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VIZSLA SILVER AGREES TO ACQUIRE NEWLY CONSOLIDATED PAST-PRODUCING SILVER DISTRICT IN THE EMERGING SILVER-GOLD-RICH PANUCO – SAN DIMAS CORRIDOR IN MEXICO

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VIZSLA SILVER AGREES TO ACQUIRE NEWLY CONSOLIDATED PAST-PRODUCING SILVER DISTRICT IN THE EMERGING SILVER-GOLD-RICH PANUCO – SAN DIMAS CORRIDOR IN MEXICO

 

 

 

 

 

Vizsla Silver Corp. (TSX-V: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) is pleased to announce that it has entered into an agreement to acquire the past-producing La Garra-Metates district situated in the heart of the silver-gold-rich Panuco – San Dimas corridor. Reconnaissance work conducted by Vizsla Silver’s geologists shows the presence of at least two vein systems with respective strike lengths of 2.6 km and 1.8 km carrying significant silver and gold grades.

 

Highlights

  • Large property package at 16,962 Ha (more than 2x the area of the Company’s Panuco project).
  • While this district has seen past production dating back centuries, the La Garra-Metates District has seen minimal exploration and no drilling.
  • Vizsla Silver’s sampling demonstrated multi-kilo silver equivalent grades over several kilometers of strike.
  • Epithermal vein systems trending N-NNW in a geological setting akin that of the Panuco Project and First Majestics Silver Corp.’s San Dimas project.
  • Potential for high-grade shoots along-strike and at depth on two known vein systems with estimated strike length of 2.6 km and 1.8 km, respectively.
  • Significant potential to discover new veins given the underexplored nature of the district.
  • The La Garra-Metates District has been acquired for less than 3% of Vizsla Silver’s market capitalization.

 

“Vizsla Silver has agreed to acquire another highly prospective precious metals rich district in the Sinaloa Silver Belt, marking the first time that the La Garra-Metates District has ever been in a public company.” Stated Michael Konnert, President, and CEO. “The consolidation and acquisition of a vastly under-explored, past-producing district in the state of Sinaloa is an excellent addition to our portfolio and demonstrates our strength in the region. Similar to our flagship Panuco Project, which represents one of the largest, undeveloped, high-grade silver primary assets globally, La Garra hosts sub-vertical structures reminiscent of Vizsla Silver’s Napoleon vein, as well as flat-lying structures like Copala. Additionally, the La Garra-Metates District is located ~32 kilometers to the south of First Majestic Silver’s San Dimas Mine, a prolific precious metals producer and is one of nine billion-ounce silver equivalent districts in Mexico. Vizsla Silver has a long-term view of its role in the silver industry and within this region of Mexico. We believe we have the potential to build a multi-generational asset base and become a globally significant producer of silver in Sinaloa. While Vizsla Silver’s focus continues to be to develop the Panuco-Copala district while exploring for new centers of high-grade mineralization, this acquisition allows for new major discoveries in the future and a growing pipeline of potential production as we continue to generate a dominant footprint in this emerging, but globally significant silver-belt.”

 

About the La Garra-Metates District

 

The La Garra-Metates District is located 108 kilometres northeast of the City of Mazatlan, in the Municipality of Mazatlan, Sinaloa, Mexico and approximately 32 km north-northwest of the Panuco Project and 32 km south-southwest of San Dimas in the Mazatlán municipality.

 

The La Garra-Metates District comprises of 16 claims (15 titled mining concessions and one application) covering 16,962 Ha in the heart of the emerging silver-gold-rich Panuco – San Dimas corridor. The area has been held on private hands for the last ~60 years and has remained unknown to most public exploration and mining companies, hence, the area has seen very little mining and prospecting activities over the decades, and more importantly, it has never been drilled.

 

The La Garra-Metates District area contains N-NNW-trending silver-gold-rich veins in a geological setting akin that of the Panuco Project and San Dimas. Epithermal veins dipping at steep and shallow angles to the east are hosted by andesites and felsic volcanic lavas and tuffs of the Lower Volcanic Series (LVS) like at the Panuco Project and San Dimas. Two main vein systems are known to date: the N-S trending La Garra with ~2.6 km of known strike length and the NW trending Cerro Verde – Las Playas vein system with ~1.8 km of strike length.

