Vancouver, British Columbia — February 17, 2026 — Leads & Copy —Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is moving forward with a two-stage expansion at its La Guitarra silver-gold mine complex.
The first stage aims to increase production from the current 500 tonnes per day (tpd) to between 750 tpd and 800 tpd. Upgrades to the processing plant and tailings handling, along with equipment purchases, are underway to support this initial expansion phase.
Following the completion of the first stage, the second phase is planned to boost processing capacity to a range of 1,200 tpd to 1,500 tpd by the third quarter of 2027. Details of the expansion plans can be found in the company’s September 8, 2025, press release.
Greg Liller, Chief Operating Officer and Executive Chairman, anticipates that the first stage of the expansion will not only increase throughput but also improve operational efficiencies, such as depositing a portion of the tailings underground and increasing equipment availability. The upcoming milestones include the installation of a ball mill and thickener.
The current crushing circuit includes a primary jaw crusher, a two-tier vibrating screen plant, and a 3-foot short head cone crusher. The addition of a new 3-foot standard head crusher is expected to expand crushing capacity to between 750 tpd and 800 tpd.
Construction on the crushing capacity expansion began in December 2025, with initial circuit testing underway. The company is also evaluating options for constructing a second crushed ore storage bin to provide additional backup storage capacity. Depending on the water content of the mine product, this bin may allow for the crushed mineralization to be reduced from -3/8 inch to a nominal 1/4 inch for enhanced recoveries.
Earthworks for the foundations of the 750 tpd to 800 tpd thickener are nearing completion. This thickener will enable a portion of the tailings to be deposited as paste fill in old stopes, extending the life of the existing tailings impoundment. It will also facilitate the construction of a filter circuit for producing dry stackable tailings. Fabrication of the tank, mixing rake, electrical components, and support structures is progressing, with project completion targeted for the end of the second quarter.
A used 11×12.5 ball mill has been purchased and is being refurbished. With a nominal capacity of 600 tpd at a -3/8 inch feed size, this mill, combined with one of the two existing +200 tpd mills, is expected to expand processing capacity to between 750 tpd and 800 tpd. The mill will be installed where the old 5 foot x 9 foot mill was located, requiring the construction of a new foundation based on the manufacturer’s blueprints. Completion is projected for late in the second quarter of this year.
To support the planned production increases, the company has been acquiring key equipment to accelerate mine development and improve material movement. These acquisitions include two new scoop trams, one used scoop, and the rebuilding of two existing scoops. The company has also purchased four haulage trucks, a second front-end loader, and a second StopeMate long hole drill, and completed the rebuilding of a second Jumbo drill.
Sierra Madre also announced the grant of stock options to employees of La Guitarra Compania Minera, S.A. de C.V., and consultants to purchase an aggregate of 1,000,000 common shares at $2.18 per share for five years. 100,000 of the options were granted to Triomphe Holdings Ltd., doing business as Capital Analytica and will vest over 12 months. The remaining options will vest immediately.
Mr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release.
Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is focused on the Guitarra mine in Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 tpd processing facility that operated until mid-2018 and restarted commercial production in January 2025.
The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.
Sierra Madre’s management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre’s team of professionals has collectively raised over $1 billion for mining companies.
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd., Alexander Langer is President, Chief Executive Officer and Director.
Source: Sierra Madre Gold and Silver Ltd.
