Vizsla Silver announced a new feasibility study for its flagship Panuco silver‑gold project in Sinaloa, Mexico, on November 12 2025. The study, completed by Ausenco Engineering Canada ULC, projects an after‑tax net present value of US$1.8 billion at a 5 % discount rate and an after‑tax internal rate of return of 111 %. Initial capital costs are estimated at US$173 million, while the all‑in sustaining cost is projected at US$10.61 per ounce of silver equivalent.
The feasibility study improves on the July 2024 preliminary economic assessment (PEA) by raising the NPV from US$1.137 billion to US$1.8 billion and the IRR from 85.7 % to 111 %. The upgrade reflects a January 2025 resource update that added 222.4 million ounces of measured and indicated silver equivalent and a higher assumed silver price, which together lift the project’s economics and reduce risk.
A key driver of the study’s attractiveness is the seven‑month after‑tax payback period, down from the PEA’s nine‑month figure. The rapid return, combined with the low initial capital outlay, signals a highly de‑risked development that can generate cash flow quickly and support future financing needs.
The projected average annual production of 17.4 million ounces of silver equivalent, coupled with a low AISC of US$10.61 per ounce, positions Panuco as a high‑margin underground mine. At current silver prices (around US$47 per ounce), the project would deliver operating margins well above industry averages, reinforcing Vizsla’s strategy of leveraging proven reserves to accelerate production and shareholder value.
CEO Michael Konnert highlighted the milestone, stating that the feasibility study “builds upon the strong economics outlined in the PEA and confirms that Panuco can become the next large‑scale silver‑primary producer in Mexico.” COO Simon Cmrlec added that the study’s technical excellence and the progress of the test mine give confidence in the results and support the company’s construction decision timeline, targeting first production in the second half of 2027.
The announcement was met with a positive market reaction, reflecting investor confidence in the project’s economics and the company’s ability to secure financing for construction. Analysts noted the seven‑month payback and 111 % IRR as key drivers of the enthusiasm.
Additional context shows that Vizsla has secured over US$200 million in cash and a US$220 million senior debt mandate led by Macquarie, providing the capital base needed to move from feasibility to construction. The updated resource estimate and the low AISC also strengthen the company’s competitive position in the Mexican silver market, where Panuco could become a leading producer.
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