VANCOUVER, BC, July 31,
2024 /CNW/ - Luca Mining
Corp. ("Luca" or the "Company") (TSXV:
LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased to
announce plans for an exploration drilling campaign at both
Campo Morado and Tahuehueto.
Approximately 5,000 metres will be drilled at each project (10,000
meters total) during Q3 and Q4 of 2024, to test high potential
targets on trend with the current mining areas.
Campo Morado
Campo Morado is a large VMS
polymetallic system hosting substantial mineral resources of
copper, zinc, gold and silver. The Campo
Morado project includes an operating mine and associated
infrastructure. The mine is generating positive, free operating
cash flow. Over $500 million has been
invested in the mine and mill from exploration, discovery,
construction and operation. The mill is capable of processing over
2,000 tonnes per day. The property area encompasses 121 square
kilometres (12,090 hectares) in the state of Guerrero in
southwestern Mexico within the
prolific Sierra Madre mineral belt.
- The new exploration campaign is the first exploration at
Campo Morado since 2013.
- There are over 30 known targets that have never been
tested.
- The top 4 targets are within the fully permitted mining
zone.
- In the current campaign, the Company will be looking to explore
the project's promising copper and gold potential.
- An extensive inventory of historical drilling data (580,800+
metres) along with geophysics and geochemistry is being used to
evaluate and prioritize drill targets.
What is exciting about typical VMS systems such as Campo Morado, is that they usually comprise
multiple, discrete halos or pods of mineralization. Due to the
nature of the deposit style, at many of the large VMS camps around
the world, successful ongoing exploration and development has
continued for decades. For example, the nearby Tizapa Mine
(Peñoles/Dowa Mining/Sumitomo) is a similar VMS underground mine
92km north of Campo Morado. It is
in its 30th year of production. We look forward to examining the
long-term upside potential at Campo
Morado.
Tahuehueto
Tahuehueto is a brand-new gold mine and is expected to achieve
commercial production with an average run rate of 800 tpd at its
mill in the next few weeks. Name plate capacity at the mill is
currently 1,000 tpd. Tahuehueto is a large epithermal
gold/silver vein system with associated breccias rich in Pb-Zn-Cu.
The property comprises 75 square kilometres (7,492 hectares) and is
located in the state of Durango in north-central Mexico within the Sierra Madre mineral
belt.
- Mineralization is open along strike and at depth for most of
the modeled resource areas
- Step-out drilling along strike (north and south) and to depth
will be carried out to determine the vertical and lateral extent of
mineralization.
- Characterize and identify mineralized brecciated zones within
the known epithermal vein systems.
- Rapid development of new resources discovered.
Tahuehueto, being a new mine, has significant exploration
potential. It is estimated that less than 10% of the concession
area has been explored. Tahuehueto is comparable in concession
area to the Tayoltita mine of the
San Dimas district to the south,
with both mines hosting epithermal mineralization. It is estimated
that the San Dimas district has
produced over 11 million ounces of gold to date (Technical Report
on Mineral Resource and Reserve Update December 2020, First Majestic Silver Corp.).
Dan Barnholden, CEO, commented,
"The exploration potential at Campo
Morado and Tahuehueto is game changing. Both projects
already have demonstrated strong cash flow potential and
exploration success at one or both projects will take Luca into a
new league. We intend to grow our company and are targeting no less
than 200,000 oz Au Eq production and our development, exploration
and expansion plans have the potential to get us
there."
Christopher Richings, VP
Technical, commented, "For the first time in over 10 years, the
Company has developed a strategic exploration program that will
build our resource base at both sites, add value to our metal
production profile and provide the foundation for exceptional new
growth. We will be leveraging advanced geological understanding and
a large amount of technical data to guide the upcoming campaign and
drive success."
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 zinc and "bulk"
copper-lead concentrates with precious metals credits. It is
currently undergoing an optimisation program which is already
generating significant improvements in metallurgical recoveries,
efficiencies, and cashflows. The Tahuehueto Gold, Silver mine is a
new underground mine in Durango State, Mexico which hosts numerous producing and
historic mines on the same regional trend. Tahuehueto has a
designed processing capacity of 1,000 tonnes per day and is
expected to achieve commercial production in 2H 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.
Pricing assumptions in connection with gold equivalent
production estimates: Gold $1,850/oz
| Copper $3.65/lb| Zinc $1.15/lb | Lead $0.92lb | Silver $22.50/oz
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.
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.