Michael Pettingell will be presenting. He's the Senior VP of Business Development.
Thank you very much. Thanks, everyone, for attending. Always a pleasure to be here in Zurich. Lots of familiar faces, some new ones. I'm going to be presenting on Vizsla Silver's Panuco Project today. We are dual-listed. We trade on the NYSE American and the TSX, the big board in Toronto, under the ticker VZLA. We have about 3.6 million shares traded daily on the NYSE, but another one million shares traded daily on the Toronto Exchange. Of course, we'll be making some forward-looking statements. We get asked this a lot: Vizsla's vision, First Silver 2027. We have no intent of selling this asset or this company. We understand the value that this project holds, and we want to maximize that for shareholders.
It is our vision to become the world's largest single-asset silver primary producer, and that's through the organic exploration and development of our flagship Panuco Project in Mexico. Now, team, arguably the most important asset that you have. Mike Konnert, our founder and CEO, he's an entrepreneur, started his, call it, mining journey with Brucej ack and Pretium, formerly with Riverside Resources as well. Many of you will recognize Craig Parry, our chairman, largely from the uranium space, former chairman of NexGen Resources, founder, CEO of ISOEnergy, founder, CEO of NexGen Energy. These are billion-dollar uranium plays. Simon Cmrlec, he's CEO, COO. He was actually our first independent director, as well as the chair of our technical committees since inception, actually.
He joined in the management role, it would have been last spring, and he stepped down from his role of COO at Ausenco, right, global engineering firm. Simon's built over 40 mines in his 30-plus year career, notably SilverCrest Las Chispas. They did that on a turnkey lump sum basis. I often joke, we're asked quite often, will you guys do the same thing? No, we won't. We've got the gentleman right there who can realize that margin for us. He's really tasked with leading this next chapter, development cycle, ultimately into construction and production for Vizsla. Jesus Velador, he's our VP Exploration. He's a Mexican national, and he's also a PhD in epithermal systems, which is the exact style of mineral deposit that we have.
Jesus has worked with virtually every major company in country and been involved in quite a few novel discoveries in recent times. Notably, Juanicipio's Valdecañas vein, that's MAG Silver's former project. He supported, obviously, [Dr. Magal] in that discovery, who also happens to be an advisor to us. Of course, [Dr. Magal] on the MAG side, and Jesus was on the Peñoles side. Lastly, Eduardo Luna. Many of you will recognize Eduardo. He's quite a senior statesman in Mexico. Again, Mexican Mining Hall of Fame member, also a former president of the Mexican Chamber of Mines. He stepped down off the board of Wheaton Precious to join our group last fall. That was part of their succession planning. He is now our lead independent director.
If you look at a lot of the companies that he's been involved in, Goldcorp, Primero, Alamos, Loosenin, and Wheaton, they all have one asset in common, and that's First Majestic San Dimas. It's located 80 km just to the north of us. That asset is a direct analog in terms of geology to what we have down at Panuco. The big difference, of course, is that San Dimas, formerly Tayoltita, has been in production commercially for over 150 years. During that time period, it's produced over 900 million ounces of silver on top of 11 million ounces of gold. It's the asset that built the company, Goldcorp. It's the asset that built the company, Wheaton Precious, right? That is the size of the prize that we're after at Panuco. Of course, the big delta, we have zero years of commercial production.
It's a pretty easy threefold investment thesis. We are rapidly advancing towards development here. We've got a PEA out, and I'll talk about some of those numbers. We're advancing towards feasibility study. We've been guiding the market to by year-end, and that puts us in a position now where it's going to come out between tomorrow and December 18, so rapidly coming here. Again, all targeting that first silver in the back end of 2027. We're incredibly well-funded, sitting right now with over $200 million in cash, and I'll get into that here momentarily. We are actively de-risking, not only through tighter space drilling, but we have an ongoing fully permitted, fully funded test mine that we have advanced quite considerably.
