Sierra Madre Hires Stantec to Review Tailings Deposition Options

Sierra Madre Gold and Silver Ltd. announced on October 17, 2023, that it has contracted Stantec Consulting International LLC to review options for tailings deposition at the 100%-owned, past-producing La Guitarra silver-gold mine complex in Estado de Mexico, Mexico.

The work commenced earlier this month, with results anticipated by the end of the fourth quarter of 2023. Stantec will conduct two studies: the first will evaluate the global stability of the existing permitted tailings storage facility (TSF) to determine its additional capacity if converted to dry stack deposition. The second is a scoping-level study for the layout and capacity of a new TSF within the current environmental impact assessment boundaries.

Dry stack tailings deposition offers environmental advantages, including more efficient process water recovery and reduced footprint compared to conventional wet methods. It also enhances tailings stability and mitigates liquefaction risk during seismic events.

The new TSF at La Guitarra, fully permitted for dry stacking, would have an ultimate capacity of 5.8 million tonnes, in addition to the existing facility. The company aims to reduce capital expenditures required for mine restart. If the existing or a new TSF can be brought online using dry stacking within current permits, Sierra Madre believes the construction of the larger permitted TSF could be financed by future cash flows.