Disseminated on behalf of Sierra Madre Gold & Silver Ltd.
Mexico has been a cornerstone of global silver and gold production for centuries, with historic mining regions such as Zacatecas, Durango, and the Sierra Madre belt supplying the world with these precious metals. Mining represents nearly 2.5% of Mexico’s GDP and produces significant export revenue.
However, decades of underinvestment and declining output from aging mines led to a slowdown in production growth. Today, a new wave of modern mining companies is reinvigorating Mexico’s silver and gold industry, bringing capital, modern technology, and strict environmental practices to historic mining regions.
Among these companies, Sierra Madre Gold & Silver Ltd. (TSXV: SM | OTCQX: SMDRF) is emerging as a standout player, spearheading the revival of Mexico’s rich Temascaltepec district with its La Guitarra Mine.
Mexico’s Silver and Gold Renaissance: Strategic Importance
Mexico remains the world’s largest silver producer, contributing roughly 23–25% of global output in 2024, with total production between 5,800 and 6,300 tonnes. The surge in industrial demand for silver is reshaping its role from primarily a jewelry and investment metal to an essential material in the clean energy transition.
- With silver prices stabilizing around US$28 per ounce in 2025 and climbing above $50 in October, mid-tier producers like Sierra Madre stand to increase shareholder value while supporting rural economies.
Each solar panel consumes about 20 grams of silver, while electric vehicles require up to 50 grams. Analysts predict that by 2030, global silver demand will exceed 1.2 billion ounces annually, highlighting the need for stable, modern supply sources.
Mexico’s combination of skilled workforce, supportive regulations, and modern infrastructure makes it an attractive destination for exploration and investment. Sierra Madre’s work at La Guitarra, along with exploration at Tepic, exemplifies how new companies are turning dormant assets into engines of growth for the next decade.
Reviving La Guitarra: History Meets Modern Mining
The La Guitarra Mine has a storied history dating back to colonial times, producing both gold and silver under different owners, most recently First Majestic Silver. After a period of care and maintenance, Sierra Madre acquired the mine in 2023 with a clear strategy: restart production (achieved January 2025) and expand output.
The mine comes equipped with a 500-tonnes-per-day processing plant, permitted underground workings, and nearby infrastructure including roads, water, and power. With C$19.5 million in fresh capital and a skilled technical team, it has achieved a full-scale restart, with commercial production announced in January 2025.
- By 2027, the company aims to up to triple production to 1,500 tonnes per day, leveraging smart mine design and local partnerships to keep costs low while ramping output efficiently.
Furthermore, their leadership blends local mining expertise with strong capital markets knowledge, enabling efficient project execution. La Guitarra’s high-grade veins, clear exploration targets, and straightforward permitting process make it one of Mexico’s most promising silver-gold projects.
Commitment to Responsible Mining
Sierra Madre embodies a new generation of environmentally and socially responsible miners. The company is upgrading waste and water systems to modern standards, reclaiming tailings efficiently, and minimizing water usage. Open communication with local communities, clear permitting, and strong ESG practices reinforce its credibility with stakeholders and investors.
Modernization at La Guitarra is as much about responsible operations as it is about increasing output. This focus on sustainability aligns with global investor expectations while strengthening its long-term partnerships.
Sierra Madre holds one other project in Mexico’s Sierra Madre mineral belt:
- Tepic Project (Nayarit): High-grade epithermal gold-silver deposit with near-surface mineralization and strong exploration upside.
By focusing on assets with existing infrastructure and clear development paths, Sierra Madre reduces operational risk compared with early-stage exploration projects.
Industrial Demand Drives Silver’s Strategic Role
Silver’s function has evolved beyond traditional uses. Its high conductivity and reflectivity make it essential in solar panels, EV batteries, 5G networks, and electronics. Industrial demand is rising sharply: in 2024, industrial silver consumption reached 680.5 million ounces, accounting for over 30% of total usage, and solar energy alone represents a growing share.
The EV market further drives demand, with each vehicle requiring up to 50 grams of silver. Rising industrial requirements, combined with structural supply deficits, position companies like Sierra Madre to benefit from near-term production growth.
