Sierra Madre Commences Mining at Coloso, Expanding Mining Operations
Sierra Madre Gold and Silver has commenced underground mining operations at the Coloso silver-gold mine, part of the Guitarra Complex in Mexico. The mine, previously operated by First Majestic Silver, features over 12 kilometers of underground workings, enabling a restart 7 months ahead of schedule with minimal pre-production costs.
Mining has begun at the Jessica vein system, starting at 50 tonnes per day with plans to reach 150 tonnes daily by year-end. The Coloso resource shows significantly higher grades compared to Guitarra veins:
- Coloso: 221 g/t silver and 1.61 g/t gold (432,000 indicated tonnes)
- Guitarra: 123 g/t silver and 1.25 g/t gold (1,649,000 indicated tonnes)
The company has hired a metallurgist to optimize the blending ratio of Coloso to Guitarra mill feed for maximum economic benefit. The processing plant continues to operate at 500 tonnes per day, with Coloso material gradually replacing some Guitarra feed.
Sierra Madre Gold and Silver ha avviato le operazioni di estrazione sotterranea presso la miniera d'argento e oro Coloso, parte del Complesso Guitarra in Messico. La miniera, precedentemente gestita da First Majestic Silver, dispone di oltre 12 chilometri di gallerie sotterranee, permettendo una ripresa delle attività con 7 mesi di anticipo rispetto ai tempi previsti e con costi di pre-produzione minimi.
L'estrazione è iniziata nel sistema di vene Jessica, con una produzione iniziale di 50 tonnellate al giorno e l'obiettivo di raggiungere 150 tonnellate giornaliere entro la fine dell'anno. La risorsa Coloso presenta concentrazioni significativamente più elevate rispetto alle vene di Guitarra:
- Coloso: 221 g/t argento e 1,61 g/t oro (432.000 tonnellate indicate)
- Guitarra: 123 g/t argento e 1,25 g/t oro (1.649.000 tonnellate indicate)
L'azienda ha assunto un metallurgista per ottimizzare il rapporto di miscelazione del materiale di Coloso con quello di Guitarra destinato al mulino, al fine di massimizzare i benefici economici. L'impianto di lavorazione continua a operare a 500 tonnellate al giorno, con il materiale di Coloso che sostituisce gradualmente parte del carico di Guitarra.
Sierra Madre Gold and Silver ha iniciado operaciones de minería subterránea en la mina de plata y oro Coloso, parte del Complejo Guitarra en México. La mina, anteriormente operada por First Majestic Silver, cuenta con más de 12 kilómetros de trabajos subterráneos, lo que permitió reanudar la actividad 7 meses antes de lo previsto con costos mínimos de preproducción.
La minería comenzó en el sistema de vetas Jessica, iniciando con 50 toneladas por día y con planes de alcanzar 150 toneladas diarias para fin de año. El recurso Coloso muestra leyes significativamente más altas en comparación con las vetas de Guitarra:
- Coloso: 221 g/t plata y 1.61 g/t oro (432,000 toneladas indicadas)
- Guitarra: 123 g/t plata y 1.25 g/t oro (1,649,000 toneladas indicadas)
La compañía ha contratado a un metalurgista para optimizar la proporción de mezcla del material de Coloso con el de Guitarra para maximizar el beneficio económico. La planta de procesamiento continúa operando a 500 toneladas por día, con el material de Coloso reemplazando gradualmente parte del suministro de Guitarra.
Sierra Madre Gold and Silver는 멕시코의 Guitarra 단지에 위치한 Coloso 은금광에서 지하 채굴 작업을 시작했습니다. 이 광산은 이전에 First Majestic Silver가 운영했으며, 12킬로미터 이상의 지하 갱도로 구성되어 있어 최소한의 사전 생산 비용으로 예정된 시기보다 7개월 앞서 재가동할 수 있었습니다.
채굴은 Jessica 정맥 시스템에서 시작되었으며, 하루 50톤으로 출발해 연말까지 하루 150톤 생산을 목표로 하고 있습니다. Coloso 자원은 Guitarra 정맥에 비해 훨씬 높은 품위를 보입니다:
- Coloso: 은 221 g/t, 금 1.61 g/t (확인된 432,000톤)
- Guitarra: 은 123 g/t, 금 1.25 g/t (확인된 1,649,000톤)
회사는 경제적 이익을 극대화하기 위해 Coloso와 Guitarra 원광의 혼합 비율을 최적화할 금속공학자를 고용했습니다. 가공 공장은 하루 500톤의 처리 능력을 유지하며, Coloso 원광이 점차 Guitarra 원광을 대체하고 있습니다.
