Sierra Madre prepares to begin production at Nazareno
Executive Summary
- Underground development has commenced at the Nazareno silver‑gold mine, with over 700 t of mineralized material already delivered to the Guitarra processing plant.
- The company announced the purchase of a new Ingertrol Sandy 50 drill rig to reduce development costs and enable more efficient underground and surface drilling.
- Sierra Madre engaged Capital Analytica for marketing and social‑media services under a six‑month consulting agreement valued at US$120,000.
Key Details
- Nazareno Development:
- Underground blasting and detailed mapping identified a mineralized zone up to 8 m wide where several silver‑gold veins merge.
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Material delivered from Nazareno shows silver grades ~40 % higher and gold grades ~30 % higher than the 2023 resource model for the surrounding blocks.
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Resource Reconciliation:
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Comparison of production grades versus the 2023 Nazareno resource estimate (see Table 1 in release) indicates a significant uplift in both silver and gold grades.
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Development Plan:
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Initial work will blast sides of existing workings to full width of the zone, then advance sill drives in both directions to assess feasibility of long‑hole mining for closely spaced veins.
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Drill Rig Acquisition:
- Purchased an Ingertrol Sandy 50 drill rig capable of:
- 150 m drilling with NWL pipe (47.6 mm core)
- 250 m drilling with BWL pipe (47.6 mm core)
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Portable for underground and surface use; no access‑road construction required for surface drilling.
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Future Drilling Program:
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Planned drilling of Nazareno veins and central Guitarra area to support mine planning, leveraging the new rig to cut development costs by reducing the need for parallel drives or crosscuts.
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Marketing Services Engagement:
- Triomphe Holdings Ltd., operating as Capital Analytica, engaged under a consulting agreement dated Sept. 29 2025.
- Services: marketing, social‑media, capital‑markets consultation, and engagement reporting.
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Fee: US$120,000 payable in two tranches; six‑month initial term; subject to TSX‑V approval.
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Qualified Person:
- Gregory Smith, P.Geo., director of Sierra Madre, qualified under NI 43‑101, reviewed and approved all technical data disclosed.
Notable Quotes
“We are excited to be opening a third mining centre at La Guitarra… Nazareno will 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, CEO
Materiality Assessment: Non‑Material – Positive** (operational progress and equipment acquisition are material to the company’s development timeline but do not constitute a major financial event or change in outlook).