Sierra Madre gains Tlacotal land use approval

Executive Summary

• Sierra Madre Gold and Silver Ltd. has secured federal land use authorization (Cambia de Suelos) for its Tlacotal property, allowing the conversion of 34.7 hectares from agriculture/forestry to mining status.
• The company executed land purchase agreements and options to acquire adjacent private lands, including the "Lopez extension" (33.1 hectares) surrounding the current tailings facility, to facilitate future expansion and permitting.
• These developments support the company's vision of building a production center in the East district, with drilling scheduled to commence in the second half of 2026.

Key Details

• Tlacotal Land Use Authorization:

  • Received federal approval for a change of land use status (CUS) for a 34.7-hectare area.
  • Status changed from agriculture/forestry to mining.
  • Land secured via a 30-year lease with an option to purchase upon receipt of ownership transfer documentation.
  • Strategic Use: Serves as a staging area for East district exploration and is positioned for future mine development and support facilities for the Mina de Aqua -- Santa Ana vein deposit.
  • Geological Context: The area is ideal for developing potential production crosscuts to the Magdalena-Candaleria system (a Spanish Colonial production center) and other veins like Quabradeas.
  • Resource Data: Reference made to the 2023 National Instrument 43-101 resource estimation for the Santa Ana vein in the East district (Table 1 referenced in original text).

• Lopez Extension (Tailings Facility Expansion):

  • Executed an option to purchase private lands southwest of the current tailings impoundment facility (TFS) and lands under the current TFS.
  • Lease agreement for private land beneath the current TFS extended for an additional 30 years.
  • Expansion Plans: Exploring permitting for an expansion of the current TFS in the area between the active tailings area and the utility easement.
  • Site Optimization: The area southeast of the utility easement is being evaluated for use as the main security entrance and employee parking, freeing up space adjacent to operational facilities.

• Operational Outlook:

  • Drilling is on schedule to start in the second half of 2026.
  • Planned drilling volume: 20,000 to 25,000 metres.

Notable Quotes

• Alex Langer, CEO: "Receiving authorization for the Tlacotal land use change provides us with optionality for future mine development pathways in the East district. The land purchase agreements over the Lopez expansion area are also conductive to starting a permitting process for an expansion of the current tailings facility."
• Greg Liller, COO and Chair: "We are very pleased with the land use authorization and expanded landholdings. These two milestones support the vision of building out a production centre at the East district concessions. Drilling is on schedule to start in the second half of 2026 with 20,000 to 25,000 metres planned."