Sierra Madre Begins Underground Development at Nazareno Gold-Silver Mine

Nazareno Underground Development Delivers Higher-Than-Expected Grades

Sierra Madre Gold and Silver has initiated underground development at the Nazareno gold-silver mine, part of the La Guitarra complex in Estado de Mexico. Already, over 700 tonnes of mineralized material have been transported to the Guitarra processing plant, with early results exceeding expectations. Initial development blasting revealed a high-grade mineral zone containing multiple converging veins up to 8 meters wide.

During grade reconciliation, silver grades came in 40% higher and gold grades 30% higher than the surrounding 2023 resource model predicted. This discrepancy confirms stronger-than-anticipated mineralization, boosting expectations for Nazareno’s contribution to future production. According to CEO Alex Langer, the company is now operating its third mining center at La Guitarra, less than a year after achieving commercial output at its first site.

This phase of development involves expanding the current workings to access the full width of the mineralized zone, followed by sill drive extensions in both directions. The company aims to test the feasibility of long-hole mining, given the area’s dense vein structure.

New Drilling Rig to Cut Costs and Expand Exploration at Nazareno Mine

To accelerate development, Sierra Madre acquired a new Ingertrol Sandy 50 drill rig for surface and underground drilling work. The compact rig can drill up to 250 meters and be carried manually, avoiding the need for costly access roads. Sierra Madre previously used this model successfully during drilling operations at its Tepic project in Mexico.

Drilling will target both Nazareno and the central Guitarra mine, where silver-gold veins require detailed geological mapping. The rig enables short-hole drilling from a single drive, removing the need for parallel sill drives and lowering costs. This approach supports the company’s plan to double processing capacity from 500 to over 1,000 tonnes per day by Q3 2027.

Nazareno is quickly becoming a core asset in Sierra Madre’s growing portfolio of high-grade silver and gold projects in Mexico.

SuperMetalPrice Commentary:

Sierra Madre’s early success at Nazareno highlights the value of underexplored assets within known districts. Surpassing resource model grades is a significant positive for both investors and future cash flow. The strategic use of cost-efficient drilling methods also reflects a disciplined capital approach, essential for juniors navigating volatile commodity cycles. As silver demand strengthens from both industrial and investment sectors, assets like Nazareno—located in a proven silver belt—position Sierra Madre as a player to watch in Mexico’s precious metals landscape.