Vizsla Silver: Why This Tier-1 Mexican Silver Developer Deserves Investor Attention

• The Panuco Project feasibility study outlines robust economics with an NPV of US$1,137M, 86% IRR, and 9-month payback at base case metal prices of US$26/oz silver and US$1,975/oz gold.
• Vizsla holds US$200M+ in cash, has secured a US$220M senior debt facility with Macquarie, and maintains equity positions valued at US$30M, providing total financing capacity of US$450M against initial capex of US$224M.
• The January 2025 mineral resource estimate contains 222.4Moz silver equivalent in measured and indicated categories, representing an 11% increase in total contained ounces and a 43% increase in M&I ounces from the previous estimate.
• A fully permitted test mine at Copala commenced in Q4 2024, designed to validate mining methods, confirm metallurgy, and access the first two years of high-grade production zones.
• Only 30% of identified vein targets across the 40,000+ hectare Panuco district have been drill-tested, with recent discoveries at Animas demonstrating continued expansion potential beyond the current resource base.

Company Overview: Building Mexico's Next High-Grade Silver Producer

Vizsla Silver was founded with a singular focus: to consolidate and develop the historic Panuco silver-gold district in Sinaloa, Mexico. The company has systematically assembled a land package that has grown to over 40,000 hectares, covering a prolific epithermal vein system that has never been explored using modern techniques. Management, led by CEO Michael Konnert and COO Simon Cmrlec, brings extensive capital markets, project development, and operational experience. Konnert is founder and managing partner of Inventa Capital, which has raised over US$800M since 2017, while Cmrlec brings over 30 years of industry experience as former COO of Ausenco, supporting development of mines around the world including Silvercrest's Las Chispas mine.

The Panuco Project benefits from exceptional infrastructure. High-voltage power lines cross the property, year-round road access connects to Mazatlán approximately one hour away, and the region has a skilled labor pool with mining experience. The property sits within the emerging Western Mexico Silver Belt, approximately 80 kilometers from First Majestic's San Dimas mine, which has produced over 1 billion ounces silver equivalent. Vizsla's approach has been to apply modern exploration, drilling, and resource modeling to unlock the district's full potential while simultaneously advancing engineering, permitting, and community engagement required for mine development.

The company's technical team, led by VP Exploration Jesus Velador, who holds a doctorate in epithermal deposits and brings 25+ years of experience from Fortuna Silver and First Majestic, has completed over 390,000 meters of diamond drilling without constructing a single road. Three rounds of metallurgical testing have confirmed high recoveries of up to 93% silver and 94% gold using conventional whole ore leach processing. Community relations have been prioritized from the outset, with signed 30-year operating agreements across all five local Ejidos and investment in infrastructure projects totaling over US$300,000. This foundation positions Vizsla to execute construction and ramp-up smoothly once a production decision is made following feasibility study completion in H2 2025.

Feasibility Study Highlights: Robust Economics & Production Profile

The preliminary economic assessment delivered in July 2024 outlined compelling project economics that have now been advanced through feasibility-level engineering. The mine plan contemplates an initial throughput of 3,300 tonnes per day, ramping to 4,000 tpd in year four, utilizing conventional long-hole (85%) and drift-and-fill (15%) underground mining methods. The processing strategy employs whole ore leach technology to produce silver-gold doré, with an expansion option for bulk flotation to capture base metal credits at depth in the Napoleon zone.

Base case economics assume US$26/oz silver and US$1,975/oz gold. At these prices, the project generates a post-tax NPV at 5% discount of US$1,137M and an internal rate of return of 86%. The payback period is just 9 months, among the shortest in the silver development peer group. Initial capital expenditure is estimated at US$224M including 20% contingency, with life-of-mine sustaining capital of US$230M. Operating costs are projected at US$76.40 per tonne processed, translating to all-in sustaining costs of US$9.40 per ounce silver equivalent, well below current spot prices and competitive with operating mines.