Exploration upside here is absolutely immense, not only on our contiguous property package number one, but we've quadrupled our land holdings in the area over the last 24 months, largely through private hands that have had very limited, if any, diamond drilling, all past producers. On the property itself, we've only mapped about 70%, and we've drilled about 28% of our 170-plus drill-ready targets. We've been focusing on one corner because that's where we continue to have the most success. We've also got district-wide geophysics that's on the way here. We've completed some geophysics, but there's a lot of room to continue growing that. Lastly, it's growing responsibly, right? This is incredibly important when it comes to your social license to operate. We've got five Ejido in our district. Ejido are the local land-owning groups in Mexico. We've got five of them that cover our district.
We've secured 30-year operating agreements with all five. That's whether or not you've got 100 million ounces of silver on your ground, or we haven't even mapped it or sampled it yet. You all get paid the same. The project itself, it's located about an hour drive from the coastal city of Mazatlán. You've got about a million people in Mazatlán. You can see there's rail that runs the coast. You've got deep-sea ports and, of course, an international airport. The highways bisect our district, and more importantly, you guys might be able to see it, you might have to squint a little bit. These green lines represent high-tension power. The high-tension power lines run directly over top of the proposed mill site.
You know, when you look at a SilverCrest or a MAG, two single-asset silver producers, power and access to it was one of their largest impediments to reaching both initial and commercial production. Our access to infrastructure here puts us in a very enviable position. I've already mentioned the large San Dimas mine located directly to the north of us. Again, that's a billion-ounce silver equivalent producer, direct analog in terms of that geology. Now, we are advancing this to production. I mentioned with this fully funded, fully permitted test mine, and that capital outlay from this test mine is actually pushed forward from the initial CapEx that was highlighted in the PEA. Lastly, this corporate strength. I think this slide does a bit better justice for this. The capital outlay as envisaged in the PEA was $224 million . It actually contained $46 million in contingency.
Most folks don't realize that. We sit right now with just over $200 million in cash. We've recently awarded a debt facility mandate to Macquarie for $220 million. This is a great deal. It doesn't come with any hedging. It allows for a carve-out of $50 million per annum to continue exploring not only our district here, but elsewhere. We've also got equity positions in a royalty spinout that we made last year, listed it as well last year. That asset now is trading at around CAD 300 million market cap. So those equity positions, probably closer to $50 million as it stands today. Suffice to say, we have over 2X the initial financing capacity, or the financing capacity as was stated in that initial capital outlay for the PEA. The development timeline. Now, this is really important as we move forward.
We've published the PEA last summer, and I'll talk to those economics here shortly. Before that PEA was published, we focused on conversion drilling, really tightening up where mining will initiate. Of course, as everybody in the room knows, when you move from PEA to feasibility, you can no longer incorporate inferred mineralization. The name of the game for us was to convert as much as possible into those higher confidence categories measured and indicated. By the time we published that PEA, the numbers were already stale because we had already completed a whole host of drilling highlighting mineralization outboard of those previous stope shapes, as well as outboard of the previous resource boundary. As I mentioned, we commenced this test mine fully permitted in December of last year, and that's tracking very well to everything that we saw in the PEA.
That's in terms of ground support, development rates, pumping rates, all the like. We published a resource update in January highlighting a material increase to the M&I classification, and I'll highlight that moment. We submitted our permits, the MIA application in February of this year. Statutory timelines, which based on Silver Tiger's recent approval, suggest that we should receive that permit positive approval sometime in H1 next year. In fact, statutory timelines suggest sometime in January. We are baking a bit of conservatism in this. Again, feasibility studies coming out here very quickly. This puts us in a great way to construct over the next two years and ultimately target that first silver in the back end of 2027. Here's zooming in on the actual area of interest.
Now, this is just a small postage stamp of our overall district package number one, and you can see that on the inset map to the north. This is about 11 structures that make up this resource base. Global resource base is 365 million ounces of silver equivalent. There is a small component of base metals. By weight, you're probably 7-8%, but if you plug that into a DCF model, the revenue is less than 4%. All the economics I'm about to talk about for the PEA and the pending FS, that's only focused on gold and silver, right? 11 structures, they're open in every direction, laterally along strike, as well as vertically at depth. We have not closed off anything. Importantly, as we completed this infill drilling, you can see those hot pink centers at Copala. Copala is the backbone of the project.
