HomeMarket NewsMiningVizsla Silver: New Funding Sets Tone for Promising Drilling Endeavors

Vizsla Silver: New Funding Sets Tone for Promising Drilling Endeavors

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Shares Experience a Downturn

Vizsla Silver’s shares took a hit, declining by 12.5% to C$1.47 per share around 2:15 p.m. ET, resulting in a market capitalization of C$307.6 million ($227.9m). Over the past 52 weeks, the company’s stock has fluctuated between C$1.26 and C$2.25.

Exploration and Development Endeavors

Vizsla Silver has announced that the funding from the bought deal, amounting to $22 million, will be directed towards the exploration, drilling, and development of its flagship Panuco silver-gold project located in southern Sinaloa, Mexico. This project, situated within a 72-sq.-km. district hosting past producing mines, has seen limited exploration on a consolidated basis.

The company has made significant progress, having completed over 350,000 meters of drilling at Panuco, resulting in the discovery of several new high-grade veins. Moreover, earlier this year, Vizsla released an updated mineral resource estimate, including an indicated mineral resource of 155.8 million oz. of silver equivalent (AgEq) and an inferred resource of 169.6 million oz. AgEq.

These estimations are significant, with the indicated mineral resource estimated at 9.5 million tonnes grading 289 g/t silver, 2.41 g/t gold, 0.27% lead, and 0.84% zinc (or 511 g/t AgEq). Similarly, the inferred resource is calculated at 12.2 million tonnes grading 239 g/t silver, 1.93 g/t gold, 0.29% lead, and 1.03% zinc (433 g/t AgEq).

Focus for 2024

Vizsla is geared towards de-risking the resource base located in the western portion of the district ahead of a development decision for 2024. Additionally, the company has allocated resources for over 65,000 meters of drilling focused on upgrading and expanding the mineral resource, as well as testing other high-priority targets across the district.

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