Increasing Gold & Silver Production Plans & Exploration INTERVIEW SUMMARY: Increasing Gold and Silver Production Plans & Exploration - Sierra Madre (SM.v SMDRF)
Joining Swiss Resource Capital, Sierra Madre's (SM.v SMDRF) CEO Alex Langer discussed the company's rapid transition into one of the newest precious metals producers, having declared commercial production at the La Guitarra Silver-Gold Mine (near Mexico City): https://www.youtube.com/watch?v=go44ck_YAGA
SM has since delivered two profitable quarters and completed a C$19.5M financing, led by Franklin Templeton, with participation from Eric Sprott, Commodity Capital, and management insiders.
Operations & Growth Plans
- Current Production: ~500 tpd
- Stage 1 Expansion: Increasing to 750–800 tpd by Q2 2026 through installation of a new ball mill, cone crusher, and concentrator (~US$3M capex).
- Stage 2 Expansion: Doubling again to 1,200–1,500 tpd and constructing a 5.8 Mt tailings facility, already fully permitted.
- Production Profile: Historically ~1.0–1.4 Moz AgEq/year at 500 tpd; expansion could lift output by ~50% initially, then up to threefold by 2027.
Metals & Costs
- Metal mix: ~60–65% silver and 35–40% gold (recently closer to 50/50).
- All-in sustaining cost (AISC): ~US$30/oz currently, expected to fall to US$20–22/oz as purchased equipment replaces rentals and underground development is completed.
Exploration Upside
- The La Guitarra District is among Mexico’s five most prolific silver-gold camps—historically called “the jewel of the Spanish Crown.”
- Upcoming US$3.5M exploration program (20,000 m drilling) in the East District, starting Q2 2026, targeting historic high-grade zones such as El Reconciliado, which averaged 6.5 g/t Au and 860 g/t Ag over 30 years of past production.
- Sierra Madre has its own assay lab, providing six-hour turnaround times for drilling results.
Community & Partnerships
- The mine employs ~300 workers and has generated an estimated 2,000 indirect jobs in the local community, revitalizing the region’s economy.
- First Majestic Silver remains the largest shareholder (37.7%) and supportive strategic partner.
Outlook
SM is targeting sustained production growth through 2027 while funding exploration from cash flow, avoiding dilution. The company plans to release updates on expansion progress and drilling in early 2026, positioning La Guitarra as a high-margin, multi-metal operation with near-term scalability and district-scale exploration upside.
More Info: https://x.com/StckMasterFlash/status/1973848370822414485
Posted on Behalf of Sierra Madre Gold and Silver Ltd.