Panuco Silver & Gold Project Feasibility Study: $1.80B NPV, 111.1% IRR
Vizsla Silver Corp.'s Panuco Silver & Gold Project 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 per year.
Vizsla Silver Corp.'s Panuco Silver & Gold Project 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 0.583 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. 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
This project delivers a 111.1% after-tax IRR, placing it in the top decile of the 21 silver peers we track and far above the practical financing hurdle for even high-risk single-asset developers. The 5% discount rate used for NPV reporting is at the low end of convention, which flatters the headline $1.80B NPV; a higher rate would compress that figure meaningfully. The 0.6-year payback and capital-light initial capex of $239M (13% of NPV) reduce funding risk, though the 9.4-year mine life is short for a standalone operation.
The NPV-to-market-cap ratio of 1.4x can be read two ways: either the market has not priced in the project's value, or it is discounting execution risk in Mexico’s Sinaloa state, a jurisdiction with a mixed mining reputation. The study’s silver price assumption of $35.50/oz sits well below the current spot of $62.81/oz, suggesting material upside to returns if prices hold, but also raising the question of whether the study’s cost and recovery assumptions are robust at higher price levels. The single most important watch-item is the jurisdiction: Sinaloa’s security and permitting environment will determine whether this fast-payback, capital-light profile can be realized without delays.
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.