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Vizsla Resources Corp
Symbol VZLA
Shares Issued 59,403,573
Close 2020-06-22 C$ 0.44
Recent Sedar Documents

Vizsla drills 8.2 m of 1,544 g/t AgEq at Panuco

2020-06-24 06:37 ET - News Release

Mr. Michael Konnert reports

VIZSLA DRILLS 1,544 G/T SILVER EQ. OVER 8.2 METRES IN NEW DISCOVERY AT PANUCO PROJECT, MEXICO

Vizsla Resources Corp. has released the first drilling results from the Napoleon vein corridor at the Panuco silver-gold district in Mexico. Five holes have been completed to date and results have been received for the mineralized intervals of two holes, NP-20-02 and NP-20-03, with high-grade intercepts returned. The company has restarted exploration and currently has two drill rigs operating on the property.

Drilling highlights

NP-20-02:

  • 1,544 grams per tonne silver equivalent (738.9 grams per tonne silver and 11.06 g/t gold) over 8.2 metres from 108.6 m including:
    • 3,348 g/t silver equivalent (1,527.5 g/t silver and 24.9 g/t gold) over 2.0 m from 108.6 m.

NP-20-03:

  • 1,133 g/t silver equivalent (453.8 g/t silver and 9.20 g/t gold) over 2.5 m from 76.0 m;
  • 905 g/t silver equivalent (309.3 g/t silver and 8.00 g/t gold), 2.22 per cent lead and 4.75 per cent zinc over 5.1 m from 102.4 m including:
    • 1,375 g/t silver equivalent (186.3 g/t silver and 15.63 g/t gold), 1.12 per cent lead and 7.73 per cent zinc over 1.8 m from 103.5 m.

Note

All numbers are rounded and widths represent downhole lengths. True widths are estimated at between 46 and 66 per cent of downhole lengths. All calculations assume 94-per-cent recovery for silver and 96-per-cent recovery for gold. Silver equivalent is calculated using the following formula: silver equivalent equals (0.94 times silver grade) plus (80 times (0.96 times gold grade)).

"This news can't come at a better time as silver and gold have been breaking out and the Napoleon results mark our first major high-grade discovery at Panuco. The broad high-grade mineralization in drill hole NP-20-02 attest to the significant potential at the underexplored district. The company is now fully financed with over $6-million in the bank and has two drill rigs turning at the project with more results pending," stated president and chief executive officer Michael Konnert.

Vice-president of exploration Charles Funk commented: "These results are a very exciting discovery for Vizsla with multiple veins intersected in drilling containing very high-grade silver, gold and base metals. These holes are the first ever drilled on the Napoleon vein, which extends over more than two km of strike and hosts multiple small-scale mines and mineralized outcrops. Drilling is ongoing with two deeper holes and a hole in progress 60 m to the north of NP-20-03, all which have each intersected veins. Vizsla is continuing to step out to expand and define the footprint of mineralization at Napoleon."

The Napoleon vein corridor is located almost entirely on concessions optioned from Rio Panuco which Vizsla has the right to purchase 100 per cent of including the 500-tonne-per-day El Coco mill, tailings facility, roads, power and permits for a total of $23-million (U.S.).

                               COMPLETE TABLE OF DRILL HOLE INTERSECTIONS
  
Drill hole        From           To     Width    Silver equivalent     Silver    Gold     Lead       Zinc
                   (m)          (m)       (m)                (g/t)      (g/t)   (g/t)      (%)        (%)

NP-20-02         99.80       116.80      17.0                769.2      369.1    5.50     0.70       1.28
incl.            99.80       101.80       2.0                145.1       72.5    1.00     0.32       0.40
and             108.60       116.80       8.2              1,544.2      738.9   11.06     1.34       2.38
incl.           108.60       110.60       2.0              3,348.2    1,527.5   24.90     1.46       2.14
NP-20-03         76.00       110.25     34.25                260.5      106.4    2.10     0.49       1.35
incl.            76.00        78.50       2.5              1,133.4      453.8    9.20     0.80       1.77
and              82.50        84.45      1.95                400.0      262.2    2.00     0.69       7.15
and              89.50        92.05      2.55                 98.9       69.6    0.44     0.17       0.17
and             102.40       107.50      5.10                905.3      309.3    8.00     2.22       4.75
incl.           103.50       105.30       1.8              1,375.4      186.3   15.63     1.12       7.73

