Kidnappers kill Vizsla mine workers in Mexico

Some Vizsla Silver (TSX, NYSE: VZLA) workers who were abducted last month in west-central Mexico have been killed, the company said.

Vizsla said on Monday it’s been informed by several families that their relatives who had been taken from the company’s project site in the city of Concordia, in Sinaloa State, have been found dead. Vizsla is awaiting confirmation from Mexican authorities and said it will provide further updates as appropriate.

In its statement, the Vancouver-based miner did not confirm how many bodies were recovered, however the CBC reported three deceased men were identified.

“We are devastated by this outcome and the tragic loss of life,” CEO Michael Konnert said in the statement. “Our deepest condolences are with our colleagues’ families, friends and co-workers, and the entire community of Concordia. Our focus remains on the safe recovery of those who remain missing and on supporting all affected families and our people during this incredibly difficult time.”

The bodies were recovered from a clandestine grave found in the mountains in the community of El Verde, about 1,250 km from Mexico City, Mexican news outlet El Financiero reported Sunday.

Work suspended

Vizsla suspended in January some work on its main Panuco silver-gold project after the abductions. Certain activities at and near the site have been temporarily halted as a precautionary measure, the company said without elaborating.

The workers were abducted Jan. 23 by members of a criminal group as they were travelling from the camp where they lived in Concordia to their work at the mine, about 15 km away, Mexican media reported. The victims included engineers and technical personnel working for Vizsla, El Financiero said.

For months now, Sinaloa has been caught up in an armed conflict between rival factions of the namesake drug cartel. This has led to a surge in homicides.

Cornerstone project

Panuco hosts the world’s largest undeveloped, high‑grade silver resource. It’s the cornerstone of Vizsla’s goal of reaching production of 50 million silver-equivalent oz. by 2035.

Panuco holds 12.8 million proven and probable tonnes grading 2.01 grams gold per tonne and 249 grams silver for contained metal of 829,000 oz. gold and 102.7 million oz. silver, according to a 2024 resource.

Vizsla wants production at Panuco to start in the second half of 2027. With permitting and project financing efforts advancing, it’s targeting a construction decision as soon as it has received the required approvals.

Vizsla is projecting a mine life of 9.4 years for Panuco. The mine is expected to produce 17.4 million silver-equivalent oz. a year over the life of the project at an all-in sustaining cost of $10.61 per silver-equivalent ounce. This includes more than 20 million silver-equivalent oz. annually during the underground mine’s first five years.

Shares of Vizsla plunged 14% to C$5.39 Monday morning in Toronto, giving the miner a market value of about C$1.9 billion ($1.4 billion). The stock has lost about 42% of its value since Jan. 28, the last trading day before the company disclosed the kidnappings.