High-Grade Drilling Boosts Luca Mining’s Tahuehueto Budget

Luca Mining has reported high-grade gold intercepts at its Tahuehueto mine in Durango, prompting a 40% increase in its 2026 exploration budget to US$3.5 million. This brownfield expansion targets mineralization below existing infrastructure. The development allows the company to capitalize on record precious metal prices by utilizing established permits and facilities to sustain organic growth and extend mine life.


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Luca Mining reported results from its 2026 exploration program at the Tahuehueto mine in Durango, identifying high-grade gold mineralization below the site's current workings. The company considers these results to validate the asset’s geological model and open the door for the expansion of mineral resources.

Drill hole DDH26-SU-01 intercepted 7.6m grading 14.27g/t gold, 46.64g/t silver, 0.33% copper, 2.57% lead, and 1.19% zinc starting at a depth of 80.9m. A second highlight, hole DDH26-SU-03, returned 13.2m grading 6.66g/t gold, 17.18g/t silver, 0.04% copper, 0.25% lead, and 0.65% zinc from 42.7m. 

“The results validate our Tahuehueto geological model and highlight the opportunity to expand high-grade mineral resources within development distance of existing infrastructure. With both underground and surface rigs active, and an expanded drill budget, we are well positioned to continue defining high-grade mineralization and demonstrating the broader scale of the Tahuehueto system,” said Paul Gray, Vice President of Exploration, Luca Mining.

These intercepts are located approximately 30m below Level 23, an area that already hosts established underground infrastructure. Phil Kerr, Mining Analyst, Canaccord Genuity, noted that these grades exceed the operation's current average head grades of approximately 4g AuEq. The proximity of these new zones to existing development suggests potential for incorporation into near-term mine plans without significant capital expenditure for new access tunnels.

Resource Expansion and Budget Adjustment

The findings support the company’s geological model, which interprets high-grade mineralization within brecciated quartz-sulphide veins along the Creston structure. Following these results, Luca Mining’s board approved a 40% increase to the 2026 exploration budget, adding US$1 million for a total of US$3.5 million. This expanded program focuses on 14 identified vein targets across the district. To date, the company has completed 28 underground drill holes totaling 6,750m and 19 surface holes totaling 3,650m between the Creston vein and the nearby Santiago target. The company maintains both surface and underground rigs to continue defining the scale of the Tahuehueto system, which remains open down plunge.

Operational Consolidation and Strategic Land Expansion

The recent exploration success at Tahuehueto follows a year of operational growth and financial stabilization for Luca Mining. In its 2025 year-end report, the company confirmed that it met or exceeded its revised production guidance across its Mexican portfolio. Consolidated production reached 26,144oz of gold and 1.3Moz of silver, supported by steady performance at both the Campo Morado mine in Guerrero and the Tahuehueto operation in Durango. Notably, Tahuehueto’s silver production of 279,997oz surpassed the upper limit of its 2025 guidance, while the company’s consolidated cash position strengthened to US$25.5 million, driven by positive free cash flow in the final quarter of the year.

This financial flexibility allowed the company to reduce its debt by US$10.1 million in 2025, leaving a remaining principal balance of only US$2.5 million slated for repayment by mid-2026. This improved balance sheet has enabled a more aggressive approach to land acquisition and exploration. 

On Sep. 10, 2025, Luca Mining expanded its Tahuehueto land package by over 25% through the acquisition of the Humaya 3 concession from a subsidiary of Fresnillo. The 2,507ha concession, purchased for US$400,000, carries no NSR royalties and brings the company’s total holdings in the district to approximately 10,000ha.

The acquisition is strategically significant as Humaya 3 directly adjoins known mineralized structures, including the Santiago vein, which is a high-priority target for the current 2026 drilling program. By securing this ground, Luca Mining has positioned itself to explore the lateral and depth extensions of its existing vein systems within a consolidated land package. According to CEO Dan Barnholden, the focus for 2026 has shifted toward optimization and organic growth, utilizing the company’s stable production base to fund the discovery and definition of new high-grade resources close to its 1,000t/d mill.

Tahuehueto Mine: Luca Mining’s Flagship Asset

Located in the Sierra Madre Occidental mining belt of Durango, Tahuehueto is the flagship underground asset for Luca Mining. The property spans 7,492ha and covers at least 12 mineralized zones within a structurally controlled epithermal system traced over 6km. 

According to the company's 2022 Preliminary Feasibility Study (PFS), the site hosts Measured and Indicated (M&I) resources totaling 424,000oz of gold, 9.5Moz of silver, and 535,000oz AuEq.

In its first full year of commercial operations, Tahuehueto met its revised production targets, delivering 15,837oz of payable gold. The mine’s silver output was particularly strong, reaching 279,997oz and exceeding the upper limit of its annual guidance. Base metal production also aligned with expectations, contributing 3,370oz of lead and 3,808oz of zinc.