#Canada #Vancouver #Luca Mining #Campo Morado #Tahuehueto

Luca Mining Champions New Era of Growth with Commercial Production

Luca Mining Corp. has reached a pivotal point in its operational journey by announcing the commencement of commercial production at its Tahuehueto mine, marking a significant milestone for both the company and its stakeholders. This achievement, reported on March 31, 2025, showcases Luca Mining's capabilities to efficiently manage and optimize mining operations, fundamentally setting the stage for robust future production.

In light of achieving commercial production, Luca Mining has provided an ambitious production outlook for 2025. Projections indicate that the company aims to produce between 85,000 and 100,000 gold equivalent ounces from its Tahuehueto and Campo Morado mines. This expected output is not merely a number; it represents strategic planning and operational excellence targeted at maximizing value for shareholders and enhancing the company’s market position.

Tahuehueto Production Details

The Tahuehueto mine is now reportedly operating at a throughput rate consistently exceeding 800 tonnes per day (tpd), demonstrating a strong operational foundation. Ramon Perez, President of Luca, highlighted that this achievement reflects the dedication of the operational team and the optimization processes successfully implemented in recent updates. The sustained production levels signify the mine's capability to generate stable output, a crucial facet supporting Luca's overarching growth objectives.

In addition to the increase in production, the company is actively pursuing infrastructure enhancements, particularly in building a spare parts warehouse. This initiative aims to reduce downtime and fortify operational resilience, ultimately enabling the continuation of productivity and efficiency improvements.

2025 Production Forecast and Financial Projections

Luca Mining is not resting on its laurels. With strategic foresight, it expects to generate a free cash flow between $30 million to $40 million prior to working capital adjustments. This anticipated financial stability is crucial as it positions the company to navigate investments in both current operations and future growth avenues, including debt repayment and exploration programs.

Campo Morado, another operational site, is set to undergo further optimization as the company aims to increase mill throughput above 2,000 tpd by the end of 2025. Efforts include refining grinding techniques and improving metal recoveries, which are fundamental to driving operational efficiency. The introduction of a third copper concentrate is anticipated to enhance the payability of precious metals, solidifying Campo Morado's output quality.

To further bolster resource bases, Luca plans a minimum of 5,000 meters of exploratory drilling, a strategic move designed to expand mineral resources and ensure sustained long-term production capabilities.

Commitment to Debt Reduction and Future Opportunities

In alignment with its broader financial strategy, Luca Mining is committed to eliminating existing debt by July 2026. The integration of strong operational cash flow with potential foresight for the exercise of outstanding warrants may render an accelerated repayment timeline plausible. Luca’s CEO, Dan Barnholden, expressed enthusiasm about entering a growth phase marked by operational excellence and exploration success.

The dual-operating strategy of both the Tahuehueto and Campo Morado mines positions Luca Mining uniquely to enhance performance and seize new growth opportunities, including potential mergers and acquisitions (MA) activities. The long-term vision remains clear: establish Luca Mining as a leading mid-tier mining entity, targeting an output exceeding 200,000 gold equivalent ounces annually.

Conclusion

As Luca Mining strides into 2025, it is bolstered by a commitment to operational success and ongoing exploration. The foundations for a transformative era are set, and the company's determined focus on efficiency, production, and shareholder value solidifies its stance in the competitive mining landscape. The forthcoming year promises not only to be a critical turning point but also lays the groundwork for continued advancement and the broadening of Luca Mining’s operational horizon. With two mines generating robust cash flow and strategic planning in place, the company is ready to embrace new challenges and evolve further in the mining sector.