Global silver production is struggling to keep pace. In 2024, total output was roughly 819.7 million ounces, barely a 1% increase over the previous year. A projected 117.6 million-ounce supply deficit in 2025 underscores the need for reliable producers in Mexico’s rich silver belt.
Leveraging Gold’s Enduring Value in a Record-Price Era
Gold remains a cornerstone of stability. Prices are expected to hold above US$3,000 per ounce, supported by investment demand, central bank buying, and geopolitical uncertainty. In Q2 2025, total gold demand rose 3% year-over-year, reaching 1,249 tonnes, while mine production matched this growth, reflecting a healthy market balance.
At La Guitarra, underground mining at the high-grade Coloso vein started in April 2025, increasing production potential and improving grades. The company is upgrading milling systems to improve recovery rates and lower costs, capitalizing on record-high gold prices.
Strong Operational and Financial Performance
- In Q2 2025, Sierra Madre sold 173,562 silver-equivalent ounces: 66,011 ounces of silver and 1,048 ounces of gold, generating 168,535 AgEq ounces at an average price of US$30.10 per AgEq ounce.
The Coloso Mine is ramping up to 150 t/d by year-end, while underground development at the Nazareno Mine has already delivered over 700 tonnes of mineralized material to the Guitarra mill, with grades exceeding prior estimates.
The company raised C$19.5 million in mid-2025 to expand throughput, launch a +20,000-meter exploration program across its mineralized belt, and target high-grade zones in the East District. Strong revenue, cash position, and working capital support ongoing operations and exploration, providing a solid financial foundation for growth.
Silver continues to show upside potential. With a gold-to-silver ratio of 70:1, silver is currently undervalued relative to gold. Combined with rising industrial demand and tight supply, this positions Sierra Madre’s dual-metal strategy to capitalize on both growth and stability. Analysts project that silver deficits will persist, reinforcing the value of near-term production assets like La Guitarra.
- ALSO READ: Gold’s Enduring Value: How Sierra Madre Is Advancing Mexico’s Next Generation of Gold Projects
Two Metals, One Growth Strategy
Sierra Madre’s dual-metal approach combines gold’s stability with silver’s growth potential. Gold anchors financial security, while silver leverages rising industrial demand. This strategy enables the company to maximize shareholder value while maintaining operational resilience.
Phased Expansion Plan
Sierra Madre is executing a two-phase expansion at La Guitarra:
- Phase 1 (Q2 2026): Increase capacity to 750–800 t/d with equipment upgrades, including a new cone crusher and ball mill.
- Phase 2 (Q3 2027): Ramp up to 1,200–1,500 t/d with additional crushing circuits, producing finer material and improving recovery rates.
No additional permits are required, and the expansion will be fully funded from existing cash flow, ensuring self-sustained growth.
Final Take: Why Sierra Madre Is Poised to Deliver Silver and Gold
Sierra Madre Gold & Silver is at the forefront of Mexico’s silver and gold revival. With a mix of production-ready assets, exploration upside, and strong financial backing, the company is well-positioned to benefit from rising demand, structural supply deficits, and supportive market dynamics.
La Guitarra combines history, infrastructure, and timing for near-term production, while Tepic offers significant exploration potential. Sierra Madre’s dual-metal strategy balances stability with growth, leveraging gold’s safe-haven value and silver’s industrial demand.
As global demand for clean energy technologies, electric vehicles, and industrial applications rises, Sierra Madre is uniquely equipped to deliver both silver and gold. Its operational asset, responsible mining practices, and strategic expansion plan position it as a leading junior miner in Mexico’s most productive silver-gold belt.
In short, Sierra Madre has not just restarted a mine—it is breathing new life into Mexico’s historic silver and gold heartland while positioning investors to benefit from a transformative decade in precious metals.
