Vizsla optimistic about Sinaloa acquisition

Vancouver-based Vizsla Silver is bullish on its acquisition of the gold and silver-rich La Garra-Metates district in Mexico's Sinaloa state, adjacent to its Panuco district. 

“This acquisition of a very little explored and past-producing district in the state of Sinaloa is an excellent addition to our portfolio,” country manager Hernando Rueda told BNamericas. 

“It is important in the long term for Vizsla, a company that always wants to be one step ahead in the exploration and development of projects in Sinaloa state.”

Vizsla agreed to make payments totaling US$3 million in cash and issuing 5,555,555 common shares in the company at an estimated price of US$1.26 per share, the Vancouver-based miner said in a recent statement.

Rueda said the La Garra district includes large sub-vertical structures that resemble the Napoleon vein of the Panuco project, as well as low-angle structures.

He said it is about 32km south of First Majestic Silver's San Dimas mine, and the same distance north of Panuco, "both with high silver content located in a prolific precious metals producing sector."

On the company's plans in the country, Rueda said that “Vizsla Silver’s focus continues to be on developing the Panuco-Copala district while exploring for new centers of high-grade mineralization.”

The company previously detailed that it has paid US$1.61mn in back taxes owed on the concessions comprising the La Garra-Metates district. It also granted the sellers a 1% net smelter return royalty on the district.

Vizsla Silver is a Canadian exploration and development company focused on advancing its 100%-owned Panuco silver-gold project in Sinaloa.

This year, the company has budgeted for over 65,000m of resource and discovery-based drilling to upgrade and expand the mineral resource, as well as test other high-priority targets throughout the district.