Sierra Madre Gold and Silver (SM.V) has confirmed the industrial production state has begun at its Guitarra mine plant in Mexico. For the past two months, the mill has been running at 86% of its nameplate capacity which exceeds the traditional threshold of reaching 80% of capacity. And as Sierra Madre was overdue for a production update, it also released the numbers for October and November, shown below.
Seeing a cumulative production of approximately 44,000 ounces of silver and approximately 660 ounces of gold during those two months is quite nice. Applying a silver:gold ratio of 80:1 indicates the total silver-equivalent production was approximately 97,000 ounces which were shipped and sold.
Sierra Madre is currently pulling rock out of eleven production stopes and it is interesting to see three of those stopes were developed in new vein discoveries which are outside of the NI43-101 resource calculation. The company still aims to achieve full commercial production from the underground mine by the end of this calendar year.
Disclosure: The author has a long position in Sierra Madre Gold & Silver. Sierra Madre is a sponsor of the website. Please read the disclaimer.
