Hello everyone, my name is Jon Ward, Head of Investor Relations at Inventa Capital. It's a pleasure to welcome you today to and introduce Michael Konnert, President and CEO of Vizsla Silver, and Dr. Jesus Velador, Vice President of Exploration. Today, they'll be sharing an overview of the geology of the Panuco District and providing an update on Vizsla Silver's exploration plans and objectives for the remainder of the year. We'll also have a Q&A session at the end of the presentation. Please feel free to submit your questions in the Q&A box, and we'll do our best to answer as many as possible. With that, I'll hand it over to you, Mike.
Thank you, Jon, and greetings everybody. Thank you for joining us today. It's wonderful to connect with our shareholders and supporters. I'd also like to welcome anybody who's new to the company and encourage you to reach out to us for more information, to learn more. Go to our website, but we love interacting with our shareholders and supporters, so feel free to connect with us if you want any more details about anything we talk about today. We've just released, and I should actually start, pardon me, I should start by saying we will be making forward-looking statements. I certainly believe the best is yet to come for Vizsla Silver, and I suppose that is a forward-looking statement. We've released some exciting exploration news yesterday, and I'm looking forward to Jesus's presentation today covering that news in more detail and answering questions at the end. Dr.
Jesus Velador, our Vice President of Exploration, will be making the presentation today. Before I hand it over to Jesus, I just want to touch on a few points here. Vizsla Silver isn't just an exploration company. Our vision is to build the next world-class silver producer using our high-grade, high-margin, large-scale district here in Sinaloa, Mexico. We see Panuco as the most exciting high-grade silver opportunity globally, and with the scale and the grade that we have here, we believe it'll support a very long mine life and a very low-cost mining operation. Additionally, it's been clear for the last 12 months that Mexico is the premier destination for silver and silver producers. We've seen transactions like SilverCrest being acquired, Gatos being acquired, and MAG Silver, and more recently, as of this week actually, the acquisition of Prime by Torex.
Prime is a company that we share the state of Sinaloa with. We're starting to see a lot of positive news where single-asset silver primary producers like Vizsla Silver will be in several years, are commanding excellent valuations, and we're seeing a lot of interest in the state that we're in as well. I think that just shows how underexplored and undeveloped the state of Sinaloa is, so we're very excited about seeing that. Jesus will cover yesterday's exciting news, which included a significant increase in exploration, the start of exploration at the newly acquired Santa Fe property to the south of our original Panuco District. We're seeing results that are encouraging our team to really expand that exploration and to continue to hunt for that project number two. We believe that we can find project number two on the ground that we have here in this district.
Here, we have a commanding land package that we've quadrupled over the last 18 months, and in the future, I really believe that we're going to have multiple, not just one or two, but multiple producing centers throughout this district here. We are on the hunt for that. Outside of exploration, our growth path forward is clear. This year, we will complete our Feasibility Study. Project finance will significantly advance the test mine, which has been a very important key de-risking milestone for us here so far this year. The best part is that we're very well funded for all the work that we're doing here. We have over $200 million . in the bank. We have marketable securities of about $25 million .
We're in the best shape that we've been in in the history of the company, and we're about to unlock the most catalyst-rich period of time here going forward, going into that construction period, pre-construction with the Feasibility Study. It's becoming more and more real what we've discovered over the last five to six years in Panuco, so it's very exciting. This hunt for project two is exciting, and Jesus will touch on this a bit today here, but when we arrived at the district, there had only been about 20,000 meters of historic drilling. We consolidated that original district, the Panuco District, for the very first time in modern history. By doing that, we unlocked a huge amount of value through exploration. With 20,000 meters, historically at Panuco, we went to almost 400,000 meters in diamond drilling.
Very safe to say that exploration is in our DNA, and Jesus's background is almost tailor-made for what we're doing here. He's probably the best person I can imagine to unlock the value that we have here at this project. I'm very excited to turn it over to Dr. Jesus Velador, Vizsla Silver's Vice President of Exploration, to take us through the next part of the presentation here.
Thank you, Michael. Thanks for the great introduction. Good morning everyone. As Michael said, we're going to be covering different aspects of not only the Panuco Project, but other plans that we have for our newest acquisitions that we have made in what we call or what we refer to as the Sandimas-Panuco Corridor. I'll start first by showing this slide that puts together or summarizes all the kind of work and accomplishments by Vizsla Silver over the last five years. You notice on the left, the graph that I'm showing there is the mineral resources. The polygons, the blue and the green one, should be the resources. The blue is the inferred, the green one is the measured indicated.
You can see in our most recent mineral resource update on the right-hand side of the plot, you see there's still a substantial amount of inferred resources as the blue polygon, the blue area shows there. If you look at the lines, the light blue line is the silver equivalent ounces in the measured indicated resources, whereas the darker kind of blue line is the silver equivalent ounces in the inferred resources. You can see that the actual ounces in the mineral resources are much higher in the measured indicated resources. What it's telling us is of the great de-risking that we have done, that we have completed over the last two years at the Panuco Project. Obviously, the silver equivalent grade in these mineral resources is a function of the grade and tonnes.
What it's telling us here is that the grades that we are getting in these measured indicated resources, it's spectacular. You can see that in the previous tables that we have published with our mineral resource updates. Also, you can see the numbers here that we prepared. We completed to date, we completed over 391,000 meters of drilling in close to, we're getting close to a thousand holes drilled on the project since late 2019. Our discovery cost is fairly low, as you can see, $0.41 per ounce discovered to date. We have plans to continue making discoveries, as we will see in our following slides. To date, this year, we have drilled 8,000 meters in approximately 26 holes that we're going to see the distribution of this drilling.
