Vizsla Silver Awards Key Contracts for Panuco Project as Shares Surge Over 60%
Vizsla Silver has awarded engineering and mining contracts for its Panuco silver-gold project, advancing toward production, with shares rising more than 60% in the past year.
Vizsla Silver Corp. (TSX: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) has taken a significant step forward in developing its Panuco silver-gold project in Mexico by awarding key contracts to M3 Engineering and Mining Plus. The company selected M3 Engineering for engineering, procurement and construction management services, while Mining Plus will handle mine design and development work for the project's pre-production phase. These appointments mark another milestone in advancing the Panuco project, which is expected to become a major source of silver and gold.
According to reporting by Abdul Rahman for Insider Monkey, the Panuco project's feasibility study, released in November 2025, projects average annual production of 17.4 million ounces of silver equivalent over at least nine years. The study outlines an after-tax net present value (NPV) of US$1.8 billion at a 5% discount rate, an internal rate of return (IRR) of 111%, and a payback period of just seven months, assuming silver prices of US$35.50 per ounce and gold prices of US$3,100 per ounce. These robust economics underscore the project's potential as a high-grade, low-cost operation.
Shares of Vizsla Silver have climbed more than 60% over the past year as investors closely monitor progress at the high-grade silver and gold asset located in Sinaloa, Mexico. The company is concurrently advancing mine development and district-scale exploration with the objective of becoming a leading primary silver producer. The Panuco project is 100%-owned by Vizsla Silver, a Canadian development company focused on advancing the asset to production.
The contract awards represent a critical step in de-risking the project and moving toward construction. By engaging M3 Engineering, a firm with extensive experience in mining projects, and Mining Plus, a specialist in mine design, Vizsla Silver is positioning itself to execute the development plan efficiently. The company is leveraging the expertise of these contractors to optimize the project's design and schedule, which could help mitigate cost overruns and delays.
The news comes as the global silver market faces supply constraints and growing demand from industrial applications, including solar panel manufacturing and electronics. Silver prices have been volatile but remain supported by macroeconomic uncertainties and a weakening US dollar. Vizsla Silver's ability to bring Panuco online could help alleviate some of the supply tightness, making the project strategically important.
For more information about Vizsla Silver and its Panuco project, visit the company's website at https://vizslasilvercorp.com/. The company continues to advance its plans, with further updates expected as development progresses.