SIGNIFICANT DEVELOPMENTS REPORTED IN ‘RISING STARS’ OF MEXICAN MINING
SIGNIFICANT DEVELOPMENTS REPORTED IN ‘RISING STARS’ OF MEXICAN MINING
The recent appointment of Dan Barnholden as CEO of Luca Mining Corp (Luca) sees the Canadian mining firm add further strength to its continued growth.
LUCA MINING
PROJECT
DIRECTED BY: GARY SMITH
ARTICLE WRITTEN BY: LAURA WATLING
Dan, taking on the role from July 2024, is a seasoned professional with over 20 years of experience in senior mining investment banking roles at bank-owned and boutique dealers in Toronto and Vancouver.
Chairman of Luca Mining Corp, David Rhodes, commented on the appointment:
"I'm very pleased to announce Dan joining the Luca team as CEO… Dan's proven track record aligns with our vision of transforming Luca into a prominent mid-tier company. We are confident that his leadership will steer us towards new heights of success and industry recognition”.
The announcement of Dan’s appointment comes at a time which the new CEO recognises as the “next chapter” of the firm, which has recently experienced significant steps in its business growth.
In July 2024 it was announced that Luca had completed the construction of its Tahuehueto gold mine, found in the north-western Durango state of Mexico. Tahuehueto is a large property, spanning 121 square kilometres, which hosts an extensive epithermal gold vein system with less than 10% of the prospective ground explored so far.
Most recently, Luca has successfully completed the installation of a third filter press at the gold mine. The firm utilises dry stack tailings which has many advantages over traditional methods including significant reduction of water usage, materially reduced environmental risk, non-hazardous and safe storage of tailings cakes, and faster and more efficient reclamation in the future.
The mine is a fully permitted underground operation with a 1,000 tonne per day (tpd) nameplate processing capacity. The mine was completed within budget and has been successfully producing on a preproduction basis for several months. The crucial enhancement at the mine will enable it to achieve commercial levels of processing rates (an average of approximately 800 tpd or 25,000 tonnes of ore per month) by the end of September 2024.
In addition to this increase in production capacity, Luca is actively continuing its underground development efforts at the property. Resource drilling from underground is expected to commence in the coming weeks, with a focus on new zones with significant mining widths. This drilling initiative is anticipated to increase the resource at Tahuehueto, bolstering the company's asset base.
The combination of increased production, resource development, and exploration investment positions Luca for sustained growth and profitability in the future.
Commenting on the developments at Tahuehueto, Dan said:
"We are extremely pleased with our progress at the Tahuehueto Gold Mine… Tahuehueto is set to become
Campo Morado
At CoMinVi, we are proud to have more than 20 years of experience in the mining industry, during which time we have established ourselves as leaders in the construction and development of underground mines and in the exploitation of ore deposits. Throughout our history, we have participated in more than 35 projects, collaborating with national and international companies.
Our approach focuses on safety, quality and teamwork, elements that have allowed us to establish a solid reputation in the Mexican Republic and in the region. Our people, their experience and knowledge, as well as the use of state of the art technology, are the pillars of our success and the reason why we continue to be a benchmark in providing services in the mining sector.
Today, we are proud to announce our participation in an exciting new project: the Campo Morado mine, located in the state of Guerrero, in partnership with Luca Mining. The Campo Morado Mine is one of the most important in the region, and we feel honored that Luca Mining has placed its trust in us to carry out this operation. For CoMinVi, this project
Since the beginning of this alliance, we accept the responsibility for the tasks of contributing to the success of Campo Morado. We will apply all our experience, deliver and dedicate ourselves to meet the objectives and goals set by our client, always focused on safety and efficiency. We are convinced that, through constant and safe work, the Campo Morado mine will soon attain the leadership position in mining production that has characterized its history.
This alliance marks the beginning of a long-term business relationship between CoMinVi and Luca Mining. Our commitment is not only to the mine and our client, but also to the economic development of the Guerrero region. We are confident that this collaboration will be a fundamental part of Campo Morado’s growth and will contribute significantly to the progress of the local community and the environment. At CoMinVi, we move forward with the certainty that, by working together, we will achieve results that benefit everyone involved, reaffirming our commitment to excellence, safety, social and environmental responsibility in each project we undertake.
LUCA MINING MINING
the second cornerstone asset at Luca… This is a tremendous achievement, and it reinforces the strength of our team, which is underpinned by the high geological prospectivity of our asset and the favourable operating environment in Mexico."
Further to the developments at Tahuehueto, Dan is being supported by previous interim CEO, Ramon Perez, to optimise operations at Campo Morado. Based in Guerrero, Mexico, Campo Morado is considered the country’s sixth largest zinc producer. The property is an underground multi-metal mine with infrastructure, installations and equipment capable of processing 2,500 tonnes of ore per day, with over 700 exploration diamond drill holes in place. In August 2024, Luca engaged Cominvi to carry out core mining operations at Campo Morado.
Cominvi is one of the largest and most respected mining contractors in Latin America with particular expertise in underground mining.
Working with Cominvi will allow Luca to quickly increase production at Campo Morado and will provide cost effective access to newer mining equipment for the firm’s ongoing operations. It's also expected that the appointment will help ensure that the mine can meet and exceed its daily production targets and will provide a rapid path to further increases in production and revenues without incurring significant capital expenditures. With the support of Cominvi, it’s anticipated that Campo Morado’s mill throughput will increase from the 1,4001,600 tpd to 2,000 tpd by year-end and will continue to push forward to 2,400 tpd mill rate during 2025.
“These achievements, along with the Company's previously announced Campo Morado Improvement Project to increase metallurgical recoveries and produce higher value concentrates, will have a material positive impact on the Company's production, costs and cash flow,” commented Dan.
At both of its 100% owned mines (Tahuehueto and Campo Morado), the Canadian firm has announced plans for exploration drilling campaigns. Approximately 5,000 metres will be drilled at each project to test high potential targets on trend with the current mining areas.
Of the campaigns, Dan said: "The exploration potential at Campo Morado and Tahuehueto is game changing. Both projects already have demonstrated strong cash flow potential and exploration success at one or both projects will take Luca into a new league. We intend to grow our company and are targeting no less than 200,000 oz Au Eq production and our development, exploration and expansion plans have the potential to get us there,".
www.lucamining.com
