Sierra Madre Hires Stantec Consulting to Review Tailings Deposition Options
SIERRA MADRE HIRES STANTEC CONSULTING TO REVIEW TAILINGS DEPOSITION OPTIONS
Vancouver, British Columbia – October 17, 2023 – Sierra Madre Gold and Silver Ltd. (TSXV: SM, OTCQX:
SMDRF) ("Sierra Madre" or the "Company") is pleased to announce it has engaged Stantec Consulting
International LLC (“Stantec”) to examine tailings deposition options at the 100% owned past-producing
La Guitarra Silver-Gold Mine Complex (“La Guitarra”) in Estado de Mexico, Mexico, 130 km southwest of
Mexico City. The agreement was signed on September 12, 2023, with detailed work commencing earlier
this month. Results are expected towards the end of Q4 2023. Stantec is completing two studies for the
Company.
The first is a global stability evaluation of the permitted existing tailings storage facility (TSF) to
determine the amount of additional capacity within the TSF if converted to dry stack tailings deposition.
This work will use stability factors which meet or exceed stability factor of safety values provided by the
Canadian Dam Association. The second is a scoping-level study on the layout and capacity of a new TSF
within the current boundaries of the Environmental Impact Assessment (MIA).
Dry stack tailings deposition has several environmental advantages. Process water is removed and
returned directly to the plant during the filtration process. The per-tonne impoundment area is reduced
compared to conventional wet deposition. Dry tailings are more stable and the potential for liquification
during a seismic event is reduced compared to a saturated conventional tailings facility.
The new TSF at La Guitarra, which is fully permitted for dry stack tailings would have an ultimate
capacity of 5.8 million tonnes, which is in addition to the existing TSF. The Company is undertaking this
work in order to examine possibilities to reduce capital outlays necessary to reopen the mine. If the
existing TSF or a new TSF within the existing permit can be opened using dry stack tailings deposition,
the Company believes construction of the larger permitted TSF has the potential to be financed out of
future cash flows.
Extension of Subscription Receipts
Sierra Madre announces that, further to the Company’s news releases dated May 31, 2023 and
September 14, 2023 (the “ the News Releases”), the Company has amended the terms of all 5,123,092
subscription receipts (each, a “Subscription Receipt”) in order to extend the Escrow Release
Conditions and Termination (as both terms are defined in the May 31 and Sep 14 News Releases) for
an additional 30-day period.
Pursuant to the amended terms, each Subscription Receipt shall have met the Escrow Release
Conditions and be eligible to, without the payment of any additional consideration, automatically
convert into one common share in the capital of the Company upon the earlier of: (i) the holder of the
Subscription Receipt receiving written notice from the Company of conversion; or (ii) November 14,
2023. Termination shall occur on the date that is three business days following the day on which the
Escrow Release Conditions occur, which shall be no later than November 17, 2023. For additional
information on the Subscription Receipts, refer to the May 31 News Release.
About Sierra Madre
Sierra Madre Gold & Silver (TSX.V: SM, OTCQX: SMDRF) is a precious metals development and
exploration company, focused on evaluating the potential of restarting the La Guitarra Mine in the
Temascaltepec mining district, Mexico, and the exploration and development of its Tepic and La Tigra
properties in Nayarit, Mexico. The La 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. La Tigra, located 148 km north of Tepic, has been mined historically; Sierra
Madre´s maiden 2022 drill program at the site intercepted shallow mineralization.
Sierra Madre´s management has played key roles for managing exploration and development of more
than 22Moz gold and 600Moz silver in combined reserves and resources. Sierra Madre´s team of
professionals has collectively raised over $1B 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
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 information in this press release includes, but is not limited to, statements with respect
to the completion of the Transaction on the terms set out in the definitive agreement (or at all) and the
ability of the Company to obtain requisite corporate and regulatory approvals for the Transaction,
including but not limited to the approval of the Exchange, Mexican antitrust approval and other
governmental approvals as currently anticipated.
In making the forward-looking statements included in this news release, the Company has applied
several material assumptions, including that the Company will be able to receive all required regulatory
approvals by the timelines currently anticipated (or at all); and that the Company will be able to
complete the Transaction on the terms of the definitive agreement. Forward-looking statements and
information are subject to various known and unknown risks and uncertainties, many of which are
beyond the ability of the Company to control or predict, that may cause the Company´s actual results,
performance or achievements to be materially different from those expressed or implied thereby, and are
developed based on assumptions about such risks, uncertainties and other factors set out herein,
including, but not limited to, the risk that the Company is not able to complete Transaction on the terms
set out in the definitive agreement (or at all) and the risk that the Company is unable to obtain requisite
corporate and regulatory approvals, including but not limited to the approval of the TSX Venture
Exchange, the Mexican antitrust approval and governmental approval as currently anticipated.
Such forward-looking information represents management´s best judgment based on information
currently available. No forward-looking statement can be guaranteed and actual future results may vary
materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements
or information.
SOURCE: Sierra Madre Gold and Silver