Sierra Madre Gold and Silver Ltd. has received federal authorization to change the land-use designation at its Tlacotal property within the East District of the La Guitarra silver-gold complex in Estado de Mexico. The company also executed additional land purchase agreements and secured an option to acquire private lands near its tailings infrastructure, moves it says will support exploration access, future development flexibility and longer-term permitting pathways.
Key points
- A Cambia de Suelos (CUS) authorization was granted for a 34.7-hectare area at Tlacotal, changing land use status from agriculture/forestry to mining.
- Land purchase agreements were executed covering the Tlacotal permit area plus an adjacent 33.1 hectares.
- An option to purchase private lands southwest of the current tailings impoundment facility, together with the private lands beneath the current facility, forms the “Lopez Extension.”
- The lease for the private land beneath the current tailings facility has been extended for an additional 30 years, supporting potential tailings expansion permitting.
- The company expects to begin drilling in the second half of 2026, with 20,000 to 25,000 metres planned.
What the Tlacotal authorization enables
The newly received CUS designation covers 34.7 hectares at Tlacotal and represents a federal change in land-use status to support mining activities. Sierra Madre said the authorization provides near-term optionality by enabling the area to be used as a staging point for East District exploration. Over time, the company sees the permitted land as well positioned for potential mine development and for support facilities tied to the Mina de Agua – Santa Ana vein deposit.
Chief Executive Officer Alex Langer described the land-use change as an important step toward future mine development pathways in the East District.
Resource context at Santa Ana
In the release, Sierra Madre referenced the 2023 NI 43-101 mineral resource estimate for the Santa Ana vein. The table included in the announcement reports an Indicated resource of 761,292 tonnes grading 173.8 g/t silver-equivalent (AgEq), containing approximately 4.25 million AgEq ounces. The Inferred resource is reported at 544,892 tonnes grading 188.4 g/t AgEq, containing approximately 3.30 million AgEq ounces.
On a metal-specific basis, the same table reports contained silver of roughly 3.90 million ounces (Indicated) and 3.12 million ounces (Inferred), plus contained gold of 4,650 ounces (Indicated) and 2,328 ounces (Inferred).
Lopez Extension and tailings facility optionality
Beyond Tlacotal, Sierra Madre entered into an option to purchase private lands that cover the existing tailings impoundment facility and adjacent private lands to the south. Concurrently, the company extended the lease agreement for the private land beneath the current tailings facility by an additional 30 years.
The company said it is evaluating the permitting of an expansion of the current tailings facility and is also assessing site layout options—including the potential location of a main security entrance and employee parking—to improve access and free up space near operational facilities.
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