LUCA Advances Exploration & Gold Eq Production Expansion Luca Mining Corp. (Ticker: LUCA.v or LUCMF for US investors), a mid-tier producer with operations in Mexico's Sierra Madre Mineral Belt, has made significant strides in its ongoing growth and development efforts across its two primary assets, the Campo Morado and Tahuehueto mines.
At the end of July, LUCA announced the initiation of an extensive exploration drilling campaign across both of its projects. The company plans to drill a total of 10,000 meters, with 5,000 meters allocated to each project during the third and fourth quarters of 2024. This initiative aims to explore high-potential targets on trend with the existing mining areas, potentially unlocking further value from these operations.
Campo Morado, located in Guerrero State, is a large VMS polymetallic system rich in copper, zinc, gold, and silver. The mine, which has a milling capacity of 2,000 tonnes per day, is already generating positive cash flow. The new exploration campaign marks the first significant exploration at Campo Morado since 2013, with the company set to test over 30 untested targets, focusing initially on the top four within the fully permitted mining zone. This effort aims to explore the project's copper and gold potential, leveraging a comprehensive inventory of historical drilling data and advanced geophysical and geochemical analyses.
Tahuehueto, a newly operational gold-silver mine in Durango State, is expected to achieve commercial production in the second half of 2024. With a designed processing capacity of 1,000 tonnes per day, the mine's exploration potential remains largely untapped, with less than 10% of the concession area explored to date. The upcoming drilling will focus on step-out drilling along strike and at depth, with the goal of identifying and characterizing mineralized zones within the epithermal vein systems.
Luca Mining's strategic exploration initiatives are poised to significantly enhance its resource base, metal production profile, and overall growth potential. Dan Barnholden, CEO of Luca Mining, emphasized the transformative potential of the exploration efforts, aiming to elevate the company to a new level of production, targeting no less than 200,000 oz of gold equivalent production (annually).
Supporting this increased production target, this week LUCA announced that it had engaged Cominvi, S.A. de C.V., one of Latin America's most reputable mining contractors, to handle core mining operations at the Campo Morado mine.
Cominvi's expertise in underground mining and its ability to quickly mobilize, following the completion of a nearby project, will enable Luca Mining to increase mill throughput from the current 1,400-1,600 tonnes per day to 2,000 tonnes per day by the end of 2024, with further plans to reach a 2,400 tonnes per day mill rate during 2025.
Barnholden expressed confidence that Cominvi's involvement would enhance operational flexibility and facilitate the execution of Luca Mining's broader strategic goals, including the ongoing Campo Morado Improvement Project, which aims to increase metallurgical recoveries and produce higher-value concentrates. This collaboration is expected to significantly impact the company's production, costs, and cash flow positively.
Luca Mining's focused approach to exploration and operational excellence underscores its commitment to maximizing shareholder value while positioning itself as a leading player in the mining sector.
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Posted on behalf of Luca Mining Corp.