Vizsla Silver (VZLA) - 2022 Q3 - Quarterly Report

Material Change Report Overview This section provides an overview of Vizsla Silver Corp.'s material change report, including company details, the date of the material change, and news release dissemination Company Information Vizsla Silver Corp. (the "Company" or "Vizsla") is the entity filing this material change report, with its address located in Vancouver, British Columbia - Company Name: Vizsla Silver Corp.[2] - Address: Suite 700, 1090 West Georgia Street, Vancouver, British Columbia V6E 3V7[2] Date of Material Change The material change reported by Vizsla Silver Corp. occurred on January 24, 2023 - Date of Material Change: January 24, 2023[2] News Release Dissemination The news release detailing the material change was disseminated on January 24, 2023, through Cision and subsequently filed on SEDAR - News release disseminated on January 24, 2023[2] - Dissemination channels: Cision and SEDAR[2] Updated Mineral Resource Estimate for Panuco Project This section details the updated mineral resource estimate for the Panuco Project, highlighting significant resource growth, key statistics, and future exploration plans Summary and Full Description of Material Change Vizsla Silver Corp. announced an updated mineral resource estimate for its 100% owned Panuco silver-gold project in Sinaloa, Mexico, which was completed by SGS Geological Services - The Company announced an updated mineral resource estimate for its flagship, 100% owned Panuco silver-gold project[3] - Project location: Sinaloa, Mexico[3] - The estimate was completed by Allan Armitage, Ph.D., P.Geo., of SGS Geological Services[3] Highlights of Updated Mineral Resource Estimate The updated mineral resource estimate for the Panuco project shows significant increases in both indicated and inferred mineral resources and grades compared to the maiden estimate, with notable growth in the Copala structure Key Changes in Mineral Resources (March 2022 vs. January 2023) | Metric | Maiden Estimate (March 2022) | Updated Estimate (January 2023) | Change | | :-------------------------------- | :----------------------------- | :------------------------------ | :----- | | Indicated Mineral Resources (Moz AgEq) | 61.1 | 104.8 | +71% | | Inferred Mineral Resources (Moz AgEq) | 45.6 | 114.1 | +150% | | Average Indicated Grade (g/t AgEq) | 383 | 437 | +14% | | Average Inferred Grade (g/t AgEq) | 345 | 491 | +42% | | Copala Indicated Resources (Moz AgEq) | N/A | 51.1 | +701% | | Copala Inferred Resources (Moz AgEq) | N/A | 55.4 | +198% | Key Statistics and Resource Details Precious metals, primarily silver, account for 93% of the updated resource value. The estimate encompasses 10 epithermal veins, representing approximately 10% of the known vein strike in the district, achieved at a low discovery cost - 93% of the value of the Updated Mineral Resource Estimate is comprised of precious metals, including 59% from silver[5] - A total of 10 epithermal veins were included, representing ~10% of the known vein strike in the district[5] - Total all-in exploration cost: US$0.19/oz AgEq discovered (US$0.15/oz AgEq discovered since March 2022)[5] Updated Mineral Resource Estimate - Contained Metal | Category | Tonnes (Mt) | Ag (Moz) | Au (koz) | Pb (kt) | Zn (kt) | AgEq (Moz) | | :------- | :---------- | :------- | :------- | :------ | :------ | :--------- | | Indicated | 7.5 | 58.3 | 508 | 17.0 | 53.3 | 104.8 | | Inferred | 7.2 | 70.7 | 496 | 13.6 | 39.3 | 114.1 | CEO Commentary and Future Plans CEO Michael Konnert expressed satisfaction with the significant resource growth and de-risking at Panuco, particularly highlighting the substantial increases in the Copala structure and the inclusion of the high-grade Cristiano structure. The company plans aggressive ongoing exploration with seven drill rigs, aiming for a potential resource estimate update in the second half of 2023 - CEO Michael Konnert is pleased with the updated resource, representing a major milestone for Vizsla Silver in growing