The Vancouver-based company said this week the initial hole in the Papayo Zone, which hadn't seen drilling before despite historic small-scale mining and the presence of outcropping high-grade silver, represented a jog in the vein similar to the initial Napoleon discovery 1km to the south.

The hole returned 1,019 grams per tonne silver-equivalent, comprising 689.5g/t silver, 3.76g/t gold plus base metal credits, over 2.5m from 141.5m, including a bonanza-grade intersection of 2,206g/t Ag-eq with 1,515g/t silver and 7.96g/t gold over 1m.

"To have hit a high-grade discovery on the first hole at Papayo is a clear demonstration of the scale and potential of both the Napoleon Vein Corridor and the Panuco district. The Papayo zone has been defined over 90m of strike length in the current holes, and drilling will continue to step-out to define the full extent of the mineralisation, which is open in all directions," said CEO Michael Konnert.

Haywood Capital Markets analyst Colin Healy said results released so far by Vizsla indicated the "great potential" for identifying high-grade mineralised zones.

"Following the recent close of the company's C$30 million private placement, the company is well funded to continue with its drill programme [now likely to be more than 31,000m in 2020] with four drill rigs. The company has completed 3,175m of exploration drilling in July and plans to utilise three of its four drill rigs to target new discoveries. In the meantime, we await pending results," Healy said.

Shares in the company (TSXV:VZLA) in July achieved a new 12-month high at $2.93, but traded at $1.85, up 5%, on Thursday. Vizsla has a market capitalisation of $160 million (US$122 million).