Sierra Madre to Acquire La Guitarra Silver-Gold Mine in Mexico

Sierra Madre Gold and Silver Ltd. has announced an agreement to acquire the La Guitarra silver and gold mine in Mexico from First Majestic Silver Corp. The definitive agreement, signed in May 2022, covers a 39,714-hectare property that includes a former underground mine and processing facility.

The La Guitarra mine, located in the Temascaltepec mining district, ceased operations in August 2018. Historical mineral resource estimates indicate approximately 7.45 million ounces of silver equivalent (AgEq) in measured and indicated resources, and approximately 10.02 million ounces of AgEq in inferred resources. The site also features a 500-tonne per day crushing, grinding, and flotation facility that is fully operational.

Following the transaction, First Majestic Silver Corp. is set to become Sierra Madre's largest shareholder. Sierra Madre plans to restart mining operations and continue exploration on the property, which boasts over 15 kilometers of untested structures.

The company's management has expressed anticipation that the mine will drive significant growth, aiming to position Sierra Madre as a mid-tier precious metals producer. With this acquisition, Sierra Madre now controls three precious metal projects in Mexico: La Guitarra, Tepic, and La Tigra.