Sierra Madre Provides Update on Production Expansion and Equipment Purchases at La Guitarra
Execution Phase Begins: Sierra Madre Deploys Capital for Aggressive Production Ramp-up
The most recent news release (February 17, 2026) provides an operational update on the two-stage expansion at the La Guitarra silver-gold mine in Mexico. Stage 1 is currently underway, aiming to increase processing capacity from 500 tonnes per day (tpd) to 750–800 tpd. Stage 2, which involves a second crushing circuit and a new dry stack tailings facility, is targeted to reach 1,200–1,500 tpd by Q3 2027. The company confirmed the purchase of underground mining equipment and haulage trucks, and the refurbishment of a fourth ball mill. Additionally, 1,000,000 stock options were granted to employees and consultants at an exercise price of $2.18 CAD.
The news is Material - Positive as it demonstrates the company is immediately deploying the $57.5 million CAD raised in January 2026 to fulfill its growth promises. - Operational Scaling: Moving from 500 tpd to 1,500 tpd represents a 200% increase in throughput. If grades remain consistent with the 2025 production results (approx. 150k–170k AgEq oz per quarter at 500 tpd), this expansion could eventually push the company toward a run rate of over 1.5 million AgEq ounces annually. - Efficiency Gains: The installation of a tailings thickener and the ability to deposit tailings underground (paste fill) are critical for environmental compliance and extending the life of current tailings storage facilities, which were previously estimated to reach capacity by September 2027. - Validation: The news confirms that the "test mining" phase of 2024 is long over, and the company is now a serious mid-tier producer in the making.
Sierra Madre Gold and Silver is a Mexico-focused producer. Its flagship is the La Guitarra Mine Complex in the Temascaltepec District. - La Guitarra: A past-producing mine acquired from First Majestic in 2023. It features a 500 tpd plant (currently being expanded) and extensive underground workings. - Del Toro: Recently acquired from First Majestic (Jan 2026); a care-and-maintenance asset with a 3,000 tpd plant and significant historical resources, targeted for a 2028 production restart.