Vizsla Silver (TSX: VZLA) is moving forward with the development of its flagship Panuco silver-gold project, awarding key infrastructure contracts just months after a security crisis shook the company’s operations. The explorer this morning announced it has awarded engineering, procurement, and construction management and mine design contracts, a key step toward transitioning the Mexican asset from exploration into a producing mine.
The move comes as the company navigates the aftermath of a January incident in which ten contract workers were abducted, with nine later being confirmed deceased. While the event raised immediate questions regarding the stability of the region, Vizsla is maintaining its development schedule.
Management noted that the company will conduct much of the detailed design, construction planning, and equipment procurement off-site while it works to improve security on the ground. By shifting the bulk of the engineering and procurement work to external hubs, Vizsla aims to reduce the timeline to development while reducing risk for employees.
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The EPCM contract has been awarded to M3 Engineering, who has been involved in the design and construction of several mines in Mexico, including Los Gatos, Camino Rojo, and Terronera. The contract, pegged at US$170 million, covers the process plant along with surface infrastructure.
A separate US$90 million contract has been awarded to Mining Plus for the design of the mine itself, including US$40 million in ore development.
Vizsla Silver last traded at $4.72 on the TSX.
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