VANCOUVER, BC, Feb. 21, 2024 /CNW/ - Luca Mining Corp. ("Luca" or the "Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased to provide an update on the optimization program at its wholly-owned Campo Morado polymetallic mine in Guererro, Mexico.
- Significantly improved overall performance in Q4 2023 compared to previous quarters, yielding increased revenues.
- Plant performance exceeded expectations with operational consistency.
- Higher metallurgical recoveries and concentrate grades. Of note, copper in the bulk concentrate increased from less than 48% recovery to over 70% recovery.
Mike Struthers, CEO, commented, "The results we're achieving at Campo Morado are better than expectations, and it's extremely encouraging to see we can consistently maintain this performance week after week. The new regime of blending ore types from the mine is proving very successful by providing consistent feed to the plant and we expect this to continue to trend upwards during the year."
Ramon Perez, President, commented, "The dedication and hard work of our team and our consultants Ausenco over the past four months are yielding tangible results. While we acknowledge this achievement, we remain committed to further enhancing the mine's performance and diversifying our revenue streams, particularly through a clean copper-lead separation. We anticipate sharing further positive updates on the progress of both Campo Morado and the Tahuehueto mine with the market in the very near future."
Summary
The optimization program, known as the Campo Morado Improvement Project ("CMIP"), was formulated in Q4 2023 with the aim of significantly improving operational performance with a comprehensive strategy between the mine and mill. Key features of the program include effective mine-to-mill planning, new procedures for ore blending, increased metallurgical test work, optimized grinding and reagent dosing for improved recoveries, and phased equipment upgrades for mine and mill.
The results to date have been excellent, and include higher metallurgical recoveries and concentrate grades, especially for copper in the bulk concentrate, which are reflected in increased revenues. Plant performance in Q4 2023 met or exceeded expectations, particularly in the bulk circuit where copper recovery increased from less than 48% to over 70%.
Most notably, the operation increased copper recovery dramatically, by over 20%, whilst improving concentrate grades to over 14%.
Additional equipment was added to the mine to improve operational consistency, and in the plant a number of initiatives were completed, including adjusted reagent dosing schemes, and upgraded process control instrumentation.
Currently the operation produces a zinc concentrate, and a mixed (bulk) copper-lead concentrate.
Metallurgical test work at the ALS laboratories in Canada continues, with the goal to achieve a clean copper-lead separation, thereby producing three saleable concentrates (zinc, copper, lead) resulting in much improved revenues.
Mike Struthers, commented, "The progressive investments in plant improvements will continue over the coming months. This is an exciting year for the operations and the Company."
Stock Options
The Company announces that pursuant to its Omnibus Equity Incentive Plan, it has granted incentive stock options to purchase an aggregate 200,000 shares in the capital stock of the Company. The options will be exercisable at a price of $0.35 per share for a period of 5 years.
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. 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, a prolific 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 Tahuehueto Gold Mine is a new underground operation in Durango State, Mexico, within the Sierra Madre Mineral Belt which hosts numerous producing and historic mines along its trend. The Company is commissioning its mill capacity to +1,000 tonnes per day, and key test work and production ramp-up is underway, to increase production by 2H 2024.
The Company expects its operations to start generating positive cash flows 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) "Mike Struthers"
Mike Struthers, CEO and Director