Vizsla Silver: The Next Big Player in Mexico’s Silver Boom

• Vizsla Silver has bolstered its financial position through a successful financing, attracting both institutional and retail investors in September 2024.
• The acquisition of the La Garra-Metates district doubles Vizsla's land holdings, unlocking significant exploration potential in a highly prospective region.
• Infill drilling at the Copala project confirmed high-grade continuity, with silver equivalent grades exceeding 5,000 grams per ton.
• Vizsla targets initial production by 2027, supported by a test mine and an upcoming bankable feasibility study.
• A low capex of $224 million, rapid payback of under nine months, and significant cash flow potential position Vizsla as a premier investment opportunity.

Vizsla Silver: Unlocking World-Class Silver Potential in Mexico Silver

Vizsla Silver is rapidly emerging as a premier silver exploration and development company, with its flagship project, the Panuco silver-gold district, located in Sinaloa, Mexico. The Panuco district has a rich history of silver production, yet remains underexplored. Vizsla has consolidated this historic district and uncovered a world-class resource with high-grade silver and gold mineralization. The company’s current resource estimate highlights over 200 million ounces of silver equivalent, solidifying its position as one of the most exciting silver stories globally.

With robust project economics, a strong balance sheet, and a clear path to production, Vizsla is set to capitalize on rising silver demand and investor interest in precious metals.

The Panuco Project: Redefining Silver Exploration

Vizsla Silver’s flagship asset, the Panuco silver-gold district, is a cornerstone of the company’s growth strategy and a standout project in the global mining landscape. Located in Sinaloa, Mexico, Panuco spans over 7,000 hectares in a historically significant but underexplored silver-rich region. Vizsla’s consolidation of the district—a complex task involving numerous landowners—has unlocked a cohesive and highly prospective exploration and development opportunity.

The district’s history dates back to the Spanish colonial era, with artisanal mining leaving behind untapped potential. Vizsla’s modern exploration techniques have revealed world-class resources, including high-grade silver and gold veins that position the company for significant production. Recent drilling results have been particularly impressive, confirming over 200 million ounces of silver equivalent resources.

Michael Konnert, Vizsla’s CEO, describes Panuco as a unique project:

“This is one of the most exciting silver districts globally. With high-grade resources, existing infrastructure, and strong exploration potential, Panuco has the scale and quality to become a billion-ounce district.”

Panuco is blessed with exceptional infrastructure. The project lies near two major highways, has access to a power grid, and is in close proximity to ports and mining-friendly communities. These advantages reduce capital requirements and streamline future production.

The company’s focus on high-grade zones, particularly at the Copala deposit, underscores the project's quality. Copala boasts grades exceeding 5,000 grams per ton of silver equivalent, with widths that support efficient mining. Infill drilling has further strengthened the continuity of mineralization and expanded the resource closer to the surface.

As Vizsla advances Panuco toward production, the district represents a transformational opportunity—not only for the company but for Mexico’s silver mining industry. With robust project economics and a clear path to development, Panuco is a flagship asset that underpins Vizsla’s rise as a premier silver developer.

Expanding Horizons: The La Garra-Metates Acquisition

Vizsla Silver’s acquisition of the La Garra-Metates district is a strategic move that positions the company for long-term growth in Mexico’s prolific silver regions. Konnert explains the rationale:

“What we consider our competitive advantage in this area of Sinaloa is combined with what we perceive as a massive underexplored region in Mexico.”

The district, located equidistant between the San Dimas and Panuco districts, has a rich history of small-scale production but has never been subjected to systematic exploration or diamond drilling. This acquisition effectively doubles Vizsla’s land package and adds 10,000 hectares in the south, further cementing its dominant presence in the region.

Konnert emphasizes the company’s forward-looking strategy:

“One day, I’d like to see Vizsla having much larger land holdings in this region. We believe we can grow the company organically through exploration and later development.”

Drilling Success: High-Grade Results at Copala

Vizsla’s infill drilling campaign at the Copala project has exceeded expectations, confirming continuity in high-grade silver equivalent mineralization. Highlights include grades of over 5,000 grams per ton across significant true widths. Konnert notes:

“We’ve effectively drilled just under 70,000 meters since the last resource cutoff, primarily at Copala. What’s really exciting is that the infill program has not only confirmed the resource but actually grown it closer to the surface.”

This outcome is rare for infill campaigns, which often see resources shrink. “Typically, infill campaigns diminish resources. Here, the opposite has occurred,” he added. The results will feed into an updated mineral resource estimate, expected in early 2025.

Fast-Tracking Production: On Track for 2027

Vizsla aims to move into production by 2027, with a feasibility study planned for early 2025. A test mine, beginning end of 2024 and into the start of 2025, will play a crucial role in de-risking operations. Konnert highlights its importance:

“The test mine isn’t for a bulk sample or raising money. It’s about de-risking the startup and feeding critical data into our feasibility study.”

