Sierra Madre Announces Guitarra Processing Plant Achieves Throughputs of up to 720 Tonnes per Day as Development at Nazareno and Guitarra Mines Accelerates
Mill commissioning and further tailings work remain ahead as Sierra Madre pursues its Phase 2 capacity goal.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
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.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointPlant throughput reached up to 720 tonnes per day, more than 40% above the previous 500-tonne-per-day nameplate capacity.
- Moderate point. Forward-looking: it has not happened yet and may not happen.11x12 ball mill has been installed; Sierra Madre expects combined milling capacity of 1,200 to 1,500 tonnes per day more than eight months ahead of schedule.
- Moderate point. Forward-looking: it has not happened yet and may not happen.San Raphael I and II mine plan calls for initial production from higher-grade blocks by the end of October 2026.
7 minor points
- Minor pointApproximately 2.6 kilometres of development drives have been completed across Guitarra, Nazareno and Coloso since June 2026.
- Minor pointOver 1.5 kilometres of development has been completed at the Guitarra mine since June 2026.
- Minor pointOver 800 metres of access and production drives have been completed since July 2026.
- Minor pointLower Central mine area now contributes mill feed; development has begun for the Los Angeles deposit.
- Minor point. Forward-looking: it has not happened yet and may not happen.Permitted dry-stack tailings expansion has entered groundwork; its first construction phase has 877,000 tonnes of capacity.
- Minor pointOver 5,000,000 tonnes of total tailings capacity is within the permitted area.
- Minor point. Forward-looking: it has not happened yet and may not happen.Santa Ana mine design has been completed; Sierra Madre is considering portal construction in 2027.
Negative
- Minor point. Forward-looking: it has not happened yet and may not happen.New ball mill commissioning remains pending, with the drive motor, cyclones and instrumentation still being installed.
3 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Tailings contractor mobilization is scheduled for November 2026; clearing is scheduled for October.
- Minor point. Forward-looking: it has not happened yet and may not happen.Santa Ana portal construction remains under consideration rather than committed.
- Minor pointMineral resources that are not mineral reserves do not have established economic viability.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - September 28, 2026) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to provide an operational update on activities at its Guitarra silver-gold mine complex in Estado de Mexico, Mexico.
Throughput at the Guitarra processing plant has significantly increased following Phase 1 expansion modifications to the existing crushing and milling circuits. Daily production has reached up to a steady 720 tonnes per day ("tpd"). This represents more than a
Greg Liller, Chief Operating Officer and Executive Chairman, commented, "We continue to advance our Phase 1 and Phase 2 expansions at Guitarra. With the new ball mill now installed, Sierra Madre has also accelerated underground development. We have started groundworks for the permitted dry stack tailings facility expansion, a key component of our Phase 2 plan to increase throughputs to 1,200 tpd to 1,500 tpd. We look forward to updating the market as we advance towards Phase 2 expansion."
Foundation construction and installation of the 11x12 ball mill has been completed. The foundation and cement base required the pouring of 400 cubic meters of cement along with 16 tonnes of steel rebar.
Figure 1: New Ball Mill Installed
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Installation of the drive motor, cyclones and instrumentation is under way with commissioning expected in November 2026. This ball mill, combined with the existing ones, is expected to achieve the Phase 2 goal of 1200 tpd to 1500 tpd of milling capacity, more than eight months ahead of schedule.
Coloso and Nazareno Development
Development has been accelerated at all three of the mines within La Guitarra - Guitarra, Nazareno and Coloso - to provide feed to the expanded plant. Approximately 2.6 kilometers of development drives have been completed since June 2026. As haulage ramps are being driven both vertically and downward from the 180-access level, this ramp development is expected to allow for additional production areas to be developed. Since July 2026, over 800 meters of access and production drives have been completed. Based on the 2023 Mineral Resource Estimate, the Nazareno Measured resource stood at 309,877 tonnes grading 215 g/t silver and 0.55 g/t gold, for 257 g/t AgEq. Inferred resources are at 753,784 tonnes grading 229.2 g/t silver, 0.29 g/t gold for 251 g/t AgEq(1). AgEq calculated at a 77.27:1 silver gold ratio. Reconciliation from actual stope mining to date has shown higher gold grades.
