Sierra Madre Receives Permit to Start East District Exploration Drilling
Sierra Madre acquires Del Toro and secures an East District drilling permit to advance its next exploration phase.
Sierra Madre Gold and Silver Ltd. has received approval from SEMARNAT, the Mexican federal environmental agency, to begin exploration drilling in the East District of its Guitarra Mine complex. This approval marks the start of Phase 1 of a fully budgeted 30,000-meter drill program.
Operations will utilize 22 permitted drill pads, with contractor selection and drilling expected to commence within 60 days. The program targets up to 30 mapped vein systems, identified through new 3D structural modeling and historic data. Initial drilling will focus on the Tlacotal area, including sub-horizontal holes targeting the Magdalena and Los Locos vein systems, with separate plans for the Rincon, Inca, and La Palma areas.
The 2023 NI 43-101 report previously estimated East District exploration potential at 0.77 to 1.54 million tonnes grading 2.4 to 3.6 g/t gold and 440 to 670 g/t silver.
Sierra Madre Gold and Silver Ltd. (SM) has reached a procedural regulatory milestone that confirms a previously announced and fully budgeted exploration program. This development does not alter near-term production, costs, or cash flow. The market has already priced in the Del Toro acquisition, which closed on June 22, and the full debt repayment announced on July 9.
The stock has retraced approximately 25% from its May 19 earnings release price of $1.89 to $1.42, suggesting the market is waiting for Del Toro restart catalysts and drill results rather than reacting to this permit.
Sierra Madre Gold and Silver Ltd. is a producing precious metals company focused on building a mid-tier silver portfolio in Mexico. Its La Guitarra Mine Complex, located in Temascaltepec, Estado de Mexico, is a fully permitted underground mine featuring a 500 tpd processing facility. Commercial production at the complex, which includes the Coloso and Nazareno underground centers, restarted in January 2025.
The company also holds the Del Toro Silver Mine in the Chalchihuites District of Zacatecas, which it acquired from First Majestic in June 2026. This fully permitted underground complex includes a 3,000 tpd flotation plant and a dry-stack tailings facility. The mine is currently in care and maintenance, with a restart targeted for mid-2027. Additionally, Sierra Madre Gold and Silver Ltd. holds the Tepic Project in Nayarit, an exploration-stage property known for high-grade silver-gold intersections.