Panuco Silver & Gold District Feasibility Study: $1.80B NPV, 111.1% IRR
Vizsla Silver Corp.'s Panuco Silver & Gold District in Mexico, Sinaloa (near Concordia, ~1hr from Mazatlán) has a Feasibility Study outlining an after-tax NPV of $1.80B, an after-tax IRR of 111.1%, and initial capital of $239M. The mine plan runs 9.4 years at about 20.1 Moz AgEq (yr 1-5 avg) per year.
Vizsla Silver Corp.'s Panuco Silver & Gold District has reported Feasibility Study results for the silver project in Mexico, Sinaloa (near Concordia, ~1hr from Mazatlán). The study headlines an after-tax net present value of $1.80B at a 5% discount rate. It reflects Vizsla Silver Corp.'s (VZLA.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.80B using a 5% discount rate. After-tax IRR is 111.1%. Initial capital expenditure is estimated at $239M, with life-of-mine sustaining capital of $287M. The study models a payback period of 0.5833 years. All-in sustaining costs are pegged at 10.61 USD/oz AgEq. Economics are based on Ag US$35.50/oz, Au US$3,100/oz.
Production and mine plan. The project envisions an underground operation. Life of mine is 9.4 years. Average annual production is approximately 20.1 Moz AgEq (yr 1-5 avg). Average head grade is 425 g/t AgEq.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Vizsla Silver Corp.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 1.95 Mt | 502 g/t AgEq | 31.4 Moz AgEq |
| Probable | 10.85 Mt | 400 g/t AgEq | 139.7 Moz AgEq |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 2.24 Mt | 640 g/t AgEq | 46.1 Moz AgEq |
| Indicated | 10.72 Mt | 512 g/t AgEq | 176.3 Moz AgEq |
| Inferred | 10.50 Mt | 412 g/t AgEq | 138.7 Moz AgEq |
Our Analysis
A top-decile 111.1% after-tax IRR on a capital-light, 0.6-year payback project is exceptional, but the 5% discount rate used to report the $1.80B NPV is a flattering convention, not a risk-adjusted hurdle. The NPV sits at roughly 1.6x market cap, which cuts both ways: it suggests the market has not priced in the full study value, but also that investors may be discounting financing, dilution, or jurisdictional risk in Mexico’s Sinaloa state. Initial capex of $239M is only 13% of NPV, which limits funding risk, though the 9.4-year mine life is short for a silver asset.
The study’s silver price assumption of $35.50/oz sits well below the current live spot of $60.92/oz, implying significant upside to the stated returns if prices hold. The key risk is jurisdictional: Sinaloa carries elevated operational and security concerns relative to other mining regions, which can deter project finance and inflate the cost of capital. Watch for permitting timelines and any local friction that could delay the fast payback.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.