Alex Langer, President and CEO of Sierra Madre Gold And Silver (TSXV: SM) (OTCQX: SMDRF), joins us for an introduction to this brand new precious metals producer, currently ramping up towards commercial production by year-end, at the La Guitarra Mine, in Mexico. The La Guitarra Mine complex is a permitted, past-producing underground mine, which includes a 500 t/d processing facility that operated until mid-2018; which was purchased from First Majestic Silver (TSX: AG) (NYSE: AG) in 2023, and just went into test mining on June 25th of this year.
The Company announced on September 24th, that it has generated in excess of $2.4 million in revenues since the commencement of the test mining and milling phase at the Guitarra mine complex. Daily throughput rates of economically interesting silver and gold mineralization have averaged 350 tonnes per day (TPD) over the past 30 days. Alex shares with us that the plan is to incrementally move it up to 400 TPD next month, and then up to 500 TPD by year-end, where commercial production can be declared. He also shares the pathway forward to growth where after a full year of 500 TPD production slated for 2025, that there process to grow the mill throughput to 650 TPD in 2026, and then all the way up to 1,000+ TPD by the end of 2027.
Next we got into the larger growth vision of the company, as it will turn it’s it focus to exploring this district scale land package the end of next year, funded through organically generated revenues. 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. Additionally, there is a non-compliant 17 million ounce historic resource at the Nazareno Mine, and also solid underground infrastructure at the nearby Coloso Mine, that First Majestic had put quite a bit of sunk cost into already that will be an area of future expansion.
We wrap up discussing the benefits of having First Majestic as a key 44.9% stakeholder, where they have provided data, employees, and a small loan to the Company at favorable terms. Management and insiders hold a heavier 24.8% stake in the company, with no outstanding warrants, and with several key members of the management team that have worked at and operated the La Guitarra mine in the past.
If you have any questions for Alex regarding Sierra Madre Gold and Silver, then please email us at either Shad@kereport.com or Fleck@kereport.com.
- In full disclosure, Shad is a shareholder of Sierra Madre Gold & Silver at the time of this recording.
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