Vizsla reports high-grade discovery in Mexico

The project is located in southern Sinaloa, near the city of Mazatlán. The 72 sq. km district has more than 86 km of total vein extent, 35 km of underground mines, roads, power and permits.

Vizsla Silver (TSX, NYSE: VZLA) says a high-grade find bodes well to expand its flagship Panuco silver-gold project in Mexico.

Hole AM-25-90 returned 653 grams silver per tonne, 4.26 grams gold, 0.02% lead and 0.04% zinc over 5.85 metres true width from 119 metres depth, Vizsla said Monday in a statement. The same hole also returned an interval from 131 metres depth of 457 grams silver, 2 grams gold, 0.08% lead and 0.18% zinc over 2.6 metres true width, the company added.

The hole is located about 6 km northeast of the Copala resource area, which is located along the Animas vein system below historic mine workings. Vizsla is planning to follow up on the discovery with further drilling.

“While early stage, in our view the discovery underscores Panuco’s district scale potential,” BMO Capital Markets analyst Kevin O’Halloran said in a note to clients.

Five targets

News of the discovery comes as Vizsla carries out a 10,000-metre drill program – started late last year – to test several veins in five priority targets across the district. The discovery was made at the La Pipa target.

“This new discovery underscores the strong potential for new wide, high-grade silver and gold mineralization in the Panuco district, which has historically seen limited systematic exploration,” CEO Michael Konnert said in the statement. “To date, drilling in the area has been limited, however ongoing geologic interpretation of the localized system suggests both grade and widths may increase at depth. We will evaluate plans to follow up on this exciting discovery.”

Further details on additional drilling will be provided “in due course,” Vizsla said.

Panuco is estimated to contain 12.96 million tonnes in measured and indicated resources grading 307 grams silver per tonne, 2.49 grams gold, 0.27% lead and 0.85% zinc, Vizsla said in January. This equates to 222.4 million oz. of silver-equivalent compared with a previous estimate of 155.5 million oz.

The project is located in southern Sinaloa, near the city of Mazatlán. The 72 sq. km district has more than 86 km of total vein extent, 35 km of underground mines, roads, power and permits.

Vizsla shares fell 0.9% to $3.24 apiece in late morning Toronto trading Monday as wider markets fell on tariff fears. That gave the company a market capitalization of about $935 million.