Sierra Madre Starts US$3.5 Million Exploration Program at the East District of Guitarra Project
Sierra Madre Starts US$3.5 Million Exploration
Program at the East District of Guitarra
Project
Vancouver, British Columbia--(Newsfile Corp. - October 23, 2025) - Sierra Madre Gold and Silver Ltd.
(TSXV: SM) (OTCQX: SMDRF) ("
Sierra Madre
" or the "
Company
") is pleased to announce that
exploration work has begun at the East District of the Guitarra silver-gold project in Estado de Mexico,
Mexico; this District covers the historic Temascaltepec mining area.
Greg Liller, Chief Operating Officer and Executive Chair, commented: "We are very pleased to be
restarting exploration within the under-explored East District portion of the Company's concessions
holdings, following the successful re-start of the Guitarra and Coloso mines.
The East district is the last
of the six major Spanish Colonial production centres in Mexico that has not been systematically mapped,
drilled, and evaluated using modern tools and methods.
Based on historic data, the company sees
strong potential for additional resources in this District, with over 39 km of structures mapped to date,
numerous historic mines, and a current deposit already defined at Mina de Agua."
Alex Langer, Chief Executive Officer, added: "Restarting exploration at the East District is a key step to
unlocking the full value of Guitarra. With a fully funded two-stage plant expansion underway in the West
District, we see potential for additional discoveries in this eastern portion of the property. We anticipate
funding this exploration program from our treasury and cash flow, with a C$19.5 million private
placement closed in July 2025."
Exploration Program Plans
With a US$3.5-million budget, the East District exploration program will consist of two parts. First, drill
target definition through additional detailed geologic surface mapping, including the historic El Rincon
mine (Marmajas-Echada system), surveying, mapping and sampling of historic workings, and a
structural analysis in order to determine the geologic controls of historically mined mineralization. This
program is estimated to take nine months to complete.
Upon completion of the target definition program, a 20,000 to 25,000 metre drill program would then be
undertaken to further assess the targets' economic potential. The drilling will be conducted over a period
of 12 to 18 months.
Based on the results of this program, the Company then may undertake a larger
delineation drilling program.
Figure 1 below shows the mapping completed by Sierra Madre.
Figure 1: East District Mapping by Sierra Madre
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10436/271536_ced90e2d24079a84_002full.jpg
Exploration Potential
The 2023 NI 43-101 report
1
contains an estimate of the exploration potential for six (6) of the vein
systems in the East District. See quote below from section 9.6 of the report for an estimate of the
exploration target range at the East District.
"In 2002, Luismin completed an assessment of the exploration potential in the East District (Nuevo
Descubrimiento, Las Animas-Socorro, Marmajas-Echada, Magdalena-Zayas and Purisima veins)
using the results of surface mapping, historical mine records, and preliminary drilling at Santa Ana
(Mina de Agua).
The QP has used Luismin's estimates of the strike length, the width of the veins, an assumption of a
200-metre vertical depth, an assumed bulk density of 2.6, and a range of 20% to 40% of the vein
being mineralized to estimate a tonnage of between 0.77 million tonnes and 1.54 million tonnes. A
grade range of ± 20% Luismin's average grades was used to estimate silver grades between 440 g/t to
670 g/t Ag and to estimate gold grades of between 2.4 g/t and 3.6 g/t Au. Combined total strike length
of these vein systems is 7.7 km.
The potential quantity and grade are conceptual in nature; there has been insufficient exploration to
define a mineral resource and it is uncertain if further exploration will result in the target being
delineated as a mineral resource."
The 2023 Mineral Resource Estimate included an East District component at Mina de Agua, with an
indicated resource of 761,000 tonnes grading 159 g/t silver and 0.19 g/t gold and an inferred resource of
545,000 tonnes grading 178 g/t silver and 0.13 g/t gold
1
.
1
A copy of the 2023 NI 43-101 report, prepared by TechSer Mining Consultants Ltd. ("TechSer") of Vancouver B.C., by David Thomas, P.Geo. and
QP Geology and Cristian Garcia, P.Eng. and QP Mining, titled "La Guitarra Mineral Resource Estimate Guitarra Silver-Gold Project, Temascaltepec,
Estado de México, México" with an effective date of October 24, 2023, is available on SEDAR+ and the company's website at
https://sierramadregoldandsilver.com/presentations/NI-43-101-La-Guitarra-Mineral-Resource-Estimate.pdf
Program Progress
New senior-level geologists, along with support personnel, have been hired and field work has begun to
determine the condition of historic workings.
In addition, access has been regained to the Rampa Carolina on the Santa Ana vein system.
The ramp
and associated crosscuts and drives were constructed in 2007 and contain more than 300 meters of
workings. The development was sized for modern production mining and haulage equipment.
Sampling
for metallurgical tests is underway.
Figure 2 below shows photos of the historic Donostiva mine portal.
Figure 2: Historic Mine Portal
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10436/271536_sierra%20figure%202.jpg
Figure 3 below shows these workings.
Figure 3: Rampa Carolina Development
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10436/271536_sierra%20figure%203.jpg
Marketing & Investor Awareness
The Company has entered into a marketing and investor awareness agreement dated October 9, 2025
with New Era Publishing Inc ("New Era"). Under the terms of the agreement, New Era will provide
marketing and promotional services to the Company for a period of two months in exchange for a fee of
$225,000 USD. New Era is a digital marketing and media firm established in 2016 based in Vancouver,
BC. New Era provides digital marketing, email and market awareness services and assist its clients
with reaching potential investors. New Era will further engage
www.carboncredits.com
to connect North
American and European audiences to bolster awareness of the Company through the
carboncredits.com
website, articles and e-mail
newsletters. New Era and
www.carboncredits.com
and
the Company are unrelated and unaffiliated entities at arm's length of each other, and neither New Era,
nor its principals have an interest, directly or indirectly, in the securities of the company.
The Company has entered into a Service Agreement dated effective October 23, 2025, with Departures
Capital Inc. ("DC"), under which DC will provide investor communications, digital media production, and
investor marketing-related promotional services to Sierra Madre for a six-month term. Under the
agreement, Sierra Madre will pay DC US$8,500 plus applicable taxes in advance of the provision of any
services. The promotional activities will include the creation and distribution of video content on the
Departures Capital YouTube channel and associated email list, as well as Google Ads campaigns
designed to increase investor awareness of Sierra Madre's story and visibility of the content. DC is
arm's length to Sierra Madre and, to the knowledge of the Company, neither DC nor its principals have
any present equity interest in Sierra Madre's securities, directly or indirectly, nor any right or intent to
acquire any such interest.
Management Update
The Company announces that Chief Financial Officer Ken Scott, will be appointed as Corporate
Secretary on November 1st, 2025. Current Corporate Secretary Kerry Spong will maintain his positions
of Controller and Senior Manager of Finance.
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 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 underground mine, which includes a 500 t/d processing facility that operated until mid-2018
and restarted commercial production in January 2025.
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
silver and gold 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
778-820-1189
Contact:
Cautionary Note Regarding Production Decisions
The Company's decision to place the mine into commercial 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 and the results of test mining
and processing. 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.
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 expected timing of concentrate shipments; the
Company increasing production; the Company receiving revenues on a weekly basis and such
revenues allowing the Company to comfortably expand to without further capital needs; 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/271536