After a long wait on Tuesday (stock was halted before the open), Vizsla Resources (TSX-V:VZLA), delivered the goods early this morning. The company has completed five holes to date and results have been received for holes NP-20-02 and NP-20-03, both of which returned high-grade intercepts in a new vein discovery at Panuco. Before I delve into what I think this means, let's take a look at the results.
Hole NP-20-02 delivered 1,544 g/t silver equivalent (738.9 grams per tonne silver and 11.06 grams per tonne gold) over 8.2 meters from 108.6 meters downhole including 3,348 g/t silver equivalent (1,527.5 g/t silver and 24.9 g/t gold) over 2.0 meters from 108.6 meters downhole.
Hole NP-20-03 was also impressive, delivering 1,133 g/t silver equivalent (453.8 g/t silver and 9.20 g/t gold) over 2.5 meters from 76.0 meters downhole. And deeper down in this hole, Vizsla intersected 905 g/t silver equivalent (309.3 g/t silver and 8.00 g/t gold), 2.22% lead and 4.75% zinc over 5.1 meters beginning from 102.4 meters downhole including 1,375 g/t silver equivalent (186.3 g/t silver and 15.63 g/t gold), 1.12% lead and 7.73% zinc over 1.8m from 103.5 meters downhole.
VP 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 2 km of strike and hosts multiple small-scale mines and mineralized outcrops. Drilling is ongoing with two deeper holes and a hole in progress 60m 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".
Let's boil this news down. Vizsla has made a new high-grade gold/silver/base metals discovery called the Napoleon Vein which is open for more than 2 kilometers along strike. Vizsla is continuing to step-out to expand and define the mineralization footprint at Napoleon.
In addition, the company has more than C$6 million in the treasury with two drill rigs turning at Panuco. Assays from holes 4 and 5 are in the lab pending assays and Vizsla gave us a nice teaser on hole 6 by adding:
"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 60m to the north of hole NP-20-03."
It's all systems go for Vizsla at Panuco and the fact that the company renegotiated its option agreements on the project (saving US$4.1 million in payments) is the icing on the cake. This company has never been in a better position than it is today and I would be shocked if VZLA shares didn't reach at least C$.60 today, and there is potential for VZLA shares to make all-time highs over the coming weeks as drilling continues and the silver bull market tailwinds take hold.
Disclosure: The author of this article owns VZLA shares and may choose to buy or sell at any time without notice. The author has also been compensated for market awareness services by Vizsla Resources Corp.
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