Land Use Cleared, Key Ground Locked Up as Silver District Prepares for Major Drill Program

1. Sierra Madre Gold and Silver is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000. 
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sierra Madre Gold.
3.  James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

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) announced it has secured a change of land use authorization for the Tlacotal property, located within the East District of the La Guitarra silver-gold complex in Estado de Mexico. The company also executed land purchase agreements covering both the Tlacotal permit area and an adjacent 33.1 hectares.

According to the company, the Cambia de Suelos (CUS) designation converts 34.7 hectares from agriculture/forestry to mining, allowing the area to be used as a staging zone for East District exploration and as a potential site for future mine development and support facilities at the Mina de Agua–Santa Ana vein deposit. The land is secured through a 30-year lease, with the option to purchase becoming effective upon receipt of ownership transfer documentation.

Sierra Madre also confirmed it has entered into an Option to Purchase agreement for private lands southwest of the current tailings impoundment facility (TFS), including the land under the current TFS, referred to as the Lopez Extension. Concurrently, the lease agreement for the TFS area has been extended for an additional 30 years. The company stated it is exploring the potential for a TFS expansion between the active tailings area and the utility easement. The area southeast of the easement is being evaluated as a possible main security entrance and employee parking area.

Alex Langer, Chief Executive Officer, stated in the news release, "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."

Greg Liller, Chief Operating Officer and Chair, 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, located in the East District, 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 (178.1 g/t silver and 0.13 g/t gold) in the Inferred category.

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

A January 26 report from Kitco News highlighted that gold and silver prices reached new record highs in midday U.S. trading, with safe-haven demand continuing to drive momentum. February Comex gold futures peaked at US$5,107.90, while March silver futures hit US$113.62 per ounce. The article attributed the rally to geopolitical tensions and investor movement away from sovereign bonds and currencies. According to Kitco, "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 wrote that the "big theme is a move from government fiat and bonds to physical metal," noting rumors of potential U.S. government interest in stockpiling silver. He also stated that a "historic breakout" had occurred in junior mining stocks and described the development as likely initiating a "multi-decade ‘bull era' for junior miners who are tasked with finding critical minerals, silver, and supreme money gold." Thomson emphasized investor rotation away from fiat currencies into physical gold and silver, citing rising concerns over monetary policy and political instability.

Bloomberg reported the same day that a short squeeze in silver had triggered "unprecedentedly massive daily volumes" and historically sharp price movements. Turnover in the largest silver ETF, SLV, reached US$39.4 billion, significantly surpassing its prior records. The report noted, "Speculators are net long silver futures," and attributed much of the recent surge to short sellers struggling to find physical supply for delivery, forcing them to cover positions at any price. The report pointed to sustained volatility across safe-haven assets. She stated, "Precious metals fit that role well," particularly in light of geopolitical risks, inflation concerns, and continued market uncertainty.

In a separate MLIV commentary, Mark Cudmore noted that while investor diversification into gold and silver had become more established, "it probably means there's less juice" in the move, suggesting diminished momentum but ongoing structural demand.

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

On December 18, Ted Butler of TheGoldAdvisor.com stated, "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."

Ted Butler of The Silver Advisor stated on January 15, "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 said, "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."

Dominic Frisby wrote on January 18, "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 also noted, "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 Sierra Madre's investor presentation, drilling at the East District is scheduled to begin in the second half of 2026. The program is planned to include between 20,000 and 25,000 meters of drilling. The permitted Tlacotal area may also serve as a staging area for future production crosscuts to the Magdalena–Candaleria system and other economically interesting veins, depending on exploration outcomes.

Additionally, the company has identified an area between the current tailings facility and a utility easement for potential expansion of the existing TFS. The region southeast of the utility easement is under evaluation as a possible location for the mine's main security entrance and employee parking. This reconfiguration is expected to free up space near operational facilities.

The land agreements associated with both the Tlacotal area and the Lopez Extension have been finalized through long-term leases and purchase options, which the company indicated would be exercised upon transfer documentation.