Vizsla Silver Corporation (NYSE: VZLA), a Vancouver-headquartered mining entity, has announced the heartbreaking development that multiple employees, initially reported missing following an abduction on January 23, have been found deceased. This sad news emerged after families notified the company, with formal acknowledgment pending from Mexican authorities.
Michael Konnert, President and CEO of Vizsla Silver, conveyed deep sorrow over the incident, offering condolences to the families, friends, and colleagues of the victims, as well as to local communities impacted. He emphasized the company’s ongoing commitment to the safe recovery of any remaining missing workers and continued support for affected personnel and their families during this challenging period.
The victims were reportedly taken while commuting between their accommodations near the mine and the workplace, which is situated about 15 kilometers from the camp. Local media accounts identify those abducted as including engineers and other technical professionals involved in advancing the mining project. Subsequent recovery efforts uncovered the bodies within a clandestine grave located amid rugged terrain near the community of El Verde.
The announcement significantly influenced Vizsla Silver’s stock performance, which depreciated to $3.90 by mid-morning trading on January 30 before partially recovering. Compared to its closing price on the preceding Friday, shares have dropped around 12% and have declined over 41% since the abduction event on January 23.
In response to the incident, Vizsla Silver undertook precautionary measures by suspending specific operations and activities at its flagship Panuco project site and immediate surroundings. While certain work has been placed on hold pending evaluation, the company continues to review security protocols and conditions to ensure the welfare of its workforce.
The Panuco silver-gold project, located in Sinaloa, Mexico, is central to Vizsla’s portfolio and is recognized for hosting what the company asserts is the world’s largest undeveloped, high-grade silver reserve. According to company data, the project’s proven and probable reserves consist of 12.8 million tons averaging 2.01 grams of gold per ton and 249 grams of silver per ton. This translates roughly to 829,000 ounces of gold and 102.7 million ounces of silver.
Efforts to secure the necessary permits and financing for Panuco’s development continue, with management indicating a final construction decision will likely occur in the second half of this year, contingent upon regulatory approvals. The plan anticipates commencing production in the latter half of 2027, with an operational lifespan projected at approximately 9.4 years. During this period, the mine is expected to yield an average annual production of 17.4 million ounces of silver-equivalent metals, with output exceeding 20 million ounces annually over the initial five years.
Security incidents such as this are unfortunately not unprecedented in Mexico’s mining sector. The nation is the world’s largest silver producer and has witnessed related events in the past, including the 2015 abductions and fatalities involving workforce members at other mining projects.
In the face of this grave situation, Vizsla Silver remains focused on prioritizing employee safety and community engagement as it navigates through these operational and humanitarian challenges. The company’s management underscores the importance of restoring security and progressing with project development while respecting the gravity of recent events.