Some of these holes were drilled in the northeast, and some of these drills are being completed now in the west part of the district. As a result of these 8,000 meters that we have completed in this 2025, we have done already a discovery. This discovery happened in the Animas zone, as we're going to see in the next few slides in more detail. We intend to, you know, continue the exploration in this zone to continue adding ounces in this area. Now, in this slide, I'm showing in more detail what I'm talking about, the discoveries and our exploration plans in project one or Panuco. You can see we have outlined different targets. First of all, we have some resource expansion targets that we intend to tackle over, you know, the next year, more exactly.
For this year, what we intend is to focus all of our efforts in making new discoveries, making new discoveries either in proximal targets around the fine mineral resource that we have in the west. If you can see on the left-hand side of the map, we have a cluster of veins. That cluster of veins where you can see probably Copala and Napoleon. That's the area that contains 98% of the mineral resources. Around that area, we have the proximal targets. I'm outlining four of them there in this area. These four targets have, you know, multiple veins, some of them. Just recently, we completed a ground geophysical survey. This survey is the HLEM survey. It's a ground electromagnetic survey that has the capability to give two sets of anomalies, as we will see, you know, in upcoming slides.
It gives us two different kinds of anomalies depending on the target you're looking for. What we have done is that we cover part of Copala and part of Napoleon to get a feeling on the geophysical signature of these veins. We have good high-grade mineralization in both of these deposits. What we wanted is to see what's the response that we get with this kind of geophysical technique or method over these veins with mineralization to be able to extrapolate this knowledge into other areas. We did as such, and we extrapolated these lines and expanded the geophysical survey to the north, as you can see, and to the west in areas where we have these kinds of proximal targets.
Now, with this, putting all this information together with the mapping that we have done in geochemistry and alterations, now we are able to be more selective on the most important targets. We have talked several times also about the district scale targets. We have five high-priority targets in the northeast. One of them is the Animas zone that is kind of in the middle. That's where we announced our discovery of the La Pipa high-grade mineralization that I just mentioned. You can see the results here on the bottom of the slide on the right. What we discovered in Animas is 5.8 meters. This is actually one of the intercepts because we had two intercepts within the broad vein zone, epithermal vein zone here at Animas. The most outstanding intercept is this 5.8 meters with 653 grams silver and over 4 grams gold.
In this next slide, I'm showing what I'm talking about with respect to Animas. Animas is a seven-kilometer or over seven-kilometer strike length vein system structure deep into the southwest, where most of the historic mining has occurred in the district. A lot of mining activity occurred along this 7 km vein system. If you can see, all of these mining activities were conducted by local miners, mostly artisanal miners with very rudimentary kind of equipment. They weren't able to go very deep into the veins. What I'm showing here is this part of Animas, La Pipa, where we announced the discovery with hole AM2590 in March, late March this year. You can see the old-timers or the local miners in the area managed to extract some high-grade chutes located near surface. Probably many of these high-grade chutes occurring near to surface were enriched by supergene processes and all of that.
They didn't really go deep into the vein system. What we are doing now is that we are going deeper into the vein system, looking for a reopening of the high-grade or reopening of the structure or potential telescoping of the mineralization. These epithermal veins tend to be, in many cases, telescoped. You have multiple overlapping, kind of overlapping systems of mineralization or zones of mineralization. This is what it seems that we are seeing at La Pipa now. We are seeing a high-grade zone near surface, probably enriched by supergene processes. At depth, we are seeing a replication of high-grade zones and potentially more high-grade chutes.
Before we move into the details of the plans we have for Panuco, for project one and the new acquisitions, let's get a general review of the geology of Panuco and why we think Panuco is a spectacular and very important district mining, the silver gold mining district. I'll start by sharing this map here and by saying, if you can see the table on the left bottom corner of the slide, you'll see there's a list of mineral deposits. It's a list of 14 mineral districts, in fact, that contain more than 1 billion ounces of silver equivalent. The most outstanding thing here with respect to this table is that eight out of these 14 districts are in Mexico. That is actually what makes Mexico a premier intermediate sulfidation epithermal jurisdiction.
Eight of these 14 districts are in Mexico, and I'm showing those eight districts with the yellow stars here. Out of these eight that you can see there, six of them are epithermal deposits or have epithermal mineralization, whereas the two other ones are either carbonate replacement deposits or related to more higher temperature environments near the intrusion source. Six of them are truly epithermal, and they are big. They have more than 1 billion ounce silver equivalent silver. We strongly believe that Panuco has the potential to become the ninth big silver district in Mexico. What we know about the geology of Panuco District is that this stratigraphy refers to, we have a basement of metasediments here in Panuco that has been intruded by diorite, granodiorite, and granite stocks, and then has been overlaid by the volcanic complex, the lower volcanic complex of the Sierra Madre.
On top of this lower volcanic complex, we have the most recent Miocene volcanics of the upper volcanic series. All of these packages of volcanics are present in our Panuco District. The western side contains mostly or predominantly lower volcanic complex. The main concentrations of the intrusions are located predominantly in the central portion of the district. Through some interpretations and through mapping in the district, we have gained that the district has been segmented in three different blocks, roughly segmented in three different blocks because there might be some other structural fractures or faults that even produce more complexities. In general, we can roughly say that the district has been segmented in three. The western portion contains a tilted volcanic sequence where 98% of the mineral resource is at this moment. The central portion contains most of the intrusions, diorites, granodiorites, and granite.
