VIZSLA SILVER HITS VISIBLE GOLD IN HIGHEST GRADE INTERCEPT EVER AT PANUCO: 9,920 G/T SILVER & 663 G/T GOLD OVER 0.64 METRES TRUE WIDTH AT COPALA

Rhea-AI Summary

Vizsla Silver Corp. (NYSE/TSXV: VZLA) has announced exceptional results from five new drill holes at the Copala resource area within its Panuco silver-gold project in Mexico. Notably, hole CS-24-356 yielded 8,817 g/t silver equivalent (AgEq) over 4.20 metres true width (mTW), including the highest-grade intercept ever recorded at Panuco with 55,769 g/t AgEq over 0.64 mTW. This intercept comprises 9,920 g/t silver and 663 g/t gold.

Additional highlights include hole CS-24-362 with 1,103 g/t AgEq over 10.50 mTW, including 4,881 g/t AgEq over 1.47 mTW. The drilling program, aimed at converting near-surface Indicated Mineral Resources to Measured Resources, confirms high-grade mineral continuity and expands mineralization closer to the surface. The ongoing 10,000-metre infill program is expected to conclude by mid to late July, with further exploration planned to upgrade and expand resources in high-priority areas.

Positive

• Exceptional drill results with CS-24-356 recording 8,817 g/t AgEq over 4.20 metres true width, including the highest-grade intercept ever with 55,769 g/t AgEq.
• Drilling confirms high-grade continuity and expands mineralization closer to the surface.
• Ongoing 10,000-metre infill drilling program aimed at upgrading Indicated Mineral Resources to Measured Resources, enhancing resource confidence.

Negative

• Hole CS-24-360 returned no significant values.

Insights

Mining Analyst

The latest drill results from Vizsla Silver Corp. at the Copala resource area are significant. The extremely high grades of gold and silver, particularly from hole CS-24-356, which returned 9,920 g/t silver and 663 g/t gold over 0.64 meters, indicate a very promising potential for the Panuco project. The average grades of these intercepts are well above the industry norms, suggesting that Copala might be one of the richer deposits in the region. From a mining perspective, the conversion of Indicated to Measured resources is critical for developing reliable resource estimates and future planning. This kind of continuous high-grade mineralization not only bolsters the company's resource model but also enhances the feasibility of future mining operations. Investors should understand that high-grade findings can lower production costs and improve profitability.

Another key point is the extension of high-grade material closer to the surface. This can potentially reduce the initial mining costs since it is less expensive to extract minerals closer to the surface than at depth. These results support Vizsla's ongoing exploration strategy to locate similar structures, which could further increase the resource base.

Financial Analyst

These exceptional drill results have a direct positive impact on Vizsla Silver Corp.'s valuation and future financial performance. The impressive grades of gold and silver highlight the economic potential of the Copala resource area. High-grade mineral deposits like these can significantly enhance the project's Net Present Value (NPV) and Internal Rate of Return (IRR), key metrics that investors look at when assessing the viability of a mining project. The statement from the CEO about continuing the infill program and de-risking the project ahead of the maiden Preliminary Economic Assessment (PEA) shows a clear pathway to project development and eventual production.

Moreover, Vizsla's ability to continuously deliver such high-grade results can attract more institutional investors and analysts' attention, potentially leading to a re-rating of the stock. The ongoing de-risking activities before the PEA also reduce the perceived operational and financial risks, making the project more attractive to investors. However, investors should be aware of the inherent risks in exploration activities, including the possibility of lower grades in future drilling or technical challenges that could increase extraction costs.

Geology Expert

The geological interpretations and drill results from Vizsla Silver Corp.'s Copala resource area reveal critical insights into the nature of the mineralization. The hydrothermal system responsible for the vein formation indicates a robust and continuous mineralizing event, which is positive for the potential scale and grade consistency of the deposit. The reported grades are exceptional, especially when considering the typical values in similar geological settings. For instance, the silver equivalent grades of up to 55,769 g/t in the narrow intercepts are not just rare but highlight the intense mineralization processes that occurred.

Understanding the dip and strike length of the mineralized zones helps in planning effective mining strategies. The dip variation, ranging from 35° to 65°, suggests that different mining techniques might be required in different sections of the deposit. This complexity, however, can also provide opportunities for discovering additional high-grade zones. The successful conversion of resources from Indicated to Measured demonstrates confidence in the geological model and the continuity of mineralization, which is a positive indicator for the project's future development.

NYSE: VZLA     TSX-V: VZLA

VANCOUVER, BC, June 26, 2024 /PRNewswire/ - Vizsla Silver Corp. (TSXV: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) ("Vizsla" or the "Company") is pleased to report results from five new drill holes targeting the Copala resource area at its 100%-owned, flagship Panuco silver-gold project ("Panuco" or the "Project") located in Mexico. The reported drilling, designed to infill near-surface Indicated Mineral Resources, continues to confirm high-grade continuity throughout Copala and reveals how rich the mineralizing hydrothermal system involved in initial vein formation was.

