Vizsla Silver’s Panuco Project Resumption: A Strategic Move Toward Silver Dominance

Vizsla Silver Corp. has reignited momentum at its flagship Panuco silver-gold Project in western Mexico, announcing on May 5, 2025, the resumption of all field work activities following the resolution of regional security concerns. This development marks a pivotal phase for the company, which is positioned to capitalize on one of the largest undeveloped silver-gold deposits in the Americas. With a robust pipeline of operational and exploration milestones ahead, investors may find compelling opportunities in a sector primed for growth as global demand for silver surges.

Operational Progress and Strategic Priorities
The resumption of activities has reignited critical programs, including underground test mine development, geotechnical drilling, and exploration campaigns. Notably, the underground ramp development is on schedule, with the portal box cut already completed. The company’s dual-track approach—balancing infrastructure advancement with low-cost exploration—has been bolstered by the temporary pause, which allowed engineers to reassess the Animas discovery and refine strategies targeting high-grade silver zones.

Two exploration rigs are currently operational, with ongoing mapping and geophysical surveys focusing on areas adjacent to the Copala Resource. These efforts aim to identify new targets with geological similarities to the district’s highest-grade deposits. The project’s 7,189.5-hectare footprint, coupled with existing infrastructure (roads, power, and permits), positions Panuco as a scalable asset capable of rapid expansion.

Catalysts on the Horizon
Investors should closely monitor two key catalysts in the coming months:
1. Feasibility Study Completion: The upcoming Feasibility Study (FS) will provide a detailed economic assessment of Panuco, including production timelines, capital costs, and financial metrics such as NPV and IRR. The 2024 Preliminary Economic Assessment (PEA) already projected robust returns: a 10.6-year mine life producing 15.2 million ounces of silver equivalent (Moz AgEq) annually, with an after-tax NPV5% of $1.1 billion and an 86% IRR.
2. Project #2 Advancements: The company plans to update stakeholders on progress toward identifying a second high-priority project (Project #2) in the second half of 2025, potentially unlocking additional value within the district.

Resource Scale and Financial Strength
Panuco’s resource estimates are nothing short of staggering. As of January 2025, the project hosts 222.4 million ounces of AgEq in measured and indicated resources, with 138.7 million ounces in inferred resources. These figures, validated by third-party QA/QC protocols, underscore the project’s potential to become a cornerstone of Vizsla’s production portfolio.

The company’s financial health further supports its ambitions. With a well-funded balance sheet and a PEA that highlights a 9-month payback period at current metal prices, Vizsla is primed to advance Panuco toward feasibility without dilutive financing.

Risks and Considerations
While the outlook is promising, investors must account for inherent risks in the mining sector. Regulatory delays, fluctuating metal prices, and the distinction between Canadian NI 43-101 standards and U.S. SEC guidelines pose potential headwinds. Silver’s price trajectory, currently hovering around $25/ounce, will also influence project economics.

Conclusion: A Silver Lining for Investors
Vizsla Silver’s Panuco Project resumption is a clear catalyst for growth, backed by a world-class resource base and a management team executing a disciplined, capital-efficient strategy. The upcoming Feasibility Study and exploration updates could unlock significant value, particularly if silver prices stabilize above $25/ounce—a scenario supported by rising industrial demand and inflationary pressures.

With a 100% owned asset in a mining-friendly jurisdiction and a PEA that rivals top-tier projects globally, Vizsla is well-positioned to transition from explorer to producer. For investors seeking exposure to the silver sector’s next major development story, the company’s combination of scale, technical strength, and strategic execution makes it a compelling play in a market hungry for high-margin, high-grade assets.

The path forward is clear, but execution will be key. As Panuco advances toward feasibility, investors should watch closely for signs of progress—and prepare for a potential silver rush.