It is what we have identified or recognized as an uplifted block. This block seems to be up with respect to the other sides of the district, with respect to the western and the eastern side. On the right side, we have the eastern block of the property. This eastern block is also turned down with respect to the central one with the stocks. What is relevant about this segmentation of the district is that it creates opportunity because now after almost 400,000 meters of drilling in the area, we recognize that particularly in the western side of the district, the volcanic sequence has been tilted, which created actually a condition to prevent mineralization from erosion. We think that is happening also in the northeast where the block has been downdropped, and you have more presence of volcanics on top of the intrusions and the basement.
This condition also favors the preservation of the mineralization from erosion. For us, these two areas on either side of the central intrusion part of the district create great opportunity for exploration. This is going to be our main focus for exploration, drilling, and targeting for the short and medium term. How do we get to all these conclusions? First of all, we got to these conclusions through some of the aid by Tony Sterling. We hired a couple of times Tony Sterling to give us some insights on the structural and tectonic history of the region. What he defined is five different deformation events. These five different deformation events evolve through time. Particularly the stress-field orientation evolves through time or switches to time in direction, as you can see here by the blue arrows.
The most important thing and the message to take away from this slide is that the two first deformation events were compressional. They created lots of reverse faults and folding in the region. The three last ones were the extensional ones. These extensional ones, what they did, particularly the number three and number four extensional event, they reactivated all their compressional faults and created open spaces. These open spaces they created, this permeability is good for the placement of mineralization. As we know now, because we dated adularia from Napoleon and Copala, we know that mineralization occurred at 25.8 million years and is concurrent with the deformation event number four, which created a lot of openings in the northwest-southeast direction. This is what we know.
Of course, deformation number four is really important because it created the open spaces and allowed the hydrothermal fluids to go through and deposit minerals and all of that. Deformation number five, extension number five, is not less important because that's the one that created the tilting that I mentioned. As you can see on the photograph to the right, you see this tilting of volcanics is very, very clear in the Panuco District. What this did is that this tilting favored or preserved mineralization from erosion, as we will see in that longitudinal section of Napoleon. We also know about some characteristics of the mineralization of the fluids. We have done some investigations, went through fluid inclusions and argon dating, as I already mentioned. We have done a little bit of microscopic studies as well. We know the main ore minerals are acanthite and electrum.
This is really good, particularly for metallurgists and for processing. Those are very, very amenable or silver and gold minerals to leaching in particular. That's something that we know. The other thing we know or we are certain is that the mineralization style is epithermal. We infer that Copala is a little bit more on the low sulfidation kind of end of the spectrum, whereas Napoleon is a little bit more on the side of the intermediate sulfidation spectrum. Why do we say that? On the first hand, Copala is pretty much devoid of base metals. It has some base metals, of course, lead, zinc, and almost no copper. It has some lead and zinc, but in very, very low concentrations, which makes it a good candidate for being on the kind of low sulfidation end of the spectrum.
Whereas at Napoleon, we have silver and lead concentrations up to 2.5%-3% combined, and a little bit kicks off copper, particularly at the bottom of the vein systems. It seems like we have a zonation, or we have a full system of veins that have been zoned by fluid-rock interaction mostly. That's what we know pretty much about the district, about the mineralization and the geology and the structural evolution of the district. Now, we're going to go into what we have done and the plans that we have for project one. Project one, as I mentioned, we have a set of targets. We have defined a set of targets. Five of them are referred to as the extension, mineral resource extension targets.
These mineral resource extension targets are essentially potential mineralization from the same veins with resources that, you know, or indications of trends that we can follow up to extend mineralization and resources in the same veins. We have defined some very important ones in Copala and straightforward kind of low-hanging fruit. We have a Napoleon. We have also a very good example of this resource expansion potential, as well as some other areas like Napoleon at depth, La Luisa, and Cruz Negra, of course. Cruz Negra is not a huge vein with a lot of resources yet, but it's open to the northwest. The reason we haven't followed up really on this Cruz Negra is because, you know, we have been very busy with, obviously, with Copala and Napoleon, which are major veins with spectacular grades.
We also have in this western side of the district, in what we call project one, another set of targets. This other set of targets that we refer to as the proximal targets are veins that we have already identified. On some of these veins, we have even put a few holes on them, but we don't have resources. We have good examples of them. We already completed a ground geophysical survey over this. If you see the blue wavy lines on the map, those are the lines where we conducted the ground horizontal-loop EM survey, which is the electromagnetic survey.
What we did for this survey is that we covered first parts of Napoleon and Copala, where we have no mineralization, to be able to pick up a signature of these veins and mineralization, and then extrapolate this knowledge into other areas with proximal targets to ultimately make our exploration more successful. I talked about the resource extension targets that we have at Copala, and this is the most clear example that we have. Last year, we discovered an old mine adit in Copala on surface, and we recognized that the Copala mineralization actually extends to the surface. Before that, we had the paradigm that Cristiano was cutting off mineralization on Copala on the top. We did, at the time, the interpretations we had were indicating that Cristiano mineralization postdated Copala, and it was therefore cutting off the mineralization going up on Copala.
We didn't follow up a lot on this structure going up, particularly in the southeast, where you can see the blue ellipses there. After the discovery of the Copala adit, the old Copala adit kind of in the central of the vein, you can see the blue shaded polygon there. That's the measured resource that we have for Copala. We extended the mineralization all the way to surface. After the discovery and changing our interpretation with respect to the time relationships between Cristiano and Copala, we defined that there's actually potential for Copala to continue with high-grade mineralized chutes all the way to surface. This is what we intend to do in the short term for Copala. It's low-hanging fruit. We don't have urgency to do it right now. At this moment, we have time. We probably are going to end up doing this when we are underground.
