Last week, Luca Mining Corp. (Ticker: LUCA.v or LUCMF for US investors) shared that it has made significant strides with promising exploration results and robust financial performance. Operating two producing and 100%-owned mines in Mexico, the company's recent press releases highlight the discovery of new high-grade gold zones at the Tahuehueto Gold Mine and their positive financial results for Q1 2024.
High-Grade Gold Zones at Tahuehueto Gold Mine
Luca Mining has confirmed the presence of high-grade gold mineralization with substantial mining widths at the Tahuehueto Gold Mine in Durango, Mexico. The discovery is significant, as it reveals mineralized breccia ore shoots up to 20 meters wide at Underground Level 23, the lowest level in the mine. These findings are part of the company's ongoing geological mapping and channel sampling efforts.
Geological Insights
The underground mine development at Tahuehueto has been advancing since early 2022, focusing on accessing, dewatering, and mining Level 23. Two mineralized splays have been exposed on the hanging wall and footwall sides of the Creston fault, showcasing economic widths of up to 20 meters. The area hosts two types of mineralization: structurally controlled hydrothermal breccias with zinc and lead sulfides and high-grade gold and silver mineralization superimposed over base metal sulfides.
Channel Sampling Results
Channel sampling in the mineralized zones has provided promising results, with maximum assay values of 65.04 g/t gold, 267 g/t silver, 4.41% copper, 11.29% lead, and 14.19% zinc. The average assay values across 494 samples indicate substantial mineralization, affirming the potential for significant resource expansion in the upcoming exploration programs.
Strong Financial Performance in Q1 2024
Luca Mining's financial results for Q1 2024 showcase the company's operational and financial strength. The company reported a net income of C$7.3 million, driven by a 21% increase in total net revenue to C$22.04 million. This growth reflects the company's successful production and optimization efforts at its two mines.
Production and Revenue Highlights
- Production of 14,148 troy ounces of gold equivalent, including 4,297 ounces of gold, 207,505 ounces of silver, 3,068 tonnes of zinc, 791 tonnes of copper, and 661 tonnes of lead.
- Positive operating earnings with C$4.8 million in operating income and C$7.3 million in net income.
- Positive operating cash flow of C$4.04 million before working capital changes.
Cost Management and Future Outlook
The all-in sustaining costs (AISC) per gold equivalent ounce produced were US$1,325 at Campo Morado and US$1,690 at Tahuehueto, with consolidated AISC of US$1,549. Luca Mining anticipates a decrease in AISC as production ramps up in the second half of 2024. The company is also nearing the completion of construction at Tahuehueto, with the last major component, a third filter press, being installed and expected to be operational in Q2 2024.
Full press releases here: https://lucamining.com/news/
Posted on behalf of LUCA Mining Corp.