Luca Mining Completes Construction of Tahuehueto Gold Mine

Rhea-AI Summary

Luca Mining Corp. (TSXV: LUCA) (OTCQX: LUCMF) has completed construction of its 100% owned Tahuehueto gold mine in Durango State, Mexico. The mine features a 1,000 tonne per day processing capacity and is expected to reach commercial production by September 2024. Currently processing 450 tpd, the company aims to increase to 800 tpd for commercial run-rate levels.

Tahuehueto is part of a prolific mining region, with only 10% of its 121 square kilometer property explored. The company has installed a third filter press for dry stack tailings, enabling increased production and reduced environmental impact. Luca Mining is targeting annual production of 50,000 oz Au Eq* and plans to commence resource drilling from underground in the coming weeks to potentially increase the mine's resources.

Positive

• Completed construction of Tahuehueto gold mine within budget
• Processing capacity of 1,000 tonnes per day
• Expected to reach commercial production by September 2024
• Targeting annual production of 50,000 oz Au Eq*
• Installation of third filter press for increased production capacity
• Plans for underground resource drilling to potentially increase resources

Negative

• Currently processing only 450 tonnes per day, below commercial levels
• Only 10% of the prospective ground explored so far

VANCOUVER, BC, July 25, 2024 /PRNewswire/ - Luca Mining Corp. ("Luca" or the "Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased to announce that it has completed construction of its new, 100% owned Tahuehueto gold mine located in Durango State, Mexico.

Tahuehueto is a fully permitted underground operation with a 1,000 tonne per day (tpd) nameplate processing capacity. The mine was completed within budget and has been successfully producing on a pre-production basis for several months. Processing rates will now start to ramp up to commercial levels and this is expected to be achieved by the end of September. Commercial run-rate levels are considered to be an average of approximately 800 tpd or 25,000 tonnes of ore per month. Tahuehueto is a large property (121 square kilometres) that hosts an extensive epithermal gold vein system with less than 10% of the prospective ground explored so far. Regionally, Tahuehueto is within a prolific and historic mining region including the famous San Dimas gold mine. San Dimas has a similar style of mineralization to Tahuehueto and has produced over 11 million ounces of gold to date.

Mr. Dan Barnholden, CEO, commented, "We are extremely pleased with our progress at the Tahuehueto Gold Mine. Processing rates are currently averaging 450 tpd and we expect to steadily increase over the coming weeks to reach commercial production in September 2024. Tahuehueto is set to become the second cornerstone asset at Luca. We are ultimately targeting at least 50,000 oz Au Eq* annual production from this mine. We are also excited about encountering new high-grade gold zones with significant mineable widths, as recently announced, through our normal course development work. We expect to start exploring these zones from underground in the upcoming months. This is a tremendous achievement, and it reinforces the strength of our team, which is underpinned by the high geological prospectivity of our asset and the favorable operating environment in Mexico."

Tahuehueto Update

The Company has successfully completed the installation of a third filter press at Tahuehueto. The Company utilizes dry stack tailings which has many advantages over traditional methods including significant reduction of water usage, materially reduced environmental risk, non-hazardous and safe storage of tailings cakes, and faster and more efficient reclamation in the future. This crucial enhancement enables the Company to increase its average production to commercial levels of 800 tpd (approximately 25,000 tonnes per month) and beyond.

In addition to this increase in production capacity, the Company is actively continuing its underground development efforts. Resource drilling from underground is expected to commence in the coming weeks. The focus will be on new zones with significant mining widths. This drilling initiative is anticipated to increase the resource at Tahuehueto, bolstering the Company's asset base.

The combination of increased production, resource development, and exploration investment positions the Company for sustained growth and profitability in the future.

About Luca Mining Corp

Luca Mining (TSX-V: LUCA, OTCQX: LUCMF, Frankfurt: Z68) is a diversified Canadian mining company with two 100%-owned producing mines in Mexico within the prolific Sierra Madre Mineral Belt. The Company produces gold, copper, zinc, silver and lead from these mines that each have considerable development and resource upside.

The Campo Morado mine, is an underground operation located in Guerrero State, an important mining region in Mexico. It produces copper-zinc-lead concentrates with precious metals credits. It is currently undergoing an optimisation program which is already generating significant improvements in recoveries and grades, efficiencies, and cashflows. The mill at Campo Morado has a nameplate capacity of 2,400 tonnes per day.

The Tahuehueto Gold, Silver mine is a new underground mine in Durango State, Mexico which hosts numerous producing and historic mines on trend. Tahuehueto has a nameplate processing capacity of 1,000 tonnes per day and expected to achieve commercial production in 2024.

Luca Mining is focused on growth with the aim of maximizing shareholder returns.

For more information, please visit: www.lucamining.com

On Behalf of the Board of Directors

(signed) "Dan Barnholden"

Dan Barnholden, Chief Executive Officer

Qualified Persons

The technical information contained in this News Release has been reviewed and approved by Mr. Chris Richings, Vice-President Technical at Luca Mining as the Qualified Person for the Company as defined in National Instrument 43-101.

Cautionary Note Regarding Production Decisions and Forward-Looking Statements 

It should be noted that Luca declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Luca's production decision has been made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision. Luca has completed a preliminary economic assessment ("PEA") mining study on the Campo Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see news releases dated November 8, 2017, and April 4, 2018).

Positive operating cash flow is defined as excluding capital, debt repayment and Trafigura financing.

Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding the planned program to improve mining operations at Campo Morado; and other possible events, conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company's properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified using words and phrases such as "plans," "expects," "scheduled," "estimates," "forecasts," "intends," "anticipates" or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that the program to improve mining operations at Campo Morado will proceed as planned; the continuity of the price of gold and other metals, economic and political conditions, and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

*Gold equivalent estimates are based on metal prices of $1,850/oz Au, $22.50/oz Ag, $0.90/lb Pb, $1.15/lb Zn, $3.60/lb Cu.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

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SOURCE Luca Mining Corp.

FAQ

When is Luca Mining (LUCMF) expected to reach commercial production at Tahuehueto?

Luca Mining expects to reach commercial production at the Tahuehueto gold mine by the end of September 2024.

What is the current processing rate at Luca Mining's (LUCMF) Tahuehueto mine?

The current processing rate at Tahuehueto is averaging 450 tonnes per day (tpd).

What is the target annual production for Luca Mining's (LUCMF) Tahuehueto mine?

Luca Mining is targeting annual production of at least 50,000 oz Au Eq* from the Tahuehueto mine.

What recent improvement has Luca Mining (LUCMF) made to the Tahuehueto mine?

Luca Mining has successfully installed a third filter press at Tahuehueto, enabling increased production capacity and the use of dry stack tailings.