Sierra Madre Files NI 43-101 Technical Report on Updated Mineral Resource Estimate for La Guitarra
VANCOUVER, December 15, 2023 - Sierra Madre Gold and Silver Ltd. (TSXV:SM),(OTCQX:SMDRF) ("Sierra Madre" or the "Company") has filed a technical report, prepared in accordance with the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") for its La Guitarra silver-gold mine and the Temascaltepec mining district ("La Guitarra") in Estado de Mexico, Mexico. Sierra Madre previously released the results of the Mineral Resource Estimate (the "MRE") on November 1, 2023. The technical report is available on SEDAR+ under the Company's profile at www.sedarplus.com and on the Company's website at www.sierramadregoldandsilver.com TechSer Mining Consultants Ltd. ("TechSer") of Vancouver B.C. prepared the Mineral Resource Estimate, David Thomas, P.Geo. and QP Geology and Cristian Garcia, P.Eng. and QP Mining.
Key Highlights of the MRE include:
- 373% increase to 27.2M oz Silver Equivalent ("AgEq") Indicated Resource
- 204% increase to 20.2M oz AgEq Inferred Resource
The following tabulates the La Guitarra estimated Mineral Resources.
Table 1: Summary La Guitarra 2023 Mineral Resource Estimate, David G. Thomas P. Geo (Effective Date: October 24, 2023)
| Class | Tonnes | AgEq (g/t) | Ag (g/t) | Au (g/t) | AgEq Ozs | Ag Ozs | Au Ozs |
| Indicated | 3,842,000 | 220 | 146 | 0.96 | 27,207,000 | 18,073,000 | 118,000 |
| Inferred | 4,105,000 | 153 | 113 | 0.52 | 20,199,000 | 14,937,000 | 68,000 |
- See notes following Table 3
The following tabulates the Mineral Resource Estimates by Classification and Area.
Table 2: Indicated Mineral Resource Estimate
| Area | Tonnes | AgEq (g/t) | Ag (g/t) | Au (g/t) | AgEq Ozs | Ag Ozs | Au Ozs |
| Nazareno | 310,000 | 257 | 215 | 0.55 | 2,564,000 | 2,141,000 | 5,000 |
| Coloso | 432,000 | 346 | 221 | 1.61 | 4,806,000 | 3,071,000 | 22,000 |
| Guitarra | 1,649,000 | 220 | 123 | 1.25 | 11,664,000 | 6,544,000 | 66,000 |
| Sub-Total | 2,391,000 | 248 | 153 | 1.22 | 19,034,000 | 11,756,000 | 93,000 |
| Los Angeles | 690,000 | 177 | 109 | 0.87 | 3,919,000 | 2,419,000 | 19,000 |
| Mina De Agua | 761,000 | 174 | 159 | 0.19 | 4,255,000 | 3,899,000 | 5,000 |
| Total Indicated | 3,842,000 | 220 | 146 | 0.96 | 27,208,000 | 18,074,000 | 117,000 |
Table 3: Inferred Mineral Resource Estimate
| Area | Tonnes | AgEq (g/t) | Ag (g/t) | Au (g/t) | AgEq Ozs | Ag Ozs | Au Ozs |
| Nazareno | 754,000 | 252 | 229 | 0.29 | 6,096,000 | 5,554,000 | 7,000 |
| Coloso | 374,000 | 317 | 213 | 1.34 | 3,810,000 | 2,565,000 | 16,000 |
| Guitarra | 293,000 | 180 | 113 | 0.87 | 1,690,000 | 1,059,000 | 8,000 |
| Sub-Total | 1,421,000 | 254 | 201 | 0.68 | 11,596,000 | 9,178,000 | 31,000 |
| Los Angeles | 66,000 | 157 | 76 | 1.05 | 333,000 | 161,000 | 2,000 |
| Mina De Agua | 545,000 | 188 | 178 | 0.13 | 3,301,000 | 3,120,000 | 2,000 |
| Subtotal UG Mine | 2,032,000 | 233 | 191 | 0.55 | 15,230,000 | 12,459,000 | 35,000 |
| Inferred Tailings | 2,073,000 | 75 | 37 | 0.48 | 4,968,000 | 2,475,000 | 32,000 |
| Total Inferred | 4,105,000 | 153 | 113 | 0.52 | 20,198,000 | 14,934,000 | 67,000 |
(1) Notes for Mineral Resource Estimate:
- Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition standards were followed for the resource estimate.
