Sierra Madre Gold and Silver Ltd. has installed and fully commissioned twin diesel electric generators at the La Guitarra silver-gold complex in Mexico to prevent weather-related power outages.

Each of the new generators is capable of producing 1,500 kW. The installation also includes a fully tested substation and machine control center operating at manufacturer design levels.

Between January and August 2026, the La Guitarra production facility experienced 278 hours of downtime due to grid interruptions, resulting in over 11 days of lost production. Sierra Madre also added a 1,250-kW diesel generator for the Coloso and Nazareno areas under the backup power program announced in August 2026.

“Between January and August of this year, the production facility was down a total of 278 hours due to grid power interruptions. This equates to over 11 days of lost production. With the successful commissioning of the generating plant, the lost production revenue plus down time personnel and associated costs are now expected to be behind us. The Company has implemented an aggressive program to reduce operating costs and the backup generating capacity is a major milestone in achieving this.”

— Gregory K. Liller, Chief Operating Officer

The power upgrade follows the company’s repayment in July 2026 of its US$5 million secured term loan with First Majestic Silver Corp., leaving La Guitarra debt-free and generating positive operating cash flows.

In addition to the operational infrastructure update, Sierra Madre entered into a two-month marketing and investor awareness agreement with New Era Publishing Inc. valued at $250,000 USD, scheduled to begin in late September 2026. The company also granted 350,000 stock options to employees and consultants, exercisable at $1.56 per share over a five-year term, subject to TSX Venture Exchange acceptance.

Read the full announcement: Sierra Madre Onsite Power Generation Fully Functional at La Guitarra