Silver and gold, long treasured as precious metals, are playing increasingly strategic roles in the United States’ economic and technological landscape. While silver emerges as a critical component for clean energy and high-tech industries, gold continues to serve as a financial safe haven amid global uncertainty.

Together, these metals are central to U.S. efforts to strengthen domestic mineral supply chains and reduce reliance on imports.

Rising Industrial Demand for Silver

Global demand for silver continues to climb as industries pivot to cleaner and smarter technologies. Its superior electrical and thermal conductivity makes it indispensable for industries powering the global energy transition.

• Solar Power: Each photovoltaic (PV) panel uses 15–20 grams of silver paste to conduct electricity. With rapid solar capacity expansion, this sector could soon consume record amounts of silver.
• Electronics and EVs: Silver’s conductivity makes it essential for smartphones, circuit boards, and EV components.
• Healthcare: Its antimicrobial properties support growing use in medical equipment and coatings.

Recognizing its rising importance, the United States added silver to its Critical Minerals List, now totaling 51 minerals. This move, highlights silver’s dual role as a precious and industrial metal vital for national security and clean technology.

U.S. Silver Output and Reserves

As per USGS, the United States holds around 23,000 metric tons of untapped silver reserves, but production levels have remained moderate.

• Average output (1900–2024): 1,280 metric tons per year.
• 2024 production: 1,100 metric tons (≈ 35.4 million troy ounces).
• Estimated production value: $960 million.

Source: USGS

Gold Stays a Safe Haven Yet U.S. Output Falls Short

As silver gains industrial prominence, gold continues to strengthen its traditional role as a store of value. Amid high inflation, geopolitical tension, and a prolonged U.S. government shutdown, investors have turned to gold as a financial safeguard.

Gold prices hit a record $4,014.60 per ounce while Goldman Sachs raised its 2026 price forecast to $4,900 per ounce, citing steady central bank purchases and strong ETF inflows.

U.S. Gold Production Trends

U.S. gold output has been trending downward since 2017, when production peaked at 237 metric tons. The decrease reflects mine depletion and limited new project development. Nevada had the most output, accounting for about 70% of total domestic production, followed by Alaska, 16%

USGS highlights that in:

• 2024 production: 160 metric tons (≈ 5.14 million troy ounces).
• Estimated value: $12 billion.
• Identified reserves: Around 3,000 metric tons.

Source: USGS

Thus, both metals, though historically linked, now represent distinct pillars of economic and technological resilience in an era of green transformation and geopolitical volatility.

Last year, Mexico led the world in silver production, followed by China, Peru, Bolivia, and Chile. Amid the ongoing supply crunch, Sierra Madre is advancing two projects in Mexico: the producing La Guitarra mine and the exploration-stage Tepic Project. The La Guitarra mine contributes to current silver output, while Tepic offers exploration potential for future supply growth.

Sierra Madre: Mexico’s Newest Silver and Gold Producer

TSXV: SM | OTCQX: SMDRF

Sierra Madre Gold and Silver has officially joined the ranks of Mexico’s precious metal producers. It focuses mainly on silver and gold mining at its La Guitarra Mine Complex mining district of Estado de Mexico. The second project, i.e. Tepic project is located near Tepic, city Nayarit. Its previous metallurgical testing has shown good recoveries for both gold and silver recoveries.

Unlock the two high-impact projects below:

La Guitarra Mine

La Guitarra mine began test mining on June 25, 2024, and has maintained steady operations since. It reached commercial production on January 1, 2025, marking an important milestone for the company.

Tucked in one of Mexico’s most historic mining districts, La Guitarra is an underground silver and gold mine sitting where the Sierra Madre Occidental meets the Faja Volcánica Transmexicana. This spot is famous for its rich, high-grade epithermal veins packed with silver, gold, lead, and zinc.

The mine stretches across 40 kilometers of underground tunnels, ramps, and haulage ways. Operations are centered on two main underground zones — Guitarra and Coloso, along with several historic producing areas such as Nazareno.

Sierra Madre acquired full ownership of the project from First Majestic Silver in an all-share deal valued at US$35 million, completed on March 30, 2023.

Key Highlights

• Crushing and Processing: The mine has a fully functional 500-ton-per-day (t/d) crushing, grinding, and flotation plant, with potential for future expansion.
• Historical Production: La Guitarra produced 1 to 1.5 million silver-equivalent ounces per year from 2015 to 2018, including approximately 610,000 to 945,000 ounces of silver annually.

La Guitarra holds strong exploration potential, with more than 59 kilometers of mapped but largely untested mineralized structures, offering significant room for future discovery and resource growth.

Tepic Project

The Tepic project, located about 39 kilometers from Tepic City, covers 2,612.5 hectares across five 100% owned concessions. It sits in a mining-friendly jurisdiction, making it well-suited for ongoing exploration and future evaluation.

The project hosts low-sulfidation epithermal gold and silver mineralization within Mexico’s Sierra Madre Geologic Province. Previously, Cream Minerals’ flagship asset, Tepic, returned encouraging metallurgical test results for both gold and silver recoveries.

Key Highlights

The epithermal gold-silver mineralization across multiple zones together form a single, continuous structure running northwest to southeast.

Geology and Mineralization

• Extent: Zones stretch over 1 km in length and up to 200 m in width.
• Drilling: 31,537 meters of core drilling completed in 149 holes; samples stored at Sierra Madre’s warehouse.
• Phase 2 Program Completed: Designed to test extensions of breccia and vein structures, explore new targets, and infill existing drill patterns to support an updated NI 43-101 resource.