- MUST READ: Reviving Mexico’s Silver Belt: How Sierra Madre’s La Guitarra Mine Is Leading the Comeback
DISCLAIMER
New Era Publishing Inc. and/or CarbonCredits.com (“We” or “Us”) are not securities dealers or brokers, investment advisers, or financial advisers, and you should not rely on the information herein as investment advice. Sierra Madre Gold and Silver Ltd. (“Company”) made a one-time payment of $25,000 to provide marketing services for a term of one month. None of the owners, members, directors, or employees of New Era Publishing Inc. and/or CarbonCredits.com currently hold, or have any beneficial ownership in, any shares, stocks, or options of the companies mentioned.
This article is informational only and is solely for use by prospective investors in determining whether to seek additional information. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. Examples that we provide of share price increases pertaining to a particular issuer from one referenced date to another represent arbitrarily chosen time periods and are no indication whatsoever of future stock prices for that issuer and are of no predictive value.
Our stock profiles are intended to highlight certain companies for your further investigation; they are not stock recommendations or an offer or sale of the referenced securities. The securities issued by the companies we profile should be considered high-risk; if you do invest despite these warnings, you may lose your entire investment. Please do your own research before investing, including reviewing the companies’ SEDAR+ and SEC filings, press releases, and risk disclosures.
It is our policy that information contained in this profile was provided by the company, extracted from SEDAR+ and SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee them.
CAUTIONARY STATEMENT AND FORWARD-LOOKING INFORMATION
Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate,” “expect,” “estimate,” “forecast,” “plan,” and similar expressions suggesting future outcomes or events. Forward-looking information is based on current expectations of management; however, it is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated.
These factors include, without limitation, statements relating to the Company’s exploration and development plans, the potential of its mineral projects, financing activities, regulatory approvals, market conditions, and future objectives. Forward-looking information involves numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking information. These risks and uncertainties include, among other things, market volatility, the state of financial markets for the Company’s securities, fluctuations in commodity prices, operational challenges, and changes in business plans.
Forward-looking information is based on several key expectations and assumptions, including, without limitation, that the Company will continue with its stated business objectives and will be able to raise additional capital as required. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.
There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information. Additional information about risks and uncertainties is contained in the Company’s management’s discussion and analysis and annual information form for the year ended December 31, 2024, copies of which are available on SEDAR+ at www.sedarplus.ca.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances except as may be required by applicable law.
For more information on the Company, investors should review the Company’s continuous disclosure filings available on SEDAR+ at www.sedarplus.ca.
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For most businesses, the emissions that matter most sit outside their own walls. Scope 3 emissions, everything generated across your value chain, from the suppliers who make your inputs to the customers who use your products, typically make up the majority of a company’s total carbon footprint. Under the Corporate Sustainability Reporting Directive (CSRD), those value-chain emissions now have to be measured and disclosed with a rigour that spend-based estimates alone struggle to satisfy. This guide sets out how to improve Scope 3 data accuracy for CSRD: the calculation methods open to you, how to move from estimates to verified supplier data, and how to govern that data so it holds up to audit.
A carbon credit is a commitment that extends well into the future. The tonne of CO₂ compensated for today from a nature-based carbon project must remain out of the atmosphere for good, which means the forest behind the credit has to remain standing long after the transaction is complete. For any buyer, this raises a defining question: What ensures that the forest endures?
What replaced the cheap REDD credit on the boardroom slide deck, and why procurement is leading the rewrite.
Three years ago, a corporate slide showing a portfolio of cheap REDD+ credits could carry a board meeting. The number was big, the price was low, and the press release wrote itself. Today, that same slide gets sent back with questions. The questions are uncomfortable, the answers are unclear, and your general counsel is suddenly in the room.
Conventional carbon offsets are not dead. The voluntary carbon market retired 202 million tonnes in 2025, and the Morgan Stanley Institute for Sustainable Investing survey published in January 2026 confirmed that interest from corporate buyers remains substantial. What changed is the credibility threshold. The integrity floor has risen, the disclosure scrutiny has tightened, and the buyer profile has shifted. This article tracks what changed, what sophisticated buyers now ask before signing, and what serious corporates are putting on the board slide instead.
What boards used to buy, and why it stopped working
The 2020 to 2022 model was simple: buy a large tranche of avoidance credits at low single-digit prices, retire them against the company footprint, announce the carbon-neutral claim, and move on. Most of those credits came from REDD+ projects, renewable energy installations in countries where the renewable energy was already economic, or methane projects with thin documentation.
