October 10, 2025

Sierra Madre Gold and Silver – Expansion Plans At La Guitarra, Mining Commenced At Nazareno, And Is Ramping Up At Coloso, Exploration Strategy For Future Growth

13 minutes

Alex Langer, President and CEO of Sierra Madre Gold And Silver (TSXV: SM) (OTCQX: SMDRF), joins me to review the details of a planned two-stage expansion at its La Guitarra silver-gold mine complex located in Estado de Mexico, Mexico. Additionally, production is ramping up at the higher-grade Coloso mining center, where dewatering and underground development are underway. Mining has also just commenced at the Nazareno Mine, and ties into the overall expansion plans at the overall La Guitarra mining complex.

Alex discussed how the recent C$19.5 million financing is being deployed in part to purchase additional equipment and implement improvements at the mine to reduce costs and increase production grades and volumes in the near-term. These planned expansions would increase the site's nameplate processing capacity by 50% to a range of 750 dry tonnes per day ("tpd") to 800 tpd by Q2 2026. The site is currently operating at a rate of 500 tpd. This first expansion would involve the construction of a paste fill and thickener plant, the addition of a fourth ball mill and second cone crusher as well as an increase in the conveyor circuit's material handling capacity.

Subsequently, construction of a new, fully permitted, Dry Stack Tailings Storage Facility and addition of a second crushing circuit would increase processing capacity to a range of 1,200 tpd to 1,500 tpd by Q3 2027. The Company currently has access to the capital to complete these expansions, which we anticipate funding from the Company's treasury and cash flow, eliminating the need for further near-term capital raises.

We get into the higher-grade ore which will be sourced from both the Coloso and Nazareno Mines to augment the material from the La Guitarra Mine, and the ramping up of this blended material will raise the grades and recoveries of gold and silver, as well as start lowering costs over the next few quarters.

Wrapping up we discuss the preparations and early targeting work underway to engage in a significant exploration program at the East District concessions, which will include a drill program of over 25,000 meters. The property hosts 8 different past-producing mines, with the first 2 priorities being to explore around the El Rincon and Mina de Agua mines.

If you have any questions for Alex regarding Sierra Madre Gold and Silver, then please email them to me at either [email protected].

In full disclosure, Shad is a shareholder of Sierra Madre Gold and Silver and may choose to buy or sell shares at any time.

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