and de-risking high-grade mineralization at Panuco[8] - Successful drilling in 2022 contributed to a 701% increase in indicated mineral resources to 51.1 Moz AgEq and a 198% increase in inferred mineral resources to 55.4 Moz AgEq in the Copala structure[8] - The Company plans to continue aggressive exploration with seven drill rigs focused on category conversion, incremental expansion, and testing new targets, supporting a potential mineral resource estimate update in the second half of 2023[8] Webcast and Technical Report Vizsla Silver hosted a webcast on January 25, 2023, to discuss the Updated Mineral Resource Estimate. A technical report, compliant with National Instrument 43-101, is being prepared and will be available within 45 days of the release, with an effective date of January 12, 2023 - Vizsla Silver hosted a webcast on January 25, 2023, to discuss the Updated Mineral Resource Estimate[10] - A technical report in accordance with National Instrument 43-101 will be available within 45 days of the release[10] - The effective date of the Updated Mineral Resource Estimate is January 12, 2023[10] Disclosure for Restructuring Transactions This section regarding disclosure for restructuring transactions is not applicable to the current material change report - Not applicable[10] Mineral Resource Estimate Details and Methodology This section outlines the detailed methodology and assumptions used for the Panuco Project's mineral resource estimate, including AgEq calculations, metal price assumptions, and sensitivity analysis AgEq Calculation and Metal Price Assumptions The report specifies the formulas for calculating Silver Equivalent (AgEq) and Gold Equivalent (AuEq), along with the distinct metal price assumptions used for both the maiden and updated mineral resource estimates - AgEq formula: Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram)[11][13] - AuEq formula: Au ppm + (((Ag ppm x Ag price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Au price/gram)[13] Metal Price Assumptions for AgEq/AuEq Calculations | Metal | Maiden Estimate Price | Updated Estimate Price | | :---- | :-------------------- | :--------------------- | | Silver | $20.70/oz | $24.00/oz | | Gold | $1,655/oz | $1,800/oz | | Lead | $1,902/t | $2,425/t | | Zinc | $2,505/t | $2,976/t | Panuco Project Resource Summary (Maiden vs. Updated) This section provides a direct comparison of the maiden and updated mineral resource estimates for the Panuco Project at a 150 g/t AgEq cut-off, demonstrating significant increases in both indicated and inferred categories across all contained metals Panuco Project Mineral Resource Estimate Comparison (150 g/t AgEq cut-off) | Classification | Tonnes (Mt) | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | AgEq (g/t) | Contained Ag (koz) | Contained Au (koz) | Contained Pb (kt) | Contained Zn (kt) | Contained AgEq (koz) | | :------------- | :---------- | :------- | :------- | :----- | :----- | :--------- | :----------------- | :----------------- | :---------------- | :---------------- | :------------------- | | Maiden Indicated | 5.0 | 191 | 2.08 | 0.26 | 0.50 | 383 | 30,501 | 331 | 13.0 | 24.6 | 61,137 | | Updated Indicated | 7.5 | 243 | 2.12 | 0.23 | 0.71 | 437 | 58,330 | 508 | 17.0 | 53.3 | 104,793 | | Maiden Inferred | 4.1 | 187 | 1.79 | 0.13 | 0.30 | 345 | 24,704 | 236 | 5.3 | 12.4 | 45,555 | | Updated Inferred | 7.2 | 304 | 2.14 | 0.19 | 0.54 | 491 | 70,672 | 496 | 13.6 | 39.3 | 114,113 | Mineral Resource Sensitivity Analysis The sensitivity analysis illustrates how the indicated and inferred mineral resources and their average grades fluctuate across various AgEq cut-off grades, demonstrating that lower cut-offs generally yield higher contained metal Indicated Mineral Resource Sensitivity by AgEq Cut-off Grade | COG AgEq (ppm) | Tonnes (Mt) | Ag (g/t) | Au (koz) | Pb (%) | Zn (%) | AgEq (g/t) | Contained Ag (koz) | Contained Au (koz) | Contained Pb (kt) | Contained Zn (kt) | Contained AgEq (koz) | | :------------- | :---------- | :------- | :------- | :----- | :----- | :--------- | :----------------- | :----------------- | :---------------- | :---------------- | :------------------- | | >=300 | 3.8 | 380 | 3.28 | 0.24 | 0.70 | 661 | 45,989 | 397 | 9.1 | 26.5 | 79,969 | | >=250 | 4.6 | 339 | 2.92 | 0.24 | 0.73 | 594 | 49,543 | 428 | 10.8 | 33.2 | 86,858 | | >=200 | 5.7 | 294 | 2.54 | 0.24 | 0.73 | 520 | 53,574 | 464 | 13.4 | 41.4 | 94,831 | | >=150 | 7.5 | 243 | 2.12 | 0.23 | 0.71 | 437 | 58,330 | 508 | 17.0 | 53.3 | 104,793 | | >=120 | 9.0 | 213 | 1.86 | 0.22 | 0.69 | 386 | 61,400 | 537 | 19.5 | 61.7 | 111,255 | | >100 | 10.2 | 194 | 1.70 | 0.21 | 0.66 | 354 | 63,419 | 554 | 21.1 | 67.3 | 115,469 | Inferred Mineral Resource Sensitivity by AgEq Cut-off Grade | COG AgEq (ppm) | Tonnes (Mt) | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | AgEq (g/t) | Contained Ag (koz) | Contained Au (koz) | Contained Pb (kt) | Contained Zn (kt) | Contained AgEq (koz) | | :------------- | :---------- | :------- | :------- | :----- | :----- | :--------- | :----------------- | :----------------- | :---------------- | :---------------- | :------------------- | | >=300 | 4.0 | 456 | 3.13 | 0.20 | 0.47 | 716 | 59,148 | 406 | 8.3 | 18.9 | 92,784 | | >=250 | 4.8 | 410 | 2.83 | 0.20 | 0.48 | 647 | 62,677 | 433 | 9.6 | 23.1 | 98,968 | | >=200 | 5.7 | 362 | 2.51 | 0.20 | 0.52 | 576 | 66,412 | 461 | 11.1 | 29.5 | 105,757 | | >=150 | 7.2 | 304 | 2.14 | 0.19 | 0.54 | 491 | 70,672 | 496 | 13.6 | 39.3 | 114,113 | | >=120 | 8.6 | 268 | 1.89 | 0.18 | 0.53 | 436 | 73,709 | 519 | 15.3 | 45.5 | 119,802 | | >100 | 9.8 | 241 | 1.71 | 0.17 | 0.52 | 394 | 75,803 | 538 | 17.1 | 50.7 | 124,190 | Mineral Resource Summary by Vein The report provides a detailed breakdown of both indicated and inferred mineral resources by individual veins and vein areas within the Panuco Project, highlighting the significant contribution of the Copala area to the overall resource Indicated Mineral Resource Summary by Vein (150 g/t AgEq cut-off) | Classification | Tonnes (Mt) | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | AgEq (g/t) | AuEq (g/t) | Contained Ag (koz) | Contained Au (koz) | Contained Pb (kt) | Contained Zn (kt) | Contained AgEq (koz) | Contained AuEq (koz) | | :------------- | :---------- | :------- | :------- | :----- | :----- | :--------- | :--------- | :----------------- | :----------------- | :---------------- | :---------------- | :------------------- | :------------------- | | Copala | 3.1 | 343 | 2.22 | 0.06 | 0.12 | 516 | 6.88 | 33,999 | 220 | 1.9 | 3.6 | 51,106 | 681 | | Tajitos | 0.6 | 329 | 2.09 | 0.10 | 0.17 | 496 | 6.62 | 6,197 | 39 | 0.6 | 1.0 | 9,337 | 124 | | Cristiano | 0.2 | 414 | 2.54 | 0.08 | 0.19 | 614 | 8.19 | 2,022 | 12 | 0.1 | 0.3 | 3,003 | 40 | | Copala Area Total | 3.8 | 344 | 2.21 | 0.07 | 0.13 | 517 | 6.89 | 42,218 | 271 | 2.6 | 4.9 | 63,446 | 846 | | Napoleon | 3.3 | 135 | 1.99 | 0.41 | 1.39 | 351 | 4.68 | 14,186 | 209 | 13.5 | 45.2 | 36,814 | 491 | | Napoleon HW | 0.3 | 151 | 1.45 | 0.22 | 0.79 | 298 | 3.97 | 1,407 | 14 | 0.6 | 2.3 | 2,767 | 37 | | Josephine | 0.1 | 179 | 5.13 | 0.33 | 0.94 | 610 | 8.13 | 519 | 15 | 0.3 | 0.8 | 1,766 | 24 | | NP Area Total | 3.6 | 138 | 2.02 | 0.40 | 1.33 | 353 | 4.71 | 16,112 | 237 | 14.4 | 48.3 | 41,347 | 551 | | Total Indicated | 7.5 | 243 | 2.12 | 0.23 | 0.71 | 437 | 5.83 | 58,330 | 508 | 17.0 | 53.3 | 104,793 | 1,397 | Inferred Mineral Resource Summary by Vein (150 g/t AgEq cut-off) | Classification | Tonnes (Mt) | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | AgEq (g/t) | AuEq (g/t) | Contained Ag (koz) | Contained Au (koz) | Contained Pb (kt) | Contained Zn (kt) | Contained AgEq (koz) | Contained AuEq (koz) | | :------------- | :---------- | :------- | :------- | :----- | :----- | :--------- | :--------- | :----------------- | :----------------- | :---------------- | :---------------- | :------------------- | :------------------- | | Copala | 2.8 | 433 | 2.31 | 0.11 | 0.21 | 617 | 8.23 | 38,838 | 207 | 3.2 | 5.7 | 55,409 | 739 | | Tajitos | 0.7 | 340 | 2.08 | 0.20 | 