• Consolidation of a district scale land package: Comparable in size and geology to First Majestic’s San Dimas mine and Silvercrest’s Las Chispas project, containing more than 20 veins, several of which have demonstrated high silver and gold grades
• High-Grade Silver and Gold: With a total greater than 75 km of cumulative vein strike, Panuco hosts high grade silver and gold
• Very Limited Modern Exploration: This is the first time the entire district will be consolidated, and it has seen only sparse past exploration
• Production Facilities on Site: Canam has an option on the mill, mining equipment and tailings facilities on site
• Significant Infrastructure in Place: The district scale camp has substantial infrastructure including roads, permits, power and a skilled workforce in neighboring towns
• Location: Situated off a major highway, in the Sierra Madre epithermal belt, 80 km from First Majestic’s San Dimas mine
• Accelerated Pathway to Production: Vizsla can exercise the Options after a two-year exploration period
The district-scale Panuco silver-gold epithermal vein project is the consolidation of mining concessions totaling 10,542 hectares in a producing mining camp outside of Concordia, Sinaloa. The area’s first silver production occurred in the 1500’s and has been producing intermittently ever since, with steady production over the last several decades.
Vizsla believes there may be significant high-grade silver and gold discovery potential at Panuco. This is the first time the entire district will be explored as a consolidated region which has not seen modern exploration except for a small drill campaign between 2006 to 2008 on a portion of the district.
Shallowly to steeply dipping quartz-carbonate veins with workings defining both steeply plunging and sub-horizontal ore shoots have been observed on site visits. Mineralization occurs as pyrite, silver sulphides, native gold, electrum, argentite and native silver with generally minor galena, sphalerite and rare chalcopyrite. Alteration is not well understood though large zones of strong disseminated pyrite alteration extends over one kilometre away from major veins.
In 2004 Capstone Mining Corp. optioned approximately 40% of the Panuco district from Grupo Minero Bacis and undertook exploration around historical workings at two of the more than twenty veins mapped on their property. Capstone drilled along the Animas and La Colorada veins between 2006 and 2008.
Significant intersections from this historic drilling program include (Christopher and Sims, 2008);
• Hole CC-06-26 intersecting 4.23 metres true width grading 2,235 g/t silver and 9.5 g/t gold from 46.5 metres downhole at El Muerto,
• Hole SC-07-72 intersecting 11.33 metres true width grading 288 g/t silver and 1.65 g/t gold from 22.5 metres downhole at Clemens-El Muerto, and
• Hole SCC-07-09 intersecting 2.0 metres true width grading 1,634 g/t silver and 10.38g/t gold from 22 metres downhole at La Colorada.
The Qualified Person (as defined below) has reviewed some of the intercepts still preserved in the coreshack, diamond drill records, survey records and the assay records. It is her opinion that the information disclosed in Christopher and Sims (2008) is verifiable. Additional drilling will be required to fully verify the historic data, and Vizsla is in the process of planning these studies.
Initial resource estimates were prepared for Clemens-El Muerto and La Colorada by Christopher and Sim (2008). For Clemens-El Muerto, they estimated an indicated resource of 656,000 tonnes grading 204 g/t Ag and 1.11 g/t Au using a 90 g/t Ag cut-off grade. Additional inferred resources at this cut-off were 345,000 tonnes grading 145 g/t Ag and 0.79 g/t Au. For La Colorada, an inferred mineral resource of 2,527,000 tonnes of material containing 80.2 g/t Ag and 0.38 g/t Au using a 20 g/t silver-equivalent cut-off grade was estimated. At the time of that report, silver equivalent grade was calculated by taking the silver grade and adding to it the gold grade multiplied by 57. While these estimates were prepared to NI43-101 standards, and the work could be relied on in 2008, Vizsla is not treating these estimates as current mineral resources. Clemens-El Muerto has been partially mined out by owner Silverstone de Mexico S.A. de C.V., and La Colorada requires additional drilling to confirm the historic results.
A qualified person has not done sufficient work to classify the above historical estimates as current mineral resources or mineral reserves. At this time the Company is unaware of how much of the above historical estimates has been exploited.
Due to the fragmented property ownership, very little systematic modern exploration has been completed on the project, however, local miners are currently producing at several mine sites in the district. The over 75 km cumulative strike extent of veins on the project as well as the numerous historical and current workings indicate significant exploration upside that will be the focus of Vizsla’s upcoming exploration program.
Canam has commenced an exploration program with a view to completing a maiden drilling program in the next three months. The current focus is on validating historic data with the collection of new remote sensing datasets, re-processing of a historic airborne magnetic survey and ground-truthing historic non-compliant sampling results from surface outcrops and underground works.
The sampling and mapping program are focused in defining both high priority drill targets surrounding active and historic mining areas and understanding the formation of the known deposits to generate new targets on the multiple untested veins at Panuco.
Christopher, P. and Sim, R., 2008, Technical Report on the Copala Project, Sinaloa State, Mexico; Silverstone Resources Corp., 100 p.
The scientific and technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of the Company by Michelle Robinson, MASc. P.Eng. a Qualified Person as defined by NI 43-101 (the “Qualified Person”). Core drilling, surveying logging, sample preparation, analytical and quality control procedures (including the insertion of blind standards, blanks, pulp and field duplicates into the sample stream) used to produce the results mentioned in the text of this news release are documented in detail in Christopher and Sims, (2008). The assaying was done by ALS Chemex using fire-assay methods with a gravimetric finish for gold and four-acid digest for silver followed by fire assaying with both a gravimetric finish and ICP-AES finish. The Qualified Person’s opinion is that the drilling and assaying done by Capstone and reported on by Silverstone is reliable information and can be used to guide exploration decisions.