At the recent Emerging Growth Conference, CEO Dan Barnholden of Luca Mining Corp. (LUCA.v or LUCMF for US investors), a precious and base metals producer and developer, detailed the company's growth and optimization strategy for its two 100%-owned mines in Mexico’s prolific Sierra Madre mineralized belt. The presentation emphasized Luca's three pillars of value creation—Optimization, Exploration, and Expansion—driving its plans for Q4 and beyond. Key presentation highlights include:
CEO Background
Barnholden, who joined five months ago, brings 20 years of experience as a mining-focused investment banker, having financed numerous junior mining projects. He has personally invested over $1 million in Luca Mining, reflecting his confidence in its undervalued potential.
Operational Mines:
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Campo Morado (Guerrero State): Produces zinc, copper, gold, silver, and lead from a polymetallic VMS deposit. The company plans to ramp up throughput to 2,000 tpd by year-end, then quickly to 2,400 tpd and implement mill optimization to enhance recoveries and cash flow significantly.
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Tahuehueto (Durango State): A new gold mine nearing commercial production, expected by early Q1 2025. Current production is 8-900 tons per day with plans for aggressive exploration to expand resources.
Production and Growth:
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Expected 2024 production: ~60,000 oz gold equivalent.
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2025 goal: Increase production to 100,000 oz gold equivalent.
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Long-term target: 150,000 oz/year with ongoing optimization and exploration.
Exploration Plans:
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First drilling at Campo Morado in over a decade, focusing on high-priority targets identified through historical data analysis.
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At Tahuehueto, exploration aims to expand resources by drilling underexplored areas with known vein systems and testing high-potential gaps in the mineralized structure.
Financial Position:
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September 2024 financing raised CAD 11.5M.
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Projected to be fully debt-free by mid-2026, potentially sooner through warrant exercises and operational cash flow.
Overall, Barnholden emphasized that the company is positioned to deliver strong results across production, exploration, and financial metrics in the coming years. Aiming for significant production and resource growth, Luca plans to enhance shareholder value through exploration, optimization, and eventual consideration of M&A opportunities.
Full presentation replay here:
Posted on behalf of Luca Mining Corp.