La Guitarra is a fully permitted underground silver mine in Temascaltepec, Mexico, 100% owned by First Majestic and subject to a binding purchase agreement with Sierra Madre (TSXV: SM). The mine was in production in 2018 where production averaged between 1 million to 1.5 million AgEq ounces annually between 2015 and 2018. Sierra Madre has announced a fast-track restart strategy for the mine whereby a district-scale exploration and mine development program will be initiated, thereafter a resource report is planned with mine restart studies and finally, reprocessing the tailings. The potential target for tailings at La Guitarra is 2-2.5 Mt at 0.4-0.6 g/t gold and 35 – 40 g/t silver where initial metallurgical tests show 80% gold recovery and 70% silver recovery.
La Guitarra is subject to a 1% buyback for $2 million.
Interest: 2% NSR Royalty
Location: Temascaltepec, Mexico
Project Status: Development
Counterparty: Sierra Madre Gold & Silver