Sierra Madre Announces Nazareno Silver and Gold Mine Preparing for Production

Executive Summary

• Sierra Madre Gold and Silver Ltd. began underground development at the Nazareno silver‑gold mine, delivering over 700 t of mineralized material to the Guitarra processing plant (not included in the current resource estimate).
• Initial mapping shows a vein zone up to 8 m wide; grade reconciliation indicates produced silver grades are ~40 % higher and gold grades ~30 % higher than the 2023 Nazareno resource model.
• The company purchased an Ingertrol Sandy‑50 drill rig to reduce development costs and support future drilling of Nazareno veins and the central Guitarra area; also engaged Capital Analytica for marketing/social media services ($120,000 fee).

Key Details

• Development Progress: Over 700 t of mineralized material shipped to processing plant from Nazareno; underground development blasting and detailed mapping completed.
• Geology & Vein Zone: Mapping reveals a combined silver‑gold vein zone up to 8 m wide; Access Drive and the 150 m level are separated by ~30 m vertical distance.
• Grade Reconciliation: Compared to the 2023 resource model, produced material shows:
• Silver grades ≈ 40 % higher
• Gold grades ≈ 30 % higher
• 2023 Nazareno Mineral Resource Estimate (effective 24‑Oct‑2023):
• Indicated: 309,877 t; AgEq 257.3 g/t; Ag 214.9 g/t; Au 0.55 g/t; 2,564,000 Oz AgEq
• Inferred: 753,784 t; AgEq 251.5 g/t; Ag 229.2 g/t; Au 0.29 g/t; 6,096,000 Oz AgEq
• Future Development Plan: Blasting sides of existing workings to full vein width, then advancing sill drive in both directions to assess feasibility of long‑hole mining for closely spaced veins.
• Drill Rig Acquisition: Ingertrol Sandy‑50 rig purchased; capabilities:
• 150 m drilling with NWL pipe (47.6 mm core)
• 250 m drilling with BWL pipe (47.6 mm core)
• Portable for underground and surface use; no access road required.
• Capital Analytica Engagement: Marketing & social media services contract dated 29‑Sep‑2025, six‑month term, total fee US$120,000 payable in two tranches; subject to TSX‑V approval.
• Qualified Person: Gregory Smith, P.Geo., Director of Sierra Madre, reviewed and approved technical data.

Notable Quotes

“We are excited to be opening a third mining centre at La Guitarra… Nazareno is expected to be a significant contributor to silver and gold production as we advance our fully funded plant expansion plans, which would more than double capacity from current 500 t/d levels by Q3 2027.” – Alex Langer, President & CEO.