Luca Mining’s Tahuehueto Mine to Start Production in 2025

Canada-based Luca Mining announced that its Tahuehueto gold-silver underground mine, in Durango, is expected to begin commissioning in early January 2025. The company said exploring Tahuehueto and ramping-up production at Campo Morado in Guerrero is part of its strategic goals to deliver value during 4Q24 and beyond. 

Dan Barnholden, CEO, Luca Mining, reported the company was in the process of commissioning the Tahuehueto mine, a work that is expected to be completed by mid January 2025, with the aim to declare the first commercial production by the same date. 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 drill results in early 2025," Barnholden said.

Luca Mining intends to become debt-free by July 2026, following nearly US$1 million in debt repayments between October and November 2024. “We expect to be fully debt-free by July 2026 or, if some of our cash flow projections come to fruition, well before that,” Barnholden stated.

The company aims to achieve this while advancing its operations and expanding its production. Luca Mining plans to double the resource base at both of its fully permitted, 100%-owned, cash-flow-generating mines, which will allow for a substantial increase in production.

Barnholden also provided an update on the company’s Campo Morado mine, where ongoing improvements to the mill and increased mining activities are progressing toward a ramp-up to 2,400t/d by 1Q25. Exploration at Campo Morado is expected to begin by the end of December 2024, with initial results projected for 1Q25. 

Luca Mining reported production of 11,988oz AuEq during 3Q24, with a total of 40,083oz produced during the first nine months of the year. “3Q24 was a transitional quarter where a key focus was to complete work on the mines and mills which impacted our results, but this work is setting the stage for exciting growth ahead in 4Q24 and for 2025. The idea of the optimization program is to realize the full value of our two operating mines,” said Barnholden when delivering 3Q24 financial results.