Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The initial seven holes completed by Vizsla Resources at the Panuco silver-gold project in Mexico returned high-grade intercepts from an area surrounding historic workings as well as from a new vein discovery.
Drill highlights include 3.55 metres of 364 g/t silver-equivalent from the Paloma vein, a newly discovered structure, and 2.6 metres of 404 g/t silver-equivalent from the Animas vein, beneath the historic Animas corridor workings.
“We are seeing high grades of silver and gold in both our drilling and sampling activities,” Michael Konnert, the company’s president and CEO, said in a release.
Vizsla discovered the Paloma vein in January, with mapping and sampling tracing silver-gold mineralization over 500 metres
“The company has drilled veins up to 11.3 metres wide and our new Paloma discovery is also showing excellent widths and grades,” Konnert said.
Vizsla discovered the Paloma vein in January, with mapping and sampling tracing silver-gold mineralization over 500 metres.
In September, Vizsla announced that it has entered into an option agreement to acquire the 94-sq.-km Copala-Panuco property in Mexico’s Sinaloa state, within the Sierra Madre epithermal belt.
The project features over 75 km of total vein strike identified to date with a long-standing history of mining at these structures.
Under the terms of the September agreement, Vizsla acquired the option to acquire a 100% interest in the Panuco concessions and infrastructure from Canam Alpine Ventures for 18 million Vizsla shares and a grand total of $43 million in cash.
The consolidated property includes over 35 km of underground development and an operating underground mine and a 500 t/d mill with tailings facilities.
“In the near term, we will continue drilling multiple targets in order to establish drilling priorities. Being the first consolidation of the district, it is essential that Vizsla understand the many historic veins at depth,” Konnert added.
Vizsla plans to drill 14,500 metres at the property this year with over 20 targets identified. In addition, mapping and sampling is ongoing.
(This article first appeared in the Canadian Mining Journal)
