Sierra Madre Gold and Silver – Q3 Operations Update – Ramping Up At La Guitarra, Coloso, and Nazareno - District-Scale Exploration Strategy In 2026

Dec 5, 2025

Alex Langer, President and CEO of Sierra Madre Gold and Silver, dives into the company’s impressive Q3 performance, revealing a $1.7 million profit from their three mines. He discusses plans for a two-stage expansion that will ramp up processing capacity significantly by 2026. Langer highlights how rising gold and silver prices have boosted project economics and spurred faster production. Additionally, he shares exciting plans for district-scale exploration and the strategic funding approach that ensures capital is secured without the need for immediate raises.

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INSIGHT

Fast Ramp To Production

Sierra Madre reached commercial production on January 1 and quickly brought three mines online within 13 months.
Rapid ramp-up was enabled by technical experience, good site condition, and sourcing used equipment to overcome long lead times.

INSIGHT

Higher-Grade Mines Complement Mill Feed

Colosso and Nazareno provided higher-grade ore that materially boosts blended head grades at La Guitarra.
Access to those mines plus development at La Guitarra will raise recoveries and lower costs over coming quarters.

INSIGHT

Two-Phase Throughput Expansion Plan

The expansion is planned in two phases: ~750–800 tpd by Q2 2026 and 1,200–1,500 tpd by Q3 2027.
Phase one adds a cone crusher, ball mill and paste backfill; phase two adds dry stack tailings and a second crusher.

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Alex Langer, President and CEO of Sierra Madre Gold And Silver (TSXV: SM) (OTCQX: SMDRF), joins me for a review of Q3 operations and financials from the ramp-up of silver and gold production from the La Guitarra, Coloso, and Nazareno mines. We also unpack the planned two-stage expansion at their La Guitarra processing plant located in Estado de Mexico, Mexico.

Alex discussed how the ongoing purchase of additional milling and processing equipment along with rolling fleet equipment will allow for the implementation of increased production in incremental stages over the next 2 years.

These planned expansions would increase the site’s nameplate processing capacity by 50% from the current 500 dry tonnes per day (tpd) to a range of 750 - 800 tpd by Q2 2026.
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.

In addition to throughput growth, there will also be grade-driven growth at the La Guitarra complex. This higher-grade ore which will continue be sourced from both the Coloso and Nazareno Mines to augment the material from the La Guitarra Mine, in addition to development work at La Guitarra reaching higher grad material. As production and operations continue ramping up 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 Shad@kereport.com.

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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