- The 2023 resource models used nominal cutoff grades which are based on mining and milling costs of US$50 for cut and fill mining, US$38 per tonne for long-hole,
- A net payable recovery of 70% (historical plant recovery plus an allowance for smelter deductions, refining costs, and concentrate transportation)
- Silver price of US$22 and a gold price of $1700 and a Gold Silver Ration of 77.27:1.
- Assays were capped at 825 g/t for silver and 6.55 g/t for gold
- Variable cut-off by deposit
- Nazareno and Coloso - Block Model 135 AgEq cut-off grade (COG) and a 1 m Minimum True Thickness
- Guitarra - Polygonals Estimates 135 g/t AgEq COG and a 1 m Minimum Horizontal Width
- Los Angeles - Block Model Long Hole Mining 90 g/t AgEq COG
- Mina De Agua - East District Polygonal Estimate 135 g/t AgEq COG or 90 g/t AgEq COG and > 2 m Horizontal Width
- The tailings used a 30 g/t AgEq COG.
- Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to rounding.
- Numbers may not add due to rounding.
- The estimate of mineral resources may be materially affected by: metal prices and exchange rate assumptions; changes in local interpretations of mineralization geometry and continuity; changes to grade capping, density and domain assignments; changes to geotechnical, mining and metallurgical recovery assumptions; ability to maintain environmental and other regulatory permits and ability to maintain the social license to operate
- The 2023 resource estimate is prepared by David Thomas P.Geo. and Q.P. and Cristian Garcia P.Eng. and QP, of TechSer in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. David Thomas and Cristian Garcia are independent qualified person ("QP's") as defined by National Instrument 43-101. A full technical report, has been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, and has been filed and is available under the Company's SEDAR+ profile at www.sedarplus.com within 45 days of this news release.
Qualified PersonMr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.
About Sierra Madre
Sierra Madre Gold & Silver (TSXV:SM),(OTCQX:SMDRF) is a precious metals development and exploration company, focused on evaluating the potential of restarting the La Guitarra Mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic and La Tigra properties in Nayarit, Mexico. The La Guitarra Mine is a permitted, past-producing underground mine which includes a 500 t/d processing facility that operated until mid-2018.
The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource. La Tigra, located 148 km north of Tepic, has been mined historically; Sierra Madre´s maiden 2022 drill program at the site intercepted shallow mineralization.
Sierra Madre´s management has played key roles for managing exploration and development of more than 22Moz gold and 600Moz silver in combined reserves and resources. Sierra Madre´s team of professionals has collectively raised over $1B for mining companies.
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"Alexander Langer"
Alexander Langer
President, Chief Executive Officer and Director
1-604-765-1604
Contact:
investor@sierramadregoldandsilver.com
Cautionary Note
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, statements with respect to the completion of the Transaction on the terms set out in the definitive agreement (or at all) and the ability of the Company to obtain requisite corporate and regulatory approvals for the Transaction, including but not limited to the approval of the Exchange, Mexican antitrust approval and other governmental approvals as currently anticipated.
In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including that the Company will be able to receive all required regulatory approvals by the timelines currently anticipated (or at all); and that the Company will be able to complete the Transaction on the terms of the definitive agreement. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company´s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk that the Company is not able to complete Transaction on the terms set out in the definitive agreement (or at all) and the risk that the Company is unable to obtain requisite corporate and regulatory approvals, including but not limited to the approval of the TSX Venture Exchange, the Mexican antitrust approval and governmental approval as currently anticipated.
Such forward-looking information represents management´s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
SOURCE: Sierra Madre Gold and Silver
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