LUCA Mining Announces Commercial Production at Tahuehueto and Provides 2025 Production Guidance
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
NEWS RELEASE
LUCA MINING ANNOUNCES COMMERCIAL PRODUCTION AT TAHUEHUETO AND
PROVIDES 2025 PRODUCTION GUIDANCE
Vancouver, B.C., March 31, 2025, Luca Mining Corp. (“Luca” or the “Company”) (TSX-V: LUCA;
OTCQX: LUCMF; Frankfurt: Z68) is pleased to announce it has achieved commercial production
at its Tahuehueto operation.
Additionally, the Company is announcing its production guidance for 2025, outlining expectations
for its Campo Morado and Tahuehueto operations. The Company also provides details on its
consolidated forecasts, budgeted capital, and exploration expenditures. All figures are presented
in U.S. dollars unless otherwise stated.
Commercial Production at Tahuehueto
In March 2025, the Company has successfully achieved commercial production at its Tahuehueto
mine, consistently operating at a throughput rate above 800 tonnes per day (“tpd”).
Ramon Perez, President of the Company, commented “This milestone marks a significant step in
the mine’s development, reflecting the operational team’s dedication and the effectiveness of
recent optimization efforts. Achieving this sustained production level demonstrates the mine’s
ability to generate stable output, supporting the Company’s growth strategy and long-term value
creation. The Company remains focused on further enhancing efficiencies and maximizing the
mine’s full potential.”
2025 Production and Free Cash Flow2 Guidance Highlights
For the year ahead, Luca anticipates producing between 85,000 and 100,000 gold equivalent
ounces1 with payable ounces ranging between 65,000 and 80,000. Free cash flow2 before working
capital adjustments is anticipated to be between $ 30 million and $ 40 million. The Company
remains focused on key strategic initiatives designed to enhance shareholder value and drive
operational efficiencies across its two producing mines.
At Campo Morado, efforts will continue to ramp up operations with the goal of achieving a
consistent and sustainable mill feed while targeting an increase in throughput above 2,000
tonnes per day towards the end of 2025 . Optimization work remains ongoing to improve metal
recoveries and maintain grade consistency, including refining grinding techniques and reagent
dosing. Additionally, the development of a third copper concentrate is expected to enhance
payability of precious metals with improved concentrate grades. The Company has also outlined
plans for a minimum 5,000-metre exploration program, which aims to expand mineral resources
and sustain long-term production.
2
At Tahuehueto, t he Company is prioritizing infrastructure enhancements, including the
construction of a spare parts warehouse to minimize downtime and improve operational
resilience. Increasing mill throughput remains a key objective, alongside continued exploration
efforts to assess both near-mine and regional targets within the property’s extensive epithermal
vein system.
In-line with its broader financial strategy, Luca is committed to eliminating the C ompany’s debt
by July 2026. Strong operational free cash flow, combined with the potential exercise of
outstanding warrants, may allow for an accelerated repayment timeline.
CEO Dan Barnholden commented, “Luca is entering an exciting phase of growth, underpinned by
a commitment to operational excellence and exploration success. In 2025, we anticipate a
significant increase in production, strengthened cash flow, and the advance ment of highly
strategic initiatives. With two operating mines generating robust free cash flow, we are well
positioned to enhance our performance while identifying new growth opportunities, including
potential M&A activity. Our long -term vision is to establish Luca as a leading mid -tier mining
company with a production target exceeding 200,000 gold equivalent ounces annually.”
2025 Production Guidance
Produced Metal
Campo Morado Tahuehueto Consolidated
Gold production oz 11,000 – 13,000 22,000 – 26,000 33,000 – 39,000
Silver production oz 997,000 – 1,173,000 247,000 – 291,000 1,244,000 – 1,464,000
Lead production lbs 5,000 – 6,000 3,600 – 4,200 8,600 – 10,200
Zinc production lbs 40,000 – 47,000 6,000 – 7,000 46,000 – 54,000
Copper production lbs 8,000 – 9,000 1,400 – 1,700 9,400 – 10,700
Gold Equivalent
production1
oz 54,000 – 64,000 31,000 – 36,000 85,000 – 100,000
Payable Metal
Campo Morado Tahuehueto Consolidated
Gold production oz 7,000 – 9,000 20,000 – 25,000 27,000 – 34,000
Silver production oz 722,000 – 889,000 219,000 – 270,000 941,000 – 1,159,000
Lead production lbs - 3,000 - 4,000 3,000 – 4,000
Zinc production lbs 32,000 – 40,000 4000 - 5000 36,000 – 45,000
Copper production lbs 6,000 – 7,000 - 6,000 – 7,000
Gold Equivalent payable1 oz 40,000 – 49,000 25,000 – 31,000 65,000 – 80,000
At Tahuehueto, our processing plant has an installed capacity of 1,000 tpd, with demonstrated
instantaneous production rates of up to 1,200 tpd. As operations transition into commercial
production, plant availability is currently at 82%, reflecting the typical phased approach to ramp-
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up as operations stabilize. This results in an average processing rate of 820 tpd, with a clear plan
to systematically increase availability to 85% -90% as the plant continues to perform well. Our
focus remains on optimizing efficiencies to enhance long -term reliability and maximize
throughput.
