Welcome to our dedicated page for Sierra Madre Gol news (Ticker: SMDRF), a resource for investors and traders seeking the latest updates and insights on Sierra Madre Gol stock.
Company Overview
Sierra Madre Gold and Silver Ltd (SMDRF) is a precious metals development and exploration company focused on the reactivation of its 100% owned La Guitarra Mine Complex in the Temascaltepec mining district of Mexico. As a company with deep industry expertise, Sierra Madre harnesses a blend of operational experience and strategic capital management to bridge the gap between historical production and renewed commercial output. Employing technical refinements in its process operations, the Company integrates industry-specific innovations such as dry stack tailings and paste backfill methods, which not only enhance mining efficiency but also reflect its commitment to using modern, responsible techniques.
Operational Strategy
The core operations of Sierra Madre center around the La Guitarra Mine, a previously operational underground mine that is currently undergoing extensive refurbishment and testing phases. The facility, which includes a processing plant designed for a throughput approaching 500 wet metric tonnes per day, is being systematically advanced through test mining and processing regimes. The Company utilizes a spectrum of techniques such as long-hole, shrinkage, and cut-and-fill mining, underscoring its methodological diversity to optimize ore recovery. In parallel, the exploration and development of additional properties in the region, including the Tepic property in Nayarit, amplify its resource base and diversify its mining potential.
Financing and Strategic Partnerships
Sierra Madre’s financial strategy reflects a prudent and innovative approach to capital management. The Company has structured non-dilutive financing arrangements, including private placements and secured term loans, which have provided the necessary funds for equipment upgrades, facility enhancements, and operational restarts at La Guitarra. In addition, an off-take agreement with an established global minerals trader ensures that the harvesting of silver and gold concentrates is backed by a reliable market framework, supporting stable revenue inflows. This strategic financial positioning is reinforced by historical success in raising significant capital, underpinned by a management team with extensive experience in the precious metals industry.
Technological and Operational Enhancements
One of the Company’s distinguishing features is its adaptability in integrating advanced mining methodologies with legacy mining operations. Key process improvements, such as the transition from conventional tailings deposition to modern dry stack tailings, not only reduce capital expenditure in the near term but also result in enhanced water recycling and environmental safety. Additionally, operational enhancements such as mill reline upgrades, the rebuilding of critical equipment, and ongoing test mining have all contributed to a robust operational framework. These adjustments facilitate a seamless move into full commercial production, with a consistent emphasis on operational safety and efficiency.
Management and Industry Expertise
Sierra Madre’s management team comprises seasoned professionals with a combined track record of overseeing considerable precious metals resources. With roles ranging from underground operations and engineering to strategic financing, this team has played pivotal roles in managing exploration and development projects that collectively represent tens of millions of ounces in gold and silver. Their long-standing experience, particularly in managing legacy mines through modern transitions, provides the company with unparalleled operational insight and a competitive edge in the market.
Competitive Landscape and Market Position
Positioned within the dynamic precious metals sector, Sierra Madre distinguishes itself through its focused approach on revitalizing a past-producing asset. While the industry includes several major players and a range of diversified mining operations, Sierra Madre’s concentrated asset focus, backed by targeted capital strategies and technological enhancements, allows it to navigate the challenges inherent in restarting large-scale operations. The Company’s comprehensive strategy—combining robust operational planning, strategic financing, and experienced management—places it in a distinct niche within the competitive landscape, making it a subject of interest for industry analysts and market researchers.
Conclusion
Overall, Sierra Madre Gold and Silver Ltd exemplifies a rare blend of historical legacy and modern operational dynamism. Its commitment to operational excellence, strategic financial management, and technical innovation makes it a compelling case study within the mining sector. For stakeholders seeking an in-depth understanding of a company that is methodically positioned to transition from development to commercial production, Sierra Madre offers a detailed narrative supported by industry-tested processes and veteran management.
Sierra Madre Gold and Silver (SMDRF) has reported its FY 2024 financial results, generating $6.5 million in revenues from the Guitarra Mine Complex in Mexico. The company achieved commercial production on January 1, 2025, following a six-month test mining program.
Q4 2024 highlights include $3.9 million in revenues, up from $2.5 million in Q3, with a minimal net loss of $38,000. The company recorded silver revenues of $1.9 million ($31.58/oz) and gold revenues of $2.4 million ($2,667/oz). Cost of sales was $5.1 million for the six-month period, with gross profit reaching $1.36 million for FY 2024.
Operational achievements include processing 38,464 DMT in Q4, with silver recoveries of 79% and gold recoveries of 84%. The company completed concentrate deliveries totaling 795 DMT in Q4, containing approximately 59,178 ounces of silver and 897 ounces of gold.
Sierra Madre Gold and Silver has announced record production figures from its Guitarra Mine Complex for January 2025, marking its first month of full commercial production. The facility is operating at its current capacity of 500 wet metric tonnes per day.
Key production metrics for January 2025 include:
- 349.48 dry metric tonnes of concentrate shipped
- 45.81 tonnes of concentrate in inventory
- Provisional weighted average silver grade of 2,429 grams per tonne
- Average gold grade of 32.124 grams per tonne
The company plans to release year-end financials in April 2025 and Q1 2025 interim financials in May 2025, which will reflect their first quarter of commercial production.
Sierra Madre Gold and Silver (OTCQX: SMDRF) has announced achieving full commercial production at its 100% owned Guitarra Mine Complex in Mexico, effective January 1, 2025. The operation has maintained a consistent capacity of 500 wet metric tonnes per day for 90 consecutive days.
