| Panuco Project Mineral Resource Estimate Notes: - The Resource Estimate is compliant with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards incorporate by reference in NI 43-101 The effective date for the Resource Estimate is February 25, 2022.
- Resources are presented undiluted and in situ and are considered to have reasonable prospects for economic extraction assuming metals prices of $20.7 per ounce of silver, $1,650 per ounce of gold, $1,902 per tonne of lead and $2,505 per tonne of zinc.
- The database comprises a total of 445 drill holes for 124,915 metres of drilling completed by Vizsla Silver between November 2019 and December 2021.
- The Resource Estimate encompasses a total of 13 sub-vertical precious metals rich domains each defined by individual wireframes with a minimum true thickness of 2.0 metres for Napoleon (2 wireframes) and Tajitos (3 wireframes), and 1.5 metres thickness for the six other structures (8 wireframes).
- Samples were composited within the mineralized domains into 1.50 metre length composites.
- High grade capping was done on composite data and established using a statistical analysis on a per-zone basis for silver, gold, lead and zinc.
- Cut-off grade of 150 g/t AgEq was used based on costs from mines with similar mineralization Assumed costs $45 mining, $30/tonne processing $20/tonnes G&A and recoveries of 93% for silver, 90% for gold, 94% for both lead and zinc.
- Average density values were assigned per zone based on 256 samples analysed by ALS in Zacatecas, Mexico.
- Inverse Distance Squared (ID2) interpolation was utilized at for all structures. All estimates are based on a block dimension of 2 m * 10 m * 5 m and estimation parameters determined by variography.
- The model has been depleted for historical mining and a 5m thick crown pillar.
- The Resource Estimate is categorized into indicated and inferred categories as follows:
- The Indicated mineral resource category is defined by areas where drill spacing is generally less than 50 metres, blocks are informed by a minimum of two drill holes, and reasonable geological and grade continuity is shown. Copala, Tajitos HW, Rosarito and San Antonio veins defined Indicated mineral resource based on drill spacing less than 30 metres.
- The Inferred mineral resource category is defined by areas where drill spacing is less than 100 metres, blocks are informed by a minimum of two drill holes, and reasonable, but not verified, geological and grade continuity is observed. Copala, Tajitos HW, Rosarito and San Antonio veins defined Inferred mineral resource based on drill spacing less than 60 metres.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- Estimates use metric units (metres, tonnes and g/t). Metal contents are presented in troy ounces (metric tonne x grade / 31.10348).
- T. Maunula & Associates Consulting Inc. is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issue not reported in the technical report, that could materially affect the mineral resource estimate.
- Mineral resources are not mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the inferred resources tabulated above as an indicated or measured mineral resource. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future.
The Resource Estimate is centred on the western portion of Panuco, encompassing ~4.2 km of the known 75 km of cumulative vein strike in the district. The 2022 drill program aims to utilize 13 drill rigs to 1) upgrade and expand the initial project resource base and 2) test advanced exploration targets located in the west, central and east areas of the Project. Dependent on ongoing exploration success, the Company intends to publish an update to the Resource Estimate in the second half of 2022. There is no certainty that inferred mineral resources contained in the Resource Estimate will be converted to higher confidence categories through further drilling.
Discovery Costs
To date, the Company incurred an aggregate of approximately US$24.5 million in exploration expenditures for the life of the Project. This equates to a discovery cost of approximately US$0.18 per ounce of silver equivalent for resources defined in the Resource Estimate.
More broadly, the Company has incurred an aggregate of approximately US$98.6 million in total expenditures since the Company was formed in September 2018. This includes all project acquisition costs (shares and cash), exploration costs and corporate expenditures. This equates to a total discovery cost of approximately US$0.71 per ounce of silver equivalent for resources defined in the Resource Estimate.
About the Panuco project
The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatln. The 6,754-hectare, past producing district benefits from over 75 kilometres of total vein extent, a 500 ton per day mill, 35 kilometres of underground mines, tailings facilities, roads, power and permits.
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. |