Sierra Madre Gold and Silver a lancé les opérations d'exploitation souterraine à la mine d'argent et d'or Coloso, faisant partie du complexe Guitarra au Mexique. La mine, précédemment exploitée par First Majestic Silver, dispose de plus de 12 kilomètres de galeries souterraines, permettant une reprise 7 mois avant le calendrier prévu avec des coûts de préproduction minimaux.
L'exploitation a débuté dans le système de veines Jessica, à raison de 50 tonnes par jour, avec l'objectif d'atteindre 150 tonnes quotidiennes d'ici la fin de l'année. La ressource Coloso présente des teneurs nettement supérieures à celles des veines de Guitarra :
- Coloso : 221 g/t argent et 1,61 g/t or (432 000 tonnes indiquées)
- Guitarra : 123 g/t argent et 1,25 g/t or (1 649 000 tonnes indiquées)
L'entreprise a recruté un métallurgiste pour optimiser le ratio de mélange des matériaux de Coloso et de Guitarra destinés à l'usine de traitement afin de maximiser les bénéfices économiques. L'usine continue de fonctionner à 500 tonnes par jour, le matériau de Coloso remplaçant progressivement une partie de l'alimentation de Guitarra.
Sierra Madre Gold and Silver hat den Untertagebergbau in der Coloso Silber-Gold-Mine begonnen, die zum Guitarra-Komplex in Mexiko gehört. Die Mine, die zuvor von First Majestic Silver betrieben wurde, verfügt über mehr als 12 Kilometer unterirdische Stollen, was einen Neustart 7 Monate früher als geplant mit minimalen Vorproduktionskosten ermöglicht.
Der Abbau hat im Jessica-Adernsystem begonnen, zunächst mit 50 Tonnen pro Tag, mit dem Ziel, bis Jahresende 150 Tonnen täglich zu erreichen. Die Coloso-Ressource weist deutlich höhere Gehalte als die Guitarra-Adern auf:
- Coloso: 221 g/t Silber und 1,61 g/t Gold (432.000 angezeigte Tonnen)
- Guitarra: 123 g/t Silber und 1,25 g/t Gold (1.649.000 angezeigte Tonnen)
Das Unternehmen hat einen Metallurgen eingestellt, um das Mischungsverhältnis von Coloso- zu Guitarra-Mühlenmaterial für maximalen wirtschaftlichen Nutzen zu optimieren. Die Aufbereitungsanlage arbeitet weiterhin mit 500 Tonnen pro Tag, wobei Coloso-Material allmählich einen Teil des Guitarra-Materials ersetzt.
- Early commencement of Coloso mine operations - 7 months ahead of schedule
- Minimal pre-production expenditures required due to existing infrastructure
- Higher grade resources at Coloso: 1.7x higher silver and 1.2x higher gold compared to Guitarra veins
- Coloso indicated resource: 221 g/t silver and 1.61 g/t gold vs Guitarra's 123 g/t silver and 1.25 g/t gold
- Planned production ramp-up from 50 to 150 tonnes per day by year end
- 12 kilometers of existing underground workings reducing development costs
- Current low initial production rate of 50 tonnes per day
- Variable vein widths (less than 1m to over 2m) may impact mining efficiency
- Testing phase needed for optimal blending ratios could affect initial production efficiency
Vancouver, British Columbia--(Newsfile Corp. - April 29, 2025) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce the commencement of underground mining at the Coloso mine, located within the producing Guitarra Complex, State of Mexico, Mexico.
The Coloso silver-gold mine is located 4 kilometers northwest of the Guitarra processing plant. Coloso was developed and mined by First Majestic Silver from 2014 to 2018. The mine has over 12 kilometers of underground workings. This underground development has allowed Sierra Madre to restart the Coloso mine with minimal pre-production expenditures and 7 months ahead of schedule.
Greg Liller, Chief Operating Officer, comments, "This marks another milestone event in the restart of the Guitarra Mine Complex. The Coloso estimated resource grades are on average 1.7 times higher in silver and 1.2 times higher in gold compared to the Guitarra veins. As the widths of the veins vary from less than 1 meter to over 2 meters, ramp up mining will employ various mining methods and blasting techniques to determine the best combination of mining method costs versus grade dilution."
Mr Liller continued, "In conjunction with processing of Coloso material, the company has hired a degreed metallurgist with extensive flotation experience as Process Plant Superintendent. Their goal will be to determine the best ratio of Coloso to Guitarra mill feed material to achieve maximum economic benefit. During the ramp up of Coloso mining, various blending percentages for mill feed will be tested to ascertain best recovery procedures."
