Sierra Madre Declares Industrial Production at Guitarra Mine Processing Plant

Sierra Madre Gold and Silver Ltd. has announced the commencement of industrial production at its Guitarra mine processing plant in Estado de Mexico, Mexico. The plant has operated for the past two months at 86% of its nameplate milling circuit capacity, processing 516 wet metric tonnes per day. This performance exceeds the engineering standard of 80% capacity for 30 consecutive days, a prerequisite for declaring industrial commercial production.

Production figures for the two-month period show that in October, 13,208 wet tonnes of vein material were processed, yielding 296.84 dry tonnes of concentrate containing 21,186 ounces of silver and 295.3 ounces of gold. In November, 13,064 wet tonnes were processed, producing 317.7 dry tonnes of concentrate with 22,917 ounces of silver and 363.3 ounces of gold.

CEO Alexander Langer stated that the company's focus since acquiring La Guitarra in spring 2023 was to restart production. He noted that reaching industrial production at the processing plant, on budget and over six months ahead of initial guidance, represents a major milestone. This transition marks Sierra Madre's shift from an exploration and development company to achieving processing plant output.

Combined, 17 truckloads of concentrate, totaling 546.2 dry tonnes, were sold in October and November. During November, 11 stopes were in production, with three located on new vein discoveries outside the 2023 resource estimate. The company aims for full commercial production from underground operations by December 31, 2024.

Sierra Madre also announced the granting of stock options to two new employees for 300,000 common shares at $0.50 per share, subject to regulatory approval.