Land Use Authorization Granted as Key Ground Is Secured in Active Silver District

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1.  Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) reported it had received land use authorization for a change of land use at the Tlacotal property, part of the East District at its La Guitarra silver-gold complex in Estado de Mexico. The company also executed land purchase agreements covering the Tlacotal permit area and an additional 33.1 hectares.

According to the company, the Cambia de Suelos (CUS) designation reclassifies 34.7 hectares from agriculture/forestry to mining. This allows the land to be used as a staging area for exploration and potential development of support facilities at the Mina de Agua–Santa Ana vein deposit. The area is secured under a 30-year lease with an option to purchase upon transfer of ownership documentation.

Sierra Madre also entered into an Option to Purchase agreement for private lands located southwest of the current tailings facility (TFS), including land beneath the existing TFS, referred to as the Lopez Extension. The lease agreement for the private land under the TFS has been extended by an additional 30 years. The company is assessing options to expand the TFS between the active tailings zone and a nearby utility easement. It is also evaluating adjacent space for a potential main security entrance and employee parking.

In a company news release, Chief Executive Officer Alex Langer stated, "Receiving authorization for the Tlacotal land use change provides us with optionality for future mine development pathways in the East District. The land purchase agreements over the Lopez Expansion Area are also conductive to starting a permitting process for an expansion of the current tailings facility."

Chief Operating Officer and Chair Greg Liller added, "We are very pleased with the land use authorization and expanded land holdings. These two milestones support the vision of building out a production center at the East District concessions. Drilling is on schedule to start in the second half of 2026 with 20,000 to 25,000 metres planned."

The 2023 NI 43-101 resource estimate for the Santa Ana vein deposit includes 761,292 tonnes at an average silver equivalent grade of 173.8 g/t in the Indicated category (159.3 g/t silver and 0.19 g/t gold) and 544,892 tonnes at an average silver equivalent grade of 188.4 g/t in the Inferred category (178.1 g/t silver and 0.13 g/t gold).

Record-High Prices and Volatility Define Gold and Silver Markets in Early 2026

A January 26 report from Kitco News noted that gold and silver reached record highs in midday U.S. trading, driven by safe-haven demand. February Comex gold futures reached US$5,107.90, while March silver futures hit US$113.62. Kitco stated, "Gold's dramatic gains drive home bullion's historic role as a gauge of fear in markets, with investors looking to navigate uncertainty and the haven appeal of gold rarely being more attractive."

On January 27, Stewart Thomson described a shift from fiat currency and bonds toward physical metals. He referenced rumors of U.S. interest in stockpiling silver and described a "historic breakout" in junior mining stocks, calling it the potential start of a "multi-decade 'bull era' for junior miners who are tasked with finding critical minerals, silver, and supreme money gold."

That same day, Bloomberg reported that a short squeeze in silver had triggered "unprecedentedly massive daily volumes" and historic price volatility. Turnover in the SLV ETF reached US$39.4 billion, surpassing all previous records. The report stated, "Speculators are net long silver futures," and noted that short sellers were being forced to cover at any price due to physical delivery constraints. Skylar Montgomery Koning added that “precious metals fit that role well,” citing inflation, geopolitical risk, and market uncertainty as drivers of safe-haven demand. In a separate MLIV segment, Mark Cudmore remarked that the gold and silver rally “probably means there’s less juice” in the move but acknowledged ongoing structural demand.

Third-Party Commentary Highlights Del Toro Acquisition and East District Development

On December 18, Ted Butler of TheGoldAdvisor.com said, "Sierra Madre Gold and Silver Ltd. perfected its business model with La Guitarra, [and] now it's looking to replicate that success at Del Toro, an asset with an already built production plant and exploration upside." He added, "shareholders should view the company as a fast-growing producer, closing in on its midtier silver production aspirations, thanks to astute deal-making with world-class silver majors."

Thibaut Lepouttre of Caesars Report wrote on December 29, "Sierra Madre Gold and Silver Ltd.'s acquisition of the Del Toro mine could very well provide the next leg up in its production strategy. Although this is a past-producing mine with all permits in good standing and with all infrastructure still in place, the company will first embark on a thorough exploration program."

On December 31, Dominic Frisby of The Flying Frisby remarked, "Our Top Pick silver, Sierra Madre Gold and Silver Ltd., has been great. The company is growing nicely and solidly . . . there is plenty left in the tank as Sierra Madre is expanding in just the right way at just the right time."

On January 15, Ted Butler of The Silver Advisor stated, "It's great to see Sierra Madre Gold and Silver Ltd., trading near all-time highs of CA$2.34, finally being rewarded for its bold and aggressive growth strategy." He also noted, "We believe there's plenty more share price growth to come in 2026, especially once Del Toro becomes the company's second cash flow-producing mine."

On January 18, Dominic Frisby wrote, "My [silver] pick Sierra Madre Gold and Silver Ltd. keeps on giving. . .with silver now at US$90, that US$96 target I've been speaking about for some time now, based on silver's cup-and-handle pattern, looks like it's going to get taken out."

In a January 27 update, Ted Butler commented, "Sierra Madre Gold and Silver Ltd. is astutely laying the foundations for a multiasset portfolio, which will ultimately help fulfill the vision of building out a production center at the East District concessions." He continued, "The company has created a healthy pipeline of near-term catalysts, as drilling is on schedule to start in H2/26, with 20,000–25,000m planned."

Multiple Development Milestones Set for East District in 2026

According to the company's corporate presentation, Sierra Madre plans to begin drilling at the East District in the second half of 2026, with a 20,000 to 25,000-meter program outlined. The permitted Tlacotal zone may also serve as a staging site for potential development crosscuts targeting the Magdalena–Candaleria system and other nearby veins.

In addition, the area between the current tailings impoundment and a utility easement is being considered for expansion of the TFS. The southeast section of the easement is under review for use as a primary mine entrance and employee parking zone to optimize space near operating infrastructure.

The land agreements for both the Tlacotal property and Lopez Extension have been secured through long-term leases, with options to purchase becoming effective once transfer documentation is completed.

Ownership and Share Structure¹

Management and founders own approximately 24.3% of the company. According to LSEG, President and CEO Alexander Langer holds 2.68%, Executive Chairman and COO Gregory K. Liller owns 1.77%, Director Jorge Ramiro Monroy holds 1.32%, Director Alejandro Caraveo owns 1.26%, Director Kerry Melbourne Spong owns 0.57%, and Director Gregory F. Smith holds 0.14%, based on data prior to the Del Toro acquisition.

Institutional investors control 33.6% of the company, including a 4.4% stake held by Commodity Capital A.G., per Refinitiv. Strategic investors account for 26.2%, with the remaining ownership held by retail shareholders (pre-acquisition).

Sierra Madre Gold and Silver Ltd. has a market capitalization of approximately CA$440.82 million and a 52-week trading range of CA$0.49 to CA$3.25. The Company has 196,351,971 shares outstanding.