Sierra Madre Commences 30,000 Metre Drill Program in the East District of La Guitarra
Sierra Madre initiates a 30,000-metre drill program at the La Guitarra East District deposit.
Sierra Madre Gold and Silver Ltd. has launched a fully budgeted 30,000-meter drilling program at the East District of its La Guitarra mine complex in Mexico. The initiative targets historic vein systems, specifically Magdalena and Los Locos, utilizing a specialized sub-horizontal rig. The first phase includes 11 initial holes, each projected to exceed 1,000 meters in depth.
Operational improvements at the mine have accelerated progress toward expansion goals. Mill throughput for October 2026 averaged 751 tonnes per day (tpd), marking a 50% increase over the previous 500 tpd nameplate capacity. This performance meets Phase 1 expansion targets ahead of schedule. To support Phase 2 capacity targets of 1,200–1,500 tpd, the company confirmed the installation of a new 11-by-12 ball mill, with commissioning expected in November 2026.
Infrastructure development continues with the commencement of groundwork on a permitted dry stack tailings facility expansion. Contractor mobilization for the project is scheduled for November 2026.
Sierra Madre Gold and Silver Ltd. (SM) has achieved an expected operational milestone with the completion of its 30,000-meter drill program. The initiative was fully budgeted and received SEMARNAT approval in July 2026, with details telegraphed in prior releases.
The company met Phase 1 throughput targets ahead of schedule, demonstrating execution capability. The stock declined from approximately $1.73 at the prior earnings release on August 27, 2026, to $1.33, a move that reflected market pricing for cost inflation and dilution associated with the Del Toro acquisition.
Sierra Madre Gold and Silver Ltd. (SM) operates the La Guitarra silver-gold mine complex in the State of Mexico, which is currently in production. The company acquired the Del Toro silver mine from First Majestic Silver in June 2026; the asset is currently on care and maintenance with a planned restart in mid-2027. Additionally, the Tepic project in Nayarit, Mexico, remains in the exploration stage.
La Guitarra is divided into the West District, comprising the Guitarra, Coloso, and Nazareno assets, and the East District, which includes Mina de Agua, El Rincón, Los Locos, Tlacotal, and Magdalena.