Vizsla’s Panuco project: security shock, cost and schedule risks for mine planners
Reviewed by Tom Sullivan
First reported on MINING.com
30 Second Briefing
Vizsla Silver is keeping its long-term development plans for the Panuco silver-gold project in Sinaloa after 10 workers were kidnapped on 23 January, at least five killed and five still missing, with site operations suspended but engineering work continuing remotely. Panuco hosts 12.8 million proven and probable tonnes grading 2.01 g/t gold and 249 g/t silver, with a planned 9.4‑year mine life producing 17.4 million silver‑equivalent oz. per year at an AISC of $10.61/oz and over 20 million oz. annually in the first five years. National Bank Financial now expects first production to slip from 2027 to around 2030 and warns security, labour and inflation could add up to $5/t to costs, as more than 1,000 Mexican troops and elite marines remain deployed in the district.
Technical Brief
- Kidnapped workers were intercepted on a 15 km commute corridor between Concordia camp and mine.
- Ten employees were abducted on 23 January, including engineers and technical personnel supporting operations.
- At least five victims have been formally identified from 10 bodies recovered in a clandestine grave.
- More than 1,000 Mexican troops, including elite marines, are deployed in Sinaloa for search and protection.
- Site activities are suspended, with mine planning and engineering work shifted to remote execution workflows.
Our Take
With an all-in sustaining cost of US$10.61/oz silver-equivalent at Panuco, Vizsla Silver sits in the lower-cost band of primary silver developers in our database, which gives the project more headroom to absorb security-driven operating cost increases such as the indicated potential US$5/t rise.
The projected 17.4Moz silver-equivalent per year over a 9.4-year mine life, with more than 20Moz/a in the first five years, would place Panuco among the larger single-asset silver producers in our recent Latin America coverage, meaning prolonged security instability in Sinaloa could have an outsized impact on regional silver supply scenarios.
Among safety-tagged Latin American underground mine items in our database, very few involve incidents on the scale of 10 kidnapped workers and multiple fatalities, suggesting that security risk at Panuco is now likely to be a primary factor in lender and insurer due diligence rather than a secondary ESG consideration.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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