VANCOUVER, BC, Feb. 21,
2024 /CNW/ - Luca Mining Corp. ("Luca" or the
"Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased
to provide an update on the optimization program at its
wholly-owned Campo Morado
polymetallic mine in Guererro, Mexico.
- Significantly improved overall performance in Q4 2023 compared
to previous quarters, yielding increased revenues.
- Plant performance exceeded expectations with operational
consistency.
- Higher metallurgical recoveries and concentrate grades. Of
note, copper in the bulk concentrate increased from less than 48%
recovery to over 70% recovery.
Mike Struthers, CEO, commented,
"The results we're achieving at Campo
Morado are better than expectations, and it's
extremely encouraging to see we can consistently maintain this
performance week after week. The new regime of blending ore types
from the mine is proving very successful by providing consistent
feed to the plant and we expect this to continue to trend upwards
during the year."
Ramon Perez,
President, commented, "The dedication and hard work of our
team and our consultants Ausenco over the past four months are
yielding tangible results. While we acknowledge this achievement,
we remain committed to further enhancing the mine's performance and
diversifying our revenue streams, particularly through a clean
copper-lead separation. We anticipate sharing further positive
updates on the progress of both Campo
Morado and the Tahuehueto mine with the market in the very
near future."
Summary
The optimization program, known as the Campo Morado Improvement
Project ("CMIP"), was formulated in Q4 2023 with the aim of
significantly improving operational performance with a
comprehensive strategy between the mine and mill. Key features of
the program include effective mine-to-mill planning, new procedures
for ore blending, increased metallurgical test work, optimized
grinding and reagent dosing for improved recoveries, and phased
equipment upgrades for mine and mill.
The results to date have been excellent, and include higher
metallurgical recoveries and concentrate grades, especially for
copper in the bulk concentrate, which are reflected in increased
revenues. Plant performance in Q4 2023 met or exceeded
expectations, particularly in the bulk circuit where copper
recovery increased from less than 48% to over 70%.
Most notably, the operation increased copper recovery
dramatically, by over 20%, whilst improving concentrate grades to
over 14%.
Additional equipment was added to the mine to improve
operational consistency, and in the plant a number of initiatives
were completed, including adjusted reagent dosing schemes, and
upgraded process control instrumentation.
Currently the operation produces a zinc concentrate, and a mixed
(bulk) copper-lead concentrate.
Metallurgical test work at the ALS laboratories in Canada continues, with the goal to achieve a
clean copper-lead separation, thereby producing three saleable
concentrates (zinc, copper, lead) resulting in much improved
revenues.
Mike Struthers, commented,
"The progressive investments in plant improvements will continue
over the coming months. This is an exciting year for the operations
and the Company."
Stock Options
The Company announces that pursuant to its Omnibus Equity
Incentive Plan, it has granted incentive stock options to purchase
an aggregate 200,000 shares in the capital stock of the Company.
The options will be exercisable at a price of $0.35 per share for a period of 5 years.
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. 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, a prolific 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 Tahuehueto Gold Mine is a new underground operation in
Durango State, Mexico, within the
Sierra Madre Mineral Belt which hosts numerous producing and
historic mines along its trend. The Company is commissioning its
mill capacity to +1,000 tonnes per day, and key test work and
production ramp-up is underway, to increase production by 2H
2024.
The Company expects its operations to start generating positive
cash flows 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) "Mike Struthers"
Mike Struthers, CEO and
Director
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).
Free 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.
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.