The production profile is heavily front-loaded, with average annual production in years 1-2 reaching 20.2 million ounces silver equivalent, driven by high-grade stopes in the Copala and Cristiano zones. Over the 10.6-year mine life, total production is estimated at 162.1 million ounces silver equivalent, averaging 15.2Moz AgEq annually including 8.8Moz silver and 76,000 oz gold. This production scale would position Panuco among the top primary silver mines globally. Sensitivity analysis shows strong leverage to metal prices: a 20% increase in silver and gold prices lifts post-tax NPV to US$1,528M and IRR to 107%, while even at 20% lower prices, the project maintains NPV of US$747M and IRR of 63%.

Resource Growth and Conversion: Achieving Measured Classification

Vizsla's updated mineral resource estimate, effective January 2025, represents a significant milestone. The estimate includes measured resources for the first time: 2.24 million tonnes grading 640 g/t silver equivalent containing 46.1Moz AgEq. This reflects the confidence achieved through systematic infill drilling. Indicated resources total 10.7 million tonnes at 512 g/t AgEq containing 176.3Moz AgEq, while inferred resources add 10.5 million tonnes at 412 g/t AgEq containing 138.7Moz AgEq. Combined measured and indicated resources now total 222.4 million ounces silver equivalent.

The resource upgrade was achieved through over 15,000 meters of infill drilling focused on the Copala and Napoleon zones, which represent the first five years of production. Thirty percent of indicated resources were successfully converted to measured classification, and 18% of inferred resources were upgraded to indicated. Average M&I grade increased 4.5% to 534 g/t AgEq from 511 g/t AgEq in the previous estimate, reflecting improved geological understanding and selective infill targeting. The resource remains open along strike and at depth across multiple vein systems, with exploration continuing on untested targets across the broader district.

The resource classification directly supports reserve estimation and mine planning at feasibility study level. Higher-confidence measured and indicated resources reduce project risk and improve financing terms, as lenders place greater weight on proven geology. Vizsla's systematic approach, moving from discovery through resource expansion to conversion drilling, demonstrates technical rigor and positions the project for a smooth transition to reserve declaration and construction decision in 2025.

Financial Strength: Fully Funded to Production

Vizsla Silver's financial position is among the strongest in the silver development sector. The company holds approximately US$200 million in cash and equivalents, raised through a US$100 million bought-deal financing completed at US$2.21 per share. In addition, Vizsla executed a Mandate Letter on September 4th, 2025, for a US$220 million senior secured project financing facility with Macquarie holding a 70% interest and lead arranger for the remaining 30% syndication. The company also holds equity positions in Vizsla Royalties (approximately 17% stake) and Pacifica Silver, valued at approximately US$30 million. Total financing capacity of US$450 million significantly exceeds the US$224 million initial capital requirement.

This financial strength eliminates near-term dilution risk and provides flexibility to accelerate development, fund additional exploration, and respond to market conditions without distress financing. The debt facility terms are competitive, reflecting confidence in the project economics and Vizsla's execution capability. For investors, this means the company can advance to production without requiring additional equity raises at inopportune times, a key differentiator in a sector where many developers struggle with capital availability.

Vizsla's discovery cost, the total exploration expenditure divided by ounces discovered, is estimated at US$0.41 per ounce silver equivalent. This cost is exceptionally low compared to industry benchmarks, demonstrating that Vizsla has created significant value through exploration and resource definition. To date, the company has incurred an aggregate of approximately US$146.7 million in exploration expenditures over the life of the project. Combined with strong project economics and full financing, the company is positioned to transition smoothly from development to production without the balance sheet constraints that plague many peers.

Operational De-Risking: Test Mine & Metallurgical Optimization

Vizsla commenced a fully permitted test mine at Copala in Q4 2024, designed to extract a 10,000-tonne bulk sample from the high-grade core of the deposit. The test mine consists of 169 meters of ore development (4.5m W x 5m H) and 902 meters of waste development (5.5m W x 5.5m H), accessing material 70 vertical meters below surface. The objectives are threefold: confirm geotechnical assumptions for stope design, validate mining methods (long-hole and drift-and-fill), and extend metallurgical testing on a statistically significant sample representing the first two years of production.

Bulk sampling is a critical de-risking step that addresses investor concerns about grade reconciliation, mining dilution, and metallurgical variability. By extracting and processing actual mine material under controlled conditions, Vizsla can refine mine plans, optimize processing parameters, and provide greater certainty to lenders and off-take partners. The test mine is expected to generate initial revenue through sale of doré produced from the bulk sample, providing proof of concept for the entire value chain from mining through processing and refining.

