Vizsla Silver: Strategic Growth Into 2027 Production

• Vizsla Silver acquired 2,378 hectares of prospective ground from Fresnillo plc for US$6 million, securing seven strategic claims adjacent to its flagship Panuco project that host past production and potential vein extensions of known mineralized structures.
• The November 2025 feasibility study outlined a $1.8 billion after-tax NPV at 5% discount rate, 111% IRR, and a 7-month payback period, underscoring Panuco's status as one of the highest-grade undeveloped silver projects globally.
• With $203 million in cash, $240 million in net proceeds from a convertible bond offering, and $40 million in strategic equity holdings, Vizsla holds $480 million in total financing capacity against $238.7 million in initial capital requirements.
• The company targets average annual production of 20.1 million ounces silver equivalent in years one through five and 17.4 million ounces over the 9.4-year mine life, positioning it among the top three primary silver producers worldwide.
• Vizsla's path to H2 2027 first production coincides with silver market forecasts projecting prices between $70 and $100 per ounce in 2026, driven by persistent supply deficits and surging industrial demand from solar, electric vehicles, and data center sectors.

Vizsla Silver Corp. (NYSE: VZLA, TSX: VZLA) announced on December 18, 2025 an agreement to acquire ten mining claims totaling 2,378 hectares in Mexico's Panuco-San Dimas corridor from Fresnillo plc, one of the world's largest primary silver producers. The transaction, valued at US$6 million (US$2 million cash plus US$4 million in shares), represents a strategic consolidation that expands Vizsla's exploration footprint around its 100%-owned Panuco silver-gold project. The acquisition comes three weeks after the company released a positive feasibility study demonstrating exceptional economics at current metal prices and positions Vizsla to commence production in the second half of 2027.

The timing of this land consolidation aligns with a structural shift in global silver markets. Silver reached multi-decade highs above US$30.50-31.00/oz per ounce in mid-December 2025, propelled by inventory shortages, below-trend mine production, and accelerating industrial demand from renewable energy and technology sectors. Market analysts forecast that silver could trade between $70 and $100 per ounce throughout 2026 as supply deficits persist and investment flows intensify. Against this backdrop, Vizsla's fully-financed development plan and high-grade resource base merit attention from investors seeking leveraged exposure to silver price appreciation through a near-term production narrative.

This article examines Vizsla Silver's investment case through five thematic lenses: the company's operational profile and management team, the strategic significance of the Fresnillo acquisition, the technical and economic attributes of the Panuco project, current development milestones and permitting progress, and the implications for investors in the context of 2026 silver market forecasts.

Company Overview: Building a Tier-1 Mexican Silver Platform

Vizsla Silver is a Canadian mineral exploration and development company headquartered in Vancouver, British Columbia, focused exclusively on advancing its flagship Panuco silver-gold project in Sinaloa, Mexico. The company's stated vision is to become "the world's leading silver primary producer in Mexico" through consolidation, exploration, and development of the Panuco district. Vizsla aims to achieve annual production of 50 million ounces silver equivalent by 2035, a target that would place it among the top five global primary silver producers by output.

The company's leadership team brings extensive experience from successful mining developments across Mexico and internationally. CEO Michael Konnert founded Vizsla Silver and is managing partner of Inventa Capital, which has raised over $800 million since 2017. COO Simon Cmrlec served as COO of Ausenco with over 30 years of industry experience, including work on Silvercrest Metals' Las Chispas mine. Chairman Craig Parry co-founded NexGen Energy and served as founding director of Iso Energy, bringing 25 years of capital markets and project development expertise.

Vizsla's business model emphasizes both near-term production and long-term district-scale growth. The new Fresnillo acquisition adds 2,378 hectares to the Panuco Project specifically. Santa Fé and San Enrique are separate regional holdings, not part of the Panuco mine plan.. The company secured 30-year operating agreements with all five local Ejidos (communal landholders) and has invested $8.6M invested to benefit 4 local communities, establishing social license foundations for sustained operations.