Currently, it runs for 1.8 kilometers in strike, and it's 10 meters wide on average throughout that strike length. That's where mining plans to initiate. What we saw was a 43% increase in that M&I classification at a 5% higher grade. And that's really important. Again, you can't include inferred mineralization in the PEA, excuse me, in the FS. The PEA was based on a previous resource of 156 million ounces. So this new resource will serve as the foundation for the pending reserve statement in the FS. Here are the economics from the PEA. Again, published in July of 2024, NPV5 after tax of $1.1 billion, an after-tax IRR of 86%, and an incredibly rapid payback period of nine months. Again, initial capital here is $224 million.
I will tell you, you should be thinking that the capital cost outlay for the FS is very much in line to that's what's stated right here. Now, when you look at this after-tax free cash flow of doing over $250 million per year in those first few years, that's what affords such a rapid payback. Important to note, the commodity price assumptions for this study, $26 silver, $19.75 gold. Commodities have doubled since then. Now, the production profile. You can see here Copala in the dark blue. We're doing over 20 million ounces per annum in those first two years, dropping down to about 15 million ounces over the initial 11-year mine life. You've got to remember, all these structures are open. This is an absolute snapshot in time.
Now, you can see also, there's only 162 million ounces that made it into this mine plan, given that we've got over 300 million ounces in total resource base. Why there's not more mineralization? It's a product of just drill density, okay? You can think that all these parameters will be very much in line with that of the FS, with the exception, of course, of higher grade, more mineralization going into the study at a higher commodity price environment. This is a site layout. This is really what keeps that capital outlay so low, right? Everything's contained within a tight footprint, about a 2 km- 2.5 km radius here. You can see where the processing facility is located. You're about 600 m from any given ore source to that mill site, right? This is a very simple flow sheet.
We're producing whole, it's a whole ore leach to produce doré, gold and silver doré. Now, the test mine location, you can see where that's located right at the Copala portal, and you can also see that the processing facility sits directly under those high-tension power lines. Every bit of surface infrastructure that you see is located on previously disturbed ground. That was intentional to expedite that permitting horizon. This is the test mine. Again, this will be main mine access for the future build. We currently sit in the bottom right-hand corner around that second curve. We're getting 8 m of development daily. This is our test mine, right? The sample of 10,000 tons isn't truly enough to reconcile to a block model, but this allows us to get underground and get a head start on that development.
When you go back and think about the development timeline, the moment that we receive those permits, we're already underground. We've already got two headings in place. We are just going to continue mining and stockpiling. The mill is envisaged at a 3,300 ton per day run rate. It's our intent to have a million tons on surface by the time that mill gets turned on in 2027, effectively decoupling the mine startup risk from the mill startup risk. At a million tons, at a 3,300 ton per day run rate, that's a year's worth of production that you can de-risk how you're going to pay back this project. Now, everything we've talked about in terms of economics is just within this blue hash polygon. Again, everything's open. We continue to incrementally step out as well as convert that inferred mineralization, which again is sufficient grade.
It just doesn't have the drill density. Underground drilling from that test mine is what's going to start happening at the end of this year. Now, we've got a litany of targets that exist beyond that. This orange ellipse represents a proximal zone that if you have exploration success, the mineralization could be hauled directly to the proposed mill site. In addition, often to the east, we've only mapped 70%. We're still uncovering historic workings, which are our best vectoring tool. We made a novel discovery there in the central portion of the district called Anamos, 6 m true width grading 900 grams per ton. It's one hole, but it's a world-class hole. We've now mobilized a rig back there. We'll be drilling by year-end, and you should see those results trickle in in Q1. Okay, they're cutting me off even though the—
Yeah, I'm sorry.
We have to keep on the schedule. Or else, Jessica will hang me.
Rerate potential is significant.
Thank you very much, Michael.