This is a good set of opportunities that we have there. For Napoleon, we have another condition. I mentioned the mineralization is tilted. This tilting occurred post-mineralization. First we deposited the vein, mineralization, then tilting occurred during D5 in the Miocene and produced this kind of plunging chute. We have done interpolations of metal ratios, and we have collected some alteration data that we analyzed with TerraSpec. What we defined is that we have potential for feeder zones in this vein. We still have open-ended intercepts at depth, at lower elevations where we see high concentrations of base metals, and we see increasing silver to gold ratios that could point to potential feeders. Another important thing that we did, as we mentioned, that this is still a work in progress, is that we started with the collection of TerraSpec data.
Our TerraSpec data is telling us that there's a good indication of an association of cerussite, phengite, and well-crystallized kaolinite with high-grade zones or with high-grade chutes. We're still in the process of modeling all of this in 3D. We're still collecting data throughout the vein. Ultimately, what we're going to do is with this information of alteration and correlation with high-grade to define vectors to be able to extrapolate and apply it on our surface exploration. In other words, when we go to any other vein, we are going to be able to detect these alteration minerals and see if they are pointing to high-grade zones. I don't want to spend a lot of time on this. This is Napoleon Hanging Wall 4. This Napoleon Hanging Wall 4 is a low line angle kind of splay coming off from Napoleon, particularly in the south.
It has shown some very good intercepts with very significant silver and gold grades, particularly showing increasing gold values. We haven't really explored this vein. All the intercepts that you see here have been intercepts that we hit the vein while we were drilling to actually infield Napoleon. There hasn't been a proper exploration plan for this vein. The vein is here because it was intercepted through drilling to Napoleon. We intend at some point, as I mentioned, the same as for Copala, we don't have any urgency of doing this. This is very low hanging fruit that we have here. Now, let's jump into the more details of the geophysical survey that we completed that I mentioned. This survey is called the HLEM survey. It's an electromagnetic survey. It's ground, and we really like it because it gives us two sets of anomalies.
The survey first is running with the transmitter and receiver in tandem at 100 meter spacing, and then you collect data over 25 meter space stations. You collect the data at variable frequencies. We collected data for five different frequencies, and we selected which was the best frequency to apply based on responses on known mineralization over Copala and Napoleon. You not only get that, you don't only get the five different frequencies, but you get two sets of anomalies, as we will see. We get a set of anomalies that is in the in-phase waves and the out-of-phase waves. You can see the electromagnetic, these electromagnetic equipments measure electromagnetic waves or energy that gets transmitted to the rocks. There are two sets of data that the instrument collects. The in-phase is where essentially the energy waves are synchronized, whereas the out-of-phase are out of synchronization.
The good thing about this is that the in-phase is good for highlighting good conductors. The out-of-phase kind of anomalies or data is good for detecting poor conductors. In epithermal veins, you don't always have good conductors because you have veins made out of quartz, and quartz is a non-conductor mineral. This is why this is really important. What we've done, we collect the data, as I didn't mention, but you probably read it. We collect the data for over 43 line kilometers in different targets in the west or in project one. This is what you're seeing here. In the bottom one, you probably see on the right-hand side of the image, you see a legend there saying Napoleon. This is some of the information collected over Napoleon. We got the best response over Napoleon for the out-of-phase data.
What this means is that Napoleon is behaving as we should expect, as a poor conductor because it's a vein made of quartz with a little bit of metals, but not a lot of metals. We got a very good response for Napoleon. We got some good anomalies over Copala as well. Unfortunately, we weren't able to cover the whole of Copala because we have infrastructure that is being built at this moment. We have two power lines that go through the deposit, so there's a lot of noise, potential noise. We ran three lines. We collected some data. It's not ideal. We would have liked to collect more data. We also have the town to the north. The best data that we collected was for Napoleon. What you see here on the left is the in-phase anomalies that I mentioned, which indicate or resolve the good conductors.
On the right-hand side, we have the out-of-phase or the good ones for detecting poor conductors. In other words, quartz veins. This is another part of the survey that we completed up north from Napoleon into La Colorada, or what we call the Napoleon-Colorada-Copala fault intersection, which I'm going to talk a little bit about. We believe it's a, excuse me, a good area with favorable conditions to develop permeability and potentially hosting mineralization. In this slide now, I'm showing the other section, and you can see probably in the subset with green, the small yellow square there. It's actually showing where's the location of these lines. These lines were intended or planned to cover La Luisa and a couple of other targets in the southwest called St. Jack and St.
Peter, and up north, the Cuatro de Mayo area, where we already have some interesting drill holes with high-grade vein mineralization evidences. Now, here, putting all together, you know, all the air together and based on what I mentioned. We have different sets of anomalies. On the left-hand side, we have the in-phase, which resolved the good conductors. On the right-hand side, we have the poor conductors. Immediately, you can see there are many of these anomalies or anomalous readings that overlap very well with known mapped veins in the district. What is more outstanding is that in the out-of-phase, in the poor conductor anomalies, we have an extremely good correlation of anomalous readings over Napoleon. We have another set of anomalies in the intersection of the Copala fault. I don't know if you see the blue line there, projected, dashed line projected to the projected intersection with Napoleon.
We have a good set of anomalies there. This is something that we intend to tackle there. I mentioned we have drilled over this year 8,000 meters in 26 holes. I mentioned that at the beginning of the presentation. We have done this drilling this year with two rigs, but we have plans to increase our rigs to four very soon to be able to cover all of these potential targets that we are defining. La Colorada north, I mentioned, we are really excited about this area. We got, as you've seen in the previous slide, we define a good set of anomalies, particularly in the out-of-phase, our poor conductors anomalies. We believe, before we even run this geophysical survey, we believe that this is a good area for exploration.
