Launch of Major Mining Projects Delayed Until 2025

The launch of at least three gold, silver, and copper mining projects in Mexico has been delayed until 2025 due to supply chain disruptions, adverse weather conditions, commissioning delays, and permitting obstacles.

These projects include Torex Gold Resources' US$950 million Media Luna, Luca Mining's US$27.5 million Tahuehueto, Sonoro Gold’s US$15.5 million Cerro Caliche, and potentially Endeavour Silver's US$271 million Terronera project. Collectively, these ventures are part of 10 projects expected to contribute an estimated 501,800oz of gold and 17Moz of silver annually during 2024-2025.

Media Luna

In November, Torex Gold revised its timeline for the Media Luna project in Guerrero, now expecting copper concentrate production to commence in 1Q25, with commercial production to follow shortly thereafter. Jody Kuzenko, CEO, Torex Gold, reported that construction is 87% complete, with the company focusing on finalizing the plant tie-in on schedule. 

Delays in the delivery of critical electrical equipment, partly caused by recent hurricanes in the Gulf region, have led to the rescheduling of the plant tie-in from November 2024 to February 2025. Despite the delay, the project continues to progress according to plan.

"We have visibility to produce about 450,000oz/y until the end of 2027, and we are focused on extending this production rate until at least 2033. Specific targets are in place to further strengthen the feed pipeline, ensuring the mill remains full, which is crucial for cash generation and maximizing the value of our producing assets," said Kuzenko.

Tahuehueto

Luca Mining expects the commissioning of its Tahuehueto underground mine in Durango to begin in early January 2025.  Dan Barnholden, CEO, Luca Mining, indicated that assay results from three completed drill holes are anticipated to be available by early 2025. The company had previously stated in October that it anticipated achieving commercial production at the Tahuehueto mine by the end of 2024.

According to Luca Mining, exploring Tahuehueto is part of its plans to deliver value in 4Q24 and beyond. The company highlights the project's game-changing potential, with untested veins showing signs of becoming a new San Dimas-style district. "We have been drilling for about a month and have completed three holes. The visual results look very promising, and we expect to receive the results in early 2025," Barnholden said.

Cerro Caliche

Sonoro Gold is currently in the permitting phase for its proposed open-pit, heap leach mining operation at the Cerro Caliche project in Sonora. Kenneth MacLeod, CEO, Sonoro Gold, expressed optimism about the project’s progress, emphasizing the favorable approach of President Sheinbaum's administration and Sonoro's continued efforts to secure approval for the MIA filed with SEMARNAT in May 2022. "Key factors that make Cerro Caliche promising include our experienced management team, favorable mining laws in Sonora, and the project's attractive economics. With only 30% of the known mineralized areas explored to date, significant growth potential remains," stated John Darch, Chairman of the Board, Sonoro Gold.

Terronera

Endeavour Silver's Terronera project in Jalisco is 77% complete, with system commissioning expected to begin by the end 4Q24. However, due to a lack of recent updates, the project’s startup may be delayed into early 2025.

Dan Dickson, CEO, Endeavour Silver, previously told MBN that the comprehensive reviews conducted by both the project team and third-party consultants have significantly improved visibility toward initial production at Terronera. “Despite challenges faced at our existing Mexican operations, Terronera continues to advance. After undergoing an in-depth review, we remain confident in our schedule, updated capital cost estimates, and our ability to address these challenges to the benefit of all stakeholders," said Dickson.