Luca Mining's Q3 2023 Overview: Optimizing Campo Morado and Progress at Tahuehueto Mining Project
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
Luca Mining's Q3 2023 Overview: Optimizing Campo
Morado and Progress at Tahuehueto Mining Project
Vancouver, British Columbia – December 04, 2023
Luca Mining Corp. (“ Luca” or the “ Company ”) (TSX-V: LUCA; OTCQX: LUCMF; Frankfurt: Z68)
announces its financial and operating results for the third quarter and nine months ended
September 30, 2023. The Company reports net revenue of $15.1 million in Q3 2023, representing a
2% increase over net revenue of $14.8 million in Q3 2022. Mine operating income (before depletion,
depreciation, and amortization) in Q3 2023 was $0.30 million compared to $1.50 million in Q3 2022.
The net mine operating loss in Q3 2023 was $0.74 million compared to a net mine operating gain
of $1.16 million in Q3 2022.
Highlights
Tahuehueto is nearing completion of 1,000 tonnes per day of installed capacity before year
end and on track to ramp up to commercial production in early 2024. First phase production
from the mine is expected to achieve over 40,000 ounces gold equivalent per year with an
AISC of under USD $1,000 per AuEq ounce*.
Campo Morado initiated an optimization program designed in cooperation with consulting
metallurgical engineers, Ausenco, which has already demonstrated substantial increases in
both recoveries and grades of the copper-lead and zinc concentrates.
The Company expects the optimization program to result in a revenue increase of at least
40% in 2024 with only very modest capital expenditures.
“During the third quarter of 2023, the Tahuehueto Mining project continued progressing towards
its objective of achieving 1,000 tonnes per day installed capacity by year-end and announcement
of commercial production early in 2024 ,” said Mike Struthers, CEO. “ Following a challenging
operational performance in Q3 2023 at Campo Morado, in large part due to reduced throughput as
part of a new optimization program by our colleagues at Ausenco, we now have, for the first time
in the history of this operation, an understanding of how to correctly operate the project to achieve
consistent performance and profitability. The execution of a new mine-to-mill program, an effective
blending strategy, and multiple initiatives in the processing plant, will translate into major
improvements to the bottom line at Campo Morado. We are very grateful for the substantial
support provided by the Ausenco engineers and look forward to the improved results to come to
fruition in 2024.”
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
Q3 2023 Overview
Campo Morado
Production and concentrate sales for the three months ended September 30, 2023:
Produced 5,094 tonnes of zinc concentrate grading an average of 45.8% zinc, 4.08 g/t gold,
450 g/t silver and sold 5,399 tonnes generating Q3-2023 revenue from zinc concentrate of
US$4.59 million.
Produced 3,674 tonnes of bulk copper-lead concentrate, grading an average of 14.8%
copper, 11.72 g/t gold, 753 g/t silver and sold 3,485 tonnes generating Q3-2023 revenue from
copper concentrate of US$5.97 million
128,287 tonnes of mineralized material were processed through the processing plant at a C1
cash cost per pound payable of zinc at US$2.74 with average grades of 2.51% zinc, 0.77%
copper, 0.74% lead, 1.62 g/t gold, and 100.91 g/t silver
Recoveries during Q3-2023 were 72.6% zinc, 47.8% copper, 28% gold, and 36.6% silver.
C1 cash costs per pound of payable zinc for the Campo Morado Mine operation are estimated by adding the total cost
to produce concentrate (mining, milling, site general and administration), adding the cost of transporting concentrate
to the point of sale, adding the cost of smelter treatment and refining charges, subtracting the byproduct credits
estimated from sales of lead, silver, gold and dividing by the pounds of payable zinc. By-product credits are calculated
using the realized weighted average metal price, during the year.
Campo Morado Optimization Program
In July 2023 Ausenco consultants reviewed and optimized the comminution circuit,
reducing throughput from 100 to 75 tonnes per hour and adjusting the primary grind from
65 microns to 35 microns to enhance flotation recoveries.
Subsequent lab tests and plant trials showcased substantial recovery increases, resulting
from effective blending in the mine and the use of correct reagents.
