Vizsla Silver Corp. (TSX-V: VZLA) (NYSE: VZLA) is a silver name that we have been loving for the last few months. In December we first wrote in Vizsla Silver, A Monster In The Making because we believed the fundamental investment thesis was extremely strong. In the weeks following that we published a piece called Vizsla Silver Breaking Out Now!, in which we opined that VZLA was poised to commence a new leg up after a period of basing out.
Today VZLA published some astronomical news before the market open, a dramatic Updated Mineral Resource Estimate for its flagship, 100% owned Panuco silver-gold project (the "Project" or "Panuco") located in Sinaloa, Mexico.
Highlights of the Updated Mineral Resource Estimate including comparison to the maiden mineral resource estimate released in March 2022:
71% increase in indicated mineral resources from 61.1 to 104.8 Moz AgEq
150% increase in inferred mineral resources from 45.6 to 114.1 Moz AgEq
14% increase in average indicated mineral resource grade from 383 to 437 g/t AgEq
42% increase in average inferred mineral resource grade from 345 to 491 g/t AgEq
The numbers stated in their press release were absolutely astounding. VZLA reported that on an average of a 10 meter thickness, the Copala structure, contained an indicated mineral resources of 51.1 Moz AgEq an increase of 701%, at a grade of 516 g/t AgEq
And an inferred mineral resources of 55.4 Moz AgEq an increase of 198%, at a grade of 617 g/t AgEq.
VZLA noted that the key statistics were:
Comments from the company were, as one would suspect after such a release, extremely bullish:
"We are very pleased to deliver this updated resource, representing yet another major milestone for Vizsla Silver as we continue to grow and de-risk the high-grade mineralization at Panuco," commented Michael Konnert, President and CEO. "We have now delineated approximately 60 million ounces of silver and 508 thousand ounces of gold in the indicated category and 70 million ounces of silver and 496 thousand ounces of gold in the inferred category with significant upside potential remaining in the district. Most impressive is the material growth to the precious metals-rich Copala structure, where successful drilling throughout 2022 contributed to a 701% increase in indicated mineral resources to 51.1Moz AgEq and a 198% increase in inferred mineral resources to 55.4 Moz AgEq. Additionally, the inclusion of the high-grade Cristiano structure, which can conceptually be developed alongside Copala, represents a near surface high grade feed source. The updated resource estimate comes only 10 months from the maiden resource estimate at a discovery cost of US$0.15 per added ounce and is based on a total of 10 veins representing only 10% of the known vein strike in the district. Going forward, the Company plans to continue its ongoing aggressive exploration of the district with seven drill rigs focused on category conversion, incremental expansion and testing new targets. This, along with previous drilling completed toto date, will support a potential mineral resource estimate update in the second half of 2023. This is an incredible achievement that required substantial effort from the entire Vizsla Silver team, including our contractors and local communities. I want to thank everyone involved for their commitment and contribution to this achievement and look forward to another successful year of growth and discovery in 2023."
As we noted in Vizsla Silver Breaking Out Now!, and as the char below indicates, we believe that VZLA is breaking out of a range it has been in since May 2022 and has established a new uptrend. The stock is more active than it has been in 2 months and is back testing the range break. This is still one to keep an eye on!