Bullboard - Stock Discussion Forum Luca Mining Corp V.LUCA

Alternate Symbol(s): LUCMF

Metals & Mining Industrial Metals & Minerals

Luca Mining Corp. is a diversified Canadian mining company with two 100%-owned producing mines in Mexico. It produces gold, silver, zinc, copper and lead from these mines that each have considerable development and resource upside. Its operations include Tahuehueto and Campo Morado. Tahuehueto project is in the northwest portion of the state of Durango, about 250 kilometers (km) northwest of... see more

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Luca Mining Corp > Exploration, Development & Operating Polymetallic Projects

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Post by MarketMakerss on Dec 05, 2024 5:06pm

Exploration, Development & Operating Polymetallic Projects

Exploration, Development & Operating Polymetallic Projects in Mexico - Interview with Luca Mining (LUCA.v LUCMF) CEO Dan Barnholden: https://www.youtube.com/watch?v=4lckrNbivjU

Overview of Luca Mining

Company Structure: Operates two mines in Mexico—Campo Morado (zinc, gold, copper, silver, lead) and the newly commissioned Tahuehueto mine (Northwest Durango).
2025 Goals: Both mines are ramping up production with expectations of significant cash flow.

Q3 Transition and Transformative Changes

Challenges in Q3: Lower production due to transitioning to contract mining.
Strategic Shifts: Contract mining introduced to improve production efficiency at Campo Morado with minimal capital expenditure.
Future Outlook: Both mines are expected to achieve full production capacity in 2025.

CEO Background and Leadership Initiatives

CEO Dan Barn Holden: Joined in July 2024 after 20 years as a mining-focused investment banker.
Team Building: Fostered morale through initiatives like site barbecues and achieved 365 days without a lost-time incident at Campo Morado.

Exploration Efforts and Talent Expansion

Exploration Importance: No meaningful exploration in over a decade; massive opportunities to grow resources.
Key Hires:
- Paul Gray: Formerly of Victoria Gold, with a track record of significant discoveries.
- Jill Carille: Credited with discoveries in Guerrero, including Ana Paula and Morelos.
- Fernando Tiis: Mexican national returning to contribute locally.
Exploration Goals: Expand near-mine resources to boost cash flow and explore broader property potential.

Mexico’s Mining Climate

Government Reforms: Concerns about legislative changes, including royalty hikes, are easing.
Positive Outlook: Existing permits and underground operations minimize impact; sees Mexico as a rebound market.

Capital Structure and Financial Highlights

Shares Outstanding: Approximately 200 million.
Debt: $17.4 million owed to Trafigura, with plans to extinguish by mid-2026 or earlier.
Convertible Debentures: $5.8 million convertible at $0.35.
Warrants: 40 million warrants at $0.50, expected to be exercised and proceeds used for debt repayment.
Goal: Achieve debt-free status with 250 million shares outstanding.

Upcoming Catalysts

Commissioning of Tawa Weto Mine: Full operation expected within weeks.
Drill Results: First three holes sent for assay, promising exploration potential.
Operational Hires: Further additions to the senior team expected.
Insider Activity: Significant insider buying reflects internal confidence in the company’s turnaround.

Positioned for growth with two profitable mines, robust exploration potential, and a strategy to streamline its capital structure, LUCA is at the beginning of a transformative period as the company gears up for a cash-flow-rich future.

Posted on Behalf of Luca Mining Corp.