Canadian Silver and Gold Co. Relists on TSX With Catalysts Ahead

As of June 5, 2023, Sierra Madre Gold and Silver Ltd. (SM:TSX.V) has resumed trading on the TSX Venture Exchange after its shares stopped trading once the company announced the definitive acquisition of La Guitarra project from First Majestic on May 25, 2022. 

With the acquisition of La Guitarra closing in March 2023, the company has a 100%interest in a fully-permitted, past-producing silver and gold mine.

Now, Sierra Madre also plans to quickly take the steps to requalify for OTCQX in order to increase liquidity for shareholders in the U.S.

Speaking to the trade resumption, CEO of Sierra Madre, Alex Langer, said: "We are excited to be publicly traded once again and would like to thank existing shareholders, new shareholders, and First Majestic for their patience during the lengthy process to relist Sierra Madre on the TSX Venture."

He also went on to state that the company has a "lot of news to share over the coming months," including "drill results from both the Tepic and La Tigra projects in Nayarit, Mexico, and numerous updates from La Guitarra." 

In addition to La Guitarra, the Canadian silver and gold-focused exploration and development company also holds the Tepic Project, 22km from Nayarit State capital Tepic City, and the La Tigra Project, 148km north of Tepic. 

Preparing for District-Scale Exploration and Development

Sierra Madre’s experienced management team includes CEO Alex Langer, Executive Chairman and COO Gregory Liller, Lead Director Jorge Ramiro Monroy, and Director Greg Smith. The company’s management team has played key roles in managing the exploration and development of more than 22Moz gold and 600Moz silver in combined reserves and resources.

In a June 2023 interview with The Crux Investor, Executive Chairman and COO Gregory Liller spoke about the resources at La Guitarra, adding that he is looking for a "big increase" over what First Majestic had defined at the site. The major silver miner did not include material with the potential for bulk tonnage extraction or substantial resources at the Guitarra mine (current resources are centered at the Coloso and Nazareno mines).

In a June 2023 interview with The Crux Investor, Executive Chairman and COO Gregory Liller spoke about the resources at La Guitarra, adding that he is looking for a "big increase" over what First Majestic had defined at the site.

Greg also added that "right now [the company is] focused on production" and that the district in which La Guitarra is located had largely been ignored until recently. He mentioned that the company has "mining concessions that cover the entire district."

Historic resources at the La Guitarra project include indicated mineral resources of approximately 7.45 million ounces of silver equivalent and 10.02 million ounces of silver equivalent, based on 128,671 meters of drilling.

The company has the complete project database, which includes 1,407 drill holes, production records for the 27 years the mine has been in operation, and a 3-D model of the underground workings of all three mines. It also includes survey data, actual operating cost data, and extensive metallurgical recovery data and tests.

The database, along with the existing processing plant and equipment on site, is expected to allow Sierra Madre to proceed swiftly with project development. The company will focus on three main avenues to development: resource and reserve estimations, advancing upgrades to the plant and mine, and exploration in the Eastern Temascaltepec district.

Other recent highlights for Sierra Madre include the closing of a CA$10.3 million financing in May 2023. 

Why Focus on Silver and Gold in Mexico?

Executive chairman of Martin Place Securities, Barry Dawes, recently reported that gold is "still the all-time highs in many currencies' including in the U.S., where gold made an all-time high this month."

321 Gold reported that "Silver could be poised to stage quite a violent rally."

Proactive Investors wrote about gold stocks receiving a "boost" as oil prices reached a four-week low, the hope being that it would have a "positive impact on the margins of gold mining companies."

321 Gold reported that "Silver could be poised to stage quite a violent rally."

Silver production in Mexico in 2019 accounted for 23% of global production. Exploration potential is also at a high for Sierra Madre; its three under-explored projects in Mexico all have past production and are in proximity to infrastructure.

La Guitarra mineralization is open at depth, along strike in both directions, with multiple other targets within its projects. These

With the recent completion of the acquisition of La Guitarra, Sierra is planning to advance the mine toward mid-tier silver production, with a fast-track restart strategy based on a developed underground and an existing 500 t/d mill. 

Upcoming Catalysts 

At La Guitarra, Sierra Madre is planning on a two-year timeline for production. A new resource report is expected by the end of H2 2023, which would be followed by a Preliminary Economic Assessment — including a mine plan — three to six months after.

Sierra Madre is also looking to finalize its Phase One drill results from La Tigra and Phase Two results from Tepic by the end of H1 2023. By the end of H2 2023, a resource report is also expected on the Tepic project. 

Ownership and Share Structure

According to the company, 21% of Sierra Madre's stock is held by management and insiders.

According to Reuters, CEO, President, and Director Alex Langer has 2.06%, with 2.94 million shares. Lead Director Jorge Ramiro Monroy has 1.42%, with 2.02 million.

Executive Chairman and COO Gregory Liller has 1.35%, with 1.92 million, and Director Alejandro Caraveo-Vallina has 1.24%, with 1.77 million.

47.7% is with strategic investor First Majestic Silver Corp, with 69.06 million shares. 

1.37% is with institutional investor Commodity Capital AG, with 1.95 million shares. 

The rest is in retail. 

Headquartered in Vancouver, as of June 8, 2023, Sierra Madre Gold and Silver has a market cap of CA$61.2 million and 142.7 million shares, as well as 5.49 million options outstanding.

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1. Sierra Madre Gold and Silver Ltd. is a billboard sponsor(s) of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000.
2. Lauren Rickard wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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