Sierra Madre Gold and Silver Ltd. (TSXV: SM, OTCQX: SMDRF) has officially commenced industrial production at its Guitarra mine processing plant located in Estado de Mexico, Mexico. This milestone comes after the plant operated at 86% of its milling circuit nameplate capacity, equating to 516 wet metric tonnes per day for the past two months, surpassing the engineering standard of 80% for a continuous 30-day period required to declare commercial production.
In the past two months, the Guitarra mine has demonstrated encouraging production output. In October, the processing plant managed to handle 13,208 wet tonnes of vein material, which yielded 296.84 dry tonnes of concentrate containing approximately 21,186 ounces of silver and 295.3 ounces of gold. In November, the plant processed a slightly lower amount of 13,064 wet tonnes, resulting in an increased output of 317.7 dry tonnes of concentrate that included 22,917 ounces of silver and 363.3 ounces of gold. Overall, Sierra Madre successfully sold a total of 546.2 dry tonnes of concentrate across 17 truckloads during this two-month period.
The Guitarra mine is currently engaged in extensive underground operations, with 11 stopes in production during November. Notably, three stopes are located on new vein discoveries that lie outside the previously established resource estimation under NI 43-101 guidelines. Additionally, nine production drives have been active in generating economically viable vein material for milling, while seven development drives focused on waste rock have also been operational. This brings the total number of working faces to 27, with a significant majority (20) producing economically interesting vein material.
Sierra Madre’s goal is to achieve full commercial production from underground operations by December 31, 2024. The company has made substantial progress towards this target through a carefully staged approach to ramping up operations.
CEO Alexander Langer expressed satisfaction with the company’s swift transition from exploration to industrial production at Guitarra, achieving this milestone over six months ahead of initial projections. He emphasized the hard work and dedication of the team involved in this process.
Sierra Madre Gold and Silver Ltd. focuses on precious metals development and exploration, particularly in restarting operations at the Guitarra mine and exploring its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground operation that previously produced significant quantities of silver and gold before being placed on care and maintenance in mid-2018.
The company’s management team has extensive experience in mining exploration and development, having successfully managed projects that account for over 22 million ounces of gold and 600 million ounces of silver in mineral reserves and resources.
As Sierra Madre continues its operational ramp-up at the Guitarra mine, it stands to benefit from favorable market conditions for precious metals. With silver prices remaining robust and an improving regulatory environment for mining in Mexico under the current government administration, the company is positioned for growth as it aims to double production capacity by 2027. The successful transition from exploration to production not only enhances Sierra Madre’s market presence but also sets the stage for future expansion within Mexico’s rich mining landscape.