Core recovery averaged 76%, likely underestimating grades. However, higher-grade samples nearby suggest richer deposits. So, a reverse circulation drilling campaign will achieve 100% recovery and better assess the resource.

Exploration Potential

Recent exploration highlights strong potential to expand the silver-gold mineralization. A revised structural interpretation shows the Dos Hornos breccia veins remain open along strike, indicating upside both at depth and along strike for further resource growth.

2025 Work Progress

The company made strong progress at the La Guitarra silver-gold complex in Estado de Mexico. In Q2 2025, it sold 173,562 silver-equivalent ounces.

• Guitarra produced 66,011 ounces of silver and 1,048 ounces of gold, totaling 168,535 ounces AgEq at an average price of US$30.10 per AgEq ounce.
• The Coloso Mine is ramping up and is expected to reach 150 t/d by year-end.

At the Nazareno Mine, underground development has started, with over 700 tonnes of mineralized material already delivered to the Guitarra processing plant, although this material milled was not included in the current Mineral Resource Estimate.

A Three-Pronged Production Strategy

This 2025 program positions Sierra Madre for continued production growth while advancing exploration and expanding the La Guitarra resource base. The three key initiatives include:

• Commercial Production: Maintain full-scale mining at Guitarra, ramp up Coloso, and improve efficiencies to cut costs in H2 2025.
• District-Scale Exploration: Planning a +20,000-meter drill program across East District concessions, targeting 100+ epithermal veins along a 4-km-wide, 15-km-long belt.
• Mining Options Evaluation: Assess underground bulk mining for prior open pit deposits and explore alternative underground methods.

Led by a Proven Technical Team

Sierra Madre is led by an experienced team with expertise in geology, exploration, corporate finance, and capital markets.

Gregory Liller, Executive Chairman and COO, brings over 40 years of experience and a Bachelor of Geology from Western State College. He has held leadership roles at several public companies, including Prime Mining, Genco Resources, Gammon Gold, Mexgold Resources, and Oracle Mining, helping develop over 11Moz of gold and 600Moz of silver and raising more than $400 million in financing.

CEO, President, and Director, Alex Langer, is a public markets specialist with 20 years of experience. He began at Canaccord Genuity, funding over 100 companies and several IPOs, and served as VP of Prime Mining and Millennial Lithium. He is currently a Director of LI-ft Power Ltd.

Jorge Ramiro Monroy, Lead Director, is Founder and Managing Director of Emerging Markets and CEO of Reyna Silver Corp. He has financed numerous TSX-listed junior and mid-tier companies and holds a Bachelor’s from the State University of New York and an MBA in Finance from HKUST.

Greg Smith, Director, B.Sc., P. Geo., has over 30 years of global exploration experience, overseeing programs from grassroots to advanced operations, including resource estimation and NI 43-101 compliance. He previously served as CEO and VP Exploration of Calibre Mining, guiding acquisitions of key gold mines in Nicaragua.

Together, the team blends technical expertise and financial acumen to drive Sierra Madre’s growth and exploration success.

Top 3 Reasons to Put Sierra Madre on Your Investment Radar Now

Strong Financials, Major Backing

Sierra Madre generated $5.4 million in revenues during Q2 2025 from deliveries totaling 779.7 dry metric tonnes of silver-gold concentrates. The deliveries contained an estimated 65,683 ounces of silver and 1,096 ounces of gold.

• Silver sales generated $2.18 million at $33.20 per ounce and Gold sales generated $3.59 million at $3,271 per ounce.

It made gross profit of $1.3 million for the quarter. Additionally, the company’s cash position rose to $710,000 by June 30, 2025, while working capital increased to $3.26 million.

With the C$19.5 million equity financing, ongoing concentrate sales, and expected VAT refunds, Sierra Madre is expected to cover all obligations and planned expenditures for the next 12 months.

This strong financial position supports the company’s growth strategy, ongoing mine development, and planned exploration programs.

A Golden Opportunity in the Silver Market

Silver presents a compelling investment opportunity today for several reasons. As macroeconomic uncertainty continues to drive investors toward safe-haven assets, it boosts demand for precious metals simultaneously.

The company highlights that silver is currently undervalued relative to gold, with a gold-to-silver ratio of 70:1, well above historical averages. This suggests significant upside potential as the market rebalances.

Demand for silver is rising sharply, both from investors and industry. Physical silver investment is projected to grow 16% in 2025, while industrial use in electric vehicles, hybrids, and 5G technologies continues to expand, creating a long-term structural driver for the metal.

At the same time, global silver supply is tightening. Production has declined for four consecutive years and is expected to drop another 5% due to falling grades, lower by-product output, and operational disruptions.

Data Source: The Silver Institute

In short, silver combines undervaluation, rising demand, and constrained supply, making it a timely and strategic investment for those seeking exposure to precious metals.

A Clear Path to Growth

Sierra Madre is planning a two-phase expansion of the La Guitarra mine, aiming to more than double its capacity over the next 24 months.

Phase 1 – Capacity Increase to 750–800 t/d (Q2 2026)
The first phase will raise the mine’s current 500 t/d capacity by over 50% by Q2 2026. Key improvements include:

Equipment deliveries for the cone crusher and ball mill are expected in November 2025

Phase 2 – Capacity Increase to 1,200–1,500 t/d (Q3 2027)
The second phase will more than double throughput from current levels by Q3 2027. Key developments include:

New crushing circuits in 2026 and 2027 will produce a finer -1/4 inch product (currently 3/4 inch), improving recoveries starting in Q2 2026

No additional permits are required for these expansions, and the project will be fully funded from the company’s treasury and cash flow, ensuring a self-sustained growth plan.