Vizsla Silver Corp V.VZLA

3-7 yrs before they own the production rights and land

[Marcsr]

They have 120K+ total shares right now with 30M in cash,
they have to spend 23M + 20M option for production over the next 3-7 years.
Looks like the shares will be diluted at least 100% until production starts....

outrageous grades, but will have to wait on the reserve estimates.

share price seems well ahead of reserve estimates, long time to wait for production too.

Marc

[cressco]

The structure of options to acquire 100% interest on both is very favorable to VZLA, especially the renegotiated Panuco one in May of this year. By far most exciting point in this MD&A is 8 rigs by mid 2021. #BeastMode.

[Marcsr]

Cressco, Yes, the 8 drill rigs is very good news for sure, also I like the large leach fields (reserves unknown though). But , I understand that zero production can take place until the entire district is paid for, 43M? So that would involve pure financing for the 43M by way of massive share dillution, already have 120k shares outstanding for a no income flow property. Thank goodness for the

[cressco]

Your concerns are valid imo, but in a stagnant mkt. If these bonanza grades keep coming as ag moves above 30$, plenty of money on the sidelines will be waiting to pour into this play. Next dilution happens in a >5$ share range. Hence the aggressive approach to drilling. Time will tell, however my perspective comes from an extremely bullish outlook on the PMs mkt.

[cressco]

I forgot to re-emphasize as well that the mill option value far exceeds the obligatory acquisition payments. S.

[Marcsr]

Cessco, Based on a grade rate of 500g/ton, 16 oz/ton: That means if mgmt estimates 12M ounces/yr div 16oz/ton results in 750,000 tons/yr the mill is only rated at 500 tons/day or about 150,000/yr mill is not adequate for the proposed plan. Marc

[cressco]

I dont think Mike based his 12 mil oz ageq yearly production on a 500tpd mill capacity. Mill expansion most def in play. I also think we get a slightly better grade of ore than 500g ageq per tonne.

[Marcsr]

Cessco, Will keep a watch on the drill grades and reserve estimates, should get a pretty good idea by the end of 2021. I don't think there is going to be any problem with financing, just the massive dillution aspect. Like you say, and with silver being the lowest priced commodity on earth, any upward amount is a real benefit to net income. 30-40 should be a reasonable silver price in 2021.

[cressco]

I guess I don't share the same opinion of a "massive dilution" aspect. Dilution is inevitable i believe, but at much higher prices from today, which will make the proportion of dilution sig lesser, ie 10-20 mil shares at 6$ vs 40-80 mil shares to raise the same amt. Yea share buy back would be damn nice. Also if ag was to make same extension as in the previous move 12$-30$ I can see

[Marcsr]

Cressco, You are correct, if the share price goes up substantially, that would potentially moderate the number of shares issued for the additional financing. In that instance, my estimate of massive dillution may well not occur. Thanks for your comments, Marc

[Goaweigh]

Once they are over a certain threshold on reserves , and before expending all cash, they may decide to finalize on the mill purchase and go into production at the current capacity of 500 TPD. A production decision with a mill that is ready to go will automatically cause a re rating of the stock and a financing could be done at higher prices. There are also plenty of warrants owned by Sprott who