Sierra Madre Gold & Silver (SM.V) has started the underground development activities on its Nazareno gold and silver mine, located within the La Guitarra silver-gold complex in Mexico. The new mine has already delivered approximately 700 tonnes of material to the milling facility at La Guitarra. The Nazareno project is interesting as several silver and gold bearing veins appear to merge, creating a mineralized zone up to 8 meters wide.
As a reminder, a 2023 resource calculation contains 310,000 tonnes of rock at an average grade of almost 215 g/t silver and 0.55 g/t gold in the indicated resource category with an additional 754,000 tonnes in the inferred resource category at a similar grade (229 g/t silver and 0.29 g/t gold).
The initial development work at Nazareno will consist of blasting the sides of existing workings to the full width of the mineralized zone. Subsequently, the company will advance the sill drive on the structure in both directions before determining whether or not long hole mining is feasible in this area.
Disclosure: The author has a long position in Sierra Madre. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
