Sierra Madre Receives Regulatory Approval for Dry Stack Tailings Deposition on Existing Tailings Impoundment, Paste Backfill of Tailings in Underground Workings and Surface Drilling Pad Sites
Sierra Madre Receives Regulatory Approval
for Dry Stack Tailings Deposition on Existing
Tailings Impoundment, Paste Backfill of
Tailings in Underground Workings and
Surface Drilling Pad Sites
Vancouver, British Columbia--(Newsfile Corp. - May 28, 2024) - Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) ("
Sierra Madre
" or the "
Company
") is pleased to announce that
SEMARNAT, the federal Mexican regulatory agency in charge of environmental permitting, has
approved modifications to the existing operating permit for the Guitarra Mine and Mill complex, located
in the State of Mexico, Mexico.
These modifications will allow for:
Dry Stack Tailings Deposition at the Active Tailings Facility Site, TSF 1-3
Construction of a Tailings Filter Plant Adjacent to the Existing Mill
Paste Backfill Using Tailings in the Guitarra Underground Mine
58 surface drilling pad locations
Dry Stack Tailings Approval and Next Steps
Regulatory approval for dry stack tailings deposition is a significant milestone for Sierra Madre as it
moves forward with the possible mine restart at Guitarra. This approval allows the Company to transition
from conventional tailings deposition to a more modern system and delays the near-term capital
expense of building the fully permitted 5.8 million tonne TSF 4.
The use of dry stack deposition will result
in more process water being recycled and will allow more tonnes of tailings to be deposited within the
existing footprint of TSF 1-3.
Dry stacked tailings are the more environmentally responsible alternative
and provide a higher level of safety and security long term.
TSF 1-3 has two conventional tailings deposition sites with a remaining capacity of 230,000 tonnes
which the company plans to use in initial startup operations.
Construction on one site began in April and
is scheduled for completion before the onset of the rainy season in June.
The dam, or bordo, is being
built in 30 cm compacted lifts.
The inner bordo face and bottom will be covered with a high-strength
HDPE liner, as per accepted industry practices.
At the processing plant's operating capacity of 500
tonnes per day, the two expansions will be sufficient for a minimum 15 months of operations, providing
the Company with time to complete the design and construction of a combined dry stack and paste
backfill tailings disposal system.
High-level studies conducted by Stantec Consulting International LLC and Ingenieria y Construcción de
Presas S.A. de C.V. suggest that TSF 1-3 may potentially have a dry stack tailings capacity of at least
500,000 tonnes. The Company has decided to conduct additional geotechnical drilling and studies
during the upcoming rainy season to obtain additional high-water saturation data before proceeding with
the final layout and design work.
This will enable the Company to make better-informed operational
decisions.
Figure 1 below shows the locations of the Active Tailings Facility Site (TSF 1-3) and the permitted
5.8MT TSF4.
Figure 1: Locations of the active and permitted tailings facilities
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Tailings Paste Backfill at Guitarra
The approval for the use of tailings for paste backfill is another significant development both
operationally and from an environmental perspective. Instead of depositing tailings in TSF 1-3, a portion
of the process water is removed from the tail product of the plant, then pumped as a slurry to mined-out
areas, mixed with cement, and used to fill open voids.
This enhances overall mine stability, increases
process water recycling, reduces the potential of acid generation in the surface environment and saves
space in TSF 1-3.
The Company initially plans to utilize paste fill in stopes below the main San Rafael
haulage level, 10 meters above the processing plant. This relatively small elevational difference
minimizes initial pumping requirements, potentially reducing initial capital and operating costs.
Surface Drill Pad Approval
58 surface drill pad sites were approved for testing the Progresso, Perdida Guitarra, and 350 veins near
existing Guitarra mine workings and the Las Palms/Inca and Santa Teresa vein systems north of the
existing underground workings. The Las Palms/Inca and Santa Teresa vein systems have never been
drill-tested and have a combined strike length at surface in excess of 9 km. All vein systems contain
historic mine workings, and multiple surface samples have returned economically interesting silver and
gold values.
Figure 2 below shows the locations of the permitted drill pads.
Figure 2: Locations of the permitted drill pads
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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 La Guitarra Mine in the
Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property 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.
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
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.
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
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