Investors Set to Strike it Rich as Forgotten Mine Reawakens?

Positioned to become the next mid-tier silver producer in Mexico

The company recently acquired a past-producing mine and mill complex and has increased the measured and indicated resource by 373%. The total indicated resource is now around 3.8 million tons grading approximately 7 oz/ton silver. An inferred resource sits at 4.1 million tons grading 153 g/t silver.

A major advantage for Sierra Madre is that much of the infrastructure is already in place, including 40km of existing underground development and a 500 tpd processing plant. The company estimates $50 million would be required just to build this plant today. By acquiring a past-producing asset, Sierra Madre avoids substantial capex and can focus on re-starting operations.

The plan is to finalize an updated resource estimate and reserve base by Q1/Q2 2023. This will feed into a 3-5-year mine plan detailing the sequence for mining and processing. The mine plan will clarify development requirements, operating costs, and capital needs. Rather than completing a PEA or feasibility study, the mine plan leverages actual historical operating data from when the mine was in production.

An initial $5-5.5 million is required to rehabilitate the mill and mining equipment already on site. To avoid dilution, the company is focused on non-dilutive financing options like off-take agreements, royalty sales, and drawing on broken stocks already blasted underground. Processing leftover broken ore and tailings can generate early cash flow while optimizing the mill.

The goal is to rapidly advance towards 2 million oz/year silver equivalent production to achieve mid-tier status. The asset benefits from being a pure precious metals play weighted towards silver, unlike many polymetallic peers. Sierra Madre's experienced team believes the project carries no greater risk than operating in the US or Canada. Ongoing concerns about Mexican mining policy reforms are overblown for existing properties like this one.

With capital markets risk-off, near-term producers like Sierra Madre are attractive

1. Rather than a speculative exploration play, this is a clear mine restart story with permits, infrastructure, and development in place.

2. The updated resource proves years of production potential.

3. Sierra Madre offers a rare opportunity to fast-track a past producer back into operation in a cost-effective manner.