Key Development: Strategic Acquisition Expands High-Grade Footprint

The December 2025 acquisition from Fresnillo comprises ten titled mining claims covering 2,378 hectares along the Panuco-San Dimas corridor, a mineralized trend with estimated historic production plus current resources and reserves of 1.2 billion ounces silver and 15 million ounces gold. Seven of these claims, totaling 1,734 hectares, are classified as "strategic" due to their proximity to Panuco and potential to host extensions of known mineralization.

Michael Konnert, President and CEO, stated:

"With this acquisition, we now have more prospective ground adjacent to our flagship Panuco project to continue exploring. The Strategic Claims host past production along a trend of known mineralized structures, several of which are included in the recently announced Panuco Feasibility Study. The acquisition of the Claims provides our team with new high-priority targets, which, pending exploration success, not only have the potential to grow the overall resource base but also bolster mine economics in future mine updates and technical studies."

Geologically, the strategic claims share the same host rocks as Panuco: andesite lavas and tuffs with overlying rhyolite tuffs correlative with the Tarahumara formation, intruded by diorite and granodiorite stocks of the Sinaloa batholith complex. Vizsla's detailed mapping, rock sampling, and exploratory drilling suggest that several veins within Panuco including La Luisa, Cruz Negra, San Dimas, Camelia, La Florida, and Cordon del Oro may extend into the newly acquired claims.

The transaction structure preserves Vizsla's treasury while providing Fresnillo with equity participation in future value creation. The consideration shares are subject to a four-month hold period under Canadian securities law. By acquiring these claims from a Tier-1 silver producer at a modest valuation relative to contained ounces, Vizsla demonstrated disciplined capital allocation focused on immediately accretive land consolidation.

Strategic Significance: Positioning for District-Scale Production

The Fresnillo land package acquisition represents the latest step in Vizsla's systematic consolidation of the Panuco district since 2020. Over the past five years, the company quadrupled its land position from approximately 2,250 hectares to over 9,000 hectares through staking and strategic purchases. This includes the 2024 acquisition of the Santa Fé property (12,229 hectares), the consolidation of the San Enrique claims (10,667 hectares), and reconnaissance work at the La Garra project.

The strategic value of land consolidation in epithermal vein districts like Panuco cannot be overstated. High-grade silver veins typically occur in clusters or "districts" controlled by regional structural corridors. Acquiring contiguous ground allows a developer to pursue veins across property boundaries, optimize underground access, and amortize infrastructure costs over a larger resource base. Vizsla's corporate presentation notes that less than 70% of the Panuco property has been mapped and only 28% of known vein targets have been drill-tested.

From an operational perspective, the proximity of the new claims to planned infrastructure creates optionality. Vizsla's feasibility study contemplates a 4,000-tonne-per-day processing facility located centrally within the Panuco district. Mineralization discovered on the strategic claims could be trucked to this facility at minimal cost, avoiding the need for duplicate crushing, milling, and tailings infrastructure.

Robust Project Economics: A Top-Quartile Silver Development

Vizsla's November 2025 feasibility study, completed by Ausenco Engineering Canada ULC, established Panuco as one of the most economically attractive undeveloped silver projects globally. The study outlined an after-tax net present value of $1.802 billion at a 5% discount rate and an after-tax internal rate of return of 111%, assuming metal prices of $35.50 per ounce silver and $3,100 per ounce gold. Initial capital expenditure totals $238.7 million, with an additional $287 million in sustaining capital over the 9.4-year mine life.

Production metrics underscore Panuco's high-grade profile. The mine plan targets average annual output of 20.1 million ounces silver equivalent in years one through five, declining to an average of 17.4 million ounces over the full mine life. All-in sustaining costs are estimated at $10.61 per ounce silver equivalent, placing Panuco in the bottom quartile of the global cost curve.

The feasibility study contemplates a two-phase development. Phase 1 involves construction of a 3,300-tonne-per-day whole-ore leach processing facility, underground development at the Copala and Napoleon deposits, and surface infrastructure including a tailings storage facility, power substations, and haul roads. Phase 2, commencing in year four, expands processing capacity to 4,000 tonnes per day to accommodate increased underground production.

