Sierra Madre Gold & Silver (SM.V) has announced a production update on its fully owned La Guitarra mine complex in Mexico. The mine and processing plant are still running at 500 wmt per day, and this resulted in shipping almost 350 dmt of concentrate in January. The average grade of the concentrate was just over 2,400 g/t silver and 32 g/t gold for a gross content of approximately 27,300 ounces of silver and 360 ounces of gold. Applying the current gold/silver ratio of approximately 90, the total silver-equivalent output was approximately 60,000 ounces, for an annualized 720,000 ounces per year.
Due to the strong gold price, the gold component now appears to be the most valuable precious metal in the concentrate but a lot also depends on the payable production. We expect to see more details when the company reports the financial results for its first full quarter in commercial production, and the Q1 results should be out in May.
Disclosure: The author has a long position in Sierra Madre Gold & Silver. Sierra Madre is a sponsor of the website. Please read the disclaimer.
