Vizsla Resources (TSX-V: VZLA) - How Do I Follow You into the Unknown?, by @CruxInvestor

Interview with Michael Konnert, President & CEO of Vizsla Resources (TSX-V: VZLA).

Vizsla Resources is a Mexico-based mineral exploration company listed on the TSX-V. It was founded in 2017, and is engaged in the discovery, development and acquisition of precious and base metal assets in what it claims to be 'safe jurisdictions.' Vizsla is focussed on the Copala-Panuco Silver-Gold district in Mexico and the fully-financed Blueberry copper project. Vizsla claims Panuco is "high grade" and "high margin.

Let's be clear. This is an early stage exploration play with a lot of hoops to get through, but with a potential big prize at the end of it. Highlights: They have raised c.$8.5M, have $4.5M left, having optioned the acquisition of a $42M mill, with permits, infrastructure and land in a highly prospective Silver region from two companies. The $4.5M with allow them to Explore, drill and figure what they have. That's phase one. If things are as the hope they will have to raise $20-$25M to expand in phase two of that Exploration phase, and should that expenditure give them and the market what it need to hear, they may choose to take up their option on the mill. Phase one and phase two have been targeted to be delivered in 2yrs. At that point they will need to raise c.$70M. SO we are now up to $100M. And we are talking about the volatile world of Silver... so now you know what you are looking at.

Vizsla Resources has a CAD$32M market cap and a share price of CAD$0.72. It has risen consistently since the company's inception. Low share count. So good corporate structure from what we can see.

Vizsla claims Mexico is a safe, favorable jurisdiction.

Konnert touches on the silver macro story: a precious metal with industrial applications. He also speaks about the silver market, and its volatility. Having an option on silver appears to give Vizsla some flexibility, and makes them a more exciting prospect for would-be investors. Gold and copper are also explained, with the latter seeing a reference to the EV revolution narrative.

Vizlsla Resources sees this as a holistic business rather than a small commodity play, with plans to become a district-scale producer that can compete.

Vizsla will be going into the ground over the next 12 months for a 14,500m drill program and district sampling. Vizsla has a 2-part plan: discovery drilling and sampling followed by ranking. At the end of the 2 years, Vizsla would like to have enough information to go to market to source non-dilutive finance, courtesy of strong drill results. Is this enough certainty for investors?

Konnert touches on risk mitigation and contingency plans, especially in the case of the mill, before moving into the certainties of the projects. In terms of numbers and margins, Vizsla points to decades of previous production as a reason to believe, but he can only provide approximations: Hopwfully 500g/t silver. What sort of scale can investors expect? This does feel a little like an unquantified risk. Konnert attempts to answer these questions.

Konnert is confident the projects will become underground mines. We need to watch this space and see how Vizsla develops this year because the market clearly believes they have something. The team is confident, but it's time for them to prove what they have to us.

Interview highlights: