Vizsla Silver (VZLA) said Wednesday a feasibility study showed its fully owned Panuco project in Mexico could be developed into a high-margin underground mine with minimal initial capital requirements and fast payback.

The base case for the Panuco mine has an after-tax NPV at 5% of $1.8 billion and an internal rate of return of 111%, the company said.

The study outlines average annual output of about 17.4 million silver equivalent ounces at all in sustaining costs of $10.61 per ounce and a payback of seven months, with the first five years averaging about 20.1 million silver equivalent ounces, the company said.

Pre-production capital requirement is estimated at $238.7 million, while initial mine life is 9.4 years with a throughput of 3,300 tonnes per day for the first three years, rising to 4,000 tonnes per day in year four, Vizsla said.

The company said it is advancing permitting and project financing, as well as targeting production for H2 of 2027.

Shares of Vizsla were up more than 2% in recent premarket activity Wednesday.