The past year, pretty much all attention was going to Sierra Madre’s (SM.V) game-changing acquisition of the La Guitarra silver mine and mill from First Majestic Silver (AG, FR.TO). After a one year long trading halt, the company’s shares started to trade again at the beginning of June and are currently trading at around C$0.40 per share, a 40% decrease from the C$0.65 price used for the most recent capital raise in connection with the acquisition.
Although the La Guitarra project for sure appears to be Sierra Madre’s main focus, the company still had to release some assay results from the 2022 drill program it conducted on its La Tigra gold-silver project in Mexico’s Nayarit State. Assay results of four holes were released with missed results. Hole LTDH004 wasn’t anything special with 6 meters of 0.4 g/t gold-equivalent but some of the other holes were more impressive. Hole LTDH006 for instance hit 5.95 meters of 7.25 g/t gold-equivalent including 1.6 meters containing 24.49 g/t gold-equivalent (with gold accounting for about 99% of the gold-equivalent grade). In his comment on the drill results, Gregory Liller, the company’s COO and executive chairman, mentioned that some of the intercepts are wider than initially expected.
We do expect the focus to go back to La Guitarra in the near future and are looking forward to seeing an update from the company.
Disclosure: The author has a long position in Sierra Madre Gold & Silver. Sierra Madre is a sponsor of the website. Please read our disclaimer.