Several things broke that model. Academic research published in 2023, including a widely cited Science paper, found that the majority of REDD+ credits issued under the most common methodologies did not represent additional reductions when tested against rigorous counterfactuals. The Voluntary Carbon Markets Integrity Initiative published its Claims Code of Practice, which sets requirements for what companies can credibly claim from credit use. The European Union finalised its Green Claims Directive, restricting how companies can describe products as climate-neutral. France’s Décret 2022-539 already restricts carbon neutrality advertising. California’s AB 1305 imposes disclosure requirements on any company making net-zero or carbon-neutral claims while doing business in the state.
The collective effect: the cheap credit no longer buys the announcement, and the announcement now carries litigation risk.
The integrity reset: ICVCM, VCMI, and what changed
The Integrity Council for the Voluntary Carbon Market published the Core Carbon Principles in 2023 and began assessing methodologies against them in 2024. The first methodologies received the CCP label later that year. The point of the label is to give corporate buyers a defensible quality screen they can cite in disclosure.
The Voluntary Carbon Markets Integrity Initiative complements this on the demand side. Its Claims Code of Practice defines what a buyer can say (Silver, Gold, or Platinum claims, with associated requirements) based on the quality of credits used and the underlying decarbonisation strategy. Together, CCP and VCMI build a quality stack: CCP on the supply, VCMI on the claim, with the science-based target sitting underneath both.
The reset is not a ban on offsets. It is a ratchet. Credits that meet the new bar continue to clear; credits that do not, do not. The Morgan Stanley survey found that 61% of current buyers like the CCP label concept but that supply of labelled credits remains limited. That supply constraint is now visible in pricing.
What sophisticated buyers ask before they sign
The questions on the procurement scorecard have changed. A 2022 buyer might have asked about price, vintage, and project type. A 2026 buyer asks five different questions before any of those.
- What does the counterfactual look like, and who validated it.
- What is the permanence regime, and what is the buffer pool exposure.
- What is the leakage risk, and how is it mitigated.
- What rating has the project received from the independent ratings agencies (Sylvera, BeZero, Calyx Global), and what was the rationale.
- What is the documentation discipline that survives an audit four years from now when the procurement team that signed the contract has moved on.
If the vendor cannot answer those five questions on a first call, the conversation ends. Conversely, if the vendor can answer them with documented specificity, the conversation often expands beyond a single transaction toward a multi-year engagement.
Where this leaves your near-term commitments
You probably have near-term commitments that pre-date the integrity reset. Public targets to be carbon neutral by 2025 or 2030. Product-level claims that ran in last year’s marketing. Disclosed reduction trajectories that assumed continued access to cheap credits.
You have three workable paths. The first is to re-baseline your strategy, replacing the most exposed credits with higher-quality alternatives and adjusting the public language to match what you can defend. The second is to shift the underlying spend from offsetting outside your value chain to investing inside your value chain, where reductions count against Scope 3 directly and the audit trail is cleaner. The third is to keep the strategy and absorb the risk, which is increasingly the most expensive option once you price in litigation, restatement, and reputational exposure.
Most serious buyers are choosing the second path. It moves the carbon spend from a compliance cost to a procurement and resilience investment, and it removes the central failure point of the legacy model: the disconnect between where the emissions occurred and where the reductions sat. Nature-based supply chain investments, structured under the GHG Protocol Land Sector and Removals Standard and aligned to the SBTi FLAG Guidance, are the asset class that fits this brief. They generate inventory-grade reductions, they produce audit-grade documentation, and they survive the new claim restrictions because the carbon math sits inside the value chain that the disclosure already covers.
If you are reassessing a carbon strategy under the new integrity bar, or rebuilding a board narrative that has to survive a more skeptical audience, the carbon and sustainability experts at Carbon Credit Capital can help. The Dual-Value Model gives you a defensible alternative to legacy offset purchases, with the documentation and operational integration that survives the procurement scorecard and the audit. Schedule a consultation.
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