Sierra Madre sets out expansion plans for La Guitarra

Executive Summary

• Sierra Madre announced a two‑stage expansion of the La Guitarra mine that will raise processing capacity from 500 tpd to 750‑800 tpd by Q2 2026 and to 1,200‑1,500 tpd by Q3 2027.
• The first phase adds a paste‑fill plant, fourth ball mill, second cone crusher and upgraded conveyor system; the second phase adds a new dry‑stack tailings storage facility (5.8 M t capacity) and a second crushing circuit.
• Expansion will be fully self‑funded using cash on hand and proceeds from a $19.5 M private placement closed in July 2025, eliminating the need for additional near‑term capital raises.

Key Details

• Current Capacity: 500 tpd (operating at 516 wet tpd milling, 640 tpd crushing, 1,200 tpd flotation).
• Phase 1 – Q2 2026: Target capacity 750‑800 tpd (≈+50%).
• Construction of paste‑fill plant to divert ~300 tpd of tailings into underground storage.
• Installation of a fourth ball mill (oversized for future Phase 2).
• Addition of a second cone crusher and upgraded conveyor material‑handling capacity.
• Equipment deliveries slated for November 2025.
• Phase 2 – Q3 2027: Target capacity 1,200‑1,500 tpd.
• Build new fully permitted dry‑stack tailings storage facility (5.8 M t capacity).
• Add a second crushing circuit and replace the smaller ball mill with larger unit.
• Crusher feed size reduced to ¼ in (from 3/8 in) to produce finer product, improving recoveries.
• Financing: Expansion will be funded from treasury cash flow and the $19.5 M private placement closed July 2025; no additional capital raises anticipated.
• Permitting: No new permits required for Phase 1; Phase 2 tailings facility is already fully permitted.
• Operational Impact: Planned downtime periods during construction; recent 36‑hour plant outage for tailings pump upgrade demonstrates ability to limit disruptions.

Notable Quotes

“With commercial production achieved at La Guitarra only nine months ago, we are excited to be planning our next two major milestones… Once all production expansions are fully operational, these two staged expansions would allow us to more than double throughputs from current levels, while also driving cost savings from realized economies of scale.” – Alex Langer, CEO

“This staged expansion does not require any additional permits… equipment deliveries expected in November 2025 for the first phase. We expect to complete this expansion on time and on budget.” – Greg Liller, COO & Executive Chairman