0.32 | 514 | 6.85 | 7,740 | 47 | 1.4 | 2.3 | 11,713 | 156 | | Cristiano | 0.4 | 604 | 3.82 | 0.18 | 0.32 | 908 | 12.11 | 7,494 | 47 | 0.7 | 1.2 | 11,273 | 150 | | Copala Area Total | 3.9 | 433 | 2.42 | 0.14 | 0.24 | 627 | 8.36 | 54,072 | 302 | 5.3 | 9.3 | 78,395 | 1,045 | | Napoleon | 1.7 | 149 | 1.59 | 0.29 | 1.06 | 318 | 4.24 | 8,129 | 87 | 4.9 | 18.1 | 17,393 | 232 | | Napoleon HW | 0.4 | 176 | 1.58 | 0.23 | 1.00 | 341 | 4.54 | 2,025 | 18 | 0.8 | 3.6 | 3,910 | 52 | | Josephine | 0.2 | 110 | 3.28 | 0.24 | 0.67 | 389 | 5.19 | 817 | 24 | 0.5 | 1.6 | 2,891 | 39 | | Cruz | 0.4 | 123 | 2.62 | 0.24 | 1.16 | 371 | 4.95 | 1,490 | 32 | 0.9 | 4.4 | 4,514 | 60 | | NP Area Total | 2.7 | 145 | 1.88 | 0.27 | 1.03 | 335 | 4.46 | 12,461 | 161 | 7.2 | 27.6 | 28,708 | 383 | | San Antonio | 0.3 | 226 | 1.30 | 0.01 | 0.03 | 325 | 4.33 | 2,038 | 12 | 0.0 | 0.1 | 2,936 | 39 | | *Animas | 0.4 | 169 | 1.68 | 0.29 | 0.60 | 327 | 4.37 | 2,101 | 21 | 1.1 | 2.3 | 4,074 | 54 | | Total Inferred | 7.2 | 304 | 2.14 | 0.19 | 0.54 | 491 | 6.55 | 70,672 | 496 | 13.6 | 39.3 | 114,113 | 1,521 | Updated Mineral Resource Estimate Notes This section details the methodology and assumptions underpinning the updated mineral resource estimate, including classification standards, effective date, economic extraction prospects, the drilling database used, resource modeling techniques, estimation methods, density measurements, and considerations for potential underground mining methods and associated costs - Classification of mineral resources is consistent with current 2014 CIM Definition Standards[18] - The effective date for the Updated Mineral Resource Estimate is January 12, 2023[18] - Mineral resources are reported at a base case cut-off grade of 150 g/t AgEq, considering metal prices ($24.00/oz Ag, $1800/oz Au, $2425/t Pb, $2976/t Zn), metal recoveries (93% Ag, 90% Au, 94% Pb, 94% Zn), mining cost (US$45.00/t rock), and processing/G&A cost (US$50.00/t)[18] Exploration and Discovery Costs This section details Vizsla Silver's ongoing exploration program, including funding, drilling targets, and the overall discovery costs for the Panuco Project Ongoing Exploration Program Vizsla Silver is well-funded for its 90,000-meter 2023 drill program, which employs seven drill rigs to upgrade and expand the resource base and test high-priority targets. A further resource update is planned for the second half of 2023, contingent on exploration success - The Company is well-funded to complete its ongoing 90,000-metre 2023 drill program with seven drill rigs[19] - The drill program is designed to upgrade and expand the Project's resource base and test high priority targets[19] - A further update to the Updated Mineral Resource Estimate is planned for the second half of 2023, dependent on ongoing exploration success[19] Discovery Costs The Panuco Project has incurred approximately US$41.8 million in aggregate exploration expenditures to date, resulting in an estimated discovery cost of US$0.19 per silver equivalent ounce for the defined resources - Aggregate exploration expenditures over the life of the Project: approximately US$41.8 million[20] - Estimated discovery cost per silver equivalent ounce: US$0.19[20] Additional Information This section covers regulatory compliance, omitted information, executive contact details, and the official date of the material change report Reliance on Subsection 7.1(2) or (3) of National Instrument 51-102 Vizsla Silver Corp. is not relying on subsection 7.1(2) or (3) of National Instrument 51-102 for this material change report - Not applicable[21] Omitted Information No information has been omitted from this material change report - Not applicable[21] Executive Officer Contact Contact information for Michael Konnert, the Chief Executive Officer, is provided for further inquiries regarding the report - Contact: Michael Konnert, Chief Executive Officer[21] - Telephone: (604) 364-2215[21] Date of Report The material change report was dated February 27, 2023 - Date of Report: February 27, 2023[21]