Sierra Madre Gold and Silver Ltd. reports developments tied to its silver-gold mining and exploration portfolio in Mexico. Company news centers on the La Guitarra silver-gold mine complex, including operating results, processing-plant upgrades, equipment purchases, tailings and land-use matters, and exploration activity in the East District.
Recurring updates also cover capital-structure items such as secured loan repayments, private-placement funding references, shareholder ownership changes, and governance matters. Additional property news includes the Tlacotal area within La Guitarra and the Tepic Project, which is described as hosting low-sulphidation epithermal gold and silver mineralization with a historic resource.
Sierra Madre (SMDRF) has increased Guitarra processing plant throughput to as much as 720 tonnes per day.
Phase 1 crushing and milling changes lifted throughput more than 40% above the plant’s previous 500-tonne-per-day nameplate capacity. The new 11x12 ball mill is installed, but its drive motor, cyclones and instrumentation are still being installed. Commissioning is expected in November 2026. Sierra Madre expects the combined mills to reach its Phase 2 goal of 1,200 to 1,500 tonnes per day of milling capacity more than eight months ahead of schedule.
Since June 2026, approximately 2.6 kilometres of development drives have been completed across Guitarra, Nazareno and Coloso. The Guitarra mine accounts for over 1.5 kilometres of that work. The mine plan calls for initial production from San Raphael I and II by the end of October 2026. Groundwork has begun on the permitted dry-stack tailings expansion, whose first construction phase has a capacity of 877,000 tonnes.
Sierra Madre Gold and Silver (SMDRF) reports that twin 1,500 kW diesel-electric generators at its producing La Guitarra complex in Mexico are fully installed, tested and operating at design performance levels.
The backup plant is part of added onsite power capacity, including a previously announced 1,250 kW diesel generator for Coloso and Nazareno, intended to mitigate weather-related grid outages that caused 278 hours of downtime between January and August 2026. Management expects reduced lost production revenue and lower operating costs. The company also signed a two-month marketing and investor awareness agreement with New Era Publishing for $250,000 USD, and granted employees and consultants options to buy 350,000 shares at $1.56 for five years, subject to TSX Venture Exchange acceptance.
Sierra Madre Gold and Silver (OTCQX: SMDRF) reported Q2 2026 net revenues of US$8.23 million and gross profit of US$1.58 million from the La Guitarra complex, selling 123,483 silver-equivalent ounces. Silver revenues were US$5.0 million and gold revenues US$4.3 million, both higher than Q2 2025.
H1 2026 adjusted EBITDA reached US$3.5 million versus US$2.6 million a year earlier, and operating cash flow was US$1.89 million. Cash totalled US$22.2 million with working capital of US$25.0 million at June 30, 2026. Throughput has risen to up to 672 tpd, a 34% increase. The company closed the Del Toro silver mine acquisition alongside a C$57.5 million financing, and fully repaid a US$5 million loan. Phase I of the La Guitarra mill expansion is now expected to reach targeted capacity before the end of Q3 2026, with Phase II commissioning targeted before the end of Q3 2027.
Sierra Madre Gold and Silver (OTCQX: SMDRF) has received SEMARNAT approval to begin exploration drilling in the East District of the La Guitarra silver-gold complex. The permit covers 22 drill pads, from which multiple holes may be drilled as part of a fully budgeted 30,000-metre program targeting up to 30 mapped vein systems.
Initial phase-one drilling, expected to start within about 60 days of contractor selection, will begin from the Tlacotal area with seven sub-horizontal holes of 1,000–1,500 metres each. A 2023 NI 43-101 report outlines a conceptual exploration potential of 0.77–1.54 million tonnes at 2.4–3.6 g/t gold and 440–670 g/t silver for five East District vein systems, alongside existing indicated and inferred resources at Mina de Agua. Further drilling is planned for Magdalena and Los Locos areas, the Rincon mine (nine holes of 600–1,000 metres each, subject to access and permitting), and the Inca and La Palma vein systems, where permits are already in place.
Sierra Madre Gold and Silver (OTCQX: SMDRF) fully repaid its US$5 million secured term loan from First Majestic, ahead of the May 8, 2027 maturity. The company reports it is now debt free and generating positive operating cash flows from La Guitarra.
Sierra Madre also granted 8,800,000 stock options at $1.38 per share for five years to employees, directors, management, consultants, and its investor relations firm, with staged vesting and subject to TSX Venture Exchange acceptance.
Sierra Madre Gold and Silver has closed its acquisition of the Del Toro Silver Mine from First Majestic (NYSE:AG) for up to US$60 million in cash and shares.
The deal includes an initial US$20 million cash payment, 10.87 million Sierra Madre shares, further staged payments, and a concurrent $57.5 million equity financing.
Sierra Madre (OTCQX: SMDRF) received approval from Mexico's antitrust agency COFECE for its planned acquisition of the Del Toro silver mine in the Chalchihuites District.
According to Sierra Madre, plans include restarting Del Toro from mid-2027 with first production targeted for mid-2028.
Sierra Madre (OTCQX:SMDRF) reported record Q1 2026 revenue of $10.1M, selling 128,827 silver-equivalent ounces. Adjusted EBITDA reached $2.8M and operating cash flow was $3.5M. Cash and equivalents were $13.2M with $14.4M working capital.
Shareholders approved the Del Toro mine acquisition. The first phase of the La Guitarra mill expansion, targeting 750–800 tpd from 500 tpd, remains on track for completion by end of Q2 2026, with a second phase planned by Q3 2027. Cash costs rose to $42.55 per AgEq ounce on lower recoveries, mine ramp-up and inflationary pressures.
Sierra Madre (OTCQX: SMDRF) reported 2025 audited results: 628,196 AgEq ounces sold, net revenues US$24.96 million and Adjusted EBITDA US$6.03 million. Cash and short-term investments were US$17.3 million. A two-stage La Guitarra expansion aims to raise throughput from 500 tpd to 750–800 tpd in Phase 1 (expected end Q2 2026) and to 1,200–1,500 tpd by Q3 2027.
Key operational drivers include ramped production at Coloso and Nazareno, a Del Toro acquisition expected to close in May 2026, and a planned 30,000 m East District drill program starting H2 2026.
Sierra Madre (OTCQX: SMDRF) has repaid US$2.5 million of a US$5.0 million non-revolving, secured term loan from First Majestic, completing half of the facility as of March 24, 2026. The loan was extended to a May 2027 maturity.
The company attributes early repayment to stronger silver and gold prices and higher cash generation from La Guitarra, expects to repay the remaining balance in the coming months, and plans a first-stage production expansion by end of Q2 2026 to lift throughput by at least 50% from the current 500 tpd. Fourth-quarter and full-year 2025 results are expected mid-April 2026.