SM Begins Underground Development at Nazareno Silver/Gold Last week, Sierra Madre Gold and Silver Ltd. (ticker: SM.v or SMDRF for US investors) announced that underground development has begun at the Nazareno silver and gold mine within the La Guitarra complex in Estado de Mexico.
Over 700 tonnes of mineralized material have already been delivered to the Guitarra processing plant—material not included in the 2023 resource estimate.
CEO Alex Langer stated that Nazareno marks the company’s third mining centre at La Guitarra, coming less than a year after achieving commercial production at its first mine in the complex.
The company expects Nazareno to contribute significantly to overall production as it pursues a fully funded expansion plan to more than double processing capacity from the current 500 t/d by Q3 2027.
Reconciliation of development material to the 2023 resource model indicates silver grades 40% higher and gold grades 30% higher than modelled.
The 2023 Nazareno resource estimate reported 309,877 tonnes at 257.3 g/t AgEq (214.9 g/t Ag, 0.55 g/t Au) for 2,564,000 AgEq ounces in the Indicated category and 753,784 tonnes at 251.5 g/t AgEq (229.2 g/t Ag, 0.29 g/t Au) for 6,096,000 AgEq ounces in the Inferred category.
Development at Nazareno is focused on expanding access drives and sill development to test potential for long-hole mining.
Mapping has shown several veins merging into an up-to-8-m-wide mineralized zone where gold-bearing veins merge.
The company has also acquired a portable Ingertrol Sandy 50 drill rig, capable of both underground and surface drilling without road construction, to support cost-efficient exploration and development at Nazareno and central Guitarra.
Separately, Sierra Madre has engaged Capital Analytica, based in Nanaimo, B.C., to provide marketing and social media services for six months at a fee of US$120,000, pending TSX-V approval.
Sierra Madre Gold and Silver is focused on precious metal development in Mexico, advancing the La Guitarra silver-gold complex—which resumed commercial production in January 2025—and the Tepic gold-silver project in Nayarit.
Full release: https://sierramadregoldandsilver.com/read/auto-news-1759230098
Posted on behalf of Sierra Madre Gold and Silver Ltd.