Sierra Madre Gold & Silver Ltd. · TSXV:SM
Sierra Madre Gold & Silver — Investor Presentation (October 2023)
34 slides from Sierra Madre Gold & Silver's investor presentation, October 2023
Slide 1: Corporate Presentation October 2023
Corporate Presentation October 2023 S M TSXV | S M D R F OTCQX
Slide 2: Cautionary / Forward Looking Statement
Cautionary / Forward Looking Statement Certain statements contained in this presentation constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian and United States securities laws relating to, with
Slide 3: The Next Mid-Tier Silver Producer
The Next Mid-Tier Silver Producer A growing portfolio: La Guitarra, Tepic + La Tigra La Tigra Sierra Madre’s Checklist Tepic Infrastructure Jurisdiction Permitted, Past La Guitarra Production Know-how in Mexico TSXV: SM || OTCQX: OTCQX: SMDRF SMDRF 3
Slide 4: Management
Management Alex Langer Director, President & CEO Gregory Liller B.Sc. Executive Chairman & COO Mr. Langer is a successful public markets specialist with 20 years of experience. He started his career as an Investment Advisor with Canaccord Genuity, where he helped fund over 100 Mr. Liller has more th
Slide 5: Board of Directors Continued
Board of Directors Continued A winning combination through decades of experience Mexican operations Capital markets Discovery success Jorge Ramiro Monroy Alejandro Caraveo-Vallina Sean McGrath Director Director & Country Manager CPA, CGA – Director, Audit Committee • Founder and Managing Director of
Slide 6: La Guitarra Mine
La Guitarra Mine Fully permitted mine and 500 t/d mill in Mexico’s Silver Belt A high-grade underground mine that operated up to August 2018 Currently on care and maintenance: progressing towards restart Functional and expandable 500 t/d crushing, grinding and flotation facility Exploration potentia
Slide 7: La Guitarra: Low Risk Mine Restart Opportunity
La Guitarra: Low Risk Mine Restart Opportunity Operated by Sierra Madre management between 2006 and 2009 High-grade underground mine Functional 500 t/d process Permits cover mining and on care and maintenance facility processing plus • Guitarra, Coloso and Nazareno • Crushing, grinding and flotation
Slide 8: La Guitarra - Watch Video
La Guitarra Watch Video TSXV: SM | OTCQX: SMDRF 8
Slide 9: La Guitarra: Fast-Track Restart Strategy
La Guitarra: Fast-Track Restart Strategy Four-pronged approach to production 1. District-scale exploration and mine development program • Over 100 epithermal veins in five main systems • 4-km wide vein belt spans 15 km of strike 2. Evaluate mining options • Bulk mine mineralization in previously def
Slide 10: La Guitarra: Timeline to Production
La Guitarra: Timeline to Production Major Catalysts Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 New resource report Mine Restart Study - Mine Plan, Reserve Estimation Equipment procurement and repair Mill upgrades Expected commercial production Acquisition to advance Sierra Madre towards
Slide 11: La Guitarra: Tailings Opportunity
La Guitarra: Tailings Opportunity Reprocessing of flotation tailings located less than 1km from mill Potential Target: 2.0 - 2.5 MT @ 0.4 - 0.6 g/t Au and 35 - 40 g/t Ag Metallurgical testing is underway • Initial tests completed by First Majestic show 80% gold recovery and 70% silver recovery using
Slide 12: La Guitarra: District-wide exploration
La Guitarra: District-wide exploration District-scale exploration and mine development program • District-scale geologic mapping has delineated 52.9 km of mineralized quartz veins and breccias • Over 1,400 drill holes totaling 236,000 metres have been completed and a resource estimation study and wo