The test mine will also allow the company to stockpile ore, further streamlining the path to production. Permits remain a critical milestone, but Konnert expresses confidence:

“I suspect permits will be achievable for the company. This is a huge step forward as we prepare for full production.”

Economic Strength: A Robust Asset with Significant Upside

The PEA for Copala demonstrates a low initial capex of $224 million, rapid payback of nine months, and a strong IRR of 85.7%. With silver and gold prices well above base-case assumptions of $26 per ounce silver and $1,975 per ounce gold respectively, the project offers tremendous upside. Konnert states:

“We’re in excellent financial shape. Even at current prices, the payback could drop to six months, and the IRR could hit triple digits.”

The project’s low cost structure makes it resilient to downside scenarios, with a breakeven silver price near $10 per ounce.

"This is a very large-scale, low-cost operation—exactly the kind of asset that investors look for."

Navigating Mexico’s Political Landscape

Konnert addressed concerns about Mexico’s political and security environment, offering an optimistic perspective:

“I just got back from Mexico, and the meetings were overwhelmingly positive. We heard directly that silver is a critical mineral, and they want to encourage foreign investment.”

He also dismisses fears about cartel activity disrupting operations, stating:

“We’ve been operating normally. Sinaloa is actually less violent than other mining regions often perceived as safer. Our COO is on site, and I’ll be there myself next week.”

Upcoming Catalysts: What to Watch for in Vizsla Silver’s Growth

Vizsla Silver has a series of key milestones and events on the horizon that are poised to drive significant value for shareholders. These upcoming catalysts will not only de-risk the project but also solidify the company’s position as a premier silver developer:

• Updated Mineral Resource Estimate (Early 2025)
  Vizsla’s infill drilling campaign at Copala has been a resounding success, confirming high-grade continuity and expanding the resource closer to the surface. The updated mineral resource estimate, expected in early 2025, will incorporate this new data. This milestone is likely to increase the indicated and inferred resource categories, providing a clearer picture of the project’s full potential.
• Feasibility Study (Second Half of 2025)
  The completion of a bankable feasibility study by late 2025 will be a critical step toward advancing Panuco to production. The study will incorporate data from the infill drilling, test mining, and updated metallurgical testing, ensuring that project economics remain robust and aligned with or exceed the PEA results.
• Test Mine Launch (Late 2024 - Early 2025)
  Vizsla is set to begin operations at its test mine, which will provide valuable insights into ground conditions, metallurgy, and operational readiness. This test mine is a significant de-risking initiative that will feed into the feasibility study and position the company for smoother startup and ramp-up once full-scale production begins.
• Permitting Milestones (2025)
  Permits are one of the most critical aspects of any mining project. Vizsla expects to achieve key permitting milestones for the Panuco district in 2025, paving the way for construction and production timelines. Recent positive feedback from Mexican officials highlights a favorable environment for advancing the project.
• Advancing Project Financing (2025-2026)
  Vizsla’s robust project economics make it highly attractive to lenders. With a target debt-to-equity ratio of 60:40 or potentially 65% debt, the company is already in discussions to secure project financing. These advancements will ensure that the project remains on schedule and fully funded without significant equity dilution.
• Silver and Gold Market Trends
  As precious metals prices continue to rise, Vizsla’s low-cost, high-margin operations will become even more appealing. Investors should monitor movements in silver and gold markets, as higher prices could significantly boost project economics and shareholder returns.

These catalysts, when combined, represent a transformative period for Vizsla Silver. The company is poised to move from exploration to production, making it an attractive opportunity for investors seeking exposure to a high-growth silver development story.

Investment Thesis: Why Vizsla Silver Stands Out

Vizsla Silver presents a unique and compelling opportunity for investors, driven by a combination of strategic positioning, financial strength, and operational excellence:

• World-Class Resource Potential: The Panuco district hosts over 200 million ounces of silver equivalent with high-grade mineralization, solidifying its position as a future top-tier silver producer.
• Path to Production by 2027: Vizsla is advancing rapidly with a bankable feasibility study expected in 2025 and plans to enter production by the second half of 2027.
• Robust Project Economics: The project boasts a low capex of $224 million, a payback period under nine months, and an IRR of 86%—offering strong upside potential at current silver and gold prices.
• Strong Financial Position: With $100 million in cash, Vizsla is well-funded to achieve key milestones, including test mining, feasibility work, and early construction phases.
• Strategic Expansion: The acquisition of the La Garra-Metates district and additional concessions further strengthens Vizsla’s land package, creating significant opportunities for organic growth and resource expansion.
• Experienced Leadership and Proven Execution: Led by a seasoned management team, Vizsla has a track record of delivering results, including its successful resource consolidation and infill drilling campaigns.
• Favorable Market Dynamics: Rising demand for silver, driven by industrial use and investment appeal, coupled with higher precious metal prices, enhances Vizsla’s potential returns.

For investors seeking exposure to a high-growth, undervalued silver play, Vizsla Silver stands out as a top-tier choice with exceptional potential for value creation.