Sierra Madre commences underground development at Nazareno mine in Mexico

Core Insights - Sierra Madre Gold and Silver has initiated underground development at the Nazareno silver and gold mine, part of the La Guitarra complex in Estado de Mexico, with over 700 tonnes of mineralised material transported to the processing plant [1] - The production silver grades are 40% higher and gold grades are 30% higher than indicated in the 2023 resource model, based on a reconciliation of material produced from development blasting [2] - The company plans to expand the Nazareno mining center, expecting it to significantly contribute to silver and gold production, with plans to double processing capacity from 500 tonnes per day by Q3 2027 [3] Development Plans - The initial phase at Nazareno involves expanding the current workings to fully access the mineralised zone, which spans up to 8 meters in width [1][3] - Following the initial phase, the sill drive will be extended to assess the feasibility of long-hole mining in the area characterized by closely spaced veins [4] - A new Ingertrol Sandy 50 drill rig has been purchased to support mine planning and development, capable of drilling up to 250 meters [4] Drilling Operations - The portable drill rig allows for surface drilling without the need for access roads, demonstrated during operations at the Tepic project [5] - Drilling is scheduled for the Nazareno veins and the central Guitarra mine area, which contain closely spaced parallel silver-gold vein sets [5] - The new drilling rig will reduce development expenses by enabling short-hole drilling from a single drive, eliminating the need for parallel drives or crosscuts [6]