We think the right conditions exist here for additional mineralization because we have the Copala fault, which controls other series of deposits along this stride length to the south. It has the Colorada deposit that has been mined out, and then it has Copala, and then it has another all mines outside of the property to the south. We believe this Copala fault imposes some kind of control on mineralization. At this point, where we call the intersection, I don't know if you see the red circle there, is the projected intersection of this Copala fault with Napoleon. We think this area has very good conditions for hosting additional mineralization, and we intend to go and explore there.
In fact, we have a rig already on the kind of southern part of this area, but pretty soon we're going to move rigs up there to explore some of these out-of-phase geophysical anomalies and this intersection of the two structures. We run a few lines over the St. Peter and St. Jack structure that I mentioned. If you see the subset in green on the right-hand side, you can see the yellow square there. That's the area that we are talking about. We have good indications of structures. We have spectacular alterations. We are advancing mapping in this area, and we also resolve some anomalies. We already drilled a fence hole because another initiative that I haven't talked a lot or haven't talked at all through the presentation, but we started already a fence drilling program in the property.
What you see there in line on the map, in the blue line with the map, is our first fence hole that we drilled in this area to go through this system of alteration and explore. Other initiatives that we've talked previously in other webinars and press releases is, we have acquired, we continue acquiring information and doing analysis. We started with LiDAR and then with obviously mapping with the support of LiDAR and doing alteration interpretations and mapping and applying the TerraSpec. More recently, we acquired also satellite images. We acquired a WorldView satellite image. What you're seeing here is the WorldView 3 satellite image highlighting advanced surgical alteration, in other words, kaolinite, alunite, and pyrophyllite in red, like the kind of red spots there. On top of that, I have overlay vein traces and the targets, the targets that we have identified today in the district.
We have identified over 140 targets today. Some of them have been drill tested, as you can see. Some of them are at different stages, at other stages, some at the mapping stage, some at the prospecting, sampling, etc. Overall, we have a big pipeline of targets just over Panuco, and we are applying all the tools that we have to continue with these exploration activities. Now, let's jump into project two. Project two is essentially on the new acquisitions. We have grown our land package in the Sandimas-Panuco Corridor tremendously for the last couple of years. Now we hold or we control over 40,000 hectares in this region. The most recent acquisition is Santa Fe, and this is where we're going to spend most of the time talking today. Santa Fe, you can see in this map, is the bottom one. It's over 12,000 hectares that it covers.
It has a small operation mine with a 350 tons producing capacity. This map shows in detail more about Santa Fe. Here, on the right-hand side, you can see this map is the 1:50,000 scale geology map from the SGM. As you can see, there are lots of northwest structures. One of them, I'm not going to be able to point it out for you, but it shows clearly the Copala fault there going through Panuco and extending into San Enrique. It also shows very clearly the Cordón de Loro kind of Animas zone extending also into San Enrique to the south. It has another set of northwest trending structures that run from Panuco through Santa Fe. We acquired Santa Fe with some legacy data, very important legacy data, over 20,000 meters of drilling, high-resolution magnetics, radiometrics, and also LiDAR. There's a lot of information to start with to work.
There have been defined in this area six near mine targets. The mine is in the central square there where you probably can read Santa Fe. That's where the mine is, the 350 tons producing mine. It is surrounded by other six vein targets. These vein targets have been partially explored. They have a few holes in by either by Fortuna or by Aurico in the past. They still remain as good targets to be explored. They have just been barely touched by some of this drilling and still, they still hold a lot of potential for extensions. To continue on, something that we have done is in Santa Fe, we already started putting together all the information at GIS database with all the geophysics, geology, geochemistry, existing geochemistry, drilling, etc. We are working on a 3D model interpretation of the mine veins to define near mine targets.
We're also mapping. We already deployed a team of geos, three geos on site, and we are conducting detailed mapping on 800 hectares surrounding the mine to be able to define drilling targets before, hopefully before the end of this third quarter. Now, moving into the other blue sky potential, obviously we have La Garra and San Enrique. La Garra, it's really, really a good asset. It was really tough to decide which one to tackle first between Santa Fe and La Garra. La Garra has, you know, what we saw at La Garra is two systems of veins, one of them running for 2.6 km, the other one for 2 km with very exciting, interesting grades right on surface and surface sampling. It was really tough to decide which one to, you know, to tackle first.
We decided to go into Santa Fe first because it's more proximal to Panuco. It's a lot of the same northwest trending of structures, and obviously it has an operating mine already. San Enrique is more green. It's more difficult access to, with respect compared to Santa Fe and La Garra. Topographically, it's a little bit challenging, but it has all the good ingredients to host mineralization. The Copala fault runs through it. The Animas, Cordón de Loro runs through this property. We have identified a good set of dome complexes in the area. There are indications of something good is going on in this area. This is San Enrique. You can see there's already some information. We have LiDAR. We have magnetics. We have radiometrics.
We intend, you know, in the kind of medium term to start with a regional geochemical program to be able to pinpoint more targets, exploration targets. La Garra, I mentioned already, it's very good, very good asset with two systems of veins. Both of them are defined or found in the northeast corner of the property. The rest of the property, we don't know. There might be additional, you know, structures or mineralization or even old mines that we don't even know of yet. As a summary, we are continuing, we're going to continue with the resource growth drilling. We're working on defining or new or next discovery mapping. You know, we continue mapping through the property. We also started mapping at Santa Fe. We are going to, we intend to continue doing geophysical studies, geophysical investigations after this successful ground horizontal-loop EM survey.
