Sierra Madre Gold and Silver (SM.V) has started the second phase of its drill program at the Tepic silver project in Mexico’s Nayarit State. One core rig has been directed to the site from the La Tigra project and Sierra Madre now plans to move the same drill rig back and forth in an attempt to maximize the drilling efficiency. While waiting for the assay results from one project, Sierra can already start drilling the other project rather than sitting around and waiting.
SEMARNAT has approved the application to increase the amount of drill pads at Tepic to 182 (coming from just 47 drill pads) and this will enable Sierra Madre to drill in excess of 300 holes, providing additional flexibility. The primary focus still is on the areas adjacent to and within the zones where previous operators already have been drilling. Once the Phase II drill program will be completed, all data will be used to compile an updated resource estimate for the Tepic project.
Sierra Madre’s share price has been sliding down to the current level of just around C$0.40 which gives the company a market capitalization of approximately C$25M. With about C$10M in cash, the enterprise value is just C$15M and an updated and expanded resource estimate at Tepic could put the company in the spotlights again.
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