FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Vizsla Extends Exploration Period Of Panuco Option Agreements To 2022.”
Vizsla Resources Corp. (OTCQB: VIZSF) (TSX-V: VZLA) announces that it has renegotiated the terms of the Rio Panuco option agreement. Under the terms of the revised agreement, the option will be extended by one year. Additionally, the Silverstone option period has been extended into 2022 and the total Panuco mining district option payments between now and the beginning of 2022 will be reduced by over USD$4,100,000 from USD$5,634,500 to USD$1,480,000.
Vizsla has an option to acquire 100% of the newly consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 kms of underground mines, tailings facilities, roads, power and permits. The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.
The actual economic repercussions from the current pandemic and measures taken to combat it are still unclear. Recently, the World Gold Council released important data from its first-quarter 2020 demand trends report, where it indicates that the global outbreak was “the single biggest factor influencing gold demand.” That is because gold assets are often considered safe heaven assets in a time of economic or political turmoil. “As the scale of the pandemic – and its potential economic impact – started to emerge, investors sought safe-haven assets,” the report said. “Gold ETFs saw the highest quarterly inflows for four years amid global uncertainty and financial market volatility.” Even though there is a gradual easing of all the restrictions and businesses are slowly starting to reopen, both the CDC and the WHO are warning that there is a significant danger of a second wave of the virus outbreak.
Many small businesses stopped operating during this crisis with the hopes that they could resume operations after the social distancing restriction are lifted. But it is very likely that many of these businesses will be forced to announce bankruptcy. As a result, analysts are estimating that demand for gold will continue to rise. Joni Teves, precious metal strategist at UBS Investment Bank, explained to CNBC that, “There is growing potential (for gold) to break $1,800 (per ounce) in my view… Gold is becoming attractive in this environment where uncertainty is very high, growth is expected to weaken, and at the same time you have negative real rates which make gold attractive to hold as a diversifier in investor portfolios.”
For more information, please visit: Vizsla Resources Corp.
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