ATLYF - Luca Mining Corp. announces Tahuehueto Construction on Schedule and Digital Marketing Agreements
(NewsDirect)
Luca Mining Corp.(the “ Company ” or “ Luca ,” formerly AltaleyMining Corp.) is pleased to provide an update on construction progressat the Company’s flagship asset, the Tahuehueto Gold Project.
Highlights
- Company on track todeliver the initial 500 tonnes per day project by 30 th June2023
- Key elements advancing well, including tailingsfiltration and dry-stack tailings dam construction.
- Secondmill, for 1,000 tonnes per day, also being advanced.
ConstructionUpdate
TheCompany defined two steps towards achieving commercial production of1,000 tonnes per day (“tpd”), with an initial stage of 500 tpdscheduled to complete by June 30 th , 2023. The final stageof 1,000 tpd is expected to be achieved by the end of 2023.
The Company is pleasedto report that the first stage of 500 tpd is nearing completion. Theremaining key elements are installation of the final components of thecomminution circuit (cyclones, pumps etc.); construction of the firststage of the tailings dam; installation of a second tailings filterpress; and completion of the definitive plant water supply.
Completion of thecomminution circuit is expected by 31st May, in parallel with otherfinal items such as the crusher building roof in advance of the rainyseason.
Construction of Stage 1A of the dry-stack tailings dam isadvancing well, on both day and night shifts. The underdrain isinstalled, and construction of the initial embankment is wellunderway. This phase of the dam is planned to be completed before theend of June. The mine also has additional temporary storage capacitywhich is being used to support current pre-production.
Thefirst tailings filter press is fully operational, and it is expectedthat with further optimizations this filter will have a capacity ofalmost 500 tpd alone. The second (backup) filter press has beenacquired and arrangements are underway to transport the unit to site.Meanwhile construction of the second filter press foundation isadvancing to plan.
“I’m verypleased with our progress towards this important goal of achieving 500tpd at Tahuehueto” said Mike Struthers, CEO . “Our team, andour contractors and consultants, are all performing very well. Andwhile our focus is firmly on achieving the 500 tpd goal, we are alsoin parallel taking some key steps towards our ultimate goal of 1,000tpd by the end of the year. We have located an alternative second millin Mexico with a larger capacity of 750 tpd, which will provide avaluable buffer for sustaining 1,000 tpd production.”
Pre-production atTahuehueto also continues in parallel with construction. In additionto generating useful revenues, this allows site teams to continue tofine tune systems, plant performance, etc. in advance of full-scaleproduction. Average lead recovery to concentrate in May to date is79.8%, with an average content of 29% lead, 50.5 g/t gold, and 584 g/tsilver. Average zinc recovery in May to date is 59.7%, with an averagecontent of 47% zinc, 12.6 g/t gold and 144 g/t silver. Total gold andsilver recoveries are each approximately 86% (average for April 2023),in line with expectations from the 2022 PFS.
The Company will providefurther updates as we close in on our goal of achieving 500 tpd atTahuehueto.
Digital Marketing Agreements
With a number of keymilestones for the Company in the near future, and the need toincrease brand awareness, the Company is pleased to announce it hasengaged the services of Native Ads Inc. (“Native Ads”) and WinningMedia LLC (“Winning Media”) to provide strategic digital mediaservices.
Underthe terms of these agreements, Native Ads will provide a combinationof content development, web development, media buying anddistribution, and campaign reporting and optimization at a total costof $125,000 USD over an expected six-month period. Winning Media willprovide various digital marketing services and data analytics servicesat a total cost of $125,000 USD, payable one-time in advance. Inrespect of both these agreements, approximately half of the totalcosts are dedicated to media placement costs and half to services.
Native Ads is afull-service advertising agency based in Vancouver, BC, that owns andoperates a proprietary ad exchange with over 80 integrated supply sideplatforms resulting in access to three billion to seven billion dailyNorth American ad impressions. Winning Media is based in Houston,Texas and its principal is Ty Hoffer. He brings over 20 years ofexperience in the online advertising and investor marketing industry.Neither Native Ads nor Winning Media nor any of its directors andofficers owns any securities of the Company.
