Luca Mining Corp. (Ticker: LUCA.v or LUCMF for US investors) has released its 2024 guidance, forecasting robust growth and significant milestones for its Campo Morado and Tahuehueto mines in Mexico. With a production target of 60,000 to 70,000 gold equivalent (AuEq) ounces and projected revenue between $90 million and $105 million USD, Luca is poised for a strong second half of the year.
Consolidated Production and Financial Outlook
Luca Mining anticipates consolidated total cash costs (TCC) between $1,200 and $1,335 per AuEq ounce produced, and all-in sustaining costs (AISC) ranging from $1,320 to $1,500 per AuEq ounce. This positions Luca competitively within the mining industry. The company has planned extensive near-mine and regional exploration programs, aiming to enhance production capacity and resource expansion.
Key Milestones for 2024
The company has outlined several key milestones for the year:
- Throughput Expansion: Both Campo Morado and Tahuehueto mines will see increased throughput. Campo Morado aims to ramp up to 2,000 tonnes per day (tpd), while Tahuehueto is set to increase to +800 tpd following the installation of a new filter press.
- Commercial Production at Tahuehueto: The declaration of commercial production at Tahuehueto is expected to significantly boost output.
- Copper Concentrate Addition at Campo Morado: The introduction of a separate copper concentrate will diversify and enhance Campo Morado’s production.
- Major Exploration Programs: Both properties will benefit from extensive exploration efforts, potentially leading to new discoveries and resource growth.
Campo Morado Mine
Campo Morado, an underground operation in Guerrero State, Mexico, is on track to reach its full production target of 2,000 tpd by early Q3 2024. Currently, the mine has achieved an average throughput of approximately 1,390 tpd in Q1 2024 and 1,800 tpd over the past two weeks. The site’s optimization program has already resulted in improved recoveries and grades, contributing to better cash flows. Additionally, the mine is transitioning to produce three high-quality concentrates (copper, zinc, and lead) by Q3, further boosting financial performance.
Tahuehueto Gold Mine
Tahuehueto, situated in Durango State, Mexico, within the Sierra Madre Mineral Belt, is nearing the completion of its new mill construction, which is 97% complete. The mill's capacity of 1,000 tpd is set to be realized once the new filter press is installed. Currently, the production averages 450 tpd. High-grade gold zones have been identified, and underground drilling is imminent, potentially expanding the mine’s resources and leveraging its processing capacity.
Financial and Operational Performance
In Q1 2024, Luca Mining produced 14.1K ounces of gold equivalent, operating at 35-40% and 55-60% of potential capacities at Tahuehueto and Campo Morado, respectively. With the anticipated increase in production and efficiency, the company expects a significant rise in cash flow starting in Q3 2024.
Investment Potential
With a solid track record of production growth, high-grade gold discoveries, and positive cash flow, Luca Mining continues to offer a compelling investment opportunity. The company’s strategic initiatives and operational improvements position it well for long-term success and shareholder value maximization.
Full news here: https://lucamining.com/press-release/?qmodStoryID=7271273589895875
Posted on behalf of LUCA Mining Corp.