Metallurgical optimization is proceeding in parallel. Vizsla has completed three rounds of testwork on the main deposits: Napoleon (2021), Tajitos (2022), and Copala (2023). Testing included comminution, bulk and sequential flotation, gravity concentration, whole ore leach, and bench scale regrind. Results to date demonstrate recoveries up to 93% for silver and 94% for gold, with negligible deleterious elements and simplified flowsheet configuration producing silver-gold doré. The current optimization program focuses on deposit-wide variability testing, host rock characterization, and vendor-specific equipment testing to support engineering design. The processing facility will initially employ whole ore leach technology, with an expansion option to add bulk flotation for base metal recovery as mining progresses to deeper, higher-sulfide zones at Napoleon.

District-Scale Exploration: Significant Upside Beyond Current Resource

One of Vizsla's most compelling attributes is the scale of the Panuco district and the early stage of exploration relative to the property size. The company has mapped approximately 88.5 kilometers of cumulative vein strike across the district, yet only 30% of identified vein targets have been drill-tested. Less than 67% of the property has been systematically mapped, indicating substantial greenfield potential. Recent discoveries, such as the Animas zone released March 31st, demonstrate that high-grade mineralization extends well beyond the current resource areas. Initial drilling at Animas returned intercepts including 5.8 meters true width grading 653 g/t silver and 4.26 g/t gold, confirming the presence of additional discovery opportunities.

Vizsla is conducting district-wide electromagnetic and magnetic surveys to identify structural controls and locate new sulfide-hosted mineralization at depth. These geophysical tools, combined with multispectral satellite imagery and TerraSpec targeting, are being applied systematically across the land package to generate drill-ready targets. The exploration strategy balances resource expansion drilling near existing deposits with early-stage reconnaissance and discovery drilling across the broader district. This dual-track approach allows Vizsla to grow resources that support near-term mine life extension while building a pipeline of future discoveries that could support additional production centers or satellite operations.

The district also includes three satellite properties: Santa Fé, San Enrique, and La Garra, each with historic workings, high-grade surface sampling, and significant exploration potential. Santa Fé has been consolidated under 100% ownership, with six high-priority drill targets defined along the Mother Vein and detailed property-wide mapping underway. San Enrique consists of 10,667 hectares along the Panuco-San Dimas corridor, with LiDAR and airborne magnetic surveys completed outlining major NW-trending vein and fault structures. Regional reconnaissance mapping is in progress to finalize H2 2025 drill targets. La Garra has returned 14 rock-chip samples from multiple veins with AgEq grades exceeding 200 g/t, indicating strong district-scale potential along the La Garra-Metates trend.

ESG Leadership & Community Engagement

Vizsla Silver has prioritized environmental, social, and governance considerations from the outset, recognizing that social license and operational sustainability are critical to project success. The company's Mexican subsidiary, Minera Canam, has been awarded the Empresa Socialmente Responsable (ESR) designation three times, representing national recognition of sustainability efforts. Seven infrastructure projects totaling over US$300,000 have been completed to benefit four local communities, including clean water access, public buildings, and agricultural support. An additional US$6 million has been invested in land rehabilitation projects to remediate the historic El Coco mill site and restore native vegetation.

Community relations are managed through collaborative agreements with all five local Ejidos, providing 30-year operating security and profit-sharing arrangements. Approximately 70% of on-site staff are hired from local communities, with wages above regional averages. The company has conducted seven community health fairs connecting over 1,200 people with health professionals and provided emergency medical training to all staff. The Total Recordable Incident Rate (TRIR) is 0.18, significantly below the Mexican national average of 3.9, reflecting a proactive safety culture and hazard management systems.

Environmental stewardship includes cultivation of over 5,000 endangered tree species at an on-site nursery for land restoration, greenhouse gas inventory monitoring, water quality consultation with Ejido groups, and weekly hazardous materials tracking. The tailings storage facility is strategically located in a watershed with no downstream communities, and infrastructure is sited within property concessions and long-term agreements. A social impact assessment is underway to analyze all social risk aspects of project development and operation, ensuring that potential issues are identified and mitigated proactively. These ESG initiatives reduce project risk, improve stakeholder relationships, and align with institutional investor expectations for responsible mining.