 

In December 2023, Vizsla Silver conducted a five-day site visit and collected 37 samples on vein outcrops and underground pillars on La Garra and Cerro Verde – Las Playas vein systems: fourteen rock-chip samples collected across veins ranging from 0.30 to 2.50 metres reported silver equivalent grades (AgEq) greater than 200 g/t (2.22 to 12.30 g/t Au and 22 to 1,156 g/t Ag). Base metals were detected in low concentrations <1.0% and deleterious elements such as Sb and As were detected also in low concentrations ><110 ppm. All the primary samples and quality controls (standards, blanks, and duplicates) were analyzed at SGS Lab facility in >Durango Mexico. Because of its favourable location in the emerging Panuco – San Dimas silver-gold-rich corridor, its geologic setting, vein orientation and observed high-grades, Vizsla Silver’s geologists are confident that the La Garra-Metates District has good potential for discovery of high-grade shoots along-strike and at depth on the La Garra and Cerro Verde – Las Playas vein systems. Historic mining occurred in the upper 200 metres from surface at most, whereas shoots in the region can have vertical extensions of up to ~550 metres. Additionally, because the area has seen so little exploration and prospecting (La Garra and Cerro Verde – Las Playas occur in an area representing ~15% of the property), it is very likely that many other veins and prospects remain to be re-discovered through mapping.

 

Vizsla Silver plans to take advantage of its experienced team in Mexico to fast track permitting and exploration of the La Garra-Metates District.

 

Sample # Vein Area Sample
Length
Ag Au Pb Zn AgEq
(m) (g/t) (g/t) % % (g/t)
G566682 El Orito La Garra Dump 22 7.00 0.05 0.02 495
G566683 El Orito La Garra Grab 1 0.01 0.00 0.00 1
G566684 Rosita La Garra 0.50 70 2.22 0.44 0.42 243
G566686 Rosita La Garra 0.30 76 1.70 0.16 0.08 193
G566687 Rosita La Garra 1.00 5 0.06 0.02 0.25 18
G566688 FW La Garra La Garra 0.30 25 0.64 0.07 0.05 70
G566689 FW La Garra La Garra 0.90 4 0.05 0.01 0.05 9
G566691 FW La Garra La Garra 0.50 3 0.03 0.01 0.05 7
G566692 La Garra La Garra 0.60 68 0.83 0.08 0.14 127
G566693 La Garra La Garra 0.75 11 0.13 0.01 0.05 21
G566694 La Garra La Garra Dump 110 1.71 0.10 0.09 224
G566696 El Puerto La Garra Grab 6 0.02 0.00 0.00 7
G566697 El Puerto La Garra 1.00 5 0.02 0.00 0.00 6
G566698 La Gigante La Garra 1.10 87 0.49 0.00 0.01 115
G566699 La Gigante La Garra 2.30 343 2.04 0.01 0.01 457
G566700 Manzanillo La Garra 2.00 847 2.29 0.09 0.08 948
G566751 Manzanillo La Garra 0.90 1,156 12.30 0.02 0.04 1,908
G566752 FW La Garra La Garra 0.70 52 0.60 0.45 0.27 112
G566753 La Brillosa La Garra 0.60 4 0.07 0.07 0.00 10
G566754 Nivel 4 Cerro Verde – Las Playas 1.30 641 3.08 0.12 0.17 814
G566756 Cerro Verde Cerro Verde – Las Playas Grab 402 2.50 0.02 0.01 543
G566757 Veta La Yaqui Cerro Verde – Las Playas Dump 627 10.10 0.39 0.51 1,295
G566758 Veta La Yaqui Cerro Verde – Las Playas 1.30 36 0.39 0.01 0.01 60
G566759 Veta La Yaqui Cerro Verde – Las Playas 2.50 99 0.52 0.01 0.03 128
G566760 Veta Petra Cerro Verde – Las Playas 2.00 885 6.03 0.02 0.02 1,231
G566761 Veta Petra Cerro Verde – Las Playas 1.10 56 0.55 0.00 0.00 89
G566762 Veta Petra Cerro Verde – Las Playas 0.90 17 0.19 0.00 0.00 29
G566763 Mina La Juanita Cerro Verde – Las Playas 0.60 203 2.40 0.01 0.01 351
G566764 Mina La Juanita Cerro Verde – Las Playas 1.20 498 4.33 0.01 0.00 756
G566766 Mina Las Playas Cerro Verde – Las Playas 1.00 385 2.75 0.01 0.01 544
G566767 Mina Las Playas Cerro Verde – Las Playas 1.00 6 0.05 0.00 0.00 9
G566768 Mina Las Playas Cerro Verde – Las Playas 2.00 6 0.05 0.00 0.01 9
G566769 Mina Las Playas Cerro Verde – Las Playas 2.00 4 0.21 0.00 0.01 18
G566771 Mina Las Playas Cerro Verde – Las Playas 1.80 4 0.02 0.00 0.01 5
G566772 Pozo 1 manto Cerro Verde – Las Playas 0.30 71 0.50 0.01 0.00 100
G566773 Manto Gaby Cerro Verde – Las Playas 1.00 226 2.08 0.00 0.00 351
G566774 Cerro Verde Cerro Verde – Las Playas 1.00 1 0.01 0.00 0.00 1

