Sierra Madre Commences Test Mining and Processing at Guitarra and Announces Accelerated Timeline to Commercial Production
Sierra Madre Commences Test Mining and
Processing at Guitarra and Announces
Accelerated Timeline to Commercial
Production
Vancouver, British Columbia--(Newsfile Corp. - July 23, 2024) - Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) ("
Sierra Madre
" or the "
Company
") is pleased to announce the
commencement of test mining and processing at the Guitarra Mine Complex in Estado de Mexico,
Mexico. The flotation plant has processed 5,698 dry tonnes (5,943 wet tonnes) of mineralized material
from the Guitarra mine and is currently averaging 259 dry tonnes per day (tpd). This marks a significant
milestone for the Company in the path to returning Guitarra to full commercial production of 500 tpd,
which is now projected to commence in Q4 2024.
Greg Liller, Executive Chairman and COO of Sierra Madre, states, "Since acquiring Guitarra on March
30, 2023, our team has been working hard to get the mine back into commercial production.
The
commencement of test mining and processing is a significant step in that direction. I wish to thank
Fransisco Correa, General Manager of Guitarra, Luis Saenz, Managing Director of Mexican Operations,
and the Guitarra team for their outstanding work in getting us to this milestone event. The flotation plant
has been in continuous 24-hour-a-day operation since the 25
th
of June, demonstrating the value and
quality of work the Plant Operating Team did during the refurbishment program. The Mine Department
began stockpiling development material on June 20
th
using the underground equipment our
Maintenance Department rebuilt augmented by newly purchased equipment. The contributions of
everyone on the Guitarra team to this milestone event have been invaluable and are deeply
appreciated."
Opening day ceremonies were recently attended by the Presidents of the Municipio of Temascaltepec
de Gonzales and San Simon de Gurrero, representatives of the Estado de Mexico government, elected
leaders of the local communities and the Company's Board of Directors.
The Company currently has four operating Scoop trams, one low-profile haul truck and a Jumbo drill
which were rebuilt by the Maintenance Department.
In addition, the Company has purchased an 18-
tonne dump truck for surface and underground haulage and a Stopemate long-hole drilling machine.
The
current test mining is using long hole and shrinkage mining techniques, with cut-and-fill operations
planned to begin shortly. The current mine equipment availability is running at 88%, a clear indication of
the quality and progress of the work that went into rebuilding the mining fleet.
The flotation plant has three ball mills:
a 5' x 8' mill, with a capacity of 84 tonnes per day (tpd);
an 8' x '6 mill, with a capacity of 204 tpd;
a 7' x 10' mill, with a capacity of 228 tpd.
The 5' x 8' and 8' x 6' ball mills operate and run at 94% of nameplate capacity.
The 7' x 10' mill will be
phased into operation as test mining progresses toward the planned 500 tpd throughput.
The mine currently employs 188 people, most from the local community. Many recently hired workers had
previously worked at the mine and their return to Guitarra gives the company an experienced workforce
with an in-depth knowledge of the mine.
Figure 1: Guitarra Opening Ceremonies
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Figure 2: Guitarra Opening Ceremonies
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Figure 3: Guitarra Opening Ceremonies
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Cautionary Note Regarding Production Decisions
The Company's decision to potentially place the mine into production, expand a mine, make other
production related decisions or otherwise carry out mining and processing operations, is largely based
on internal non-public Company data and reports from previous operations. The Company is not basing
any production decisions on NI 43-101 compliant reserve estimates, preliminary economic assessments
or feasibility studies and, as a result, there is greater risk and uncertainty as to future economic results
from the Guitarra Mine Complex, including increased uncertainty of achieving any particular level of
recovery of minerals or the cost of such recovery, including increased risks associated with developing a
commercially mineable deposit, and a higher technical risk of failure than would be the case if a
feasibility study were completed and relied upon to make a production decision.
Qualified Person
Mr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and
has reviewed and approved the technical data and information contained in this news release. Mr. Smith
has verified the technical and scientific data disclosed herein.
About Sierra Madre
Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) is a precious metals development
and exploration company focused on evaluating the potential of restarting the Guitarra mine in the
Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in
Nayarit, Mexico. The Guitarra mine is a permitted, past-producing underground mine, which includes a
500 t/d processing facility that operated until mid-2018.
The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an
existing historic resource.
Sierra Madre's management team has played key roles in managing the exploration and development of
more than 22Moz gold and 600Moz silver in combined mineral reserves and mineral resources. Sierra
Madre's team of professionals has collectively raised over $1 billion for mining companies.
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"
Alexander Langer
"
Alexander Langer
President, Chief Executive Officer and Director
1-604-765-1604
Contact:
Cautionary Note Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
news release.
This press release contains "forward-looking information" and "forward-looking statements" within the
meaning of applicable securities legislation. The forward-looking statements herein are made as of
the date of this press release only, and the Company does not assume any obligation to update or
revise them to reflect new information, estimates or opinions, future events or results or otherwise,
except as required by applicable law. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled",
"estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes"
or variations (including negative variations) of such words and phrases or may be identified by
statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be
taken, occur or be achieved. Forward-Looking statements include, without limitation, statements
regarding discussions of future plans, including the Company's plan to return the Guitarra mine to full
commercial production and the expected timing and production levels thereof.
The forward-looking statements involve numerous risks and uncertainties, and actual results might
differ materially from results suggested in any forward-looking statements. These risks and
uncertainties include, among other things, that predicted production levels will be achieved and that
existing production levels will be maintained.
In making the forward-looking statements in this news release, the Company has applied certain
material assumptions, including without limitation, that the Company will be able to execute its future
plans as intended, that predicted production levels will be achieved and that existing production levels
will be maintained.
Although management of the Company has attempted identify important factors that could cause
actual results to differ materially from those contained in forward-looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements and forward-looking
information. Readers are cautioned that reliance on such information may not be appropriate for other
purposes.
SOURCE:
Sierra Madre Gold and Silver Ltd.
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