Market Context: Silver Fundamentals Support Development Projects

Silver has entered a period of heightened volatility, driven by shifting expectations around monetary policy, inflation trends, and industrial demand. Since 2020, aggregate silver supply has declined 0.9% annually while demand has grown 3.6% annually, creating persistent supply deficits. The gap widened significantly, with net physical supply deficits continuing through 2024 and 2025. This imbalance is driven largely by photovoltaic (solar panel) demand, which has grown 21% annually since 2020 and now represents a major industrial use category. Jewelry, silverware, investment, and industrial applications continue to compete for available supply, while primary mine production remains constrained.

Silver's dual nature as both a precious metal and an industrial commodity amplifies its sensitivity to macroeconomic signals. Lower interest rates improve the relative appeal of non-yielding assets like silver, while inflation concerns drive safe-haven demand. Industrial growth in renewable energy, electronics, and automotive electrification provides structural demand support independent of monetary conditions. For mining companies, this environment creates both opportunity and volatility. Well-capitalized developers with near-term production timelines stand to benefit from sustained higher prices, while exploration-stage companies face greater financing challenges.

Vizsla is positioned to capitalize on this macro backdrop. The company's production timeline, with first silver targeted for H2 2027, aligns with expectations for continued supply deficits and rising prices. The low all-in sustaining cost structure of US$9.40/oz AgEq provides downside protection if prices moderate, while the short payback period and high IRR generate exceptional returns if silver strengthens further. Investor appetite for de-risked development assets with strong balance sheets has increased, and Vizsla's combination of advanced engineering, secured financing, and district-scale optionality positions it favorably within the peer group.

Leadership Perspective on Project Advancement

The company's executive team has provided context on the development trajectory and strategic priorities. Speaking about the project advancement, CEO Michael Konnert stated:

"Vizsla's vision is to become the World's Largest Single Asset Silver Primary Producer through exploration and development of the Panuco district in Mexico."

This statement underscores management's long-term commitment to building a significant, enduring silver production platform rather than pursuing a quick exit or asset flip.The emphasis on systematic de-risking and operational validation reflects management's understanding that investor confidence in development projects requires demonstration of technical competence and execution capability. The test mine program, conversion drilling campaign, and metallurgical optimization initiatives collectively serve to reduce key uncertainties before committing to full-scale construction. This approach balances aggressive development timelines with prudent risk management, a combination that has historically generated superior returns for shareholders in successful mining developments.

Peer Comparison & Valuation: Significant Re-Rating Potential

Vizsla currently trades at a P/NAV (price to net asset value) multiple of approximately 0.56x, significantly below the average primary silver producer multiple of 1.59x, representing a 185% premium. This valuation gap reflects Vizsla's development-stage classification, despite having completed feasibility-level engineering, secured project financing, and commenced operational de-risking through the test mine program. As the company progresses toward construction decision in 2025 and first production in 2027, a re-rating toward producer multiples is likely, driven by declining project risk and improving visibility on cash flow generation.

Comparable primary silver producers including First Majestic, Fortuna Silver, Hecla Mining, and MAG Silver trade at valuations reflecting operating cash flow, production growth, and resource quality. Vizsla's projected initial production of 15.2Moz AgEq annually, with years 1-2 averaging 20.2Moz, would rank it among the largest primary silver mines globally, exceeding the output of several current producers. The combination of scale, grade, low cost, and district exploration potential supports a premium valuation once production risk is removed. Analysts covering the stock have established consensus price targets ranging from C$7.25 to C$13.40 per share, implying significant upside from current levels based on successful execution of the development plan.

For investors, the key consideration is timing and risk tolerance. Development-stage investments carry execution risk: permitting delays, cost overruns, grade reconciliation issues, or financing gaps can derail value creation. However, Vizsla has systematically addressed these risks through community agreements, full financing, test mining, and metallurgical confirmation. The company's strong balance sheet eliminates forced-sale or distress financing scenarios, while the experienced management team brings a track record of successful project development and shareholder value creation. The valuation discount reflects residual development risk, but the asymmetry favors investors willing to hold through construction and ramp-up.

