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Mining Company Reports Promising Drill Results in Mexico

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Sierra Madre has made a significant gold find on its La Tigra property. Read on to see the new assay results.

Sierra Madre Gold and Silver Ltd. (SM:TSX.V) has announced the results of four additional drill holes from its phase I drilling on its La Tigra gold/silver project in Nayarit, Mexico. The results of the drilling are as follows:

  • LTDH004 intercepted 0.37 grams per tonne gold (g/t Au), 3.0 g/t silver (Ag) - 0.40 g/t gold equivalent (AuEq) - between 45.50 meters to 51.50 meters of depth over 6.0 meters, and 1.29 g/t Au, 2.4 g/t Ag, - 1.32 g/t AuEq - between 328.10 meters and 328.90 meters of depth over 0.8 meters, and 0.45 g/t Au, 4.0 g/t Ag, - 0.50 g/t AuEq - between 328.10 meters to 331.70 meters of depth over 3.6 meters.
  • LTDH005 intercepted 2.49 g/t Au, 9.0 g/t Ag - 2.60 g/t AuEq - between 12.00 meters and 32.00 meters of depth over 20.0 meters, including 4.26 g/t Au, 14.0 g/t Ag- 4.45 g/t AuEq - between 15.80 meters and 26.50 meters of depth over 10.7 meters.
  • LTDH006 intercepted 7.11 g/t Au, 10.55 g/t Ag  -7.25 g/t AuEq - between 55.50 meters and 61.45 meters of depth over  5.95 meters, including 24.35 g/t Au, 10.20 g/t Ag -24.49 g/t AuEq - between 59.05 meters to 60.65 meters over 1.6 meters.
  • LTDH006 also intercepted 4.16 g/t Au, 9.0 g/t Ag- 4.28 g/t AuEq - between 66.85 meters and 67.80 meters over 0.95 meters.
  • LTDH007 intercepted 1.63 g/t Au, 12.0 g/t Ag- 1.79 g/t AuEq - between 24.35 meters and 25.50 meters over 1.15 meters

According to Gregory K. Liller, the CEO of Sierra Madre, "The drilling program at La Tigra continues to deliver strong results with some intercepts being wider than initially expected. These results continue to expand on the positive results to date at La Tigra."

This drilling program was designed based on the data Sierra Madre collected from surface mapping, sampling, and trenching, which has defined a 3.5-kilometer structural corridor with stacked northwest striking structures. These structures dip at 40 to 45 degrees, and holes one and two were drilled at negative 45 degrees, and hole three at negative 53 degrees. The width of the intersection is approximately over 90% of the intersected length.

A Breakout in Gold

On July 12, 2023, gold and silver had a major breakout as the dollar's value sank, according to technical analyst Clive Maund. Maund said of the trend, "The PM sector – and commodities generally – are embarking on a long and powerful upleg that is still in its earliest stages, and this being so you can basically put on a blindfold and throw darts at a list of PM stocks and pick winners although of course we will strive to do somewhat better than that."

Richard Mills of Ahead of the Herd noted that there are several factors driving the rise in gold values, including a weakening dollar and increased buying from central banks. According to Mills, central banks went cold on gold during the pandemic, but "after economic recovery in 2021-22, this behavior changed, with central banks in the aggregate buying more gold in the fourth quarter of 2022 than they had since the world went off the gold standard in 1971."

An Excellent Position

According to Technical Analyst Clive Maund, Sierra Madre's stocks looked good in the wake of the recent gold and silver breakout, and is at a good entry point for investors.

Sierra Madre closed the La Guitarra acquisition in 2023, a silver project with a developed underground and a 500-tonne-per-day mill. In the second half of 2023, Sierra Madre is also expecting the Phase 2 results from the Tepic project.

Ownership and Share Structure

Streetwise Ownership Overview*

Sierra Madre Gold and Silver Ltd. (SM:TSX.V)

*Share Structure as of 6/8/2023

Alexander Langer owns 2.06% with 2.94 million shares in the company, Jorge Ramiro Monroy owns 1.42% with 2.02 million, Alejandro Caraveo owns 1.24% with 1.77 million shares, Kerry Melbourne Spong owns 0.32% with 0.46 million shares, and Gregory F. Smith owns 0.18% with 0.25 million shares.

First Majestic Silver Corp owns  47.7% of the company with 69.06 million shares of the company, and Commodity Capital AG owns 1.37% with 1.95 million shares.

First Majestic Silver Corp is a strategic investor.

The company reports that it has CA$9 million in the bank.

The company reports no potential sellers or warrants overhang.

Sierra Madre works with the IR firm Adelaide Capital and no influencers. Thibaut Lepouttre of Caesar's Report provides news coverage of the company.

There are 142.7 million shares outstanding and  60.12 million free-float traded shares. The company has a market cap of CA59.6million. It trades between CA$0.39 and CA$0.74  in the 52-week period.

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Important Disclosures:

  1. Sierra Madre Gold and Silver Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sierra Madre Gold and Silver Ltd.
  3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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