(VZLA-TSX-V)
Summary:
- On-site work programs to remain suspended through August with phased restart planned for
September 1st - Upon restart, to continue +100,000 metre fully funded resource/discovery-based drill program with ten drill rigs
- Resource drilling at Napoleon and
Tajitos is focused on a combined resource target area approximately 1,500 metres long by 350 metres deep - Vizsla intends to report a maiden project resource by the end of Q1/2022 centered on the Napoleon and
Tajitos veins - Major respective updates for Napoleon and
Tajitos resource drilling planned for September - Preliminary metallurgical testing on representative samples from Napoleon underway, testwork results anticipated in Q4
- Exploration drills continue to test zones proximal to the resource target areas as well as other high-priority regional targets
- The Company is preparing for property-wide electromagnetic (EM) and airborne magnetic surveys in late 2021 once the wet season has ended
- Current cash position of
C$57M following the exercise of the property options to own 100% ofPanuco as announced onJuly 21, 2021
Vizsla President and CEO,
COVID Response and Planned Restart of Work Programs
As COVID cases in southern
Pending continued improvement in regional health statistics, Vizsla is planning a staged re-start to drilling activities at
Resource Drilling
Systematic resource drilling is actively advancing along two high-grade veins at Napoleon and
Napoleon: At Napoleon, the current resource target area is approximately 950 metres by 350 metres, defined by 179 holes completed to date. Ongoing infill drilling at 50m spacing within the target area continues to demonstrate local continuity of high-grade mineralization, while incremental step-outs support an expanding mineral footprint. Overall, mineralization at Napoleon appears to be gently plunging to the south with increased grades and widths observed down-plunge. As such, drilling is focused on expanding the high-grade footprint in this area. The Company intends to release an update on its Napoleon drill program in early September.
High-grade mineralization at
Figure 1: Plan map showing location of resource area drilling at Napoleon and
Exploration Drilling
The Company has developed an attractive pipeline of exploration targets given the vastly underexplored nature of the district. To date, only 33 of 117 known targets on the property have been drilled by Vizsla. The application of rigorous geological mapping and sampling procedures that prioritize higher tonnage potential over higher grades continues to be the primary focus for near-term exploration at
There are currently four exploration rigs devoted to testing new target areas along four major vein corridors at
Napoleon Corridor
Josephine Vein : A silver rich, sub-parallel vein situated ~150 metres west of the Napoleon discovery. The newly discovered high-grade Josephine vein (see press release datedJuly 15, 2021 ), initially identified via fixed loop EM, is interpreted to have over 1.7 kilometres of strike, of which only 150 metres have been drilled to date. Josephine discovery hole NP-21-132 returned 797 g/t silver equivalent (AgEq) over 2.5 m, including 4,431 g/t AgEq over 0.30 m.- Papayo: A mineralized sub-zone of the Napoleon Vein located ~600 metres north of the Napoleon discovery zone. Notable drill results include 1,019 g/t AgEq over 1.32 m true width in hole NP-20-18 (see press release dated
August 27, 2020 ). - Observations made from an additional eleven drill holes completed in this area (assays pending) suggest the corridor may be split into multiple sub-parallel veins. This will potentially allow for ongoing drilling to intercept multiple vein structures in a single drill hole, including the potential northern extension of the Josephine vein.
Ojo de Agua : AnotherNapoleon Vein sub-zone, located 850 metres south of the Napoleon discovery zone. The Company has completed twelve holes in this area (assays pending) where the Napoleon Vein forms a local dilation zone. Vein mineralogy, marked by increased chalcedonic quartz, suggests this may be a shallow part of the system. As such, the Company will continue to test deeper for the interpreted high-grade silver and gold rich horizon.
Cinco Señores Corridor
- Located east of and adjacent to the Napoleon Corridor, Cinco Señores hosts the Tajitos Vein situated along the southern bounds of the corridor. While the majority of Cinco Señores drilling completed to date has focused on advancing the Tajitos Vein, a collection of eight new EM targets have been identified at the northern end of the corridor.
- Additionally, detailed mapping, sampling and interpretation of historical drill core in the area proximal to the historic
La Colorada resource (largely mined out) has generated multiple new targets ~1.3 kilometres north ofTajitos and 800 metres east of Napoleon. Drilling commenced on these prospective targets prior to the announcement of a voluntary pause of on-site work programs.
