Luca Mining Corp V.LUCA

LUCA's Mines Target 100koz Au Eq Yearly Production (Full DD)

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Luca Mining Corp. (LUCA.v or LUCMF for US investors) presents a compelling investment opportunity in the mining sector with its strategically located assets in Mexico. The company operates two fully permitted mines—Campo Morado and Tahuehueto—producing a diverse mix of precious and base metals including gold, zinc, copper, silver, and lead. This multi-metal production approach positions Luca Mining to capture value across different commodity cycles.

Key Strengths

• Operational Readiness and Growth:

  • Luca Mining is poised for a significant production ramp-up, targeting approximately 70,000 oz gold equivalent (Au Eq) for 2024, with plans to reach 100,000 oz in 2025 

  • The company's operations are de-risked, requiring no major new capital expenditures, and supported by robust infrastructure valued at over $500 million.

  • Campo Morado, a VMS-type underground mine in Guerrero State, has demonstrated impressive optimization with recovery improvements, targeting 43,000-50,000 oz Au Eq production for 2024

  • Meanwhile, Tahuehueto, an epithermal gold-silver project in Durango, is expected to reach commercial production by Q4 2024, contributing 17,000-20,000 oz Au Eq

• Significant Resource Base:

  • The company's current resource estimates total 2.7 million oz Au Eq, providing a strong foundation for long-term production. 

  • Campo Morado boasts 16.6 million tonnes of Measured and Indicated (M&I) resources, containing 1.2 billion lbs of zinc, 0.2 billion lbs of copper, and 62 million oz of silver and 700 Koz gold.

  • Tahuehueto contributes an additional 3.6 million tonnes of M&I resources with significant grades of gold (2.55 g/t) and silver (50.06 g/t).

• Exploration Upside:

  • Luca Mining's properties are significantly under-explored, presenting transformative potential.

  • At Campo Morado, the company is conducting its first meaningful exploration in over a decade, leveraging extensive historical data including over 580,000 meters of drilling. 

  • The potential for new discoveries is bolstered by ongoing step-out drilling and evaluation of known mineralized structures at Tahuehueto, which exhibits the characteristics of a potential San Dimas-style district.

Luca Mining is well-positioned for a valuation re-rating as it transitions Tahuehueto to commercial production and maximizes output at Campo Morado. With significant exploration upside and no major new capex required, the company targets growth to mid-tier producer status, aspiring to 200,000 oz Au Eq annually through organic expansion and potential M&A opportunities.

Company deck: https://lucamining.com/presentation/

Posted on behalf of Luca Mining Corp.