The Native Ads agreement and the Winning Media agreement aresubject to the Company’s filing requirements with the TSX VentureExchange.
About Luca Mining Corp.
Luca Mining Corpis a Canadian based mining company with two 100% owned Mexican gold,silver, and base metal mining projects.
Luca’s Tahuehueto GoldMine Project is in north-western Durango State, Mexico whereconstruction of an initial 500 tonnes per day (“ tpd ”)operation is well advanced. The second stage, the 1000 tpd project,will follow immediately after commissioning the initial stage. Theoperation is generating gold, silver, lead, and zinc inconcentrates.
Campo Morado is an operating polymetallic basemetal mine in Guerrero, Mexico, currently producing at an average ofapproximately 2,400 tonnes per day, generating zinc and copperconcentrates with significant precious metal credits.
Visit:www.lucamining.com
On Behalf of the Board ofDirectors
(signed) “Mike Struthers”
MikeStruthers
CEO and Director
Cautionary NoteRegarding Production Decisions and Forward-LookingStatements
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
It should be noted that Luca declaredcommercial production at Campo Morado prior to completing afeasibility study of mineral reserves demonstrating economic andtechnical viability. Accordingly, readers should be cautioned thatLuca’s production decision has been made without a comprehensivefeasibility study of established reserves such that there is greaterrisk and uncertainty as to future economic results from the CampoMorado mine and a higher technical risk of failure than would be thecase if a feasibility study were completed and relied upon to make aproduction decision. Luca has completed a preliminary economicassessment (“PEA”) mining study on the Campo Morado mine thatprovides a conceptual life of mine plan and a preliminary economicanalysis based on the previously identified mineral resources (seeNews Release dated November 8, 2017, and April 4, 2018). ).Furthermore, It should be noted that Luca intends to commencepre-production and ramp up to full commercial production at Tahuehuetoprior to completing a feasibility study of mineral reservesdemonstrating economic and technical viability. Accordingly, readersshould be cautioned that Luca’s pre-production and productiondecisions will be made without a comprehensive feasibility study ofestablished reserves such that there is greater risk and uncertaintyas to future economic results from the Tahuehueto mine and a highertechnical risk of failure than would be the case if a feasibilitystudy were completed and relied upon to make such productiondecisions. Luca has completed a positive pre-feasibility study (the“Pre-Feasibility Study”) and updated mineral reserves/resourcesestimates at its flagship Tahuehueto Mine that provides a conceptuallife of mine plan and a preliminary economic analysis based on a 1,000tonne per day operation (see News Release dated March 7, 2022)
Statements contained in this news release that are nothistorical facts are "forward-looking information" or"forward-looking statements" (collectively,"Forward-Looking Information") within the meaning ofapplicable Canadian securities laws. Forward-Looking Informationincludes but is not limited to conditions or financial performancethat are based on assumptions about future economic conditions andcourses of action; the timing and costs of future activities on theCompany's properties, such as production rates and increases;success of exploration, development and bulk sample processingactivities, and timing for processing at its own mineral processingfacility on the Tahuehueto project site. In certain cases,Forward-Looking Information can be identified using words and phrasessuch as "plans," "expects," "scheduled,""estimates," "forecasts," "intends,""anticipates" or variations of such words and phrases. Inpreparing the Forward-Looking Information in this news release, theCompany has applied several material assumptions, including, but notlimited to, that the current exploration, development, environmentaland other objectives concerning the Campo Morado Mine and theTahuehueto Project can be achieved; that commencement ofpre-production mining and milling operations at Tahuehueto willproceed as planned; the continuity of the price of gold and othermetals, 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 differentfrom any future results, performance or achievements expressed orimplied by the Forward-Looking Information. There can be no assurancethat Forward-Looking Information will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on Forward-Looking Information. Except as required bylaw, the Company does not assume any obligation to release publiclyany revisions to Forward-Looking Information contained in this newsrelease to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events.
ContactDetails
Glen Sandwell
+1 604-684-8071
CompanyWebsite
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