Guitarra Development
At the Guitarra mine, over 1.5 kilometres of development has been completed since June 2026. Work in the lower Central mine area has been accelerated and this area now contributes an important portion of mill feed. Development work needed to bring the Los Angeles bulk tonnage deposit into production has been started. The new design is expected to allow easier access and haulage alongside a lower mining cost in the future. The development and dewatering of the San Raphael I and II areas has been accelerated with the purchase of additional pumps. The current mine plan calls for initial production from higher-grade blocks by the end of October 2026.
East District Development
The company is also examining the possibility of bringing a small portion of the East District into production. At Santa Ana, an initial mine design has been completed and the Company is contemplating beginning construction of a portal in 2027. The Santa Ana mineralization is wide and mining is planned using long hole methods. The 2023 resource estimate for the Santa Ana deposit stands at 761,292 tonnes in the Measured category, grading 159 g/t silver and 0.19 g/t gold, or 174 g/t AgEq. The Inferred resource is 544,892 tonnes grading 178 g/t silver, 0.13 g/t gold and an AgEq grade of 188 g/t(1). AgEq calculated at a 77.27:1 silver gold ratio.
Dry Stack Tailings Facility
Ground work for the fully permitted Phase 4 tailings expansion has begun. Per SEMERNAT (Secretaría del Medio Ambiente y Recursos Naturales, the federal Mexican regulatory agency in charge of environmental permitting) requirements, trees have been measured and marked for cutting and the required paperwork submitted. Clearing of trees and vegetation is scheduled for October. Bid documents for earthworks have been prepared and sent out with mobilization of the chosen contractor scheduled for November 2026. The first construction phase consists of three parts with a capacity of 877,000 tonnes. Total capacity within the permitted area is on the order of over 5,000,000 tonnes.
(1) Notes for 2023 La Guitarra Mineral Resource Estimate: Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition standards were followed for the resource estimate. The 2023 resource models used nominal cutoff grades which are based on mining and milling costs of US
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 producer and exploration company focused on the operation, exploration, and development at its Guitarra mine complex in the Temascaltepec mining district, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 tpd processing facility that operated until mid-2018 and restarted commercial production in January 2025.
In June 2026, Sierra Madre closed the acquisition of the Del Toro silver mine, adding a past-producing, fully permitted asset to its Mexico-focused silver and gold portfolio.
The Company also holds the +2,600 ha Tepic Project, which 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
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
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/316366
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What throughput has Sierra Madre's Guitarra processing plant reached?
The Guitarra plant has reached up to 720 tonnes per day. That is more than 40% above its previous nameplate capacity of 500 tonnes per day, following Phase 1 changes to the crushing and milling circuits.
What capacity is planned for Sierra Madre's Guitarra dry-stack tailings expansion?
The first construction phase has a capacity of 877,000 tonnes. Total capacity within the permitted area is over 5,000,000 tonnes. Groundwork has begun, with vegetation clearing scheduled for October and contractor mobilization scheduled for November 2026.
What are Sierra Madre's Nazareno mineral resource estimates?
The 2023 estimate lists 309,877 measured tonnes grading 215 grams per tonne silver and 0.55 grams per tonne gold, and 753,784 inferred tonnes grading 229.2 grams per tonne silver and 0.29 grams per tonne gold. These are mineral resources, not mineral reserves.
What is Sierra Madre planning at Santa Ana?
Sierra Madre has completed an initial mine design and is considering construction of a portal in 2027. It plans to use long-hole mining methods. The company has not said that portal construction has begun.