Silver Mine's Mill Throughput Tops Previous Nameplate Capacity by 50% as 30,000-Meter Drill Program Begins

Important Disclosures:

1. Sierra Madre Gold and Silver Ltd. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship. 
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 and Silver Ltd.
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.

Key Investor Takeaways

• Sierra Madre Gold and Silver commenced a 30,000-meter drilling program at the East District of its La Guitarra silver-gold mine complex in Mexico.
• October 2026 mill throughput averaged 751 tonnes per day, a 50% increase over the previous 500-tonne-per-day nameplate capacity.
• Geological mapping identified multiple vein systems spanning more than 39 kilometers in the East District, where previous operators conducted limited exploration.
• Initial drilling targets the Magdalena and Los Locos vein systems, with 11 holes planned at projected depths exceeding 1,000 meters each.
• The 2023 NI 43-101 report estimated East District exploration potential of 0.77 million to 1.54 million tonnes grading 440 to 670 grams per tonne silver and 2.4 to 3.6 grams per tonne gold.
• La Guitarra's Phase 1 expansion targets processing capacity of 750 to 800 tonnes per day, with commissioning of a fourth ball mill scheduled for November 2026.
• Phase 2 targets processing capacity of 1,200 to 1,500 tonnes per day by the third quarter of 2027, supported by additional crushing capacity and a permitted tailings facility.
• Sierra Madre previously outlined a US$12 million exploration program at its Del Toro silver mine, including 30,000 meters of drilling beginning in mid-2027 and a new mineral resource report targeted for early 2028.
• Earlier, the company also outlined a US$10 million Del Toro restart program, initially targeting 800 tonnes per day before increasing to 1,600 tonnes per day.

Sierra Madre Begins 30,000-Meter Drill Program as Mill Throughput Rises 50%

Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) announced on November 5 that it had commenced a 30,000-meter drilling program in the East District of its Guitarra silver-gold mine complex in Estado de Mexico, Mexico. The company also reported that average mill throughput reached 751 tonnes per day in October 2026, representing a 50% increase over the previous nameplate capacity of 500 tonnes per day.

The East District contains historic mines that were among the most prolific silver producers during the Spanish colonial period. Previous operators conducted limited exploration in the area. Sierra Madre's detailed geological mapping has identified multiple vein systems with a combined strike length exceeding 39 kilometers.

"Since I first worked at Guitarra 20 years ago, I have felt this major historic silver district to be one of the best exploration opportunities in Mexico," said Greg Liller, Chief Operating Officer, in a company news release. "With the first rig now on site, I am truly excited to be finally testing that idea."

The company developed a three-dimensional geological model of the East District using mapping work previously announced on July 14, 2026. The model was used to design the drilling program, which initially focuses on veins hosted in metasedimentary rocks.

Drilling operations are being staged from Tlacotal, an area already permitted for mining. The program uses sub-horizontal drilling to test multiple vein systems at the same elevation as the productive horizon of the historic El Rincon Mine and below the lowest drainage levels of historic mines in the area.

The drilling contractor constructed a specialized rig for the program as part of its contract with Sierra Madre. The rig arrived at the property on October 29, 2026.

Initial drilling from Tlacotal targets the Magdalena and Los Locos vein systems. The first stage consists of 11 holes, each with a projected target depth exceeding 1,000 meters. The company also outlined plans for wedge holes branching from the original holes as assay results become available.

The 2023 NI 43-101 La Guitarra technical report outlined an exploration potential estimate for the East District of 0.77 million to 1.54 million tonnes grading between 2.4 and 3.6 grams per tonne gold and 440 to 670 grams per tonne silver. This was an exploration potential estimate, not a mineral resource estimate. That estimate covered five vein systems with a combined strike length of 7.7 kilometers. Subsequent mapping and geological modeling identified additional vein systems across a broader area, including numerous locations containing historic mine workings.

Sierra Madre reported that October's average mill throughput of 751 tonnes per day was consistent with its Phase 1 expansion objective announced on September 8, 2025. The company stated that additional production details would accompany its third-quarter 2026 financial results, expected in mid-November.

The Guitarra complex resumed commercial production in January 2025 after its processing facility had ceased operations in mid-2018. Sierra Madre also completed the acquisition of the past-producing, fully permitted Del Toro silver mine in June 2026.

Precious Metals Market Sees Renewed Investment Demand

According to a November 6 report by Adrian Ash of BullionVault, private investment demand for gold and silver increased during October as declining prices attracted buyers. Gold fell 6.3% during the month, while silver declined 17.5%, reaching their lowest levels in 13 and 12 months, respectively.

BullionVault reported that its Gold Investor Index rose to 56.3 in October, a four-month high, while its 12-month average reached 56.5, the highest in five years. The Silver Investor Index increased 2.5 points to 55.0, also reaching a four-month high, as the number of silver buyers climbed 36.9% from September.

Dominic Frisby of The Flying Frisby identified Sierra Madre as his "favorite silver play" and "largest silver position."

Investors on the platform were net buyers of both metals for the third consecutive month.

Gold holdings increased to more than 44.1 tonnes, valued at US$5.5 billion, while silver holdings reached 1,140 tonnes, valued at US$1.8 billion. The three-month addition to gold holdings totaled 0.6 tonnes, the largest increase by weight since June through August 2021.

