Sierra Madre Gold & Silver Ltd. · TSXV:SM
Sierra Madre Gold & Silver — Investor Presentation (September 2022)
32 slides from Sierra Madre Gold & Silver's investor presentation, September 2022
Slide 1: Corporate Presentation September 2022
Corporate Presentation September 2022 S M TSX-V | SMDRF 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: Building a 'Superior Junior' in Mexico
Building a ‘Superior Junior’ in Mexico 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: 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 over 15 years of experience. He started his career as an Investment Advisor with Canaccord Genuity, where he helped fund over 100 Mr. Liller has mo
Slide 5: Board of Directors
Board of Directors 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 • Mr. Car
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: available for a prompt restart Functional and expandable 500 t/d crushing, grinding and flotation facility Exploration poten
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 Permits cover mining and Functional 500 t/d process facility on care and maintenance processing plus • Two mining centres - La • Crushing, grinding and • Operating lic
Slide 8: La Guitarra: Fast-Track Restart Strategy
La Guitarra: Fast-Track Restart Strategy Three-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. Completing a NI 43-101 resource report • Report would cover areas a
Slide 9: 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 • Initial tests completed at by First Majestic show 80% gold recovery and 70% silver recovery using CN leach
Slide 10: La Guitarra: District wide exploration
La Guitarra: District wide exploration 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 • Over 1,400 drill holes totaling 236,000 metres have been completed and ready for modeling • Multiple historic
Slide 11: La Guitarra acquisition terms
La Guitarra acquisition terms First Majestic to become top shareholder: 19.9% interest Resale restrictions on the All-share consideration shares held by First Share distribution to First transaction Majestic Majestic shareholders • Sierra Madre to issue US$35 million in • 25% subject to a 6-month re
Slide 12: Proposed Budget
Proposed Budget Currency Exchange Assumptions US$ to CND$ 1.28 $NP to $US 20.00 La Guitarra 1 Year Budget - Areas Technical Engineering Studies Permitting & ESG Mill Additions US$ CND$ US$ CND$ US$ CND$ Resource Estimation 200,000 CN Permit 100,000 CN Leaching Tanks 600,000 Rincon & Veta Rica Tailin
Slide 13: 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 14: Tepic: >2,600 ha Land Package
Tepic: >2,600 ha Land Package TSXV: SM | OTCQX: SMDRF 14
Slide 15: 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 16: Tepic: 2022 Diamond Drill Results
Tepic: 2022 Diamond Drill Results Core Drilling Highlights • All 16 core holes completed to date returned sections of at least 75 g/t silver • The weighted average grade of these intersections is 301 g/t AgEq • 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
Slide 17: 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
Slide 18: 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 19: Tepic Project: Metallurgy
Tepic Project: Metallurgy Metallurgical Test Results Cyanide Bottle Roll Test Scoping Flotation Test Scoping Flotation Test and Cyanide TEST 72 hours One cleaning circuit Leaching of Tailings Gold – 94% Gold – 66% Gold – 94% RECOVERY Silver – 78% Silver – 81% Silver – 90% TSXV: SM | OTCQX: SMDRF 19
Slide 20: 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 21: La Tigra Maiden Drill Program Results
La Tigra Maiden Drill Program Results The first three holes at Districo del Tigre all hit shallow mineralization La Tigra Drill Highlights Target Hole From To Int Au Ag AuEq El Camino LTDH001 0 9.00 9.00 0.46 9.2 0.58 Includes 0 4.50 4.50 0.68 18.3 0.92 And 44.40 51.00 6.60 0.49 6.1 0.58 El Tigre LT
Slide 22: 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 23: Share Structure
Share Structure Tight Share Structure and Large Insider Ownership Capital Structure Sierra Madre Shareholders Market Cap $47.3M Institutional Management & 6.5% Founders Shares Outstanding 63,943,008 42.2% Shares under 42 month escrow (15,481,332) Cash on Hand $8M CAD Retail and High Net Worth 51.3%
Slide 24: Vancouver
VANCOUVER 1455 Bellevue Ave West Vancouver, BC, V7T 1C3, Canada Phone: (604) 765-1604 alanger@ptolemycapital.co.uk sierramadregoldandsilver.com
Slide 25: Why Sierra Madre Gold & Silver
Why Sierra Madre Gold & Silver MANAGEMENT – VALUATION - ASSETS Management Team & Board Attractive Valuation Robust Acquisition Pipeline Experienced management team with Track record of project discovery, Strong shareholder base and history of successful deal execution in advancement and monetization
Slide 26: 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 TSXV: SM | OTCQX: SMDRF 26
Slide 27: Tepic Project: Taunas Structure, Eastern Portion
Tepic Project: Taunas Structure, Eastern Portion Recent mapping had identified a second vein at Taunas Drill pads are now built: drilling to start in June TSXV: SM | OTCQX: SMDRF 27
Slide 28: 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 29: 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 30: La Tigra – Maiden Drill Program Underway
La Tigra – Maiden Drill Program Underway Maiden drilling started in April Two drills are now working at La Tigra Drilling targeting areas defined by trenching TSXV: SM | OTCQX: SMDRF 30
Slide 31: 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 32: 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
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