Highlights

• CS-24-356 returned 8,817 grams per tonne (g/t) silver equivalent (AgEq) over 4.20 metres true width (mTW) (1,694 g/t silver and 103.20 g/t gold)
  • Including 55,769 g/t AgEq over 0.64 mTW (9,920 g/t silver and 663.00 g/t gold)
• CS-24-362 returned 1,103 g/t AgEq over 10.50 mTW (804 g/t silver and 5.27 g/t gold)
  • Including 4,881 g/t AgEq over 1.47 mTW (3,437 g/t silver and 24.87 g/t gold)
  • And, 1,379 g/t AgEq over 0.91 m TW (1,145 g/t silver and 4.78 g/t gold)

"Today's results represent some of the highest-grade gold intercepts drilled to date at the Panuco Project," commented Michael Konnert, President & CEO. "Our ongoing infill program, targeting the near-surface ultra high-grade zone at Copala continues to deliver exceptional silver and gold grades over very broad widths. In addition to confirmation of continuity, hole CS-24-356 also expanded high-grade mineralization closer to surface. Moving forward we will continue our conversion drilling at Copala as we de-risk the project ahead of the maiden PEA, slated for early Q3 2024."

The precious metals dominant Copala Structure, located in the western portion of the Panuco district, is situated ~800 m to the east of the Napoleon Vein. Copala currently hosts Indicated Resources of 83.3 Moz AgEq at 573 g/t AgEq and Inferred Resources of 48.3 Moz AgEq at 476 g/t AgEq within a broad envelope of vein-breccia interlayered with host rock, up to 82 metres thick (please refer to our Technical Report on Updated Mineral Resource Estimate for the Panuco Ag-Au-Pb-Zn Project, Sinaloa State, Mexico, by Allan Armitage, Ben Eggers and Peter Mehrfert, dated February 12, 2024 and to Vizsla's press release dated January 8, 2024). Interpretations by Vizsla geologists indicate Copala has an average dip of ~46° to the east (~35° in its northern sector and steepening to ~65° in the southern sector).

Exploration and Resource drilling at Copala has traced mineralization along ~1,770 metres of strike length and ~400 metres down dip. The infill holes reported herein are part of an ongoing ~10,000 program (~35 holes), planned to convert near surface Indicated Mineral Resources in the central portion of main Copala into the Measured Resource category. The five infill holes reported were drilled at approximately 25 metre centers from pre-existing holes and continue to successfully confirm grade continuity. Furthermore, some of the remarkable silver and gold grades drilled at Copala reveal how rich the hydrothermal system involved in the process of vein formation was. This supports Vizsla´s ongoing exploration strategy, which has been tailored to locate additional Copala like structures. Vizsla plans to complete its ongoing ~10,000 infill program by mid to late July. Based on the results received, Vizsla Silver is analysing additional drilling metres to continue upgrading and expanding mineral resources in high priority areas at Copala.

 

 

Drillhole	From	To	Downhole Length	Estimated True width	Ag	Au	AgEq	Vein
	(m)	(m)	(m)	(m)	(g/t)	(g/t)	(g/t)
CS-24-356	219.00	223.90	4.90	4.20	1,694	103.20	8,817	Copala
Includes	219.85	220.60	0.75	0.64	9,920	663.00	55,769
CS-24-357	320.80	324.05	3.25	3.10	682	3.33	855	Copala 3
CS-24-357	347.00	347.45	14.45	10.90	762	2.80	891	Copala
Includes	345.50	347.45	1.95	1.47	3,805	13.58	4,419
CS-24-358	94.25	94.85	0.60	0.55	298	1.62	385	Copala
CS-24-360	No significant values
CS-24-362	344.60	346.10	16.10	10.50	804	5.27	1,103	Copala
Includes	337.50	339.75	2.25	1.47	3,437	24.87	4,881
Includes	340.90	342.30	1.40	0.91	1,145	4.78	1,379

Note: AgEq = Ag g/t x Ag rec. + (Au g/t x Au Rec x Au price/gram)/Ag price/gram. Metal price assumptions are $24.00/oz silver and $1,800/oz gold and metallurgical recoveries assumed are 91% for silver and 94% for gold. Gold and silver metallurgical recoveries used in this release are from metallurgical test results of the Copala vein (see press release dated August 16, 2023).

Table 1: Downhole drill intersections from the holes reported for Copala and Copala 3 veins.

Drillhole	Easting	Northing	Elevation	Azimuth	Dip	Depth
CS-24-356	404,778	2,586,758	631	270.8	-50.8	241.5
CS-24-357	404,843	2,586,892	653	240.6	-56.9	351.0
CS-24-358	404,663	2,586,817	562	258.2	-62.5	106.5
CS-24-360	404,843	2,586,892	653	255.0	-66.5	373.5
CS-24-362	404,844	2,586,892	653	266.0	-62.2	358.5

Table 2: Drillhole details for the reported drillholes. Coordinates in WGS84, Zone 13.