Trading Economics reported on November 9 that gold climbed above US$4,100 per ounce, extending gains from the previous week as declining oil prices eased inflation concerns. Silver also advanced, with the market data provider reporting that the metal had climbed above US$53 per ounce.

In its gold market commentary, Trading Economics stated that "weaker oil prices eased inflationary pressures," although expectations of tighter Federal Reserve monetary policy limited further price increases.

The report followed U.S. employment data showing that job growth accelerated in October while unemployment declined to 4.1%. Trading Economics reported that markets had assigned approximately an 81% probability to a quarter-point Federal Reserve interest rate increase before year-end, compared with 71% before the employment report.

Trading Economics also identified Mexico, Peru and China as the world's largest silver producers. Its precious metals pricing data was based on over-the-counter and contract-for-difference instruments and was presented as a general market reference rather than an official benchmark.

Production Estimates and Expansion Progress

In a September 14 report, Thibaut Lepouttre of Caesars Report estimated that production could eventually reach approximately 800,000 ounces of silver and 12,000 ounces of gold annually, representing roughly 1.5 million silver-equivalent ounces using a 60:1 silver-to-gold ratio.

Lepouttre also examined how the company's current processing improvements aligned with its subsequent expansion plans.

"It does feel like the Phase I expansion is being completed with Phase II in mind," he wrote.

Separately, VSA Capital analyst Oliver O'Donnell, CFA, maintained his Buy recommendation and CA$2.70 per share price target in a September 29 VSA Morning Miner report.

O'Donnell highlighted developments at La Guitarra, including higher processing throughput, accelerated underground development, access to higher-grade material, and continued work on the permitted tailings expansion.

VSA projected production of 440,000 ounces of silver and 4,400 ounces of gold in 2026. Following the completion of Phase 2, the firm forecast annual output exceeding 1.3 million ounces of silver and approximately 12,000 ounces of gold.

"The share price has eased back to the lower end of the recent trading range, however, and we believe that as development progress translates to stronger earnings performance, this will provide a catalyst for rerating," the VSA report stated.

Later commentary from Dominic Frisby of The Flying Frisby also addressed Sierra Madre's expansion activities.

In an October 16, 2026, commentary titled "Silver's Breakout and Sierra Madre's Perfect Timing," Frisby identified Sierra Madre as his "favorite silver play" and "largest silver position."

Following a meeting with CEO Alex Langer, Frisby wrote, "The company is on a really good trajectory: expanding at just the right time." Frisby also cautioned about silver's volatility, noting that the metal remained vulnerable to sharp corrections.

Processing Expansion, Exploration Programs and Del Toro Restart Plans

Sierra Madre outlined several operational milestones in its October 2026 corporate presentation, including a two-stage expansion at La Guitarra, exploration programs at both La Guitarra and Del Toro, and preparations for restarting the Del Toro silver mine.

At La Guitarra, Phase 1 targets processing capacity of 750 to 800 tonnes per day, with commissioning of a fourth ball mill scheduled for November 2026. The company reported that a cone crusher had been installed and was operating, while work on the ball mill's drive motor, cyclone and instrumentation continued. Phase 1 also includes a paste-fill and thickener plant and conveyor improvements. Phase 2 targets 1,200 to 1,500 tonnes per day by the third quarter of 2027, supported by a second crushing circuit and a permitted 5.8-million-tonne dry-stack tailings facility. Groundwork for the tailings expansion is underway, and the company stated that no additional permits were required for the expansions.

Exploration at La Guitarra includes a US$3.5 million East District program and more than 30,000 meters of drilling guided by a three-dimensional geological model. The company has received permits for 22 drill pads and identified approximately 59 kilometers of mineralized quartz veins and breccias across the district. Additional development work is underway at Coloso, Nazareno and Guitarra, supported by mining equipment purchases and power infrastructure improvements.

At Del Toro, Sierra Madre outlined a US$12 million exploration program spanning approximately 24 to 30 months, including 30,000 meters of diamond drilling, 20,400 assays and geological work across identified mineralized deposits. Drilling is scheduled to begin in mid-2027, with a new mineral resource report targeted for early 2028. The property contains 23 identified deposits across skarn and manto geological settings, along with historical measured and indicated resources of approximately 7.57 million silver-equivalent ounces and historical inferred resources of approximately 11.18 million silver-equivalent ounces. These historical estimates have not been classified as current mineral resources by Sierra Madre.

The company also outlined a Del Toro restart program targeting initial processing of 800 tonnes per day, followed by an increase to 1,600 tonnes per day. The presentation allocated approximately US$10 million to mining equipment, processing plant work, laboratory facilities, and contingency, with a further US$5 million allocated to mining development restart costs. The presentation referenced restart activities beginning in mid-2027 and separately identified mid-2028 as a production milestone.

1. Ownership and Share Structure Information

Ownership percentages, named holders, share count, market capitalization, and the 52-week range for Sierra Madre were compiled from company public filings and investor materials, exchange notices, insider-trade reports (SEDI / equivalent), and third-party data providers. Figures are as of 2026-11-09 unless a source was dated earlier. Pie slices are normalized to 100% of basic shares outstanding; retail is the residual after disclosed institutions, management, insiders, and strategic holders. Warrant terms are current outstanding series only. Restructures are historical consolidations, splits, and symbol or name changes. Insider buying and selling covers open-market trades from the prior six months through 2026-11-09 and excludes option exercises. These are public-source estimates and can differ from a later official register.