 

Table 1: Assays from rock samples collected on veins at La Garra.

 

Note: AgEq = Ag g/t x Ag rec. + ((Au g/t x Au Rec x Au price/gram)+(Pb% x Pb rec. X Pb price/t) + (Zn% x Zn rec. X Zn price/t))/Ag price/gram. Metal price assumptions are $24.00/oz silver, $1,800/oz gold, $2,424.4/t lead and $2,975.4/t zinc. Metallurgical recoveries assumed are 93% for silver, 90% for gold, 94% for lead and 94% for zinc. The same metallurgical recoveries applied for Napoleon vein in Panuco were assumed (see press release dated February 17, 2022).

 

Terms of the acquisition

 

The Company entered into a share purchase agreement dated March 27, 2024, with Exploradora Minera La Hacienda S.A. de C.V. and Manuel de Jesus Hernandez Tovar pursuant to which the agreed to acquire all of the outstanding shares of Goanna Resources, S.A.P.I. de C.V., a private Mexican corporation, from the Sellers.  The Target Company is the owner of the La Garra-Metates District.

 

Pursuant to the Acquisition Agreement, the Company has agreed to make cash payments in an aggregate of US$3,075,000 in cash and issue an aggregate of 5,555,555 common shares in the capital of the Company to the Sellers.

 

The Cash Payments will be made, and the Consideration Shares will be issued over a period of 24 months from closing.

 

The Company is responsible for the back taxes owing on the concessions.

 

Royalty Agreement

 

Within 90 days of the closing date, the Company and the Sellers shall enter into a royalty agreement in a form satisfactory to the Parties, pursuant to which the Sellers will be granted a 1% net smelter returns royalty on the La Garra-Metates District. The Buyer will have the right to repurchase such royalty at any time for consideration equal to US$750,000.

 

Pledge Agreement

 

Within 90 days of the closing date, the Company shall execute and deliver to the Sellers a pledge and security agreement in a form satisfactory to the Company and the Sellers and take such other actions sufficient under applicable Laws to grant the Sellers a first priority lien on the Purchased Shares to secure the Company’s obligations with regards to the acquisition costs.

 

Finder’s fees

 

The finder’s fees is 2% NSR of the project payable to an arm’s length Mexican Company.

 

The Acquisition is subject to standard closing conditions, including the approval of the TSX Venture Exchange.

 

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 7,189.5-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.

 

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 350,000 metres of drilling at Panuco leading to the discovery of several new high-grade veins. For 2024, Vizsla Silver has budgeted +65,000 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.

 

 


Figure 1: Location map of the La Garra-Metates District, Panuco Project and San Dimas District. (CNW Group/Vizsla Silver Corp.)

 

 

 


Figure 2. Geology of the silver-gold-rich Panuco – San Dimas corridor. (CNW Group/Vizsla Silver Corp.)

 

 

 


Cash Payments and Consideration Shares (CNW Group/Vizsla Silver Corp.)

 

Posted March 28, 2024

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