Post by
cressco on Jan 06, 2021 7:58am
Shareholders Letter
Vizsla highlights discoveries, financing in 2020 letter 2021-01-06 07:26 ET - Shareholders Letter Mr. Michael Konnert reports VIZSLA CEO PROVIDES LETTER TO STAKEHOLDERS Vizsla Resources Corp. has provided a letter to stakeholders. Dear Vizsla Stakeholder, With your support, Vizsla performed incredibly well through 2020, which was a difficult year in many ways. Despite the issues brought on by COVID-19, we were able to execute our plan and successfully deliver against our key performance indicators, including share price performance (lo: $0.23 hi: $2.93), fund raising ($34.6M raised) and discovery, making one of Mexico's most significant precious metals discovery (6 metres of 8,066 g/t AgEq) at the Napoleon vein at the Panuco project. Vizsla started as a small company with an $800,000 IPO in 2018. In late 2019 we announced the acquisition of the option to acquire the entire Panuco silver district, and in 2020 that we were able to transform the Company with exploration success on the back of more than 28,000 metres drilled. In 2020, we accomplished many things, but my top three are: Making multiple discoveries including Napoleon, Cordon del Oro, Tajitos, Papayo and San Carlos with each of these discovery holes returning >1kg AgEq grades. Raising over $34,000,000 which places us in a strong position for the next 12 months. Renegotiating the underlying options, giving us until 2022 before major option payments The exploration success that we have had at Vizsla is amplified further by the shortcut to production that we have at Panuco. With the El Coco mill under option to us, we can move rapidly into production. This sets us as apart from the rest of our cohort. I believe that Vizsla is on track to become Mexico's next major producer of silver and gold. I am incredibly proud that in 2020, Vizsla, and our drilling contractors, have directly employed more than 150 people, most from the Concordia municipality of Sinaloa and have helped create additional jobs indirectly through other contractors and suppliers. In addition, our team continues to work hard to limit the exposure of our staff, contractors, and suppliers to COVID-19 across our work site. This is just a start and I believe the future is even brighter for Vizsla in 2021. Vizsla stakeholders can expect another transformative year. We are well funded with over $25,000,000 in cash and no debt. Our opportunity at the Panuco district is unparalleled given the size of the district, the numerous discoveries made in 2020 and the high grades that we continue to drill. On top of all this, we have a well-mapped-out pathway to production that differentiates Panuco from other properties in Mexico. Our team's goal is for Panuco to become a producing asset with 12 million ounces of silver equivalent production per annum. We will continue to be Mexico's most aggressive explorer in the silver sector. This is important as we are exploring and drilling a historic district which has been in production since the 1600's but has never been systematically explored. With more holes across the many targets that we have so far identified, the potential for more exciting discoveries await across the district. To date we have identified 122 targets over a 14km breadth and as we continue to map the district we expect to continue to find more. As Table 1 shows, we are currently resource drilling at Napoleon and advance drilling at Tajitos, Papayo and Aguita Zarca. For the first six months of 2021, we expect to drill more than 40,000 metres of diamond drill holes. This year will see an increase in the drill rigs working on the project to allow us to conduct advanced resource drilling while not slowing any of the exploration drilling across the targets that we have identified particularly the Cordon del Oro vein corridor which hosts Aguita Zarca as well as several new targets. In addition to traditional ways of prospecting and drilling, we are also reviewing other ways of understanding what lies beneath at Panuco. In 2021, we will likely take further steps to crystalize the upside here. We will also start to better define the production opportunity at Panuco. In this regard, Vizsla has hired Professional Engineer, Peter Longo, to commence planning and study work required to advance towards production. This will allow us to understand the best mining scenarios to move rapidly towards becoming a silver producer. With each new discovery and published study, we are confident that the market will be able to truly understand the value of Vizsla's position in the Panuco district. As always, we are committed to continue to operate through 2021 in a sustainable and safe manner that positively impacts the communities that we work in. Finally, because Vizsla's board and management are shareholders (holding more than 20% of the Company), we take shareholder value creation personally. With that in mind, I believe it is important for us to monetize the secondary assets in our portfolio. As such, Vizsla is preparing to spin out its copper asset, the Blueberry copper district in the Babine porphyry belt of British Columbia into a new company whose shares will be spun out to Vizsla shareholders. More information on this to come. In closing, I believe that 2021 is the best time yet to be a Vizsla shareholder. Vizsla is intensely focused on creating value for its shareholders and stakeholders. I hope you share my excitement for 2021. Warm regards, Michael Konnert Qualified Person The Company's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., an independent consultant for the Company. Mr. Harris is a Qualified Person as defined under the terms of National Instrument 43-101. We seek Safe Harbor. 2021 Canjex Publishing Ltd. All rights reserved.