Slide 13: La Guitarra acquisition terms
La Guitarra acquisition terms First Majestic becomes top shareholder: 47.7% interest Resale restrictions on the All-share consideration shares held by Share distribution to First transaction First Majestic Majestic shareholders • Sierra Madre issued US$35 million in • 25% subject to a 6-month resale
Slide 14: Tepic Project
Tepic Project Proximity to Infrastructure Lies 22 km, mostly on paved highway from Tepic City, the capital of the State of Nayarit, Mexico. Located 15 km from regional Tepic airport and 120 km from the Puerto Vallarta Airport Workforce familiar with heavy equipment and mining present in surrounding
Slide 15: Tepic: >2,600 ha Land Package
Tepic: >2,600 ha Land Package TSXV: TSXV:SM SM| |OTCQX: OTCQX:SMDRF SMDRF 15
Slide 16: Tepic Project: Exploration Potential
Tepic Project: Exploration Potential Recent exploration indicates strike length potential of over 15km Historical veins: 3.5km New and historical veins: 15km An overly complex structural interpretation with inferred New structural interpretation based on final 2011 drill program faults guided previo
Slide 17: Tepic: Central Area Diamond Drill Results
Tepic: Central Area Diamond Drill Results Core Drilling Highlights • With 20 core holes completed to date, 17 returned sections of at least 75 g/t silver • TDH002: 12.1m @145.8 g/t Ag, 0.64 g.t Au (194 g/t AgEq) • TDH007: 2.55m @ 878.4 g/t Ag, 3.041 g/t Au, (1106 g/t AgEq) • TDH014: 6.35 m @ 351.8 g
Slide 18: Tepic Project: Taunas Discovery, Eastern Portion
Tepic Project: Taunas Discovery, Eastern Portion Recent mapping had identified a second vein at Taunas: +1km of strike No prior records of work Two core holes completed to date: • TDH017: 2.5m @ 209 g/t Ag, 1.15 g.t Au (296 g/t AgEq) • TDH018: 0.65m @ 66 g/t Ag, 0.55 g/t Au (108 g/t AgEq) See Slides
Slide 19: Tepic Project: Historical Mineral Resources
Tepic Project: Historical Mineral Resources Historical Resource Estimate for the Project (2013) The Company cautions 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 hi
Slide 20: Tepic Project: Metallurgy
Tepic Project: Metallurgy Metallurgical Test Results Cyanide Bottle Roll Test Scoping Flotation Test Scoping Flotation Test and TEST 72 hours One cleaning circuit Cyanide Leaching of Tailings Gold – 94% Gold – 66% Gold – 94% RECOVERY Silver – 78% Silver – 81% Silver – 90% TSXV: TSXV:SM SM| |OTCQX: O
Slide 21: La Tigra – Modern Approach to a Historical Mine
La Tigra – Modern Approach to a Historical Mine Historical gold and silver mine (pre 1900-1991) 1927: Servico Geológico Mexicano reports indicate past production grading 10 g/t Au 358 g/t Ag Near infrastructure - located 148 km north of Tepic with a land package totaling 357 ha, covering most of the
Slide 22: Phase 1 Drill Results from La Tigra
Phase 1 Drill Results from La Tigra The first seven holes at Districo del Tigre all hit shallow mineralization La Tigra Drill Intersections Length AuEq Hole From To Au (g/t) Ag (g/t) Area (m) (g/t)* LTDH001 0.00 9.00 9.00 0.46 9.2 0.58 El Camino Includes 0.00 4.50 4.50 0.68 18.3 0.92 And 44.40 51.00
Slide 23: 2022 Underground Channel Samples from La Tigra
2022 Underground Channel Samples from La Tigra Average grade of 3.14 g/t gold based on assays from 154 samples La Tigra Channel Sample Highlights Channel From To Int Au Ag AuEq LTR-UG-002 1.25 1.95 0.7 239 29.8 239.4 LTR-UG-056 1 1.55 0.55 24.4 23.1 24.7 LTR-UG-056 0 1 1 24.4 21.3 24.7 LTR-UG-062 0
