Panuco Project
Preliminary Economic Assessment
2024 Panuco PEA Production Profile
On July 24, 2024 Vizsla Silver announced a Preliminary Economic Assessment on the Project.
The Preliminary Economic Assessment highlighted the Project’s strong economics, including an after-tax NPV of US$1.14B (5%), IRR of 85.7%, initial capital expenditure of US$224M, and average annual production of 15.2M oz AgEq at an AISC of US$9.40 per oz AgEq. With a projected mine life of over 10 years and first silver targeted in H2 2027, Panuco offers significant potential for royalty income.
| AVG ANNUAL PRODUCTION | UNIT OPERATING COSTS |
| 15.2Moz AgEq/y | Operating Cost(2): US$76.4/t |
| Avg Annual Ag – 8.8Moz Avg Annual Au – 76Koz | Operating Cash Costs US$6.88/Oz AgEq |
| Throughput – 3,300 4,000 tpd Mine Life – 11 years | AISC: US$9.4/Oz AgEq |
| CAPITAL REQUIREMENTS | BASE CASE ECONOMICS |
| Initial Capital(3) US$224M | Silver Price: US$ 26/Oz Gold Price: US$1,975/Oz |
| LOM Sustaining Capital US$230M | Post-Tax NPV(5%) : US$1,137M Post-Tax IRR: 85.7% |
| Contingency: US$46M | Payback: 0.8 years |
These results are preliminary and include inferred mineral resources that are considered too speculative geologically to have economic consideration applied to them. There is no certainty that the results will be realized.
[Read the full 2024 PEA / NI 43-101 Technical Report]
1. AgEq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram) with price assumptions $24.00/oz Ag, $1800/oz Au, $2,425/t Pb and $2,976/t Zn. All numbers are rounded.
2. Initial CapEx includes 20% contingency and AgEq grades include base metals and are undiluted. The Company cautions that the results of the PEA are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have economic consideration applied to them to be classified as mineral reserves. There is no certainty that the results of the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.