Vizsla Silver says it has awarded the equipment supply agreement to FLSmidth for the company’s wholly-owned Panuco silver-gold project in Sinaloa, Mexico.
The agreement includes engineering and supply of major process plant equipment spanning the entirety of the proposed process flowsheet outlined in the company’s 2025 feasibility study, with engineering work commencing immediately and formal notice to proceed anticipated in the coming months to initiate equipment manufacturing.
The pact covers eight major equipment packages across crushing, grinding, thickening and counter current decantation, Merrill Crowe and refining circuits of the proposed process plant at Panuco. The equipment has been specified to support both the initial 3,300 t/d Phase 1 operation and the planned expansion to 4,000 t/d outlined in the 2025 study. The contract structure and equipment configuration are designed to facilitate future process plant modifications associated with the planned integration of the Napoleon mine in Year 4, with minimal operational downtime.
The 2025 study for Panuco highlighted 17.4 Moz of silver-equivalent annual production over an initial 9.4-year mine life, mining two contiguous underground mines and using a three-stage crushing-grinding circuit, along with a leach and Merrill Crowe circuit to produce silver-gold doré bars.
Vizsla Silver aims to position itself as a leading silver company by implementing a dual-track development approach at Panuco, advancing mine development while continuing district-scale exploration through low-cost means.
Vizsla Silver and FLS have initially entered into a limited notice to proceed agreement to authorise commencement of early engineering and procurement activities while the definitive terms of the agreement continue to be finalised.
“The award of this major equipment package to FLS represents a key procurement milestone for the Panuco Project,” Simon Cmrlec, Chief Operating Officer of Vizsla Silver, said. “We are pleased to be working with the FLS team who has provided us with a technically robust equipment package for the project which supports both the initial Phase 1 plant design and future Phase 2 expansion plans while remaining in line with the process plant capital budget outlined in the feasibility study. FLS’s Life-Cycle Service Offering will provide us with a high level of support throughout the commissioning, ramp-up and operations phases of the Panuco facility.”
Qasim Abrahams, Products Business Line President at FLS, said: “We are excited to be selected as Vizsla Silver’s key technology partner for their complete silver processing flowsheet. With our leading technologies and life-cycle service offerings, we look forward to helping Vizsla Silver maximise silver recovery and production throughout the life cycle of this new operation.”
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