Slide 24: Share Structure
Share Structure Tight Share Structure and Large Insider Ownership Capital Structure As of June 30, 2023 Sierra Madre Shareholders Institutional Market Cap Oct 13, 2023 $55.4M 11.1% Management & Founders Shares Outstanding 143,998,401 21.1% Shares under 42 month escrow (9,288,799) First Majestic 47.7
Slide 25: Vancouver
VANCOUVER 1455 Bellevue Ave West Vancouver, BC, V7T 1C3, Canada Phone: (604) 765-1604 alanger@ptolemycapital.co.uk sierramadregoldandsilver.com
Slide 26: Why Sierra Madre Gold & Silver
Why Sierra Madre Gold & Silver MANAGEMENT – VALUATION - ASSETS Management Team & Board Attractive Valuation Upcoming Catalysts La Guitarra • New resource report before Track record of project discovery, Strong shareholder base and year-end advancement and monetization in institutional backing. Attra
Slide 27: Tepic Project: Astasis Structures in North Area
Tepic Project: Astasis Structures in North Area Two core holes testing the Astasis structures hit +75 g/t AgEq mineralization Planning additional drilling Area Hole From To Int Ag Au AgEQ TDH011 27.0 28.5 1.5 185.5 0.26 205 Astasis 2 TDH012 33.0 34.5 1.5 110.0 0.23 127 See slides 28-30 for Tepic dri
Slide 28: Appendix: Tepic Phase 2 Diamond Drill Results
Appendix: Tepic Phase 2 Diamond Drill Results Area Hole From To Int Ag Au AgEQ TDH017 6.50 9.00 2.50 209 1.15 296 Taunas and 23.80 24.40 0.60 111 2.06 266 TDH018 24.85 25.50 0.65 66 0.55 108 TDH019 154.50 159.35 4.85 84 0.24 101 and 161.40 164.00 2.60 49 0.36 76 and 167.50 177.55 10.05 158 0.46 193
Slide 29: Appendix: Tepic 2022 Diamond Drill Results
Appendix: Tepic 2022 Diamond Drill Results Area Hole From To Int Ag Au AgEQ TDH001 15.05 22.1 7.05 124.7 0.9 192 TDH002 11.25 14.45 3.2 193.8 1.36 296 and 31.85 43.95 12.1 145.8 0.64 194 Includes 31.85 33.35 1.5 489.0 0.765 546 TDH003 1.35 3.6 2.25 48.1 0.90 115 Dos Hornos 1 and 7.05 9 1.95 47.3 0.6
Slide 30: Appendix: Tepic 2022 Diamond Drill Results
Appendix: Tepic 2022 Diamond Drill Results Area Hole From To Int Ag Au AgEQ 112.5 119.15 6.65 210.5 1.06 290 TDH008 Includes 114 115.5 1.5 524 2.47 709 TDH010 78.15 81.2 3.05 625.4 1.6 743 61.4 65.35 3.95 174.8 1.13 260 TDH013 Includes 61.4 62.9 1.5 418.5 2.67 619 TDH014 20.1 26.45 6.35 351.8 0.96 4
Slide 31: La Tigra – Maiden Drill Program
La Tigra – Maiden Drill Program Maiden drilling started April 2022 Drill results pending: 5 holes Drilling targeted areas defined by trenching TSXV: SM || OTCQX: OTCQX: SMDRF SMDRF 31
Slide 32: Appendix: 2021/2022 La Tigra Trenching
Appendix: 2021/2022 La Tigra Trenching 12.0 metres grading 2.91 g/t AuEq; Including 4.5 metres grading 7.05 g/t AuEq at La Tigra La Tigra Trench Intervals Structure Trench From To Int Au Ag AuEq El Tigre Foot Wall LTZ01 0 8.6 8.6 1.44 10 1.58 El Tigre LTZ02 0 19.7 19.7 0.46 6 0.54 El Tigre Hanging L
Slide 33: 2022 Trenching Results from La Tigra
2022 Trenching Results from La Tigra 8.9 metres grading 3.36 g/t AuEq; 4.7 metres of 5.64 g/t AuEq La Tigra Trench Intervals Structure Trench From To Int Au Ag AuEq El Verde LTZ09 0 6.1 6.1 0.98 1 1 LTZ10 0 24.2 24.2 1.59 3 1.63 El Camino Includes 15 19.7 4.7 5.58 4 5.64 LTZ11 0 22.9 22.9 1.78 6 1.8
Slide 34: 2021 Trenching Results from Tepic
2021 Trenching Results from Tepic 9.2 metres grading 543 g/t AgEq & 10.1 metres grading 119 gtT AgEq Highlights of the results received thus far include TZ005 with 10.5 meters grading 91 g/t AgEq, TZ011 with 10.1 meters grading 119 g/t AgEq and TZ011A with 9.2 meters grading 543 g/t AgEq. Tepic Tren
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