Figure 1: Sections of the Coloso Mine
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Mining has started on the Jessica vein system and stope development in the Joya Larga system is underway. Operations have commenced at a rate of 50 tonnes per day of mineralized material, and will ramp up to 150 tonnes per day by year end; these tonnages would replace some of the mill feed currently sourced from the Guitarra mine while the processing plant continues to operate at a rate of 500 t/d.
The average indicated grade of the 2023 Coloso resource estimate is 221 g/t silver and gold 1.61 g/t (432,000 indicated tonnes grading 221 g/t silver and 1.61 g/t gold), compared to the Guitarra vein averages of 123 g/t silver and 1.25 g/t gold (1,649,000 indicated tonnes grading 123 g/t silver and 1.25 g/t gold). Please refer to press release dated December 15, 2023 https://sierramadregoldandsilver.com/read/auto-news-1702685145 and the NI 43-101 La Guitarra Resource Estimate for details).
Notes for Mineral Resource Estimate:
Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition standards were followed for the resource estimate.
The 2023 resource models used nominal cutoff grades which are based on mining and milling costs of US
$50 for cut and fill mining, US$38 per tonne for long-hole,A net payable recovery of
70% (historical plant recovery plus an allowance for smelter deductions, refining costs, and concentrate transportation)Silver price of US
$22 and a gold price of$170 0 and a Gold Silver Ration of 77.27:1.Assays were capped at 825 g/t for silver and 6.55 g/t for gold
Variable cut-off by deposit
Nazareno and Coloso - Block Model 135 AgEq cut-off grade (COG) and a 1 m Minimum True Thickness
Guitarra - Polygonals Estimates 135 g/t AgEq COG and a 1 m Minimum Horizontal Width
Los Angeles - Block Model Long Hole Mining 90 g/t AgEq COG
Mina De Agua - East District Polygonal Estimate 135 g/t AgEq COG or 90 g/t AgEq COG and > 2 m Horizontal Width
The tailings used a 30 g/t AgEq COG.
Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to rounding.
Indicated Resource is 3.84 Mt grading 220 AgEq (146 g/t Ag and 0.96 g/t Au) and Inferred Resource is 4.11 Mt grading 153 AgEq (113 g/t Ag ad 0.52 g/t Au). Numbers may not add due to rounding.
The estimate of mineral resources may be materially affected by: metal prices and exchange rate assumptions; changes in local interpretations of mineralization geometry and continuity; changes to grade capping, density and domain assignments; changes to geotechnical, mining and metallurgical recovery assumptions; ability to maintain environmental and other regulatory permits and ability to maintain the social license to operate
The 2023 resource estimate is prepared by David Thomas P.Geo. and Q.P. and Cristian Garcia P.Eng. and QP, of TechSer in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. David Thomas and Cristian Garcia are independent qualified person ("QP's") as defined by National Instrument 43-101. The technical report titled NI 43-101 - La Guitarra Technical Report, La Guitarra Mineral Resource Estimate, Guitarra Silver-Gold Project, Temascaltepec, Estado de Mexico, Mexico, has been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, and has been filed and is available under the Company's SEDAR+ profile at www.sedarplus.com.
Qualified Person
Mr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.
About Sierra Madre
Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is a precious metals development and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 t/d processing facility that operated until mid-2018 and restarted commercial production in January 2025.
The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.
Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"Alexander Langer"
Alexander Langer
President, Chief Executive Officer and Director
778-820-1189
Cautionary Note Regarding Production Decisions
The Company's decision to place the mine into commercial production, expand a mine, make other production related decisions, or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports from previous operations and the results of test mining and processing. The Company is not basing any production decisions on NI 43-101 compliant reserve estimates, preliminary economic assessments or feasibility studies and, as a result, there is greater risk and uncertainty as to future economic results from the Guitarra Mine Complex, including increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit, and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision.
Cautionary Note Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, statements regarding discussions of future plans, including the expected timing of concentrate shipments; the Company increasing production; the Company receiving revenues on a weekly basis and such revenues allowing the Company to comfortably expand to without further capital needs; production and the expected timing and production levels thereof.
The forward-looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, that predicted production levels will be achieved and that existing production levels will be maintained.
In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will be able to execute its future plans as intended, that predicted production levels will be achieved and that existing production levels will be maintained.
Although management of the Company has attempted identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
SOURCE: Sierra Madre Gold and Silver Ltd.
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FAQ
What are the new mining production targets for Sierra Madre (SMDRF) at Coloso mine in 2025?
How much higher are Coloso mine's silver and gold grades compared to Guitarra veins?
What is the current indicated resource estimate for Sierra Madre's Coloso mine?
Why did Sierra Madre start Coloso mine operations 7 months ahead of schedule?
Which vein systems is Sierra Madre currently mining at Coloso?
