A Bonanza Gold And Silver Opportunity Arises In The World-Famous Sierra Madre
Editorial Feature | March 28, 2022
- MARKET POWER – Driven by rocketing inflation, long stagnant gold prices are showing signs of a resurgence, leading experts like David Garofalo to predict gold could hit $3,000 in the near-term. And silver looks to be heading upward in the near term, with expectations to pass $30 by 2025.1
- PEAK DEMAND – As a critical element in the development of electronics and EVs, silver demand is expected to quickly eclipse supply. And with billions now pouring into clean energy infrastructure, new North American sources are in critical need.
- FOLLOW THE NEWS – Exploring in Mexico’s prolific gold belt, initial samples taken by Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) come in at nearly triple the project’s historical findings.
- TIME TO JUMP ON BOARD – Shares appear undervalued relative to the resource potential in this historically rich region.
It was only last year when a group of senior mining executives landed the deal they’d long been chasing.
Their acquisition target was two under-developed Mexican silver prospects with enormous potential that had languished for years. They knew the projects and moved aggressively to reel them in.
With millions of dollars in the bank and a seasoned team of exploration and mining experts, they launched project development plans that produced almost immediate, exciting results.
Work is ongoing and the potential for dramatic growth in shareholder value looms large. But the best part is they only recently began publicly trading and remain totally off-radar.
Sierra Madre Gold & Silver launches aggressive exploration programs on two of Mexico’s most prolific gold and silver mining regions.
The first of two is Sierra Madre’s flagship Tepic Project, over 6,500 acres of known gold and silver resources lying in the Sierra Madre gold and silver belt. This is an enormous resource area, with upwards to 1.5 billion ounces of silver equivalent reserves already discovered… and that number is still growing.1
Newly discovered veins, like those being explored right now by Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF), hold promise to add millions more to the region’s resources and ultimate reserve data.
Sierra Madre acquired the Tepic Project last year. Approximately 3.5 kilometers of previously identified strike length came with the acquisition.
Within a few short months, Sierra Madre geologists nearly tripled the strike length to ten kilometers. Work continues and this number could grow sharply over the coming months.
The discovery and resource potential at Tepic could be off the charts. Resource calculations at the time of acquisition remain “unofficial”, but the data was compelling to Sierra Madre management following their pre-acquisition due diligence.
An historical estimate of economical in-ground mineral assets in 2013 totaled 10.3 million ounces of silver equivalent resources with an economical cut-off of 75 grams/ton.
A decade later, those numbers may improve sharply as lower production costs and improved technology make recovery of ore more economical, particularly on rising silver prices and soaring global demand projections for the near future.
However, management cautions in its current Investor presentation (emphasis added) “that an independent Qualified Person (“QP”), as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Sierra Madre to classify the historic estimate as a current Measured, Indicated or Inferred Mineral Resource, and Sierra Madre is not treating the historical estimate as a current Mineral Resource. Sierra Madre will need to validate previous work to produce a mineral resource that is current for CIM purposes.”
That last point is key.
Sierra Madre management is strongly convinced of the accuracy of the 2013 resource estimate, so much so that they made it the basis for their acquisition offer. However, this 2013 data, despite its presumed accuracy, cannot be used to calculate fair market value.
That’s to your advantage right now because for technical reasons, Sierra Madre cannot report a mineral resource on its balance sheet.
This may be a significant reason why Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) trades where it does today, as a junior penny stock, not as a more advanced company with proved resources in the ground.
Without an updated, official NI 43-101 compliant resource report, Wall Street investors have been slow to pull the trigger.
There’s a lot of wait-and-see in that crowd. But that hasn’t slowed experienced private money and institutional investors. When word got out about Sierra Madre’s acquisition intent, money came pouring in.
The company now reports over $10.5 million in the bank, post-acquisition.
To help get their stock launched, management’s immediate priority is to update resource data and publish an NI 43-101 compliant resource calculation, hopefully later this year.
With that, ALL resources can be accrued to shareholder value.
Virtually overnight, the value in Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) shares could be triggered by millions of ounces of newly published silver equivalent resources.
With silver trading over $22/ounce…and projected by many analysts to rise sharply…Sierra Madre shares are poised for explosive, near-horizon gains.
Consider the three main drivers of that potential:
- Silver is hot. Prices are rising and demand is projected to soar as green energy, electronics and electric vehicle push demand for more silver than ever. What’s more, early-stage juniors like Sierra Madre have been known to pay triple-digit, even quadruple-digit gains for ground floor investors. Below you’ll find a few examples of how substantial those gains can be.
- Though it landed on a well-documented silver/gold project, Sierra Madre only recently began public trading. The company has yet to gain traction in the market, but with the resources that may be in play, that can change fast. Today’s share prices may never be this low again so now is the ideal time to launch your due diligence.
- Compelling data points to a massive, 10.3 million ounce silver equivalent resource based on the 3.5 kilometer strike length originally identified in 2013. Over the last few months, Sierra Madre geologists have extended that strike length to almost 10 kilometers and they’ve still not yet hit bottom. There could be millions more ounces of silver and gold in the ground remaining to be discovered.
This is a huge opportunity that should be acted on without delay. Everything here appears in line for a stunning breakout as Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) moves aggressively to build awareness of its resource potential and accelerate shareholder value.
