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Luca Sets up for a Strong 2H 2024 with Production Guidance of 60,000 – 70,000 AuEq Ounces for the Full Year

VANCOUVER, BCJune 13, 2024 Luca Mining Corp. (“Luca” or the “Company“) (TSXV:LUCA) (OTCQX:LUCMF) (Frankfurt:Z68) is pleased to announce its 2024 guidance and outlook for its 100% owned Campo Morado and Tahueheuto mines in Mexico. All financial amounts are expressed in USD dollars unless otherwise indicated.

2024 Full Year Consolidated Production and Financial Guidance

  • Consolidated production and sales of between 60,000 to 70,000 ounces gold equivalent (“AuEq”) from its Campo Morado and soon to be commissioned Tahuehueto mine.
  • Consolidated Revenue of $90 million – $105 million (C$125 million to C$145 million).
  • Consolidated Total Cash Costs (“TCC”) between $1,200 and $1,335 per ounce of gold equivalent produced.
  • Consolidated All-in Sustaining Costs (“AISC”) between $1,320 and $1,500 per ounce of gold equivalent produced.
  • 2024 near-mine and regional exploration program planned.
  • Key milestones for 2024 include 1) throughput expansion at both mills; 2) declaration of commercial production at Tahuehueto; 3) addition of a separate copper concentrate at Campo Morado; and 4) commencement of a major exploration programs at both properties

Ramon Perez, President, stated: “As we look ahead to the rest of the year, we expect continued growth in the Company’s cash flow. Our milestones are progressing well and are nearly complete, allowing us to fully realize their benefits in the second half of this year and beyond. Both Campo Morado and Tahuehueto have an extensive and highly prospective land packages offering district scale potential.”

In Q1 the Company produced 14.1K oz of gold equivalent with our Tahuehueto and Campo Morado mines operating on average at 35-40% and 55-60% of their potential capacities, respectively. Luca is focused on increasing the capacity of both mines and is approaching its full production targets.

At the Tahuehueto Gold Mine, the Company is 97% complete in the construction of the new mill, which has a capacity of 1,000 tpd. Production is currently averaging 450 tpd. The main component needed to complete construction, a third filter press, has arrived on-site and is being installed (See Image 1). Once installed, this will allow Luca, in a very short timeframe, to increase production to +800 tpd (when considering asset efficiency). Given the current spot gold price, this achievement is timely, and the Company will see the benefits of this ramp up in Q3 and Q4 2024.

Luca also recently announced the high-grade gold zones with significant mining widths at the Tahuehueto Gold Mine. The Company expects to start drilling in these zones from underground soon. The investment in exploration has excellent potential as it is located on the main Creston vein at underground Level 23. If successful, this presents opportunity for expanding resources and leveraging the processing capacity of the mill.

At Campo Morado, the Company is ramping back up to 2,000 tpd, having achieved an average throughput of approximately 1,390 tpd in Q1 2024. Following the successful mobilization of new long hole drill and scoop trams by external contractors (Images 2 and 3), the Company reached 1,800 tpd over the past two consecutive weeks. Luca expect to achieve its targets in the early part of Q3.

Another key milestone objective is to increase cash flow at Campo Morado by producing three high-quality concentrates of copper, zinc, and lead, instead of two (zinc and a bulk concentrate).  The Company recently announced successful metallurgical test work on the copper-lead separation process and is currently implementing the flowsheet, at minimal cost. Luca expects this to be completed in Q3, resulting in a significant improvement in cashflows.

Amid all the developments at Luca, the Company continues to integrate responsible and sustainable mining practices throughout its operations, demonstrating the Company’s commitment to transparency, accountability, and adherence to the highest standards of environmental and social responsibility.

Given Luca’s track record over the past 6 to 12 months of delivery, production growth, high-grade gold discoveries and positive cash flow, the Company continues to present a compelling equity investment opportunity.

