Sierra Madre Expands Production Capacity at La Guitarra Mine

Sierra Madre Gold and Silver Ltd. has provided an operational update on the planned two-stage expansion at its La Guitarra silver-gold mine complex. The initial phase of the expansion is designed to increase processing capacity from the current 500 tonnes per day (tpd) to between 750 and 800 tpd. Upgrades to the processing plant, tailings handling, and equipment purchases are currently underway to support this increase.

Following the completion of the first stage, the company plans a second phase intended to raise processing capacity further to a range of 1,200 to 1,500 tpd by the third quarter of 2027. According to the company, the initial expansion is expected to improve operational efficiencies, including the potential for underground tailings deposition and increased equipment availability.

To boost crushing capacity, a new cone crusher has been installed, with initial testing commencing in December 2025. The company is also evaluating options for a second crushed ore storage bin, which could allow for finer grinding and potentially enhanced recoveries.

Earthworks for a tailings thickener tank foundation are nearing completion, with fabrication of the tank and associated components well advanced. The thickener is projected for completion by the end of the second quarter of 2026 and will enable partial deposition of tailings underground, extending the life of the existing tailings impoundment.

For grinding capacity expansion, a used ball mill has been purchased and is undergoing refurbishment. This mill is expected to contribute approximately 600 tpd, bringing the total processing capacity towards the 750-800 tpd target when combined with existing mills. Additionally, Sierra Madre has acquired new mining fleet equipment, including scoop trams and drilling rigs, to improve mine development and material movement.