Sierra Madre Cleared to Drill East District at Guitarra Complex

Sierra Madre Gold and Silver has secured environmental clearance from SEMARNAT to begin exploration drilling in the East District of its Guitarra silver-gold complex in the State of Mexico. The authorization covers 22 drill pads, each capable of hosting multiple holes, and opens the first phase of a fully funded 30,000m campaign.

The Vancouver-listed company plans to test as many as 30 mapped vein systems, guided by a three-dimensional structural model built from surface mapping, accessible historic workings and archival records. Sierra Madre is reviewing bids from drilling contractors and expects work to begin within 60 days of awarding the contract.

"The exploration team has done a very thorough job of surface and underground mapping, locating and compiling old reports, maps and sections and developing a structural model," said Greg Liller, COO, Sierra Madre Gold. He added that the company acquired La Guitarra partly on the conviction that the East District ranks among Mexico's strongest exploration prospects.

A 2023 NI 43-101 report assigned the East District an exploration potential of 0.77Mt to 1.54Mt grading 2.4 to 3.6g/t gold and 440 to 670g/t silver,  figures the report describes as conceptual, covering just five vein systems along a combined 7.7km strike. Sierra Madre says its subsequent mapping has identified many additional structures across a wider area. The same report logged an indicated resource at Mina de Agua of 761,000t at 159g/t silver and an inferred 545,000t at 178g/t silver.

Initial holes will be collared from the permitted Tlacotal area, with the first seven drilled sub-horizontally at lengths of 1,000m to 1,500m to probe the Magdalena and Los Locos systems, both past producers. The company is also negotiating surface access near the historic Rincon mine to enable a separate permit, and holds existing permits for the Inca and La Palma veins north of the mine.

The program lands amid a broader revival in Mexican precious-metals exploration. SEMARNAT has issued multi-year drilling permits to several silver explorers in recent months, including GR Silver in Sinaloa and Silver Storm in Durango, while companies set aggressive 2026 drill programs across the country. Economy Minister Marcelo Ebrard has pledged to accelerate permit approvals and restart large-scale exploration to meet rising demand for critical minerals.

The activity coincides with elevated metal prices; gold and silver entered 2026 near multi-year highs, improving project economics for the country's junior producers. Mexico remains the world's largest silver producer, and industry advocates argue a comprehensive minerals policy could draw US$43 billion in investment by 2030, even as roughly 160 projects remain stalled awaiting permits under the 2023 Mining Law.