Skeena unlocks $200m Orion funding with bulk sample permit
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Sierra Madre Gold and Silver (TSXV: SM) has accelerated the timeline to bring the Guitarra mine complex in Mexico back into commercial production after acquiring the project in early 2023.
On Wednesday, the company announced the commencement of test mining and processing, with the flotation plant processing material from the past-producing mine at an average rate of 259 tonnes per day. At full capacity, the plant could process 500 tonnes per day.
Sierra Madre executive chairman Greg Liller said the commencement of test mining represents “a significant step” in bringing back the past-producing Guitarra mine, located in southeastern end of the Mexican silver belt.
He also noted that the flotation plant has been in continuous 24-hour-a-day operation since the last week of June, “demonstrating the value and quality of work the plant operating team did during the refurbishment program.”
The company currently has four operating scoop trams, one low-profile haul truck and a jumbo drill on site and has purchased an 18-tonne dump truck for surface and underground haulage and a stopemate long-hole drilling machine.
The current mine equipment availability is running at 88%, which Sierra Madre management says is “a clear indication of the quality and progress of the work that went into rebuilding the mining fleet.”
With this milestone, the company is now projecting full commercial production at the Guitarra mine to begin in the fourth quarter of this year. The operation currently employs 188 people, many of whom had previously worked at the mine.
The Guitarra underground mine was in operations between 2015-2018, producing 1-1.5 million oz. of silver equivalent annually during that period, before being placed on care and maintenance. Sierra Madre acquired the asset from First Majestic Silver for $35 million last March.
