Sierra Madre Gold and Silver Ltd V.SM

SM CEO on KE Report

[MarketMakerss]

INTERVIEW SUMMARY: Expansion Plans At La Guitarra, Mining Ramping Up At Nazareno & Coloso - Sierra Madre Gold & Silver (SM.v SMDRF)

 

Joining the KE Report, Sierra Madre Gold & Silver (SM.v SMDRF) CEO Alex Langer detailed the planned two-stage expansion at its La Guitarra Mine, ramping up to from 500 tons per day today to 1,200 to 1,500 tons per day within the next 24 months: https://www.youtube.com/watch?v=3GMC7O5gzvc

 

Production Expansion at La Guitarra Mine Complex

• Sierra Madre is executing a phased expansion at the La Guitarra Silver-Gold Mine in Mexico, aiming to grow throughput from 500 tpd currently to 750–800 tpd by Q2 2026, and then to 1,200–1,500 tpd by Q3 2027, nearly tripling capacity within two years.
• The company raised US$19.5M, sufficient to fund both expansion phases through internal cash flow and existing capital.

 

Key Expansion Components

• New Cone Crusher: Purchase order already underway; low-cost addition (~US$200,000).
• Fourth Ball Mill: To be installed using sourced used equipment, expected cost US$1–1.5M.
• Paste Backfill Facility & Concentrator: Construction in progress to manage tailings underground, improving ground stability and freeing tailings capacity.
• Dry Stack Tailings Facility: Fully permitted 5.8 Mt capacity build scheduled to start after the 2026 rainy season; major CAPEX item (~US$2.9M Phase 1).

 

Mine Integration and Feed Strategy

• Three Mines: La Guitarra (main producer), Coloso, and Nazareno now fully permitted and integrated.
• Feed Distribution: Once at full capacity, roughly one-third of ore will come from Coloso and Nazareno.
• Grades: Coloso and Nazareno deliver significantly higher grades—Coloso is 1.7x higher in silver and 1.2x higher in gold than La Guitarra. Nazareno adds wide (7–8m) veins, lowering mining costs.
• As higher-grade ore is integrated, overall production grades will nearly double, reducing AISC currently around US$30/oz.

 

Exploration and District-Scale Potential

• La Guitarra is viewed as one of Mexico’s largest undeveloped silver districts, historically a top-five national producer.
• Exploration will shift to the east side of the district, historically underexplored but host to multiple former high-grade mines (e.g., El Lincn: 6.5 g/t Au, 860 g/t Ag).
• Q2 2026: Planned 10-hole program followed by 20-hole and 40-hole phases; in-house assay lab enables rapid turnaround.
• Target: Resource update following ~70 drill holes.

 

Operational Optimization and Outlook

• New equipment acquisitions—two scoop trams, two haul trucks, and additional planned purchases—will reduce rental costs and operating expenses.
• Sierra Madre anticipates a strong Q4 2025 and transformative 2026, driven by higher throughput, improved grades, reduced costs, and renewed exploration.
• CEO Alex Langer emphasized that Sierra Madre is “well positioned to capitalize on record silver and gold prices” as it advances toward becoming a mid-tier silver-gold producer.

 

 

Beacon Securities Price Target: https://x.com/StckMasterFlash/status/1976784344451891248

 

Posted on Behalf of  Sierra Madre Gold and Silver Ltd.