Canadian Silver and Gold Co. Relist on TSX and Is Making Moves

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

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.

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." 

Having recently celebrated the closing of the acquisition of La Guitarra, the company now has 100 percent interest in a fully-permitted, past-producing silver and gold mine.

In an interview with Crux Investor, Sierra Madre Executive Chairman, and COO Gregory Liller spoke about the Guitarra mine's resources, which are "a big increase" over what was expected during initial exploration efforts. 

Sierra Madre Gold and Silver is a Canadian precious metals mining and exploration company with a focus on developing gold and silver projects. As well as La Guitarra, the company has the Tepic Project, located 22km from Tepic City, the capital of the State of Nayarit, Mexico, and the La Tigra Project, which is 148km north of the Tepic Project. 

Historically, measurements at the La Guitarra mine indicated mineral resources of approximately 7.45 million ounces of silver 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, will allow Sierra Madre to proceed swiftly with project development. The company will focus on three main avenues with development; resource and reserve estimations, advance upgrades to plant and mine, and the Eastern Temascaltepec district.

Other recent highlights for Sierra Madre include confirmation that First Majestic is now the biggest shareholder in the company, as well as the recent closing of CA$10.3 million in financing. 

Why Silver and Gold?

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 will have a "positive impact on the margins of gold mining companies."

According to its website, Sierra Madre has a "robust acquisition pipeline." Its experienced management team, which includes CEO Alex Langer, Executive Chairman and COO Gregory Liller, Lead Director Jorge Ramiro Monroy, and Director Greg Smith, has "defined multiple near-term acquisition targets" and has a "track record of project discovery, advancement, and monetization in Mexico and globally."

Silver production in Mexico in 2019 accounted for 23% of global production. Exploration potential is also at a high for Sierra Madre; it's open at depth, along strike in both directions, and there are multiple other targets within its projects. These under-explored projects in Mexico all have past production and are in proximity to infrastructure.

It's hoped that the recent completion of the acquisition of La Guittara will advance the mine to mid-tier silver production, with a developed underground and a 500 t/d mill. 

Upcoming Catalysts 

Sierra Madre is now looking ahead to finalizing 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 new resource report for La Guitarra can also be expected, as well as a resource on the Tepic project. 

In an interview with Crux Investor, Sierra Madre Executive Chairman, and COO Gregory Liller spoke about the Guitarra mine's resources, which are "a big increase" over what was expected during initial exploration efforts. 

He also went on to say 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."

Ownership and Share Structure

According to Reuters, 7% of Sierra Madre's stock is held by management and insiders. 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.

48.40% 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. 

The company's monthly burn rate is between CA$200,000 and CA$500,000; they carry out between 1,000 and 2,500 meters of core drilling per month.

It currently has CA$12 million in the bank.

Headquartered in Vancouver, Sierra Madre Gold and Silver has a market cap of CA$96.85 million and 149 million shares, as well as 5.49 million options.

Important Disclosures:

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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