VANCOUVER, BC, Oct. 10,
2024 /CNW/ - Luca Mining
Corp. ("Luca" or the "Company") (TSXV: LUCA)
(OTCQX: LUCMF) (Frankfurt: Z68) is pleased to announce the
successful implementation of the first two stages of the Campo
Morado Improvement Project (CMIP) and commencement of Stage
3.
In Q4 2023 the Company partnered with Ausenco México S. de R.L.
de C.V. ("Ausenco") to implement a staged improvement
project designed to increase metallurgical performance, mill
throughput, sustaining plant performance and operating cash
flow. The initial phase of the project (Stage 1) included a
comprehensive geometallurgical program focused on sampling,
training and procedures as well as optimizing the process controls
in the plant. The primary goal of Stage 2 was sustainable
operations and improving plant reliability. Stage 3 will now build
on the improvements to date and implement a new flow sheet with
modest modifications to the plant with the goal of producing three
high-quality, saleable concentrates of copper, lead and zinc.
The CMIP has already delivered significant financial benefits to
the Campo Morado operation with
only minor changes to the process plant. These benefits have mostly
come from higher copper recovery which has improved by 53% over the
same period in 2023. Copper recovery to the bulk concentrate
year-to-date (YTD)1 is 68.5% compared to 44.7% during
the same period in 2023. Figure 1 below shows bulk concentrate
copper grade and Figure 2 shows copper recovery over the last 21
months. This has resulted in an estimated 10% increase of revenue
per milled tonne2 over the same period year-on-year
assuming constant metals prices.
Work has begun on Stage 3 of the CMIP project which consists of
modest but important modifications to the processing plant,
including:
- Revised metallurgical sampling systems.
- Modernization of reagent dosing systems.
- New flotation cell air flow monitoring and control.
- Installation of next generation pH/ORP probes.
- New bulk rougher concentrate surge tank. Modifications to the
bulk regrind circuit to operate with 2-stage regrinding.
Completion of Stage 3 will increase the degree of liberation of
the copper and lead minerals, allowing for collection in two
separate concentrates through a sequential flotation process. In
conjunction with the refurbishment of equipment and a new
mine-to-mill strategy, it is anticipated that the CMIP will deliver
more robust revenues for the Campo
Morado operation. The Company expects to test the
copper-lead separation process by the end of the year, with full
project completion by Q2 2025.
The Company, together with Ausenco, has demonstrated that the
Campo Morado mine and mill are
capable of sustained profitable operations and future work will
continue to enhance the value of the asset.
CEO Dan Barnholden commented,
"The improvements at Campo
Morado have been an outstanding success to date and moving
to Stage 3 of this program demonstrates Luca's commitment to
ongoing improvement at our assets.
We intend to produce three clean, fully saleable and higher
value concentrates of copper, zinc, and lead, which will have an
immediate, positive impact on revenues and, ultimately, cash
flow."
- YTD includes preliminary production data up to and including
September 2024.
- It is noted that this calculation is approximate given that
total revenue received in any given period is based on several
factors including but not limited to head grade, recovery and
prices of multiple, marketable metals over time.
About Ausenco
Ausenco is a global company redefining
what is possible. The team is based across 26 offices in 15
countries, delivering services worldwide. Combining deep technical
expertise with a 30-year track record, Ausenco delivers innovative,
value-add consulting studies, project deliver, asset operations and
maintenance solutions to the minerals and metals and industrial
sectors (www. ausenco.com)
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 within the prolific
Sierra Madre mineralized belt in
Mexico which hosts numerous
producing and historic mines along its trend. 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. It produces copper-zinc-lead concentrates with
precious metals credits. It is currently undergoing an optimization
program which is already generating significant improvements in
recoveries and grades, efficiencies, and cashflows.
The Tahuehueto Gold, Silver Mine is a new underground operation
in Durango State. which hosts numerous producing and historic mines
along its trend. The Company is commissioning its mill and is
expected to achieve commercial production by the end of the
year.
On Behalf of the Board of Directors
(signed) "Dan
Barnholden"
Dan Barnholden, Chief Executive
Officer
For more information, please
visit: www.lucamining.com
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 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).
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 anticipated revenue increases as a result
of CMIP; 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, including Stage 3 of CMIP. 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 copper recoveries will be as
assumed; that metals prices will remain constant; that the current
exploration, development, environmental and other objectives
concerning the Campo Morado Mine can be achieved; 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.
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.