About the Panuco Project

The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 17,856.5-hectare, past producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits.

The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.

On January 8, 2024, the Company announced an updated mineral resource estimate for Panuco which includes an estimated in-situ indicated mineral resource of 155.8 Moz AgEq and an in-situ inferred resource of 169.6 Moz AgEq (please refer to our Technical Report on Updated Mineral Resource Estimate for the Panuco Ag-Au-Pb-Zn Project, Sinaloa State, Mexico, by Allan Armitage, Ben Eggers and Peter Mehrfert, dated February 12, 2024 and to our Company´s press release dated January 8, 2024). 

About Vizsla Silver

Vizsla Silver is a Canadian mineral exploration and development company headquartered in Vancouver, BC, focused on advancing its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico. To date, Vizsla Silver has completed over 368,000 metres of drilling at Panuco leading to the discovery of several new high-grade veins. For 2024, Vizsla Silver has budgeted +30,000 metres of resource/discovery-based drilling designed to upgrade and expand the mineral resource, as well as test other high priority targets across the district.

Quality Assurance / Quality Control

Drill core samples were shipped to ALS Limited in Zacatecas, Zacatecas, Mexico and in North Vancouver, Canada for sample preparation and for analysis at the ALS laboratory in North Vancouver and rock samples were shipped to SGS Lab in Durango Mexico for sample preparation and analysis.  The ALS Zacatecas, North Vancouver facilities and SGS lab are ISO 9001 and ISO/IEC 17025 certified. Silver and base metals were analyzed using a four-acid digestion with an ICP finish and gold was assayed by 30-gram fire assay with atomic absorption ("AA") spectroscopy finish. Over limit analyses for silver, lead and zinc were re-assayed using an ore-grade four-acid digestion with AA finish.

Control samples comprising certified reference samples, duplicates and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.

Qualified Person

In accordance with NI 43-101, Jesus Velador, Ph.D. MMSA QP., Vice President of Exploration, is the Qualified Person for the Company and has reviewed and approved the technical and scientific content of this news release.

Information Concerning Estimates of Mineral Resources

The scientific and technical information in this news release was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the "SEC"). The terms "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" used herein are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the "CIM Definition Standards"), which definitions have been adopted by NI 43-101. Accordingly, information contained herein providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to the United States federal securities laws and the rules and regulations thereunder.

You are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, "inferred mineral resources" are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7. Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the "SEC Modernization Rules"), with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". Information regarding mineral resources contained or referenced herein may not be comparable to similar information made public by companies that report according to U.S. standards. While the SEC Modernization Rules are purported to be "substantially similar" to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards. Accordingly, there is no assurance any mineral resources that the Company may report as "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the resource estimates under the standards adopted under the SEC Modernization Rules.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

This news release includes certain "Forward–Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward–looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward–looking statements or information. These forward–looking statements or information relate to, among other things: the exploration, development, and production at Panuco, including plans for resource/discovery-based drilling, designed to upgrade, and expand the maiden resource as well as test other high priority targets across the district.

Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Vizsla Silver, future growth potential for Vizsla Silver and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold, and other metals; no escalation in the severity of the COVID-19 pandemic; costs of exploration and development; the estimated costs of development of exploration projects; Vizsla Silver's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect Vizsla Silver's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward–looking statements or forward-looking information and Vizsla Silver has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in Vizsla Silver's management discussion and analysis. Readers are cautioned against attributing undue certainty to forward–looking statements or forward-looking information. Although Vizsla Silver has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Vizsla Silver does not intend, and does not assume any obligation, to update these forward–looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

 

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SOURCE Vizsla Silver Corp.

FAQ

What were the significant drill results reported by Vizsla Silver (VZLA) at the Copala resource area?

Vizsla Silver reported significant drill results including 8,817 g/t silver equivalent over 4.20 metres true width from hole CS-24-356, with the highest-grade intercept ever recorded at Panuco of 55,769 g/t AgEq over 0.64 metres true width.

How much silver and gold were found in Vizsla Silver's (VZLA) highest-grade intercept at Copala?

The highest-grade intercept recorded at Copala included 9,920 g/t silver and 663 g/t gold over 0.64 metres true width from hole CS-24-356.

What is the goal of Vizsla Silver's (VZLA) ongoing infill drilling program at Copala?

The goal of Vizsla Silver's ongoing 10,000-metre infill drilling program at Copala is to convert near-surface Indicated Mineral Resources into the Measured Resource category, thereby enhancing resource confidence.

When is Vizsla Silver (VZLA) expecting to complete its infill drilling program at Copala?

Vizsla Silver expects to complete its ongoing 10,000-metre infill drilling program at Copala by mid to late July.

What are the next steps for Vizsla Silver (VZLA) following the recent drill results at Copala?

Following the recent drill results, Vizsla Silver plans to analyze additional drilling metres to continue upgrading and expanding mineral resources in high-priority areas at Copala.