Sierra Madre Increases M&I Silver-Equivalent Resources at La Guitarra by 373% to 27.2 million Ounces, Inferred Silver- Equivalent Resource Increased 204%to 20.2 million Ounces
Sierra Madre Increases M&I Silver-Equivalent Resources at La
Guitarra by 373% to 27.2 million Ounces, Inferred Silver-
Equivalent Resource Increased 204%to 20.2 million Ounces
VANCOUVER, BC / ACCESSWIRE / November 1, 2023 / Sierra Madre Gold and
Silver Ltd. (TSXV:SM)(OTCQX:SMDRF) ("Sierra Madre" or the "Company") is
pleased to announce its first project-wide Resource Estimate for the La Guitarra
silver-gold mine and the Temascaltepec mining district in Estado de Mexico, Mexico.
TechSer Mining Consultants Ltd. ("TechSer") of Vancouver B.C. prepared the
Mineral Resource Estimate, David Thomas, P.Geo. and QP Geology and Cristian
Garcia, P.Eng. and QP Mining. The following tabulates the La Guitarra estimated
Mineral Resources.
Table 1: Summary La Guitarra 2023 Mineral Resource Estimate, David G.
Thomas P. Geo (Effective Date: October 24, 2023)
Class Tonnes AgEq
(g/t)
Ag
(g/t)
Au
(g/t) AgEq Ozs Ag Ozs Au Ozs
Indicated 3,842,000 220 146 0.96 27,207,000 18,073,000 118,000
Inferred 4,105,000 153 113 0.52 20,199,000 14,937,000 68,000
1. See notes following Table 3
Gregory K. Liller states, "I am extremely pleased with the results of the new mineral
resource estimation. This study validates our belief that La Guitarra has a significantly
overlooked resource base. Since April, our staff has been working on validating the
project-wide database, incorporating historical data, auditing the previously mined
areas, and refining the geologic interpretation of the vein and models. The next step to
re-opening the Guitarra mine will be a Mine and Restart Plan due in the first quarter of
2024; consisting of a capital and operating cost study, the results of which will be used
to evaluate the economic potential of the mine."
The following tabulates the Mineral Resource Estimates by Classification and Area;
Table2: Indicated Mineral Resource Estimate
Area Tonnes AgEq
(g/t)
Ag
(g/t)
Au
(g/t) AgEq Ozs Ag Ozs Au Ozs
Nazareno 310,000 257 215 0.55 2,564,000 2,141,000 5,000
Coloso 432,000 346 221 1.61 4,806,000 3,071,000 22,000
Guitarra 1,649,000 220 123 1.25 11,664,000 6,544,000 66,000
Sub-Total 2,391,000 248 153 1.22 19,034,000 11,756,000 93,000
Los Angeles 690,000 177 109 0.87 3,919,000 2,419,000 19,000
Mina De
Agua 761,000 174 159 0.19 4,255,000 3,899,000 5,000
Total
Indicated 3,842,000 220 146 0.96 27,208,000 18,074,000 117,000
Table 3: Inferred Mineral Resource Estimate
Area Tonnes AgEq
(g/t)
Ag
(g/t)
Au
(g/t) AgEq Ozs Ag Ozs Au Ozs
Nazareno 754,000 252 229 0.29 6,096,000 5,554,000 7,000
Coloso 374,000 317 213 1.34 3,810,000 2,565,000 16,000
Guitarra 293,000 180 113 0.87 1,690,000 1,059,000 8,000
Sub-Total 1,421,000 254 201 0.68 11,596,000 9,178,000 31,000
Los Angeles 66,000 157 76 1.05 333,000 161,000 2,000
Mina De
Agua 545,000 188 178 0.13 3,301,000 3,120,000 2,000
Subtotal UG
Mine 2,032,000 233 191 0.55 15,230,000 12,459,000 35,000
Inferred
Tailings 2,073,000 75 37 0.48 4,968,000 2,475,000 32,000
Total
Inferred 4,105,000 153 113 0.52 20,198,000 14,934,000 67,000
(1) Notes for Mineral Resource Estimate:
1. Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition
standards were followed for the resource estimate.
2. The 2023 resource models used nominal cutoff grades which are based on
mining and milling costs of US$50 for cut and fill mining, US$38 per tonne for
long-hole,
3. A net payable recovery of 70% (historical plant recovery plus an allowance for
smelter deductions, refining costs, and concentrate transportation)
4. Silver price of US$22 and a gold price of $1700 and a Gold Silver Ration of
77.27:1.
