Vancouver, British Columbia--(Newsfile Corp. - July 14, 2026) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce that it has received SEMARNAT (Secretaría del Medio Ambiente y Recursos Naturales, the federal Mexican regulatory agency in charge of environmental permitting) approval for drilling in the East District of the Guitarra Mine silver-gold complex. The approval is for 22 drill pads from which multiple holes can be drilled.
Based on detailed surface mapping, exposures in the accessible old workings along with historic data and maps, a 3D model of the East District vein systems has been developed. The drilling will test up to 30 different mapped vein systems and will be the first phase of a fully budgeted 30,000 metre drill program.
The Company is currently receiving bids from multiple drill contractors for phase one of the drilling program. Once a contractor has been selected, the Company expects drilling to start within 60 days.
Greg Liller, Chief Operating Officer, commented, "The exploration team has done a very thorough job of surface and underground mapping, locating and compiling old reports, maps and sections and developing a structural model. We were aware of multiple vein systems from the initial round of surface mapping in the East District, and now have a better understanding of the complex structural systems controlling mineralization. This information has allowed us to build a 3D model, which will be used to guide the upcoming drill program.
The 2023 NI 43-101 La Guitarra report1 contains an exploration potential estimate for the East District of 0.77 to 1.54 million tonnes grading 2.4 to 3.6 g/t gold and 440 to 670 g/t silver. This estimate is only for five of the vein systems in the East District and covers a combined strike length of just 7.7 km. Our systematic work and modelling to date have defined numerous additional vein systems over a much broader area, many of which contain significant historic workings. We acquired La Guitarra in part because of our belief that the East District was one of the best exploration opportunities in Mexico. I am very excited to begin a drilling campaign to test that idea."
Exploration Potential: The 2023 NI 43-101 report contains an estimate of the exploration potential for the East District. See quote from section 9.6 of the report for an estimate of the exploration target range at the East District. "In 2002, Luismin completed an assessment of the exploration potential in the East District (Nuevo Descubrimiento, Las Animas-Socorro, Marmajas-Echada, Magdalena-Zayas and Purisima veins) using the results of surface mapping, historical mine records, and preliminary drilling at Santa Ana (Mina de Agua). The QP has used Luismin's estimates of the strike length, the width of the veins, an assumption of a 200-metre vertical depth, an assumed bulk density of 2.6, and a range of 20% to 40% of the vein being mineralized to estimate a tonnage of between 0.77 million tonnes and 1.54 million tonnes. A grade range of ± 20% Luismin's average grades was used to estimate silver grades between 440 g/t to 670 g/t Ag and to estimate gold grades of between 2.4 g/t and 3.6 g/t Au. Combined total strike length of these vein systems is 7.7 km. The potential quantity and grade are conceptual in nature; there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource." The 2023 Mineral Resource Estimate included an East District component at Mina de Agua, with an indicated resource of 761,000 tonnes grading 159 g/t silver and 0.19 g/t gold and an inferred resource of 545,000 tonnes grading 178 g/t silver and 0.13 g/t gold.