Current Activities: De-Risking the Path to Production

Vizsla Silver is advancing multiple workstreams in parallel to de-risk technical, permitting, and financing aspects of the Panuco development. The company commenced a fully permitted 10,000-tonne bulk sample program in Q4 2024 at the Copala deposit. This "test mine" serves three objectives: validating geotechnical parameters and mining methods, generating large-scale metallurgical samples to optimize reagent consumption, and stockpiling high-grade ore for processing during plant commissioning.

Permitting progress tracks toward a Q2 2026 construction decision. Vizsla submitted the Environmental Impact Assessment (Manifestación de Impacto Ambiental or MIA) to Mexican authorities in February 2025. Approval is targeted for the first half of 2026, after which all other permits including operating concessions, water use permits, and explosives authorizations are expected to follow within 90 days.

Financing is complete. In November 2025, Vizsla closed a $300 million offering of 5-year convertible senior notes with a 5% annual coupon. Net proceeds of $240 million, combined with $200 million in cash and $40 million in strategic equity holdings, provide $480 million in total liquidity against $238.7 million in initial capital needs. This fully-funded position differentiates Vizsla from most pre-production developers.

Market Context: Silver Poised for Structural Re-Rating

Vizsla's development timeline aligns with a compelling fundamental backdrop for silver. The metal recorded a persistent supply deficit throughout 2025, driven by below-trend mine production and surging demand from industrial, investment, and jewelry sectors. According to Silver Institute data, approximately 28-30% of global silver mine supply comes from primary silver mines, with 70-72% as by-product of base metals (lead-zinc ~36%, copper ~25%, gold ~11%).

On the demand side, industrial consumption continues to accelerate. Silver's unique properties make it irreplaceable in photovoltaic solar cells, electric vehicle powertrains, and power electronics for data centers. Analysts forecast that industrial demand will grow at 2.5-3.5% CAGR through 2030, driven primarily by photovoltaic solar panel production.

Price forecasts for 2026 reflect these structural dynamics. Conservative scenarios project silver trading around $70 per ounce, while bullish forecasts extend toward $100 per ounce if investment flows accelerate and industrial uptake exceeds expectations. Even the conservative $70 target represents a 97% premium over the $35.50 silver price assumed in Vizsla's feasibility study, implying significant economic upside.

Investment Thesis: Four Catalysts for 2026-2027

• Every $1 increase in silver price adds approximately $33 million to NPV, offering asymmetric returns if 2026 forecasts of $70-100/oz materialize versus the $35.50 feasibility baseline.
• Construction decision targeted Q2 2026 with first silver pour H2 2027 positions Vizsla as one of few developers reaching cash flow within 18-24 months in current market conditions.
• Strategic land acquisitions and 138 million ounces inferred resources provide multi-decade brownfield exploration upside within existing infrastructure footprint.
• Fully-funded balance sheet, 7-month payback, and $10.61 AISC reduce execution risk and dilution versus peer group requiring equity raises during construction.

Vizsla Silver's dual catalysts of immediate consolidation via the Fresnillo acquisition and imminent production via the Panuco feasibility study position the company to capitalize on silver's structural bull market. The acquisition enhances resource growth potential at minimal cost, while the feasibility study's robust economics provide downside protection even if silver prices moderate from current levels.

The market timing deserves emphasis. Vizsla targets first production in H2 2027, coinciding with the anticipated peak of the current silver cycle based on supply deficit projections. Starting production into strong metal prices allows the company to generate substantial free cash flow from day one, which can be reinvested into district exploration or returned to shareholders.

From a portfolio construction perspective, Vizsla offers leveraged exposure to silver with mitigated downside. The company's market capitalization of $1,582M implies a valuation of approximately 0.878x times after-tax NPV, below the 0.85x average for development-stage silver projects. This discount reflects remaining construction risk but also presents re-rating potential as milestones are achieved.

TL;DR

Vizsla Silver acquired 2,378 hectares from Fresnillo for $6M, expanding its Mexican silver district ahead of planned H2 2027 production. A November 2025 feasibility study outlined $1.8B NPV, 111% IRR, and 20+ Moz annual output in the first five years, all fully financed with $480M in liquidity. With silver forecast at $70-100/oz in 2026 due to supply deficits and industrial demand, Vizsla's low-cost, high-grade profile offers leveraged exposure to metal price upside.

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