We intend to cover the whole property with an airborne survey before the end of this year. We continue advancing with our alteration mapping and interpretations. Obviously, we're going to continue on the hunt for the project two. With that, I think I'll leave it up to Mike. Thank you.
Thank you very much, Jesus. That was very thorough. Despite being very familiar with this project and the potential there, this presentation got me even more excited if that was possible. Thank you very much for that. I think it's really quite clear that the upside, the exploration potential here is immense. I think we've done a good job as a company acquiring assets that have flown under the radar. Really, all these have been from private hands in Mexico, just like we did with the original Panuco District. We believe internally it's a goal of ours to reach a billion ounces of silver equivalent at the Panuco-Copala District. When you look at La Garra and San Enrique and Santa Fe, I think we have potentials for hundreds of millions of ounces in excess of that. If we're lucky, even the potential for multiple billion-ounce districts here in this trend.
One just has to look at San Dimas, 80 kkm to the northeast of Panuco, to see what's possible here. Knowing that eight of the 14 billion-ounce districts around the world are in Mexico, and the majority of those eight, six of those eight, are the very same deposit style as ours, it just shows the immense potential here. We're thrilled with the exploration. At the same time, of course, we are developing and delivering project number one. I think it's prudent for us to drive this forward, get into cash flow, and then continue to grow organically through these land packages from the immense amount of cash flow that project number one will produce. I think it's important to remind everybody that project number one will be the largest single asset silver primary producer globally listed on a stock exchange by the time we're in production here.
We are driving very hard towards that end of 2027 first silver target. We do expect to have our Feasibility Study out before Christmas this year, and certainly in the second half of 2025. That's all on track and is progressing very nicely. We just heard about the exploration objective. I won't go over all of these again. Project number one is progressing very well. To that point, here's our timeline. This slide is our timeline towards first silver in the last quarter of 2027. Permitting has gone well. We're permitting underway right now. We expect to receive those permits before basically this time next year, middle point of 2026. Feasibility Study again by the end of 2025, targeting a construction period in the second half of 2026. This is a real timeline. This is well thought out on our end and also very aggressive.
I don't know of any other companies that are moving silver primary, high-grade silver project towards production this rapidly. Of course, our goal is to take advantage of these excellent metal prices. I was quoted the other day in a conference saying, if you own Vizsla Silver, you probably don't own enough. If you don't own it, you need to own it. I believe there's three main reasons why we should own Vizsla Silver. Of course, we're traded on the NYSE and the TSX under the ticker VZLA on both exchanges. Again, that fast track to production, delivering the Feasibility Study in the coming months before the end of the year, targeting that first silver in the second half of 2027. The downside is protected here. We have an incredible resource here, 350 million ounces of silver equivalent globally at high grades.
We have over $200 million in cash, which is the ultimate way to protect the downside, allows us to achieve all of these goals and stay in a very secure position financially as we progress towards production. Of course, we are working on project finance as well. We expect to have an announcement towards being fully funded for construction in this year as well. This de-risking that we're doing is very important. I saw a question on the test mine. I think it's important to just highlight. We did put out a press release on the test mine. I was just down at the site recently and was underground at the project. It's one of the cleanest and best designed mines that I've ever seen. I think the team has done an incredible job there. It's progressing very well. We're actually increasing the production rate there, the development rate.
That's looking very good. We're aiming to deliver, kind of completing the test mine in the coming quarters ahead here. I think that'll be excellent. Of course, we've done, as Dr. Jesus Velador talked about, an incredible job of consolidating more ground, bringing together a true pipeline of development assets that can follow behind Vizsla Silver's project number one. This is oftentimes, I say it's like having a time machine and going back to some of these incredible districts elsewhere in Mexico and having our picket land. We're building this incredible pipeline of assets in this frontier silver belt. The upside is immense. We've explored such a small portion of that resource that we have. 98% of it sits really on those Napoleon, Copala, and adjacent structures. It's such a small portion of project number one.
When you look at the upside of the rest of the projects, we have so much more to do here and we're uncovering that. I think the timing is important. We have strong leverage to rising metal prices. We've seen M&A in the space focused specifically on Mexico. Those M&A transactions show that single asset silver producers and single asset silver developers get a premium in the market. I think that we have a number of characteristics that should give us actually a premium valuation to those good comparisons there. The scope and the scale and the grade and the cash flow and everything that we have here coming, I think eventually will demand an incredible premium based on our peer comparables. Of course, we are catalyst rich.
If you're a shareholder, I think we're all excitedly awaiting the next several months here coming ahead towards the end of the year because there's some major, major catalysts coming. We're excited to show those to the market here shortly. With that, I'll end the presentation and we can jump into Q&A.
Thanks, Mike and Jesus. Just a quick reminder to please submit your questions in the Q&A box, and we'll address as many as we can. Firstly, for Jesus, how much of the proposed 25 km of drilling is dedicated to extension, proximal district, and greenfields targets?
Thank you, Jon. Good question. First of all, what we intend for this 25,000 meter is to dedicate all of that to exploration. We do not intend for this year to do any mineral resource extension. It is going to be a mix of exploration between the west and the east, but all of this is going to be discovery-oriented.
Thanks, Jesus. Another one for you. What does it mean for a geophysical anomaly to be in phase or out-phase? Why does it matter that it's a strong conductor?
