million project financing package is significant because it provides sufficient capital to complete construction and begin production without near-term dilution. This institutional backing validates project economics and eliminates the common mining company challenge of raising additional capital during development phases.

Q: How does the 43% resource increase at Copala impact production plans?

‍A: The resource increase provides enhanced certainty for early production years by establishing the first measured resource in Copala's high-grade central core. This higher-confidence resource category reduces mining risk and supports stronger cash flow projections during the critical initial production period when the company needs to establish operational track record.

Q: Why has Vizsla only drilled 30 of 150+ identified vein targets?

‍A: The company has prioritised systematic resource definition at Copala-Napoleon to advance toward production while conducting discovery-oriented exploration. With only 20% of targets tested, this represents substantial exploration leverage where each new discovery could significantly expand the resource base within the existing infrastructure footprint.

Q: What is the significance of the Animas vein system?

‍A: The 7-kilometer Animas vein represents exceptional exploration potential because historical mining only reached 100-200 meters depth, while recent drilling 200 meters below historical workings has encountered mineralization. This suggests telescoping high-grade shoots at depth within a proven vein system, combining historical validation with modern exploration capability.

Q: How does Vizsla's dual-track strategy reduce investment risk?

‍A: The strategy balances immediate cash flow generation from proven Copala-Napoleon deposits with discovery-oriented exploration for additional resource centers. This approach provides near-term production certainty while maintaining significant upside potential, reducing overall project risk compared to pure development or exploration plays.