Vizsla Silver: CEO on the Exceptional PEA Figures and Further Steps Towards Production

Introduction

Welcome ladies and gentlemen to Commodity TV and the new edition of our online interview series. Today, we have Michael Connor, CEO of Vizsla Silver, joining us to provide an update on the company. Michael, it’s great to have you here.

Highlights of the PEA

As a shareholder of Vizsla Silver, I must say, congratulations on a fantastic Preliminary Economic Assessment (PEA). The numbers were outstanding, particularly the 85.7% Internal Rate of Return (IRR) after tax.

Breakdown of Key Numbers

Michael Connor shared that the outcome exceeded their expectations as well. The overall Net Present Value (NPV) stands at an impressive $ 1.14 billion, which is remarkable, especially given their conservative capex estimate of $ 224 million. The reason behind these stellar numbers is the high-grade nature of the Copala vein. This vein is rich in silver and gold and is expected to drive early cash flow and a 9-month payback period.

Contract Underground Miners

Interestingly, Vizsla Silver has opted for contract underground miners instead of operating internally. This decision aligns with the long history of using contract mining in Mexico and helps mitigate scaling risks.

Assumptions of Silver and Gold Prices

The base assumptions for the PEA used a silver price of $ 26 and a gold price of $ 1,975. Michael explained that these figures are derived from long-term bank consensus, specifically from CIBC, a well-known Canadian bank.

Path to Feasibility

Vizsla Silver aims to fast-track its progress. The target is to start pouring silver by 2027. Plans include conducting a test mine by the second half of next year and skipping the pre-feasibility study to go directly to feasibility.

Exploration and Future Potential

Vizsla Silver has only explored less than 10% of the overall veins in the entire district. Yet, there’s significant near-mine exploration potential. The company plans further exploration with Airborne EM later this year to hone in on new targets even more.

Financial Health

The company boasts a solid financial position with $ 40 million in the bank, plus an additional $ 18 million from in-the-money warrants that expire later this year. This makes Vizsla Silver well funded for their planned activities, including the test mine and feasibility study.

Shareholder Concerns: Visa Royalty

Many shareholders have inquired about the Visa Royalty spinco company, which is expected to list before the fall or early fall. While the approval process is still underway, it should be completed relatively soon.

Michael, thank you for the insightful update. We look forward to seeing how Vizsla Silver advances towards becoming one of the world’s largest silver producers.

Keywords

Vizsla Silver
CEO Michael Connor
PEA (Preliminary Economic Assessment)
IRR (Internal Rate of Return)
NPV (Net Present Value)
Capex
Contract Mining
Silver and Gold Prices
Feasibility Study
Exploration
Financial Health
Visa Royalty Spinco

FAQs

Q: What is Vizsla Silver's IRR after tax according to their PEA? A: The IRR after tax is 85.7%.

Q: How much is Vizsla Silver's capex estimate? A: The capex estimate is $ 224 million.

Q: Why is Vizsla Silver using contract underground miners? A: Mexico has a long history of using contract miners, which helps mitigate scaling and operational risks.

Q: What base prices were used for silver and gold in the PEA? A: The silver price is $ 26, and the gold price is $ 1,975, based on CIBC's long-term bank consensus.

Q: When does Vizsla Silver aim to start production? A: The goal is to start pouring silver by 2027.

Q: How much of their exploration area has Vizsla Silver explored? A: They have explored less than 10% of the overall veins in the district.

Q: What is the financial status of Vizsla Silver? A: Vizsla Silver has $ 40 million in the bank and an additional $ 18 million from in-the-money warrants.

Q: When will the Visa Royalty spinco be listed? A: It is expected to list before the fall or early fall.