Panuco Silver & Gold Project Feasibility Study: $1.80B NPV, 111% IRR
Vizsla Silver Corp.'s Panuco Silver & Gold Project in Mexico, Sinaloa has a Feasibility Study outlining an after-tax NPV of $1.80B, an after-tax IRR of 111%, and initial capital of $239M. The mine plan runs 9.4 years at about 17.4 Moz AgEq (avg LOM); 20.1 Moz AgEq avg yr 1-5 per year.
Vizsla Silver Corp.'s Panuco Silver & Gold Project has reported Feasibility Study results for the silver project in Mexico, Sinaloa. 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%. 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 Base case: US$35.50/oz Ag, US$3,100/oz Au. Reserve estimation used US$28.50/oz Ag and US$2,300/oz Au; Resource estimation used US$26.00/oz Ag, US$1,975/oz Au, US$2,425/t lead, US$2,976/t zinc.
Production and mine plan. The project envisions an underground operation. Life of mine is 9.4 years. Average annual production is approximately 17.4 Moz AgEq (avg LOM); 20.1 Moz AgEq avg yr 1-5. Average head grade is 425 g/t AgEq (LOM).
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
- IRR after-tax
- 111%
higher than 80% of 25 projects we track
- NPV after-tax
- $1.80B
higher than 89% of 28 projects we track
- Initial capex
- $239M
13% of NPV
costlier than 70% of 33 projects we track
- Payback
- 0.6yrs
slower than 20% of 15 projects we track
- Mine life
- 9.4yrs
- Discount rate
- 5%
- Study price assumption
- Base case: US$35.50/oz Ag, US$3,100/oz Au. Reserve estimation used US$28.50/oz Ag and US$2,300/oz Au; Resource estimation used US$26.00/oz Ag, US$1,975/oz Au, US$2,425/t lead, US$2,976/t zinc
- Spot silver today
- $64.24/oz
A 111% after-tax IRR on a US$239M build is the kind of pairing that rarely survives contact with a feasibility study, and that is exactly what makes this one worth interrogating. The returns sit in the top quartile of the 25 silver projects we track, the after-tax NPV of US$1.80B ranks above 89% of 28 peers, and payback lands at 0.6 years, faster than 80% of the 15 peers we measure it against. Against the roughly 15% after-tax IRR developers typically need to clear project finance, the margin is enormous. The study is feasibility-level, so these are build-ready numbers carrying a plus or minus 15% band rather than a scoping guess, and the initial capex comes to just 13% of NPV, lower than 30% of the 33 silver projects we track.
The catch is scale and duration, not capital. A 9.4-year mine life is short by the standards of the large silver assets this NPV invites comparison with, and the whole build costs about 0.2x the company's US$1.33B market cap. That is the sharpest fact here: a company of this size can fund a US$239M build without the dilution spiral that sinks most developers, and with six projects in the portfolio it is not hostage to this one outcome. The NPV sits at roughly 1.3x market cap, which cuts both ways: either the market has not yet credited an asset this size, or it is discounting execution, permitting and the short reserve life. Sinaloa is a established mining jurisdiction with a long history of silver production, which supports the operating assumptions but does not remove the permitting and community risk that any Mexican development carries.
The price deck is where the optimism concentrates. The feasibility base case assumes US$35.50/oz silver, while reserves were estimated at US$28.50/oz and resources at US$26.00/oz. Against a live spot of US$64.24/oz, those assumptions look conservative rather than stretched, which means the headline numbers are not being inflated by the silver price. The question that decides this project is whether a 9.4-year mine can be expanded, because on its own it does not justify the NPV-to-market-cap gap for long.
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.
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