Morning Briefing: Vizsla Silver Publishes Panuco PEA
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Wednesday, July 24th.
Yesterday gold ran back over $2400 with most of the action occurring in the last 30 minutes of Asian markets trading. The Obligator price-hit at the Comex open temporarily tried to get gold back below $2400 but the yellow dog closed in the afternoon at $2410, up $12 from Monday. Silver had a similar price journey though with a higher degree of volatility, as expected. From an overnight low of $28.84, poor man's gold ran up to close in the afternoon at $29.41, up 8 cents from Monday. The mining stocks couldn't decide if they wanted to rally with gold or sell-off with the rest of the stock market. GDX was unchanged on the day but the ARCA Gold Bugs index closed almost half a percent higher. The Mining Stock Journal makes the case that the current pullback in the sector is likely complete and a bull move is imminent.
We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Fireweed Metals
Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.
And here’s what you need to know this morning….
Vizsla Silver has published results for its preliminary economic assessment for its Panuco silver-gold project in Mexico. The study highlights an After-Tax NPV (5%) of US$1,137 million, After-Tax IRR of 85.7%, Initial Capex of US$224 million, and Average Annual Production of 15.2 million oz AgEq at AISC of US$9.40 per oz AgEq. According to the study, Panuco’s payback period is 9 months. Vizsla used a base case of $26 per oz of silver and $1,975/oz of gold in its calculations. The PEA considers two contiguous underground mines, the Copala Mine and the Napoleon Mine, with on-site treatment of the mined material processed through a 3-stage crushing-grinding circuit, along with a leach and Merrill Crowe circuit to produce silver-gold doré bars. The mines will be contractor-operated utilizing ramp-access and a combination of long-hole stoping and drift-and-fill mining methods. The company said in the press release, “it's becoming increasingly clear that Panuco will be a meaningful contributor to the silver industry for decades to come.” (TSXV: VZLA) (NYSE: VZLA) News Release
Snowline Gold provided results for the first two holes of its 2024 exploration campaign in Yukon. Hole V-24-071, collared in the high-grade, near-surface section of the Valley deposit, averages 1.77 g/t Au over 449.7 m from surface, including 2.89 g/t Au over 169.2 m. This result exceeds that predicted by the Company's initial mineral resource estimate (MRE) for Valley by 36% overall. Hole V-24-072 averages 2.66 g/t Au over 295.3 m, including 4.67 g/t Au over 100.8 m from surface, in line with expectation but with slightly (1%) more gold than predicted in the top half of the hole. The company also noted it has been in ongoing communication with the First Nation of Na-Cho Nyäk Dun, within whose Traditional Territory the Rogue and Einarson projects are located. Snowline says they remains respectful and responsive to FNNND's concerns relating to mining activities and mineral exploration in light of the current situation at Vicrtoria’s Eagle Mine, which is also on FNNND territory. (TSX-V:SGD) (OTCQB:SNWGF) News Release
Omega Pacific Resources published initial drill results from its 2024 drill program at the Williams Property in British Columbia's Golden Horseshoe. Results from hole 1 returned 6.22 g/t Au over 18.98m within a broader 104m of 1.69 g/t Au. Phase 1 of the 2024 drill program was designed to follow-up on the historical results of WM22-02. The 2024 drill holes are planned to trace that mineralization to depth and to the east and west. The first hole of the 2024 program (WM24-01) was drilled at a steeper angle to undercut the historical results by approximately 50 m with the intention of drilling deeper to get the full thickness of mineralization. (CSE:OMGA) (OTCQB:OMGPF) News Release
MAG Silver reported production numbers from the Juanicipio operation for Q2. MAG and partners Fresnillo, processess 336,593 tonnes of ore in Q2 continuing to build on daily milling rates with average silver head grade of 498 g/t Ag, which is higher than the previous quarter. Juanicipio exceeded expectations with preliminary production estimates of 5.0 million silver ounces and 9,267 gold ounces. (TSX / NYSE American: MAG) News Release
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