Sierra Madre Onsite Power Generation Fully Functional at La Guitarra
Sierra Madre’s backup power fixes recovered 278 lost hours, yet shares remain half their January high.
Sierra Madre Gold and Silver Ltd. announced on September 10, 2026, that the twin 1,500 kW diesel-electric generators at La Guitarra are installed, tested, and fully functional at manufacturer design levels. These generators are part of the backup power plan previously disclosed on August 27, 2026, which also includes a 1,250 kW diesel generator for the Coloso and Nazareno areas.
Management disclosed 278 hours of grid-power downtime at La Guitarra between January and August 2026, equivalent to more than 11 days of lost production. The company expects the new backup capacity to eliminate future lost production revenue and associated downtime personnel and operating costs.
The release also discloses a US$250,000 two-month marketing and investor awareness agreement with New Era Publishing Inc. and the grant of 350,000 stock options at $1.56. No new production, cost, revenue, grade, reserve, or financing figures were provided beyond the downtime hours and infrastructure completion.
Sierra Madre Gold and Silver Ltd. (SM) has completed an operational infrastructure milestone with the installation of backup power, a development that confirms details previously telegraphed in the company’s August 27, 2026 release and MD&A outlook. The event does not constitute an earnings, financing, reserve, or production-guidance update.
The company experienced a production halt lasting 278 hours, or approximately 11.6 days. Based on a processing rate of 500 tonnes per day and a Q2 revenue of about $198 per tonne processed, the lost production implies revenue losses in the low millions annually. However, the company did not quantify recoverable revenue, noting that prior six-month revenue stood at $18.34 million.
Financially, the company entered into a US$250,000 marketing agreement, a figure considered minor relative to its cash position of $22.2 million and a market capitalization of C$431 million. Additionally, the issuance of 350,000 options at $1.56 represents approximately 0.13% of outstanding shares and is deemed immaterial. The release does not alter production, cost, balance-sheet, or valuation expectations.
Sierra Madre Gold and Silver Ltd. is a Mexico-focused silver and gold producer and explorer trading on the TSXV and OTCQX. The company’s La Guitarra mine complex, located in the State of Mexico, is a permitted underground mine with a 500 tpd processing facility that restarted commercial production in January 2025. La Guitarra is being expanded to 750-800 tpd in Phase I and 1,200-1,500 tpd in Phase II.
The company also holds the Del Toro silver mine in Zacatecas, which was acquired from First Majestic in June 2026. The fully permitted, past-producing asset features a 3,000 tpd flotation circuit, three underground mining centres, and substantial existing underground development. Additionally, Sierra Madre Gold and Silver Ltd. manages the Tepic Project in Nayarit, an exploration-stage gold-silver project with an existing historic resource. Management includes CEO Alex Langer, Executive Chairman and COO Greg Liller, CFO Ken Scott, and QP Greg Smith.