Sierra Madre’s second project to the north, La Tigra, lies in historical silver and gold production regions that date back to the turn of the last century. Production wound down three decades ago when both metals sold at a fraction of today’s prices.
In 1990, silver prices plunged to around $3.50 an ounce and for the next 14 years, silver barely cracked the $5/ounce range.2
The same held true for gold, which fell under $400 an ounce at that time and never decisively broke through that price ceiling for 15 years.3
Outdated, inefficient mining techniques simply made historic mines uneconomical. Failures and shutdowns became an epidemic throughout the Sierra Madre belt.
For about one-hundred years, miners simply picked the easy stuff. Millions of ounces in silver and gold appear to have been left untouched. With modern mining technology, coupled with gold and silver prices many-times higher than in the past, enormous resources over and above historical data could be calculated at both Tepic and La Tigra.
Metal prices and reserves are interlinked. As prices rise, resource figures can be raised with lower grade or deeper buried mineralization, which can be added to net asset value (NAV) and further propel stock valuations.
There's an old saying in the mining business, "The best place to mine is where they mined before.”
Past producing mines, particularly in Mexico, are proving to be fantastic opportunities when modern technologies are brought into play.
The unique Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) geology hosts a multitude of silver- and gold-bearing structures that have been known since the native populations and later the Spaniards first began picking the surface centuries ago.
Many past producing surface deposits, like Tepic and La Tigra, have been superficially explored and deeper below-surface exploration remains virtually non-existent.
A hundred years ago high-grade surface veins were hand mined. Fast forward to today; contemporary exploration technology can expose great opportunity in these veins.
Both the La Tigra and Tepic Projects fit precisely to that adage and they each became a focus for Gregory Liller, Executive Chairman and COO at Sierra Madre.
Over the last four three decades, Liller has been deeply involved in exploration and mine development targeting past-producing Mexican resources in the Sierra Madre belt.
Liller knew that the Sierra Madre belt sits is rich with undeveloped resources and untapped potential. He launched a campaign to recruit the best and the brightest in the industry knowing that the potential of both projects would attract the right talent.
Leading a string of great hires is Alex Langer, company President and CEO.
Mr. Langer brought in a wealth of experience in mining and finance with a strong background in Mexican assets. His prior successes in private equity funding and IPOs for over 100 private and publicly listed companies helped attract the talent and the financial resources to land the acquisition and get boots and equipment on the ground.
Documenting The Potential Of These Overlooked Resources
Previous operators at these projects simply didn’t have the cash nor experience to bring these prospects to full potential. The management team at Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) have both…millions of dollars and years of exploration/mining experience.
Last year they made the moves that closed the deals.
On July 20, 2020, it was made official. Sierra Madre acquired controlling interest over both prospects and they wasted no time getting started with exploration development. In less than two months they made their first big announcement at Tepic. 21 newly drilled reverse circulation holes, seven returning exceptional new discoveries in silver, with significant gold showings as well.
- Hole TRC012 returned 15.2m @ 2.23 g/t Au, 263 g/t Ag (419 g/t AgEq)
- Hole TRC013 returned 22.9m @1.47 g/t Au, 119 g/t Ag (222 g/t AgEq)
As important, all these discoveries were made at an average depth of around 100 meters. At that depth, results are already well over economical grades, which are the starting point for documenting NI 43-101 compliant resource and reserve calculations.
Then 45 days later, Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) announced even more great news from the first phase of a five kilometer trenching program intending to extend the length and breadth of already known formations.
This key quote from that second new release hints strongly at the potential uncovered on new ground (emphasis added): “The fact that the trenches are returning silver and gold values outside of the previously mapped vein and breccia structures and revealing the presence of multiple secondary mineralized structures, gives us new targets and increases the potential of the Tepic project.”
As mentioned above, the Tepic project is one of two in this area. Sierra Madre also acquired the nearby La Tigra project and launched immediate exploration to identify the resource potential there as well.
In November, management released surprising discoveries in gold as well as silver.
Mr. Liller reports that, “These first four trenches [at La Tigra], together with the previously released reconnaissance sampling, confirm our view that the Districo del Tigre has significant gold and silver potential. No methodical modern exploration program has ever been conducted in the district and the entire team is excited by the initial results.”
What to do now…
Millions of ounces in gold and silver may be in play with Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF)… little of which is reflected in today’s share price for lack of a contemporary NI 43-101 resource report.
That could change quickly as the company moves aggressively to correct that situation…starting with the 10.3 million ounces silver equivalent reported in 2013 at La Tigra.
Should those millions be made “official” soon, it could be the fuel that sends Sierra Madre rocketing. And with the price of both gold and silver set to explode, this could be one of the biggest wealth builders you’ll find on the market today!
Now is the time to get started with your due diligence. Sierra Madre Gold & Silver (TSXV:SM, OTCQB:SMDRFTSXV:SM, OTCQB:SMDRF) shares have already captured the attention of institutional investors (a rarity for a junior) as well as seasoned resource investors who recognize opportunity when they see it.
1https://investingnews.com/daily/resource-investing/precious-metals-investing/silver-investing/mexicos-silver-belt/
2https://silverprice.org/silver-price-history.html
3https://goldprice.org/gold-price-history.html
1https://coinpriceforecast.com/silver
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