VANCOUVER, BC, Nov. 20,
2023 /CNW/ - Luca Mining Corp. ("Luca"
or the "Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt:
Z68) is pleased to announce excellent results from its optimization
program at the Company's wholly owned Campo Morado polymetallic mine in Guerrero, Mexico. The program designed
in cooperation with consulting metallurgical engineers, Ausenco,
has yielded substantial increases in both recoveries and grades of
the copper, zinc, and lead concentrates. These positive test
results were achieved both in the laboratory and in the plant at
Campo Morado.
Highlights
- A bulk concentrate is being produced with greater than 70%
copper recovery (compared to a historical range between 35- and
40%). The concentrate produced contained greater than 14-16% copper
(compared to historical values near 11%).
- 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.
- The Company expects the optimization program to result in a
revenue increase of at least 40% with only very modest capital
expenditures.
Ausenco Test Work and
Plant Trials
The site historically produces zinc and bulk copper-lead
concentrates, but the ultimate goal of the optimisation program is
to generate clean zinc, copper, and lead concentrates, adding
considerable value to the operation.
Optimisation of primary grinding and implementing an effective
mine-to-mill program, has enabled downstream improvements in
flotation performance.
Ausenco have conducted a range of laboratory testing, initially
of zinc circuit feed samples, to study the potential for improved
zinc circuit stage recoveries. With a series of changes to reagents
and other operational parameters in flotation in the plant, overall
zinc recovery increased from 75% to 82% and the final concentrate
grade from 45% to 51% zinc.
For the bulk circuit, a trial was conducted using laboratory
reagent conditions with average plant feed grades of 0.80% copper
and 0.65% lead. A bulk concentrate was produced with greater
than70% copper recovery (compared to a historical range between 35
and40%). The concentrate produced contained between14 and16% copper
(compared to historical values near 11%).
Additional test work is being conducted at the ALS laboratories
in Canada, focusing on the
copper-lead separation, with the expectation that this will lead to
a reconfiguration of the process flowsheet to produce clean and
higher-grade copper and lead concentrates, further improving
revenues. This test work will be completed by the end of Q1
2024.
Mine-to-Mill Program, and Blending
The operation is implementing an effective Mine-to-Mill program,
integrating geology, mining, and processing functions. This is
coupled with metallurgical test work of ore from future mining
areas to improve short- and long-range planning. A vital
element of improved plant performance is the blending of ores to
create a consistent plant feed, and recent operations have
confirmed these benefits.
Mike Struthers, CEO, commented:
"With the work done in recent months 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
Campo Morado to maximise
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 the operation. We are very grateful for the
substantial support provided by the Ausenco engineers. I look
forward to providing updates on this initiative in the coming weeks
and months."
AGM Results
Luca Mining Corp. (the "Company" or "Luca") is pleased to
announce that at its 2023 Annual General Meeting held on
October 30, 2023, shareholders
approved all resolutions put to the meeting as listed
below:
- Fixing the number of directors for the ensuing year at eight
(8).
- The election of Mike Struthers
(CEO), David Rhodes (Chairman of the
Board), Ralph Shearing, Roberto Guzman Garcia, Ruben Alvidrez Ortega, Phil Brumit, Neil
O'Brien, and Rory S. Godinho
as Directors of the Company.
- The Company's 2023 Omnibus Equity Incentive Plan.
- The appointment of Grant Thornton LLP as the Company's auditors
for the ensuing year.
Board Committees
Following the Annual General Meeting the Company has
reconstituted its Audit, Compensation & Nomination, Corporate
Governance and Technical & HSEC Committees as
follows:
- Audit Committee - David Rhodes
(Chair), Phil Brumit, and
Ruben Alvidrez Ortega.
- Compensation and Nomination Committee – David Rhodes (Chair), Rory Godinho and Ruben
Alvidrez Ortega.
- Corporate Governance Committee – Rory
Godinho (Chair), David Rhodes
and Neil O'Brien.
- Technical & HSEC Committee – Phil
Brumit (Chair), Mike
Struthers, Neil O'Brien and
Ralph Shearing
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.
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.
Qualified Persons
The technical information contained in this News Release has
been reviewed by Mr. Chris Richings,
P.Eng. (EGBC) Vice-President Technical at Luca Mining a Qualified
Person for the Company as defined in National Instrument 43-101,
and Mr. Richard Whitering, Principal Consulting Metallurgist with
Ausenco.
Visit:
On Behalf of the Board of Directors
(signed) "Mike Struthers"
Mike Struthers, CEO and
Director
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 recommencement of 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
recommencement of 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.