Free Cash Flow2
The Company anticipates generating between $30 million and $40 million in free cash flow 2
before working capital adjustments for the year, reflecting the strength of its core mining
operations. This metric, which excludes short-term fluctuations in receivables, payables, prepaids
and inventory, provides a clear measure of the C ompany’s ability to generate cash from
operations net of capital expenditures. Strong free cash flow 2 supports key initiatives, including
debt repayment, reinvestment in growth opportunities, and potential shareholder returns. The
Company’s anticipated cash generation unde rscores its operational efficiency and financial
resilience as it continues to execute its long-term strategy.
2025 Budgeted Capital Expenditures and Exploration
Mine
Development
- Sustaining2
Other Capital
- Sustaining2
Total
Sustaining2 Exploration Total
Campo
Morado
$ 10 million 3 million 13 million 1.3 million 14.3 million
Tahuehueto $ 6.5 million 4 million 10.5 million 2.6 million 13.1 million
Consolidated $ 16.5 million 7 million 23.5 million 3.9 million 27.4 million
In 2025, Luca plans to invest a total of $27.4 million into its projects, $23.5 million in sustaining
capital expenditures and $3.9 million in exploration across its two operating mines. These
expenditures are expected to be fully funded through operational cash flow.
At Campo Morado, a total of $13 million will be allocated to capital projects, with the primary
investment being the development mine workings estimated at $10 million. Additional funds will
support mine infrastructure, equipment acquisitions, and improvements to the processing plant
and tailings storage facility. The exploration program will include 5,000 metres of drilling for $1.3
million, marking the first such initiative in several years. This campaign will focus on increasing
high-grade resources near existing operations while also evaluating regional targets for future
development.
At Tahuehueto, planned capital expenditures amount to $10.5 million, with $6.5 million allocated
to mine workings. Additional investments will be directed toward infrastructure upgrades, plant
enhancements, and camp improvements. The 2025 exploration program for $2.6 million is
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expected to involve 5,000 metres of drilling, primarily targeting resource expansion and mine life
extension. Luca may extend exploration efforts to assess regional targets across the broader
property.
Technical Disclosure
The scientific and technical information contained in this news release has been reviewed and
approved by Ramon Mendoza, P.Eng., Chief Technical Officer, a Qualified Person as defined
under National Instrument 43-101.
Production in Campo Morado
Production at the Campo Morado is not currently based on the result of a feasibility study of
mineral reserves demonstrating economic and technical viability, instead is supported by
historical and actual mine and processing performance. Readers should con sider that increased
uncertainty exists until such viability is supported by a study at least at a pre -feasibility study
level. The Company is currently working with independent consultants to complete a Mineral
Resource update and provide an estimation of the Mineral Reserves at Campo Morado.
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 Stat e. It produces
copper-zinc-lead concentrates with precious metals credits. It is currently undergoing an
optimization program which is already generating significant improvements in recoveries and
concentrates grades, efficiencies, and cashflows.
The Tahuehueto gold-silver mine is an underground operation in Durango State, located along a
trend that hosts numerous producing and historic mines. The Company has successfully
commissioned its mill and is now in commercial production.
On Behalf of the Board of Directors
(signed) “Dan Barnholden”
Dan Barnholden, Chief Executive Officer
Contact Information:
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Sophia Shane
Director of Investor Relations
+1 604 306 6867
Glen Sandwell
Corporate Communications Manager
For more information, please visit: www.lucamining.com
Endnotes
The Company has included certain performance measures that are not defined under International
Financial Reporting Standards (“IFRS”). The Company believes that these measures, in addition to
conventional measures prepared in accordance with IFRS, provide investors an improved ability to
evaluate the underlying performance of the Company. The non -IFRS measures are intended to provide
additional information and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS as an indicator of performance. These measures do not
have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other
issuers with similar descriptions.
1 Gold equivalent is calculated using an 90.32:1 (Ag/Au), 0.0005:1 (Au/Zn), 0.0015:1 (Au/Cu) and 0.0003:1
(Au/Pb) ratio
2 Non-IFRS Financial Measures
Free cash flow
Free cash flow before working capital adjustments is a non-IFRS liquidity measure that reflects operating
cash flows before changes in working capital, less capital expenditures. Management uses this measure
as a key indicator of the Company’s underlying liquidity, as it provides a clearer view of cash generated
from core operations, excluding short-term fluctuations in working capital. This metric is used alongside
related IFRS amounts when assessing available cash for decision -making purposes, including dividends
and discretionary investments. It also assists management, the Board of Directors, and investors in
evaluating the Company’s ability to generate sustainable liquidity from operating activities.
Sustaining capital
Sustaining capital is defined as the capital required to maintain operations at existing levels. This
measurement is used by management to assess the effectiveness of an investment program.
For further information on reconciliations of Non-IFRS measures, refer to the Non-IFRS financial measures
section of the Company’s Management Discussion & Analysis for the three and nine months ending
September 30, 2024, beginning on page 26.
Cautionary Note Regarding Forward-Looking Statements
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,
estimated production guidelines for 2025 and other possible events, conditions or performance that are
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based on assumptions about the proposed exploration program and its anticipated results; the timing and
costs of future activities on the Company ’s properties, such as production rates and increases and
sustaining capital expenditures ; success of exploration, development, and metres to be drilled in
exploration 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 Company will be able to raise additional capital as necessary; the current
exploration, development, environmental and other objectives concerning the Tahuehueto Project can
be achieved; that consistent and sustainable mill feed at Campo Morado will be achieved; the continuity
of the price of gold and other metals and economic and political conditions. Forward-Looking Information
involves known and unknown risks, uncertainties and other factors which may cause the actual results,
performance, or achieve ments 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.