During the 2024 test mining phase, the company shipped 1,292.5 dry metric tonnes of concentrate, with an additional 94.6 tonnes in inventory as of December 31, 2024. The provisional weighted average grades for the 2024 concentrate shipments were 2,594.2 grams per tonne silver and 34.93 grams per tonne gold.
The company reports successful equipment repairs and rebuilding, completed under budget and ahead of schedule, enabling an early restart. Management highlights the establishment of safe, efficient operating procedures and a cost-conscious culture as positive indicators for future operations.
Sierra Madre Gold and Silver has announced the commencement of industrial production at its Guitarra mine processing plant in Mexico. The plant has operated at 86% of milling capacity (516 wet metric tonnes daily) for two months, surpassing the 80% engineering standard required for industrial production declaration.
Production highlights include: October - 13,208 wet tonnes processed, yielding 296.84 dry tonnes of concentrate (21,186 oz silver, 295.3 oz gold); November - 13,064 wet tonnes processed, yielding 317.7 dry tonnes of concentrate (22,917 oz silver, 363.3 oz gold). The company sold 17 truckloads totaling 546.2 dry tonnes of concentrate across both months.
The mine currently operates 11 stopes, including three new vein discoveries outside the 2023 NI 43-101 resource estimation. The company aims to achieve full commercial underground production by December 31, 2024.
Sierra Madre Gold and Silver reports significant progress at its La Guitarra silver-gold mine complex in Mexico. Test mining and processing operations, which began on June 25th, 2024, have achieved daily throughput up to 504 wet metric tonnes per day, with an October average of 428 WMT/d. The company has processed 39,272 tonnes of mineralized material, producing 690.44 dry metric tonnes of concentrate with average grades of 2,903 g/t silver and 34.74 g/t gold. Silver recoveries average 78%, while gold recoveries improved from 74% in June to 87% in October. Commercial production is expected to begin by year-end. A new development plan aims to reduce reliance on oxidized retaques, and a new vein (D-2) has been discovered outside the 2023 resource estimation.
Sierra Madre Gold and Silver (TSXV: SM) (OTCQX: SMDRF) has announced revenues exceeding US$2.4 million from its test mining and milling phase at the La Guitarra mine complex. The company has achieved an average daily throughput of 350 tonnes of economically interesting silver and gold mineralization over the past 30 days.
Since June 25th, 2024, the company has processed a total of 27,990 tonnes of material. Eight shipments totaling 466 dry metric tonnes of silver-gold concentrate have been delivered to MRI Trading. Provisional payment grades for the concentrate range from 2,752 g/t to 3,442 g/t silver and 28.65 to 38.45 g/t gold.
Sierra Madre's next goals include increasing production to 400 tonnes per day, followed by commercial production of 500 tonnes per day before the end of the year.
Sierra Madre Gold and Silver (TSXV: SM) (OTCQX: SMDRF) has provided a positive update on test mining and processing at the Guitarra mine complex. Since June 25, 2024, the flotation plant has been in continuous daily operation, processing 20,401 tonnes of silver and gold mineralized material at an average rate of 300 tonnes per day. The company has delivered five shipments totaling 335 dry metric tonnes of silver-gold concentrate to MRI Trading AG under a 24-month contract.
Provisional payment grades for the concentrate ranged from 2,752 g/t to 3,442 g/t silver and 28.6 to 36 g/t gold. The company has transitioned from development mineralization to in situ mined material from long hole and shrinkage stopes, as well as increased production of backfill material from previously mined stopes. Sierra Madre aims to reach a sustained production rate of 350 tonnes per day, with plans to increase to 410 tonnes per day and ultimately achieve a commercial rate of 500 tonnes per day before year-end.
Sierra Madre Gold and Silver (TSXV: SM) (OTCQX: SMDRF) has announced its first shipment of silver and gold concentrates from the 100% owned Guitarra Mine Complex in Mexico. On July 25, 2024, the company shipped 90.68 dry metric tonnes (DMT) containing approximately 3,000 grams of silver and 30 grams of gold per DMT. An additional 90 DMT is expected to ship later this week.
The company aims to increase production to 500 tonnes per day (TPD) of throughput, targeting about 350 DMT of silver-gold concentrate production per month by year-end. CEO Alex Langer stated that this milestone marks the start of weekly cashflows from concentrate, which should allow for expansion to commercial production without further capital needs.
Sierra Madre Gold and Silver (TSXV: SM) (OTCQX: SMDRF) has commenced test mining and processing at the Guitarra Mine Complex in Mexico. The flotation plant has processed 5,698 dry tonnes of mineralized material, averaging 259 dry tonnes per day. The company projects to reach full commercial production of 500 tpd in Q4 2024, an accelerated timeline.
The mine currently employs 188 people, mostly from the local community. The flotation plant operates 24/7 with three ball mills of varying capacities. The company has rebuilt and purchased new mining equipment, achieving 88% equipment availability. Sierra Madre is using long hole and shrinkage mining techniques, with plans to begin cut-and-fill operations soon.
Sierra Madre Gold and Silver (TSXV: SM) (OTCQX: SMDRF) has signed a binding off-take agreement with MRI Trading AG for 100% of concentrate sales from the La Guitarra silver-gold mine in Mexico. The agreement spans a 24-month term, aligning with the recently executed US$5 million loan facility from First Majestic Silver Corp.
CEO Alex Langer highlighted that MRI, having previously received concentrate from La Guitarra until 2018, understands the material's high quality. This agreement marks a crucial step towards a potential restart of the La Guitarra mine, following extensive interest and multiple offers from various parties.
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