Current Activities & Near-Term Milestones

Vizsla is advancing multiple work streams in parallel to maintain development momentum. The feasibility study is expected for delivery in H2 2025, incorporating results from the test mine program, optimized metallurgical flowsheet, and updated resource model. Permitting activities are progressing, with major environmental and operational permits anticipated to be secured ahead of the construction decision. Engineering contractors Ausenco and Entech are completing detailed design for process plant, tailings facility, and underground infrastructure, with procurement strategies and construction schedules being finalized.

The test mine continues to extract bulk sample material from Copala, with ore shipments to processing facilities for metallurgical testing and doré production. Exploration drilling is ongoing, with two rigs testing high-priority targets in the Central and East areas of the district, including follow-up at Animas and reconnaissance drilling at Santa Fé and San Enrique. A 10,000-meter program is underway to expand resources proximal to existing deposits and generate new discoveries that could support future expansion. Geophysical surveys including electromagnetic and magnetic studies are being conducted across the district to define structural controls and identify blind targets for future drill programs.

Management is actively engaging with potential off-take partners, strategic investors, and lenders to optimize project financing terms and explore value-added partnerships. The company's NYSE listing provides access to U.S. institutional capital, while the TSX listing maintains Canadian investor base engagement. Investor relations activities focus on communicating development progress, highlighting the technical de-risking achieved through test mining and metallurgy, and positioning Vizsla as a premier silver development opportunity within the sector.

The Investment Thesis for Vizsla Silver

• Production commencing H2 2027 positions Vizsla to capture rising silver prices driven by structural supply deficits and industrial demand growth, with AISC of US$9.40/oz providing margin protection.
• US$450M total financing capacity against US$224M initial capex eliminates near-term dilution risk and provides operational flexibility through construction and ramp-up.
• Test mine validation of mining methods, metallurgy, and grade reconciliation reduces project execution risk ahead of construction decision in H2 2025.
• Only 30% of identified targets drill-tested across 40,000+ hectare land package; continued discoveries extend resource base and support multi-decade mine life beyond current plan.
• P/NAV discount to producing peers narrows as project advances, with potential for significant multiple expansion as construction commences and production timeline shortens.
• Community agreements, environmental leadership, and safety performance reduce social license risk and align with institutional investor mandates for responsible mining.

Vizsla Silver represents a compelling investment opportunity for investors seeking leveraged exposure to silver price appreciation within a de-risked development framework. The company has systematically addressed the key risks associated with mine development: resource confidence, metallurgical performance, community support, and financing availability, while maintaining substantial exploration upside across a district-scale land package. The project economics are robust at current metal prices, with exceptional returns at higher silver prices reflecting the structural supply deficit in the market.

The near-term catalyst path is clear: feasibility study delivery in H2 2025, followed by construction decision and commencement of mine construction. First silver production is targeted for H2 2027, at which point Vizsla transitions from developer to producer, with corresponding re-rating potential as production risk is removed. For investors with medium-term time horizons of two to three years, the combination of valuation discount, operational de-risking, and macro tailwinds in silver creates an attractive risk-reward profile. The strong balance sheet eliminates forced-sale scenarios, allowing management to execute the development plan on optimal terms.

Risks remain: construction execution, permitting timelines, metal price volatility, and operational ramp-up challenges are inherent to any development project. However, Vizsla's management team brings extensive experience in navigating these challenges, the project benefits from exceptional infrastructure and community support, and the financial cushion provides resilience against unforeseen issues. For investors seeking primary silver exposure with development upside and district exploration optionality, Vizsla Silver warrants serious consideration as a core holding within a diversified mining portfolio.

TL;DR

‍Vizsla Silver has delivered a robust feasibility study for its flagship Panuco Project in Mexico, positioning itself as a near-term silver producer with strong economics, low costs, and significant exploration upside. With US$200M+ in cash, a secured debt facility, and a pathway to first production in H2 2027, the company offers investors leveraged exposure to rising silver prices in a structurally undersupplied market. The updated resource estimate, completed test mine, and district-scale potential make this a compelling development-stage investment.

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