VANCOUVER, BC, July 25,
2024 /CNW/ - Luca Mining
Corp. ("Luca" or the "Company") (TSXV:
LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased to
announce that it has completed construction of its new, 100% owned
Tahuehueto gold mine located in Durango State, Mexico.
Tahuehueto is a fully permitted underground operation with a
1,000 tonne per day (tpd) nameplate processing capacity. The mine
was completed within budget and has been successfully producing on
a pre-production basis for several months. Processing rates will
now start to ramp up to commercial levels and this is expected to
be achieved by the end of September. Commercial run-rate levels are
considered to be an average of approximately 800 tpd or 25,000
tonnes of ore per month. Tahuehueto is a large property (121
square kilometres) that hosts an extensive epithermal gold vein
system with less than 10% of the prospective ground explored so
far. Regionally, Tahuehueto is within a prolific and historic
mining region including the famous San
Dimas gold mine. San Dimas has a similar style of
mineralization to Tahuehueto and has produced over 11 million
ounces of gold to date.
Mr. Dan Barnholden, CEO,
commented, "We are extremely pleased with our progress at
the Tahuehueto Gold Mine. Processing rates are currently averaging
450 tpd and we expect to steadily increase over the coming weeks to
reach commercial production in September 2024. Tahuehueto is
set to become the second cornerstone asset at Luca. We are
ultimately targeting at least 50,000 oz Au Eq* annual
production from this mine. We are also excited about encountering
new high-grade gold zones with significant mineable widths, as
recently announced, through our normal course development work. We
expect to start exploring these zones from underground in the
upcoming months. This is a tremendous achievement, and it
reinforces the strength of our team, which is underpinned by the
high geological prospectivity of our asset and the favorable
operating environment in Mexico."
Tahuehueto Update
The Company has successfully completed the installation of a
third filter press at Tahuehueto. The Company utilizes dry stack
tailings which has many advantages over traditional methods
including significant reduction of water usage, materially reduced
environmental risk, non-hazardous and safe storage of tailings
cakes, and faster and more efficient reclamation in the future.
This crucial enhancement enables the Company to increase its
average production to commercial levels of 800 tpd
(approximately 25,000 tonnes per month) and beyond.
In addition to this increase in production capacity, the Company
is actively continuing its underground development efforts.
Resource drilling from underground is expected to commence in the
coming weeks. The focus will be on new zones with significant
mining widths. This drilling initiative is anticipated to increase
the resource at Tahuehueto, bolstering the Company's asset
base.
The combination of increased production, resource development,
and exploration investment positions the Company for sustained
growth and profitability in the future.
About Luca Mining Corp
Luca Mining (TSX-V: LUCA, OTCQX: LUCMF, Frankfurt: Z68) is a
diversified Canadian mining company with two 100%-owned producing
mines in Mexico within the
prolific Sierra Madre Mineral Belt. The Company produces gold,
copper, zinc, silver and lead from these mines that each have
considerable development and resource upside.
The Campo Morado mine, is an
underground operation located in Guerrero
State, an important mining region in Mexico. It produces copper-zinc-lead
concentrates with precious metals credits. It is currently
undergoing an optimisation program which is already generating
significant improvements in recoveries and grades, efficiencies,
and cashflows. The mill at Campo
Morado has a nameplate capacity of 2,400 tonnes per day.
The Tahuehueto Gold, Silver mine is a new underground mine in
Durango State, Mexico which hosts
numerous producing and historic mines on trend. Tahuehueto has a
nameplate processing capacity of 1,000 tonnes per day and expected
to achieve commercial production in 2024.
Luca Mining is focused on growth with the aim of maximizing
shareholder returns.
For more information, please visit: www.lucamining.com
On Behalf of the Board of Directors
(signed) "Dan Barnholden"
Dan Barnholden, Chief
Executive Officer
Qualified Persons
The technical information contained in this News Release has
been reviewed and approved by Mr. Chris
Richings, Vice-President Technical at Luca Mining as the
Qualified Person for the Company as defined in National Instrument
43-101.
Cautionary Note Regarding Production Decisions and
Forward-Looking Statements
It should be noted that Luca declared commercial production at
Campo Morado prior to completing a
feasibility study of mineral reserves demonstrating economic and
technical viability. Accordingly, readers should be cautioned
that Luca's production decision has been made without a
comprehensive feasibility study of established reserves such that
there is greater risk and uncertainty as to future economic results
from the Campo Morado mine and a
higher technical risk of failure than would be the case if a
feasibility study were completed and relied upon to make a
production decision. Luca has completed a preliminary economic
assessment ("PEA") mining study on the Campo Morado mine that provides a conceptual
life of mine plan and a preliminary economic analysis based on the
previously identified mineral resources (see news releases dated
November 8, 2017, and April 4, 2018).
Positive operating cash flow is defined as excluding capital,
debt repayment and Trafigura financing.
Statements contained in this news release that are not
historical facts are "forward-looking information" or
"forward-looking statements" (collectively, "Forward-Looking
Information") within the meaning of applicable Canadian securities
laws. Forward Looking Information includes, but is not limited to,
disclosure regarding the planned program to improve mining
operations at Campo Morado; and
other possible events, conditions or financial performance that are
based on assumptions about future economic conditions and courses
of action; the timing and costs of future activities on the
Company's properties, such as production rates and increases;
success of exploration, development and bulk sample processing
activities, and timing for processing at its own mineral processing
facility on the Tahuehueto project site. In certain cases,
Forward-Looking Information can be identified using words and
phrases such as "plans," "expects," "scheduled," "estimates,"
"forecasts," "intends," "anticipates" or variations of such words
and phrases. In preparing the Forward-Looking Information in this
news release, the Company has applied several material assumptions,
including, but not limited to, that the current exploration,
development, environmental and other objectives concerning the
Campo Morado Mine and the Tahuehueto Project can be achieved; that
the program to improve mining operations at Campo Morado will proceed as planned; the
continuity of the price of gold and other metals, economic and
political conditions, and operations. Forward-Looking Information
involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance, or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
Forward-Looking Information. There can be no assurance that
Forward-Looking Information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on Forward-Looking Information. Except as
required by law, the Company does not assume any obligation to
release publicly any revisions to Forward-Looking Information
contained in this news release to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
*Gold equivalent estimates are based on metal prices of
$1,850/oz Au, $22.50/oz Ag, $0.90/lb Pb, $1.15/lb Zn, $3.60/lb Cu.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE Luca Mining Corp.