Good. Yeah, I'd like to emphasize on this. You know, I'm not a geophysicist, so I'm doing my best to explain this. In other words, what we have is an instrument that collects two sets of data. It's something that they call in-phase and the other one out-of-phase. These are different sets of waves, energy waves that the instrument collects at different frequencies. What is important here is not the waves or the energy or the physics behind, but it is that the in-phase sets of anomalies that the instrument gives are good for finding conductors. If you have a good set of in-phase anomalies, that could lead you into good conductor veins. In other words, veins that contain sulfides. Whereas in the out-of-phase anomalies, these out-of-phase anomalies, what they define is poor conductors. In other words, veins or rocks that are devoid of conductor metals or sulfides.
Because most epithermal veins are not very rich in metals, we have to look carefully into both sets of anomalies and just don't follow the in-phase or the good conductor anomalies. If we only follow the good conductor anomalies, we can be misled into leaving something out of, you know, under the ground. Typical epithermal veins are composed mostly of quartz. Quartz is not a conductor, it's a poor conductor. You have to really look into the two sets of anomalies and know your geology and do your interpretations and decide which of these anomalies are going to be the most reliable ones.
As a follow-up, Jesus, have you validated these anomalies? If not, what is your plan to do so?
We are in the process of doing that, actually, as we speak. We are already doing detailed mapping on the western side near the St. Peter-St. Jack area and on the La Colorada North area where we have the convergence of the Copala fault and the Napoleon vein. We are finding evidences of veins on all mine workings. As we speak, we are also working along the geophysical lines that we survey, collecting geological data and confirming what is given the response on these anomalies.
A question for you, Mike. With a test mine already underway, how do current exploration results influence mine planning decisions for 2026 and 2027?
It's a good question. The mine plan has been developed using the measured and indicated resource that we announced earlier this year. If we were to make a massive discovery that was adjacent to Copala or something like that, I think there's probably some scope to look at how that might fit into a mine plan. The mine plan that we have going into the Feasibility Study beyond the first two to four years is probably not going to be exactly what happens when you're underground. Typically these things actually grow. You find other structures when you're drifting underground. The potential for us to find more, even just through the test mine and other types of mine works, is going to be huge. I think there potentially is scope to add new discoveries into the mine plan.
As we're moving very rapidly forward, I think what we'd look at is probably an updated mine plan, updated resource that feeds into perhaps an updated study in the future.
Same with you, Mike. If Vizsla Silver were to define a new resource outside the currently proposed PEA and FS area in the west, would it be processed through the proposed mill?
Yes, I think that's likely the case. If it was within what we call our center of mass or the radius that we draw around the mill area, there are some structures that will absolutely get run through that mill. I think La Luisa is a great example of that. La Luisa is just to the west of Napoleon. It's complementary to everything that we're doing here. We've done some incredible drilling there. There's a nice resource, but we don't have that as a core part of the mine plan. I think the idea is to continue to explore that, grow that where we see a lot of low-hanging fruit. That would likely be run through the project number one mill. We have a 10-year mine life in this, in the PEA, and I think it should be somewhat similar going into the Feasibility Study.
In reality, this will be producing for decades to come out of these veins and the structures that we found so far. For us, we wanted to demonstrate the incredible economic viability at this point and move it into production so that we can develop and grow and do that all from cash flow in the coming years into the next decade.
Thanks, Mike. Switching back to Jesus, was the historical mining in Animas conducted in quartz breccia?
Yeah, it is. Yeah, absolutely. It's quartz breccia on top, you know, with some supergene oxidation and alteration. Then underneath that, we have essentially massive quartz vein, still appreciated, but massive for the most part.
Thanks, Jesus. Staying with you. Will drilling at Santa Fe require a new drilling budget and schedule, or would meters from the current 25,000 meter program be allocated towards that land package?
No, this 25,000 meters that we have talking about is for the Panuco District itself. Obviously, we are really excited about Santa Fe. As soon as we define targets, we'll be in a position of allocating some additional budget to be able to go and drill Santa Fe.
This is probably for you, Michael. Will operations at Santa Fe continue, and does the property being contiguous to Panuco aid in the permitting process?
The operations do continue under the previous ownership. The way that we structured the deal was very similar to the original deal that we did at Panuco, where we went into a producing district, a small-scale production district. The owners aren't always so ready to give up their production. They've invested capital in order to develop the mine. That's some cost if they don't extract the minerals that they've developed too. We came to an understanding with the previous owner. We have an ability to explore for several years, for 24 months from the signing of the agreement, understand the potential there.
At the end of those two years, we can accelerate the option agreement, own the project 100%, and then run the material through that mill that we would likely expand from 350 tons per day to something probably in excess or around 1,000 tons per day we would envision here. Unless we find something even bigger, then it might be something on the same scale as project number one. Now.
I think there probably are some, let's call them intangible benefits to having a producing district here. In some ways, there's some serious benefits about having past production and mill sites on a property that you're working on. First of which is that the government views this as a brownfields district, an area where mining has occurred for, in some cases, in Panuco cases, for hundreds of years. It's much easier to permit a brownfields district where there's been hundreds of years of production, hundreds of kilometers of tunneling over the years, and you know that there's already been, let's call them, some environmental disturbances. In fact, we were able to permit the test mine faster due to the fact that it was all permitted on previously disturbed land, mines that existed in the past.
Similarly, we've selected the mill site for project number one on a previously disturbed piece of land that was deemed to be already environmentally disturbed. There are advantages to operating in Mexico in a brownfields district. Does the agreement we have with the Santa Fe Mill directly influence and make it 10 times easier to permit project number one? No, that's not the case, but there are some very real benefits to continuing to consolidate and then modernizing past producing brownfields districts in this area of Mexico.
Thanks, Mike. With numerous prospective targets in a handful of different regions, can you remind us if any areas still require further permitting or permissions before drilling can commence?
