Strategic Silver and Gold: Skeena Pushes Eskay Creek Toward Production, Vizsla Prepares Panuco for Construction

Market backdrop and why new silver supply matters

The silver market remains structurally tight. The World Silver Survey 2026 estimates a market deficit of about 46.3 million ounces for 2026, following a shortfall of 40.3 million ounces in 2025. Taken together, deficits since 2021 now total roughly 762.1 million ounces, a shortfall that has been compensated from above-ground stocks and other sources. Price action reflects that squeeze: silver reached a record above $121/oz on 29 January 2026 before retreating, yet by early October it still traded around $61/oz about 25% higher than a year earlier.

Silver is more than a monetary or investment metal. Its role as the best electrical conductor among metals makes it crucial for electronics, photovoltaics and automotive applications. Industrial demand fell about 3% in 2025 to 657.4 million ounces as solar manufacturers reduced silver loading, yet the market deficit persisted. The supply side helps explain this dynamic: only about 28% of global mine production comes from primary silver mines; most silver is a byproduct of lead, zinc, copper and gold mining. Primary-silver production is expected to be essentially flat in 2026, meaning higher prices do not automatically trigger immediate supply growth. That makes new, wellplanned silver sources particularly valuable for markets and investors.

For investors, therefore, it matters not only where silver prices go but which companies can actually bring new supply into production. Two companies at different stages of development demonstrate this point: Skeena Resources (WKN: A3CRER) is building the Eskay Creek open-pit gold-silver mine in British Columbia with production targeted in 2027, while Vizsla Silver (WKN: A40EG3) has advanced the high-grade Panuco project in Mexico through a positive feasibility study and is preparing for a construction decision.

Project updates: Eskay Creek and Panuco

Skeena operating as Skeena Gold & Silver is developing Eskay Creek in the Golden Triangle of British Columbia. An updated 2023 feasibility study forecast average production in the first five years of roughly 450,000 ounces gold equivalent per year at a head grade of about 5.5 g/t, with life-of-mine all-in-sustaining costs (AISC) around $687/oz gold equivalent (using $1,800/oz gold and $23/oz silver). Skeena has since increased its estimated capital expenditure to $659 million and said an updated technical report is forthcoming.

The project contains notable reserves and resources: Proven and Probable reserves of 39.8 million tonnes containing approximately 3.3 million ounces of gold and 88 million ounces of silver (about 4.6 million ounces gold equivalent). Measured and Indicated openpit resources total 50.1 million tonnes at 3.4 g/t gold equivalent, roughly 5.5 million ounces gold equivalent as of December 31, 2023. Skeena says its silver reserves rank in the top decile of global silver projects and projects average annual silver output of about 9.5 million ounces in the first five years a figure that would make Eskay Creek one of Canadas largest silver mines.

By early October 2026, management reported construction progress of roughly 7075%. Engineering and procurement are substantially complete according to the halfyear report, with ore mining and intermediate stockpiling planned to begin in 2026. Skeena expects first production and cash flow in Q2 2027 and commercial production later in 2027. The project benefits from regional infrastructure: yearround access via Highway 37 and proximity (about 17 km) to lowcost hydropower. Skeena also restructured its capital in April 2026 by issuing $750 million of secured notes (8.5% coupon, due 2031), repurchasing twothirds of an existing gold stream for $184 million and improving its financial flexibility. As of June 30, 2026, the company reported CAD 134.8 million in cash plus CAD 500.9 million of restricted funds for construction and interest reserves.

Vizsla Silvers Panuco project in Sinaloa, Mexico, sits at the opposite end of the delivery spectrum: a feasibility study published in November 2025 outlines a long-life, highgrade operation with average annual production of 17.4 million ounces silver equivalent over a 9.4year mine life and about 20.1 million ounces in the first five years. On a silveronly basis the study models roughly 10.1 million ounces per year on average. The projects economic metrics are strong under the study assumptions: an aftertax NPV of $1.802 billion and an internal rate of return (IRR) of 111% using metal prices of $35.50/oz silver and $3,100/oz gold, and initial capex of $238.7 million. Vizsla reports Proven and Probable reserves of 12.81 million tonnes at 249 g/t silver and 2.01 g/t gold.

High ore grades are a key driver: the study assumes processed ore averaging 425 g/t silver equivalent and models AISC of $10.61/oz silver equivalent a very low operating cost on a perounce basis. Vizsla says construction of Panuco is fully financed: the company held about $427.3 million in cash as of April 30, 2026, and earlier issued a $300 million convertible debt in November 2025. In June 2026 Vizsla awarded the supply contract for major components of the processing plant to FLSmidth; the plant is sized initially for 3,300 t/d, expandable to 4,000 t/d in year four. The company is awaiting remaining permits, including the environmental permit (MIA), which management expects by early 2027. Managements current timetable targets first silver in H2 2028.

Panuco also offers exploration upside: Vizsla reports that less than 28% of known vein targets have been drilled so far. Highgrade discoveries such as the Animas intercept (653 g/t silver and 4.26 g/t gold over 5.8 m true width) highlight district potential, but future resource updates will determine whether discoveries extend mine life or increase annual production.

Conclusion

Both projects illustrate how new, reliable silver supply is earned, not switched on. Skeenas Eskay Creek is furthest along significant construction progress, permits in place and a clear path to first production in 2027 and would add meaningful gold and silver supply if brought into operation on time and budget. Vizslas Panuco combines worldclass grades and an encouraging feasibility study with a funded construction plan, but it still needs final permits, site access and an official build decision before production can begin. For investors and markets focused on the tightening silver balance, the distinction matters: Eskay offers nearterm delivery risk and execution focus, while Panuco represents potent longterm supply and exploration upside conditional on permitting and build execution.

All investments in mining and development companies carry project, permitting, financing, geopolitical and execution risks. Readers should treat project studies and resource estimates as the companies technical assessments under specified assumptions not as guarantees of future production or returns.