SIERRA MADRE GOLD SILVER - SMDRF STOCK NEWS

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.

Sierra Madre Gold and Silver (TSXV: SM) (OTCQX: SMDRF) has received regulatory approval from SEMARNAT for significant modifications at its Guitarra Mine in Mexico.

This includes dry stack tailings deposition, construction of a tailings filter plant, paste backfill using tailings in the underground mine, and 58 surface drilling pads. The approval facilitates transitioning to more environmentally friendly tailings management, potentially enhancing water recycling and storage capacity. High-level studies suggest TSF 1-3 may have a dry stack capacity of at least 500,000 tonnes. Additional geotechnical drilling will be conducted to finalize design work. The paste backfill system will improve mine stability and reduce acid generation risks. Surface drilling approvals will allow exploration of historically untested vein systems.

Sierra Madre Gold and Silver announced the appointment of Jose Francisco Correa Robles as General Manager of the La Guitarra Silver-Gold Mine and Mill Complex in Estado de Mexico, Mexico. Correa, who has over 23 years of experience in underground mining, has previously worked with Minera Frisco, LuisMin, Genco Resources, Farallon, Silvermex, and First Majestic Silver Corp. He has a strong connection with La Guitarra, having held various roles including General Manager in 2013 and 2015. Additionally, the company has issued stock options to 60 employees, directors, and consultants, granting the purchase of 7,350,000 common shares at $0.50 per share over a five-year period. An additional 225,000 shares were granted to a consultant for a two-year period. These options are subject to acceptance by the TSX Venture Exchange.

Sierra Madre Gold and Silver announced a US$5 million loan from First Majestic Silver Corp. to finalize preparations at the La Guitarra Silver-Gold Mine Complex in Mexico. The loan will be used for equipment upgrades, facility repairs, staffing, and underground development. The Company's President and CEO expressed gratitude for the non-equity, non-dilutive financing from First Majestic.