In some cases, you know, new drill holes may take a shorter period of permitting, but the drill holes that we want to drill that are part of the budgeted meterage right now are all permitted, and the work that we're doing in Santa Fe is ready to go as well.
Thanks, Mike. Jesus, what percentage of the updated 2025 exploration budget is allocated to Vizsla Silver royalties covered concessions?
Yeah, all of it, you know, all of this budget, exploration budget, is within Panuco District and is within Vizsla Silver royalties.
Great, thanks Jesus. How do discoveries like the Napoleon HW4 feeder zones affect assumptions around metallurgy and mining method?
Not about metallurgy in particular, because, you know, it's essentially the same mineralization that we are seeing in Napoleon, with a little bit, you know, notch increasing gold values at the hanging gold fore. We shouldn't expect changes in the metallurgical behavior of the ore there. Metallurgical, I mean, in the mining method, there could be some variations. Based on the PEA, we already have two different methods that are going to be applied in the veins because we have either vertical veins or flat lying mineralization. I think we already cover on that part as well.
Thanks, Jesus. Back to Mike, what is your long-term vision for district and regional consolidation, and are there more properties you are looking at to potentially roll in?
I shouldn't say too much here about specific properties or anything like that, but we're always looking to continue to expand our land holdings here. We're firmly convinced that this is the best district to be doing this in in Mexico, and we certainly have a home team advantage here. We've got six years of credible history of creating a huge amount of value for partners that we work for. In each case, every one of the vendors that we've purchased properties from have become shareholders and haven't sold any stock actually as well. They're very strong supporters. In the case of Santa Fe, that's a gentleman who's been operating there for years and sees himself as a very important, and we see him as well as a very important part of the team as well.
We have this kind of growing support of great people with a lot of mining experience in this region of Mexico, and as a result, we're looking at a number of other projects as well that would fill in some of the gaps or the contiguous ground around some of the projects. We get excited about that, and like I said earlier, it's like having a time machine and going back to some of these great districts 200, 300 years ago in Mexico. That's how we see this district. Our long-term vision is to be, I think I've stated this before, but happy to reiterate it here, but we have a vision of being a 50 million ounce silver equivalent producer in the next 10 years, and I suspect a lot of that will actually come from the ground that we've been acquiring in the last 12 months.
These things take a bit of time. They'll be supercharged by cash flow in the future, but we're doing a lot of work, more work I would imagine than pretty much any company in our peer group, I would think, about this regional generative work where we're coming up with targets that we have the vision to turn into producing centers in the near-term future.
Thanks, Mike. Staying with you, if Vizsla receives its permits earlier than expected, will you start construction earlier than expected?
Yeah, we're funded now to a point where as soon as we get the permits, we're going to start. I think the day that we get our permits, I'll probably be the happiest person on earth that day, as I imagine a lot of the people on our team will be, and we're ready to go when that happens. We've removed, by doing this financing weeks ago, the necessity to go out and ask the capital markets for money in order to start. We're ready to do that, and we're very excited about that potential to do that as soon as possible.
Thanks, Mike. For the final question, can you reiterate Vizsla's key catalysts for the remainder of the year?
Yeah, absolutely, and maybe I'll even share this slide here. Probably the most proximal one here that is a very important update for the company is the Feasibility Study that we're working on. That'll be due by the end of the year here, and I always say before Christmas of 2025. We're working diligently on the Feasibility Study. It's been our goal to have that be in line with the PEA, which maybe at face value doesn't sound that overly impressive, but I assure you that it is because most companies put a dream sheet of a PEA out, and then the feasibility is negatively impacted by reality.
However, we started with a more realistic view of feasibility, let's say, in the PEA, and when we go to the Feasibility Study, I think it's going to be in line with what we saw at the PEA, and in addition, it'll be actionable for us. That's a very important step, one of the most important steps before we enter into construction. Permitting is also something that we've worked on. In the next 12 months, we have hopes to see that permit in that period of time, and that'll be very important to us to move the project forward, of course. We're working on project finance. That's been something that we've been working on for the better part of the last two years, much earlier than most companies would look at that.
The idea is that in tandem with the feasibility, we'll be in a position to discuss the next level of non-dilutive financing for the project in order for us to be extremely well funded as we go into construction. Now, the test mine is something that I, every three, four meters that we progress there, is a major de-risking step for us. Every day we de-risk the project further and further by the progress that we have at the test mine. That's a catalyst for us as well. I think the completion of the test mine, getting to Copala, getting our eyes and our hands on the vein, and starting to stockpile high-grade material above surface at Copala, I think is a very important catalyst, very important step for us. In addition to that, we just heard Jesus talk in great detail about all these targets that we have.
We have an abundance of targets. Any one of those could become the next Copala, and Copala is a 200+ million ounce silver equivalent beast that we haven't even found any limit on. It's open north, south, and at depth. It's even open towards surface, which is pretty remarkable as it sits fairly, in most cases it sits just subsurface. We have the potential for finding another monster like Copala basically at every drill hole that we're taking, and I think that is really what differentiates us from other development companies. This is the best of both worlds. You have a tier one asset being developed in the west, and you have the potential at any time as we're drilling for the discovery of something that could rival Copala in the future. We're thrilled about that.
Again, de-risked in the sense that we're very, very well funded to achieve all of these goals.
Thank you, Mike and Jesus, and thank you all for joining today's discussion. If we weren't able to get to your questions today, please feel free to reach out to us at info@vizslasilver.ca and also register for updates at vizslasilvercorp.com. Thank you.
Thanks, Jon. Thank you everybody for attending. Really appreciate your time.