5. Assays were capped at 825 g/t for silver and 6.55 g/t for gold
6. Variable cut-off by deposit
1. Nazareno and Coloso - Block Model 135 AgEq cut-off grade (COG) and
a 1 m Minimum True Thickness
2. Guitarra - Polygonals Estimates 135 g/t AgEq COG and a 1 m Minimum
Horizontal Width
3. Los Angeles - Block Model Long Hole Mining 90 g/t AgEq COG
4. Mina De Agua - East District Polygonal Estimate 135 g/t AgEq COG or
90 g/t AgEq COG and > 2 m Horizontal Width
5. The tailings used a 30 g/t AgEq COG.
7. Mineral Resources that are not mineral reserves do not have economic viability.
Numbers may not add due to rounding.
8. Numbers may not add due to rounding.
9. The estimate of mineral resources may be materially affected by: metal prices
and exchange rate assumptions; changes in local interpretations of
mineralization geometry and continuity; changes to grade capping, density and
domain assignments; changes to geotechnical, mining and metallurgical
recovery assumptions; ability to maintain environmental and other regulatory
permits and ability to maintain the social license to operate
10. The 2023 resource estimate is prepared by David Thomas P.Geo. and Q.P. and
Cristian Garcia P.Eng. and QP, of TechSer in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects. David Thomas
and Cristian Garcia are independent qualified person ("QP's") as defined by
National Instrument 43-101. A full technical report, which is being prepared in
accordance with National Instrument 43-101 Standards of Disclosure for
Mineral Projects, will be filed and available under the Company's SEDAR
profile at www.sedar.com within 45 days of this news release.
Coloso and Nazareno Development Details
The Coloso mine supplied most of La Guitarra's production from 2015 to 2018 before
being placed on care and maintenance. The Coloso and Narareno block models
utilized wireframe models developed by First Majestic Silver which have been
validated. The Coloso veins average width is 1.5 meters and the Nazareno veins have
an average width of 4.3 meters. The Coloso mine has over 12 kilometres ("km") of
existing and accessible ramps, haulage ways, cross cuts, ventilation shafts, and
development drives. The Nazareno mineralization is accessed from the Coloso
workings by a one km meter haulage way and was under development when the mine
was closed.
Figure 1: Nazareno and Coloso Development Section
Guitarra Mine Details
The Guitarra Indicated Resources are contained in seven veins with a weighted
average width (width x tonnes) for the Indicated Resources of 3.4 meters. The
Guitarra mine has approximately 40 km of haulage ways, ramps, crosscuts, raises, and
development drives. It is accessed from the surface at five primary levels along with
several other hillside adits. A decline ramp accesses the San Rafael 1 and 2 areas and
has two ventilation shafts.
Figure 2: Guitarra Mine Section
Sierra Madre management recognized that portions of the Guitarra veins and Santa
Ana in the East District might be amenable to long-hole mining based on their
previous mining experience at the Property and historic mining methods. The Los
Angeles area in the Guitarra mine was found to have vein and stockwork
mineralization in a configuration that could be amenable to long-hole mining
methods. The Los Angeles mineralization is accessible on three haulage way levels,
several ramps, and multiple development drives. Existing ore passes on the La Cruz,
Los Angeles, San Francisco, and Garambullo levels connect to the San Rafael haulage
way, the primary haulage way to the Guitarra flotation plant.
Figure 3: Los Angeles Section
Tlacotal Project
The Santa Ana vein (also known as Mina de Agua shown in Table 2 and Table 3) in
the East District has an average width of 7.1 meters. First Majestic completed an
approved Environmental Impact Statement (MIA) to develop Santa Ana. The
operating area is called La Tlacotal, and the Company has a long-term land use
agreement on the surface.
Figure 4: Tlacotal Project Details
Sierra Madre will participate in a webinar at 2pm ET on Thursday November 2nd to
discuss the updated resource. Participants can register
here: https://us02web.zoom.us/webinar/register/WN_P5yt6om8SH-DbU22oAgppA.
The session will also be live streamed and a replay will be posted on the Adelaide
Capital YouTube Channel
here: https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw.
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 & 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:
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SOURCE: Sierra Madre Gold and Silver