The initiative evolved into a project during the quarter, encompassing a mine-to-mill
program, extensive process plant modifications, and lab tests at ALS laboratories in Canada.
The project is slated for implementation in Q4 2023, with results expected over the
subsequent months.
In a news release dated November 20, 2023, Luca announced initial results from the
optimization program.
o A bulk concentrate is being produced with greater than 70% copper recovery
(compared to a historical range between 35-40%). The concentrate produced
contained greater than 14-16% copper (compared to historical values near 11%).
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
o Overall zinc recovery is expected to increase from 76% to 86% and the final
concentrate grade increases from 46% to 56% zinc over the next 12 months.
Tahuehueto Mining Project
While the project is still under construction, the following details the production and concentrate
sales for the three months ended September 30, 2023:
Produced 782 tonnes of zinc concentrate grading an average of 52.2% zinc, 8.70 g/t gold,
117.15 g/t silver and sold 591 tonnes generating Q3-2023 revenue from zinc concentrate of
US$0.64 million.
Produced 487 tonnes of lead concentrate grading an average of 38.4% lead, 79.95 g/t gold,
794.12 g/t silver and sold 532 tonnes generating Q3-2023 revenue from lead concentrate of
US$2.61 million.
19,433 tonnes of mineralized material were processed through the processing plant with
average grades of 3.27% zinc, 1.34% lead, 3.05 g/t gold, and 32.79 g/t silver.
Recoveries during Q3-2023 were 64.1% zinc, 79.4% lead, 82.3% gold, and 82.7% silver.
Daily output has varied considerably during the period, as equipment and systems are
tested, optimized, installed, and commissioned. The average daily throughput during the
period was 211 tonnes per day, with a peak production output of 440 tonnes per day tonnes
per day.
Management Discussion and Analysis Refiling
On November 27, 2023, the Company filed its condensed interim consolidated financial statements
and corresponding management discussion and analysis (“MD&A”) for the period ending
September 30, 2023. Subsequently, the Company became aware of minor update revisions and
typographical corrections (including, but not limited to, page 7 of such MD&A under the heading
“Operational Performance Results) required to the MD&A and as a result the Company has refiled
its MD&A on November 30, 2023. These corrections do not materially impact the substantive
content or key insights presented in the original MD&A but aim to ensure the precision and
accuracy of our communication.
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
About Luca Mining Corp.
Luca Mining Corp. is a Canadian based mining company with two 100% owned Mexican gold, silver,
and base metal mining projects. With one mine ramping up, and another going through an
optimisation program, the Company expects these operations to generate consistent, positive free
cash flow starting in early 2024.
Luca’s Tahuehueto Mine is a new underground gold mine in northwestern Durango State, Mexico,
located within the prolific Sierra Madre Mineral Belt which hosts numerous producing and historic
mines along its trend. Currently in the final stages of construction to the nameplate capacity of
1,000 tonnes per day, Tahuehueto is on track to become a significant and one of Mexico’s newest
gold mines to come into production. The Pre-Feasibility Study updated in 2022 contemplates an
operation achieving production of 40,000 ounces gold-equivalent per year, with approximately 75%
of the revenues from precious metals, and a 10-year mine life.
The Campo Morado Mine, located in Guerrero State, Mexico, is an operating underground base
and precious metals mine with a throughput of approximately 600,000 tonnes per year, producing
zinc, copper, and lead concentrates with significant precious metals credits. It is currently
undergoing an optimisation program which is already generating significant improvements in
recoveries and grades, and cashflows.
*Pre-feasibility report dated April 21, 2022.
Qualified Persons
The technical information contained in this News Release has been approved by Mr. Mike
Struthers, C.Eng., CEO and Director at Luca Mining, a Qualified Person for the Company as
defined in National Instrument 43-101.
Visit: www.lucamining.com
On Behalf of the Board of Directors
(signed) “Mike Struthers”
Mike Struthers, CEO and Director
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
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 Release 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 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.
For further information about Luca Mining Corp., please contact:
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
Sophia Shane
Director of Corporate Development
or
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071