SM Begins Underground Development at Nazareno Sierra Madre Gold and Silver Ltd. (ticker: SM.v or SMDRF for US investors) has commenced underground development at the Nazareno silver-gold mine, part of the La Guitarra complex in Estado de Mexico. More than 700 tonnes of mineralized material have already been transported to the Guitarra processing plant—material that was not part of the 2023 resource estimate.
Expanding Production Capacity
Nazareno represents the third active mining centre within La Guitarra, following the company’s first commercial production milestone less than a year ago. Sierra Madre aims to more than double processing capacity at the Guitarra plant—from 500 tonnes per day to over 1,000 t/d—by Q3 2027 under a fully funded expansion plan.
Higher Grades and Resource Context
Initial reconciliation of development material shows silver grades 40% higher and gold grades 30% higher than those in the 2023 Nazareno resource model. That estimate included:
* Indicated: 309,877 tonnes at 257.3 g/t AgEq (214.9 g/t Ag, 0.55 g/t Au), totalling 2,564,000 AgEq oz.
* Inferred: 753,784 tonnes at 251.5 g/t AgEq (229.2 g/t Ag, 0.29 g/t Au), totalling 6,096,000 AgEq oz.
Mine Development and Exploration
Current work at Nazareno includes development of access drives and sill levels to evaluate the potential for long-hole mining. Geological mapping has revealed several converging veins forming a mineralized zone up to 8 m wide.
To support efficient exploration and development, the company has acquired a portable Ingertrol Sandy 50 drill rig capable of operating both underground and on surface without the need for road construction.
Company Overview
Sierra Madre Gold and Silver is advancing two key precious metal assets in Mexico: the La Guitarra silver-gold complex—which resumed commercial production in January 2025—and the Tepic gold-silver project in Nayarit.
Full update here: https://sierramadregoldandsilver.com/read/auto-news-1759230098
Posted on behalf of Sierra Madre Gold and Silver Ltd.