  

Note

All numbers are rounded and widths represent downhole lengths. True widths are estimated at between 46 and 66 per cent of downhole lengths. All calculations assume 94-per-cent recovery for silver and 96-per-cent recovery for gold. Silver equivalent is calculated using the following formula: silver equivalent equals (0.94 times silver grade) plus (80 times (0.96 times gold grade)). The company is disclosing results on a silver equivalent basis due to the overall silver-dominant nature of mineralization at the Panuco project.

Drilling detail

The Napoleon corridor is hosted in weakly magnetic fine-grained diorite and trends approximately north-south. The structure hosts two main quartz veins that are separated by about 10 to 20 m and appears to dip very steeply to subvertical. So far it has been mapped along strike for over 2,000 m. Between the two main veins are a series of smaller splay veins with variable orientations that are related to dilation along the structure under strike slip movement.

The two main veins are multiepisodal quartz veins, with sections of massive white to greyish quartz as well as local brecciation with clasts of grey quartz, white vein quartz and/or wallrock pieces. The greyish quartz is grey due to the presence of the very fine-grained silver-rich sulphide mineral argentite. A later breccia cuts these earlier phases comprising grey quartz supporting polymictic clasts of grey and white quartz along with strong chlorite and common to abundant, fine- to medium-grained pyrite, sphalerite and galena.

The main high-grade hangingwall vein intersected in holes NP-20-02 and NP-20-03 has a true width of between 3.4 and 5.3 metres. Other veins intersected require further drilling to confirm true widths as they may equally represent parallel veins or high-angle structures to the hangingwall vein.

Hole NP-20-01 failed to reach the target depth when it intersected a void that is likely a decline built at the southern end of the historic Napoleon mine. The mine workings are inaccessible preventing present day sampling; however, the mine is believed to have been worked up to a depth of 50 m below surface.

Hole NP-20-02 was drilled at a steeper angle and was the first intersection of the Napoleon veins. Hole NP-20-03 was angled to the north and intersected the veins 30 metres to the north of hole NP-20-02. Results from both veins are reported in this new release.

Hole NP-20-04 is a steeper vein beneath hole NP-20-03 and intersected the veins about 20 to 25 m downdip. Hole NP-20-04 is a steeper vein beneath hole NP-20-02 and intersected the veins at about 12 to 20 m downdip as the vein steepened more than expected. Samples from both holes have been submitted for analysis and assays are pending.

The drill rig has been moved north and is drilling beneath the old Napoleon mine in hole NP-20-06. The hole is currently in progress and has intersected veins 60 m to the north of hole NP-20-03.

About the Panuco project

Vizsla has an option to acquire 100 per cent of the newly consolidated 9,386.5-hectare Panuco district in southern Sinaloa, Mexico, near the city of Mazatlan. The option allows for the acquisition of over 75 km of total vein extent, a 500-tonne-per-day mill, 35 km of underground mines, tailings facilities, roads, power and permits.

The district contains intermediate to low sulphidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara formation.

Quality assurance/quality control

Drill core and rock samples were shipped to ALS Limited in Zacatecas, Zacatecas, Mexico, and in North Vancouver, B.C., Canada, for sample preparation and for analysis at the ALS laboratory in North Vancouver. The ALS Zacatecas and North Vancouver facilities are ISO 9001 and ISO/IEC 17025 certified. Silver and base metals were analyzed using a four-acid digestion with an ICP (inductively coupled plasma) finish and gold was assayed by 30-gram fire assay with atomic absorption (AA) spectroscopy finish. Overlimit analyses for silver, lead and zinc were reassayed using an ore-grade four-acid digestion with AA finish.

Control samples comprising certified reference samples, duplicates and blank samples were systematically inserted into the sample stream and analyzed as part of the company's quality assurance/quality control protocol.

Qualified person

Panuco's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, PGeo, an independent consultant for the company. Mr. Harris is a qualified person as defined under the terms of National Instrument 43-101.

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