Cordon de Oro Corridor
- Cordon de
Oro is host to multiple historic workings including, theSan Antonio , Mojocuan andAguita Zarca mines, located in the central portion of thePanuco district. Recent drilling targeting the depth extension to theSan Antonio vein intersected a high-angle splay off the main corridor returning 2,649 g/t AgEq over 0.78 m true width, contained within a broader interval grading 1,283 g/t AgEq over 2.07 m true width from 99.0 m (hole CO-21-44) (see press release datedJuly 28, 2021 ). The Company plans to follow-up on this near-surface mineralized zone with exploratory expansion drilling in the coming months.
Animas Corridor
- The Animas Vein Corridor, located on the eastern portion of the
Panuco District , is the most well developed and explored area of the Property. Over seven separate mineralized zones along a 4.4-kilometre section of the Animas Vein have been mined by previous operators down to the water table (~250 metres depth from surface on average). - Over the last year, the Company has undertaken a program of re-surveying underground workings to accurately locate targets at lower levels, systematic sampling underground, and detailed surface mapping to better define targets along the corridor.
- At the northern end of the corridor, multiple zones of interest have been identified, including the
Rosarito , La Bomba and Cuevillas zones, all marked by historical small-scale mining. Drilling is currently centered on theRosarito target, where twelve holes have now been completed (all assays remain outstanding). Drilling will resume in this area upon the restart of on-site work programs.
Engineering Studies
Aside from resource/discovery focused drilling, Vizsla has initiated several engineering and environmental programs, effectively laying the foundation for future development and subsequent production at
- Preliminary Metallurgical Testing: With the support of
Ausenco Engineering Canada Inc. , Vizsla has contractedALS Canada Ltd inKamloops, BC ,Canada to conduct preliminary metallurgical testing on representative composited material sourced from the Napoleon vein (total sample size ~330 kilograms). The primary objective of the program is to determine basic metallurgical properties with a focus on geo-metallurgy characterization and assess potential processing/recovery options. Program results are expected to be reported in Q4. - Initial Geotechnical and Hydrogeological Studies: In conjunction with on-going exploration programs, Vizsla has initiated data capture of standard geotechnical parameters on all resource/exploration drilling. Vizsla has contracted
SRK Consulting to design and lead the preliminary data collection program with most of the work being carried out by Vizsla geologists. The data being captured will help inform future studies for mine design, including mining method selection, dilution estimates, production rates, mining layouts, etc.
Community Engagement
Vizsla remains committed to further establishing and maintaining mutually respectful and beneficial relationships with all local communities and stakeholders. This includes ongoing infrastructure improvement, water supply maintenance, road maintenance, and health support. During the month of August, Vizsla committed over
Path Forward
Over the next six months, the Company's primary focus is to continue systematic resource drilling within the Napoleon and
Aside from drilling, and on the back of the successful trial fixed loop EM survey completed on a portion of the Napoleon Corridor in June, Vizsla intends to conduct a property wide electromagnetic survey following the end of the rainy season in
In parallel with resource delineation and exploration drilling, Vizsla has initiated several engineering programs aimed at not only supporting ongoing exploration initiatives, but also to set the framework for future mining, milling and associated development activities.
Corporate Update
Signing of definitive agreement with Silverstone
As previously announced on
Final consideration paid for the asset consisted of:
- A cash payment of
US$9,500,000 ; and - The issuance to Silverstone of 4,944,672 common shares of Vizsla priced at
C$2.44 per share (for a total value ofUS$9,500,000 ).
With the signing of the definitive agreement, Vizsla now owns 100% of the 9,386.5-hectare
Spin-Out Non-Brokered Private Placement
Further to the Company's news release dated
About the
The newly consolidated
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.
About
Vizsla is a Junior mineral exploration and development company focused on advancing its flagship, 100%-owned
Quality Assurance / Quality Control
Drill core and rock samples were shipped to ALS Limited in
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
The Company's disclosure of technical or scientific information in this press release has been reviewed and approved by
Neither
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward–Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward–looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward–looking statements or information. These forward–looking statements or information relate to, among other things: the timing of future news releases; the exploration, development and production at
Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Vizsla, future growth potential for Vizsla and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; no escalation in the severity of the COVID-19 pandemic; costs of exploration and development; the estimated costs of development of exploration projects; Vizsla's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect Vizsla's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward–looking statements or forward-looking information and Vizsla has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in
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