Sierra Madre Gold and Silver Ltd. (TSXV: SM | OTCQX: SMDRF) has provided an operational update on activities at the La Guitarra silver-gold mine complex in Estado de Mexico, Mexico.
Test mining and processing has been ongoing since 25 June 2024. The company began testing the operation of all three ball mills simultaneously and in various combinations in October and daily throughput in the grinding and flotation circuits has been as high as 504 wet metric tonnes per day (WMT/d).
From 1 October to 18 October, throughput has averaged 428WMT/d. This average includes scheduled downtime to reline one mill and normal rainy season power outages. The company expects commercial production to begin before the end of the year.
Additionally, the flotation plant has been in continuous operation since the beginning of testing. Silver recoveries to date have averaged 78%. Based on recommendations from the company’s metallurgical consultants, a new reagent combination will be tested to enhance silver recovery of oxidized material. Gold recoveries have steadily increased from 74% in June to the current October average of 87%.
Since the commencement of test operations, a total of 39,272t of economically interesting, mineralized material has been put through the processing circuit. A total of 690.44 dry metric tonnes of concentrate has been shipped to MRI Trading. Average provisional concentrate payment grades have been 2,903g/t sliver and 34.74g/t gold.
Test mining continues to provide sufficient tonnages to sustain the milling operations. A new development plan has been put into place to accelerate the mining of insitu mineralized material, reducing the reliance on oxidized retaques, which are backfill from 1990’s stopes.
A new vein outside the 2023 NI 43-101 resource estimation, D-2, has been delineated and test production operations initiated. Test stope development in the San Rafael II area, the deepest portion of the Guitarra mine, has started on an identified large block of mineralized material in the Doncellas vein.
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