Sierra Madre Gold and Silver Ltd. (TSXV: SM | OTCQX: SMDRF) has commenced underground mining at the Coloso silver-gold mine, situated within its Guitarra Mine Complex in the State of Mexico, Mexico.
This advancement follows the company’s recent achievement of full commercial production at the Guitarra processing plant, which has been operating at a consistent capacity of 500 wet metric tonnes per day for over 90 days.
The Coloso mine, previously developed and mined by First Majestic Silver from 2014 to 2018, boasts over 12km of underground workings. Sierra Madre has initiated mining at the Jessica vein system and is progressing with stope development in the Joya Larga system. Operations have begun at a rate of 50tpd, with plans to ramp up to 150tpd by year-end. The Coloso resource estimate indicates average grades of 221g/t silver and 1.61g/t gold, surpassing the Guitarra vein averages of 123g/t silver and 1.25g/t gold.
This expansion is expected to diversify the mill feed, reducing reliance on Guitarra material and potentially enhancing overall recovery rates. Sierra Madre’s strategic approach includes blending Coloso ore with Guitarra feed to optimize processing efficiency. The company has appointed a Process Plant Superintendent with extensive flotation experience to oversee this integration.
With the Guitarra processing plant operating at full capacity and the Coloso mine entering production ahead of schedule, Sierra Madre is poised to strengthen its position in the silver-gold mining sector. Investors can anticipate detailed production metrics and financial performance updates in the upcoming quarterly reports.
For more information, visit sierramadregoldandsilver.com.
To read more articles like this, please visit www.theassay.com/news
