VIZSLA SILVER DELIVERS POSITIVE FEASIBILITY STUDY FOR THE PANUCO PROJECT
None
Vizsla Silver has announced a positive Feasibility Study (FS) for its 100%-owned Panuco silver-gold project in Sinaloa, Mexico. The study outlines a high-margin, low-capital precious metals operation. Key highlights include: - After-tax Net Present Value (NPV) at a 5% discount rate of US$1,802 million. - After-tax Internal Rate of Return (IRR) of 111%. - Initial capital cost (Capex) of US$173 million. - Average annual production of 17.4 million ounces of silver equivalent (AgEq). - All-In Sustaining Cost (AISC) of US$10.61 per ounce of AgEq. - A rapid payback period of 0.6 years. - A mine life of 9.4 years with a processing rate of 3,300 tonnes per day (tpd).
The company's COO, Simon Cmrlec, noted that engineering and procurement were significantly advanced during the study, providing confidence in the results. CEO Michael Konnert stated the study builds on the strong economics from the 2024 Preliminary Economic Assessment (PEA) and positions Panuco to be the next large-scale primary silver producer in Mexico.
This Feasibility Study is a game-changing de-risking event for Vizsla Silver and significantly exceeds the market's expectations, which were based on the July 2024 PEA.
- Vastly Improved Economics: The FS metrics represent a substantial improvement over the 2024 PEA. The after-tax NPV has increased by 64% from US$1.1 billion to US$1.8 billion. The after-tax IRR has jumped from 86% to a remarkable 111%.
- Lower Initial Capital: Critically, the initial capital expenditure has decreased by 23% from the PEA's US$224 million to just US$173 million. This significantly reduces the financing hurdle and the risk of shareholder dilution.
- Increased Production Profile: The average annual production forecast has increased by 14% from 15.2 Moz AgEq to 17.4 Moz AgEq.
- Funding Secured: With a cash position of over US$200 million (as per the September 2025 presentation and July 2025 financials) and a signed mandate letter for a US$220 million debt facility (announced September 5, 2025), the company appears fully funded to meet the US$173 million initial capex. This nearly eliminates construction financing risk, a major overhang for most development-stage companies.
- Execution Track Record: The delivery of this FS on schedule (H2 2025 target set in January 2025) continues to build management's credibility. This follows a successful resource update in January 2025, a major equity raise in June 2025, and the commencement of a test mine in late 2024. The company is systematically executing its "fast track to production" strategy.
While the AISC has risen slightly from the PEA's US$9.40/oz to US$10.61/oz, and the mine life has shortened from 10.6 to 9.4 years (likely due to higher throughput), these are minor points given the massive improvements in NPV, IRR, capex, and production rate. The lack of stated silver and gold price assumptions in the press release is a notable omission and a point of concern that requires clarification. Assuming they are in line with or slightly above the PEA's $26/oz Ag and $1,975/oz Au, the economics are still exceptionally robust.
The market has been anticipating this study, with the stock running up to over US$7.00. This news should provide the fundamental backing to re-test and potentially break those highs.
Vizsla Silver Corp. is a Canadian mineral development company focused on advancing its 100%-owned, past-producing Panuco silver-gold project in Sinaloa, Mexico. The company is pursuing a dual-track strategy: fast-tracking the high-grade resources in the western portion of the district ("Project 1") toward production, while simultaneously exploring its large, consolidated land package for new mineralized centers ("Project 2"). In 2025, the company significantly expanded its land position by acquiring the adjacent Santa Fe project, which includes a permitted 350 tpd mill.