Sierra Madre Gold & Silver: Site Visit at Mexico’s Newest Silver and Gold Producer

Sierra Matra Gold and Silver – Lagitara Mine Update

Key Concepts: Commercial Production, Expansion Plans, Recovery Rate, Exploration Program, Cash Flow, Concentrate Shipment, Metallurgical Testing, Underground Mining, Ore Extraction, Ball Mill, Cone Crusher, Backfill Plant.

Introduction & Current Status

The interview, conducted at the Lagitara Mine facility of Sierra Matra Gold and Silver in Mexico, highlights the company’s progress since commencing commercial production on January 1st of the current year. CEO Alex Langanger details ongoing operations and ambitious expansion plans. Current production is at 500 tons per day, with visible installation of new equipment indicating future growth. Concentrate shipments of two to three trucks per week are being sent to the Manzano facility for payment upon delivery of gold and silver. A particularly large shipment occurred recently, reflecting favorable metal values.

Lagitara Mine Operations & Production Levels

The interview takes place at the San Raphael portal, the main access point for the Lagitara mine’s underground ore extraction. Currently, approximately 65% of the mill’s production originates from this underground operation. The company is actively working to optimize the recovery rate of gold and silver, currently below 80%, with a target of 82% through increased metallurgical testing and analysis.

Expansion Plans – Phased Approach

Sierra Matra has a three-pronged expansion plan designed to triple production by 2027. The first phase, scheduled for completion by the end of February, involves the installation of a new cone crusher. The second component is a large ball mill, sourced and expected to be operational by Quarter 2 of 2026, capable of processing 750 tons per day – exceeding immediate needs to provide operational flexibility. The third element is a paste backfill plant and concentrator. The company remains on track for the first full expansion to be completed in Quarter 2 of 2026.

Exploration Program – East District

Beyond the Lagitara mine, Sierra Matra is actively exploring the Mina Deagua and Ringcon areas. Work completed includes mapping, securing portals, and initial underground sampling. A comprehensive exploration program in the East District is planned to commence in Quarter 2 of next year, utilizing data gathered from these initial efforts.

Financial Resources & Funding

The company secured CAD $19.5 million in funding in July, which will fully finance both the plant expansions and a 20,000-25,000 meter drilling program in the East District. Combined with positive cash flow from operations, Sierra Matra possesses sufficient capital to execute its expansion and exploration strategies without requiring additional funding.

Recovery Rate & Future Production Targets

Langanger emphasized the ongoing efforts to improve the recovery rate of gold and silver, stating, “So we working in the more mess work. So we working to do more individual mets more metal test. So the plan is to reach the target about the 82% recovering gold and silver.” The ultimate goal is to increase production from the current 500 tons per day to 1,500 tons per day by September 2027, representing a threefold increase.

Notable Quote

“It’s an amazing team we have, and I really appreciate you guys taking the time to come down here. We’re always very thrilled to show it off. Quite proud of what we’ve been able to accomplish over a short amount of time.” – Alex Langanger, CEO of Sierra Matra Gold and Silver.

Technical Terms:

• Concentrate: A material containing the valuable metals (gold and silver) that have been separated from the ore.
• Metallurgical Testing: Analysis of ore samples to determine the optimal methods for extracting metals.
• Cone Crusher: A type of crusher used to reduce the size of ore.
• Ball Mill: A grinding machine used to pulverize ore into a fine powder.
• Paste Backfill: A method of filling underground mine voids with a mixture of cement and tailings to provide support and stability.
• Portal: An opening to a mine, providing access to underground workings.
• Ore: Naturally occurring rock containing valuable minerals.
• Recovery Rate: The percentage of valuable metals successfully extracted from the ore.

Conclusion

Sierra Matra Gold and Silver is demonstrating strong operational performance at the Lagitara Mine, coupled with a clear and well-funded strategy for significant expansion and exploration. The company’s focus on increasing production, improving recovery rates, and exploring new areas positions it for continued growth and success in the gold and silver mining sector. The combination of secured funding and positive cash flow provides a solid foundation for achieving its ambitious goals.