VANCOUVER, BC, Oct. 1, 2024
/CNW/ - Following completion of its $11.3
million equity financing, Luca Mining Corp.
("Luca" or the "Company") (TSXV: LUCA) (OTCQX: LUCMF)
(Frankfurt: Z68) is pleased to provide an update on planned
activities at its two producing mines in Mexico as well as a corporate update.
CEO Dan Barnholden commented,
"Our primary areas of focus outlined below support our three
pillars of value creation: optimization, exploration and expansion.
We expect these programs to not only lead to a near term valuation
re-rating but also highlight the significant upside potential of
our operations and to forge a path of organic growth
ahead."
The following updates to key work programs will be aimed at
optimizing our asset base and aggressively exploring our
under-explored property portfolio: <Listen to Dan describe these
programs>
Campo Morado Zinc/Gold/Copper Mine
- As disclosed on August 6, 2024,
Luca has engaged Cominvi, SA de CV as mining contractor at
Campo Morado with the objective of
increasing mining performance. Ramp up is well underway and mining
rates are expected to consistently exceed 2,000 ore tonnes per day
by the end of Q4 2024. The increase to mining rates is expected to
have a significant positive impact on financial performance.
Further increases are planned in 2025 and beyond.
- As disclosed on May 2, 2024,
improvements in metallurgical recoveries have been ongoing at
Campo Morado. Building on the
successful outcomes from previous work, the Company continues its
collaboration with Ausenco and others, focusing on enhancements at
the mill to further improve recoveries.
- As disclosed on July 31, 2024,
the Company is initiating the first meaningful drill program at
Campo Morado in over a decade.
Drilling contractors have visited the site and are in the process
of mobilizing equipment and crews. The Company expects to announce
drill results on an ongoing basis commencing in mid-to-late Q4
2024.
Tahuehueto Gold Mine
- As disclosed on July 25, 2024,
construction at Tahuehueto has been completed and the Company is
actively commissioning the mill and plant, with commercial
production expected to be declared during Q4.
- The Company is initiating the first meaningful drill campaign
at Tahuehueto in over 10 years. Drilling contractors are in the
process of mobilizing to site and with drilling to commence in
early Q4. See news release dated July 31,
2024. The Company expects to announce drill results on an
ongoing basis commencing in mid-to-late Q4 2024.
Balance Sheet
- Luca will commence repayments of its debt owed to Trafigura,
from cashflow, in October 2024 under
the terms of the restructured debt agreement as outlined in the
condensed consolidated interim financial statements for the three
and six months ended June 30, 2024.
Under the terms of the agreement, the final payment of the debt
facility would occur in July 2026,
however Luca is focused on deleveraging as quickly as
possible.
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 within the prolific
Sierra Madre mineralized belt in
Mexico which hosts numerous
producing and historic mines along its trend. 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. It produces bulk copper-lead and zinc concentrates
with precious metals credits. It is currently undergoing an
optimization program which is already generating significant
improvements in recoveries and grades, efficiencies, and
cashflows.
The Tahuehueto Gold-Silver Mine is a new underground operation
in Durango State. which hosts numerous producing and historic mines
along its trend. The Company is commissioning the mill and with the
goal to achieve commercial production by the end of the year.
On Behalf of the Board of Directors
(signed) "Dan Barnholden"
Dan Barnholden, Chief Executive
Officer
For more information, please
visit: www.lucamining.com
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 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).
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 Financings, the anticipated timing of
closing thereof and the expected use of proceeds therefrom; 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 all requisite approvals in
respect of the Financings will be received, and all conditions
precedent to completion of the Financings will be satisfied, in a
timely manner; the Company will be able to raise additional capital
as necessary; the current exploration, development, environmental
and other objectives concerning the Campo Morado Mine and the
Tahuehueto Project can be achieved; 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.