2024 GUIDANCE

Consolidated Campo Morado Tahuehueto
Gold Production (ounces of
gold equivalent)
60,000 – 70,000 43,000 – 50,000 17,000 – 20,000
TCC ($/AuEq ounce
produced)
$1,200 and $1,335 $1,175 to $1,294 $1,295 to $1,420
AISC ($/AuEq ounce
produced)
$1,320 and $1,500 $1,235 to $1,420 $1,510 to $1,700
Revenue* $90 million – $105 million (C$125
million to C$145 million)
$55 million to $65
million
$35 million to $40
million
*Based on metals prices of $2,190 Au per oz, 25.90 Ag per oz, 0.95 Pb per lb, $1.20 Zn per lb and $4.10 Cu per lb.

 

screenshot finance.yahoo .com 2024.06.13 06 20 41 Luca Sets up for a Strong 2H 2024 with Production Guidance of 60,000 - 70,000 AuEq Ounces for the Full YearImage 1 – New Tailings Filter Press being installed at Tahuehueto (CNW Group/Luca Mining Corp.)download 80 Luca Sets up for a Strong 2H 2024 with Production Guidance of 60,000 - 70,000 AuEq Ounces for the Full Year
Image 2 – New Scoop Tram at Campo Morado (CNW Group/Luca Mining Corp.)
screenshot finance.yahoo .com 2024.06.13 06 13 39 Luca Sets up for a Strong 2H 2024 with Production Guidance of 60,000 - 70,000 AuEq Ounces for the Full Year
Image 3 – Long Hole Drill at Campo Morado (CNW Group/Luca Mining Corp.)
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, Silver 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 completing the installation of major equipment and commissioning its mill capacity to 1,000 tonnes per day, with key test work and production ramp-up 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) “Ramon Perez”

Ramon Perez, President and Interim CEO

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).

Positive 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.

SOURCE Luca Mining Corp.

Featured Image: Freepik

Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2) The Article was issued on behalf of and sponsored by, Luca Mining Corp. Market Jar Media Inc. has or expects to receive from Luca Mining Corp’s Digital Marketing Agency of Record (Native Ads Inc.) ninety six thousand, five hundred USD for 77 days (54 business days).

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. Market Jar has not independently verified or otherwise investigated all such information. None of Market Jar or any of their respective affiliates, guarantee the accuracy or completeness of any such information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. All investments carry risk and each reader is encouraged to consult with his or her individual financial professional. Any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.’s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on PressReach.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on PressReach.com.

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Luca Mining Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Luca Mining Corp.’s industry; (b) market opportunity; (c) Luca Mining Corp.’s business plans and strategies; (d) services that Luca Mining Corp. intends to offer; (e) Luca Mining Corp.’s milestone projections and targets; (f) Luca Mining Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Luca Mining Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Luca Mining Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Luca Mining Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Luca Mining Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) the accuracy of budgeted costs and expenditures; (e) Luca Mining Corp.’s ability to attract and retain skilled personnel; (f) political and regulatory stability; (g) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (h) changes in applicable legislation; (i) stability in financial and capital markets; and (j) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Luca Mining Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Luca Mining Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Luca Mining Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Luca Mining Corp.’s business operations (e) Luca Mining Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Luca Mining Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Luca Mining Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Luca Mining Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Luca Mining Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Luca Mining Corp. or such entities and are not necessarily indicative of future performance of Luca Mining Corp. or such entities.

8) Investing is risky. The information provided in this article should not be considered as a substitute for professional financial consultation. Users should be aware that investing in any form carries inherent risks, and as such, there is a possibility of losing some or all of their investment. The value of investments can fluctuate significantly within a short period, and investors must understand that past performance is not indicative of future results. Additionally, users should exercise caution as transactions involving investments may be irreversible, even in cases of fraud or accidental actions. It is crucial to acknowledge that rapidly evolving laws and technical issues can have adverse effects on the usability, transferability, exchangeability, and value of investments. Furthermore, users must be cognizant of potential security risks associated with their investment activities. Individuals are strongly encouraged to conduct thorough research, seek professional advice, and carefully evaluate their risk tolerance before engaging in any investment endeavors. Market Jar Media Inc. is neither an investment adviser nor a broker-dealer. The information presented on the website is provided for informative purposes only and is not to be treated as a recommendation to make any specific investment. No such information on PressReach.com constitutes advice or a recommendation.

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