Vizsla Silver Expands Footprint with Strategic La Garra-Metates Acquisition

• Vizsla Silver has completed acquisition of the past-producing La Garra-Metates district
• Purchase price: US$3,075,000 cash plus 5,555,555 shares at US$1.26 per share
• Initial sampling showed 14 samples with >200 g/t AgEq, including values up to 1,908 g/t AgEq
• Property features two main vein systems with 2.6km and 1.8km strike lengths
• Located in the strategic Panuco – San Dimas silver-gold corridor

Vizsla Silver Corp. (TSX-V: VZLA) (NYSE: VZLA) stands as a Canadian mineral exploration and development company at the forefront of silver and gold discovery in Mexico. Headquartered in Vancouver, BC, the company has established itself as a significant player in the precious metals sector through its flagship 100%-owned Panuco silver-gold project in Sinaloa, Mexico. With over 350,000 meters of drilling completed at Panuco to date, Vizsla has demonstrated its commitment to systematic exploration and resource development, leading to multiple high-grade vein discoveries and a substantial mineral resource base.

The La Garra-Metates Acquisition

The company's recent acquisition of the La Garra-Metates district marks a significant expansion of its footprint in Mexico's rich silver-gold corridor. This strategic move, announced on October 17, 2024, involves a carefully structured purchase agreement combining cash payments and share issuance, demonstrating the company's balanced approach to growth and capital management. The acquisition terms include aggregate cash payments of US$3,075,000 and the issuance of 5,555,555 common shares, with thoughtful consideration given to market dynamics through staged share release restrictions over 36 months.

Property Overview & Initial Results

The La Garra-Metates District represents a compelling addition to Vizsla's portfolio, featuring geological characteristics similar to the company's successful Panuco Project. The district hosts two primary vein systems: the north-south trending La Garra system, extending approximately 2.6 kilometers, and the northwest-trending Cerro Verde – Las Playas system, with a strike length of about 1.8 kilometers. Initial exploration results have been particularly encouraging, with sampling programs yielding high-grade results that suggest significant potential for mineral discovery.

Exploration Potential

December 2023's preliminary sampling campaign provided strong validation of the district's potential. Out of 37 samples collected, fourteen rock-chip samples across veins ranging from 0.30 to 2.50 metres in width returned silver equivalent grades exceeding 200 g/t, with gold values ranging from 2.22 to 12.30 g/t and silver values from 22 to 1,156 g/t. Notably, these samples showed favorable metallurgical characteristics, with low concentrations of base metals and deleterious elements, suggesting potential for efficient processing.

Geological Setting

The geological setting of La Garra-Metates mirrors that of the productive Panuco Project and San Dimas district, featuring epithermal veins hosted within andesites and felsic volcanic formations of the Lower Volcanic Series. This geological similarity, combined with the district's location within the emerging Panuco – San Dimas silver-gold-rich corridor, positions the property favorably for the discovery of high-grade shoots along strike and at depth.

Historical Context & Future Opportunity

Historical mining activities at La Garra-Metates were relatively shallow, reaching only about 200 meters from surface. This presents a significant opportunity, as similar deposits in the region have demonstrated vertical extensions of up to 550 meters. Furthermore, the explored area represents only about 15% of the total property, suggesting substantial potential for additional vein discoveries through systematic exploration and mapping.

The Flagship Panuco Silver Project

The acquisition complements Vizsla's flagship Panuco project, which has already established itself as a significant silver-gold discovery. The Panuco project, spanning 7,189.5 hectares, benefits from extensive infrastructure including 86 kilometers of total vein extent and 35 kilometers of underground mines. The January 2024 mineral resource estimate for Panuco reported an impressive indicated resource of 155.8 Moz AgEq and an inferred resource of 169.6 Moz AgEq, demonstrating the scale of mineralization in the district.

Forward Strategy

Looking forward, Vizsla has outlined an aggressive exploration strategy for 2024, with over 65,000 meters of resource and discovery-based drilling planned. This program aims to both upgrade and expand the existing mineral resource while testing high-priority targets across the district, including the newly acquired La Garra-Metates property.

The Investment Thesis for Vizsla Silver

• High-Grade Assets: Vizsla controls two significant high-grade silver-gold districts in Mexico, with Panuco containing 155.8 Moz AgEq Indicated and 169.6 Moz AgEq Inferred resources, complemented by the newly acquired La Garra-Metates district showing grades up to 1,908 g/t AgEq.
• District-Scale Potential: The La Garra acquisition adds two major vein systems with 2.6km and 1.8km strike lengths, while only 15% of the property has been explored, suggesting significant resource growth potential.
• Strategic Location: Both properties are situated in the heart of Mexico's productive Panuco – San Dimas corridor, benefiting from excellent infrastructure including roads, power, and existing underground development.
• Exploration Momentum: With over 350,000 meters already drilled at Panuco and a 65,000-meter program planned for 2024, Vizsla maintains aggressive exploration momentum to drive value creation.
• Systematic Development: The company employs a methodical approach to exploration and development, demonstrated by consistent high-grade discoveries and resource growth at Panuco.
• Strong Financial Structure: The structured acquisition of La Garra (US$3.075M cash + shares) shows disciplined capital management, with thoughtful consideration of shareholder dilution through staged share release restrictions.
• Market Presence: Dual listing on TSX-V and NYSE provides enhanced liquidity and access to global investors, positioning the company for increased institutional investment.
• Technical Excellence: Exploration results consistently demonstrate the technical team's ability to identify and develop high-grade targets, with initial sampling at La Garra validating the acquisition strategy.
• Resource Growth Potential: Historical mining at La Garra reached only 200m depth versus regional potential of 550m, suggesting significant opportunity for resource expansion at depth.
• Infrastructure Advantage: Access to 86 kilometers of total vein extent and 35 kilometers of underground mines at Panuco provides significant cost advantages for future development.
• Silver Market Leverage: Pure-play silver exposure in a tier-one jurisdiction positions Vizsla to benefit from both precious metals appreciation and growing industrial demand for silver.
• Management Execution: The team has demonstrated ability to execute on both technical and corporate fronts, from systematic exploration success to strategic acquisitions and capital markets presence.

The completion of the La Garra-Metates acquisition represents a pivotal moment in Vizsla Silver's growth strategy. The transaction not only expands the company's footprint in a proven silver-gold district but also provides multiple opportunities for resource expansion through systematic exploration. The initial sampling results, combined with the geological setting and historical context, suggest significant potential for high-grade discoveries. With a well-funded exploration program planned for 2024, strong technical team, and clear development strategy, Vizsla Silver appears well-positioned to continue its trajectory as an emerging leader in the silver exploration and development sector. The company's balanced approach to growth, combining strategic acquisitions with systematic exploration, provides investors with exposure to both near-term discovery potential and long-term resource development opportunities in one of Mexico's premier silver-gold districts.