Luca Mining Corp. (TSXV: LUCA, OTCQX: LUCMF, FRA: Z68) has announced a significant milestone with the commencement of commercial production at its Tahuehueto gold-silver mine in Durango State, Mexico. The achievement marks a pivotal step in the company’s growth strategy as it positions itself for higher production levels and enhanced operational efficiencies in 2025.
In March 2025, Luca Mining successfully transitioned its Tahuehueto mine to commercial production, maintaining a consistent throughput rate above 800 tonnes per day (tpd). The processing plant, which has an installed capacity of 1,000 tpd, demonstrated instantaneous production rates of up to 1,200 tpd during ramp-up phases. Current plant availability stands at 82%, with plans to increase this to 85%-90% as operations stabilize further.
Ramon Perez, President of Luca Mining, emphasized the importance of this achievement: “This milestone reflects the dedication of our operational team and validates recent optimization efforts. Sustained production levels at Tahuehueto are critical for supporting our growth strategy and creating long-term value for shareholders.”
Looking ahead, Luca Mining has set ambitious targets for its two operating mines, Tahuehueto and Campo Morado. The company expects consolidated gold equivalent production to range between 85,000 and 100,000 ounces, with payable ounces estimated at 65,000 to 80,000. Free cash flow before working capital adjustments is projected at $30 million to $40 million for the year.
At Campo Morado in Guerrero State, Luca plans to ramp up operations toward a throughput rate exceeding 2,000 tpd by the end of 2025. Optimization efforts include refining grinding techniques and reagent dosing to improve metal recoveries and grade consistency. Additionally, the development of a third copper concentrate aims to enhance payability for precious metals with improved concentrate grades. A minimum exploration program of 5,000 meters is planned to expand mineral resources and sustain long-term production.
For Tahuehueto, infrastructure upgrades such as constructing a spare parts warehouse are underway to minimize downtime and boost operational resilience. Exploration will focus on assessing near-mine targets within the property’s extensive epithermal vein system while increasing mill throughput remains a priority.
Luca Mining is committed to eliminating its debt by July 2026 through strong operational cash flow and potential warrant exercises that may accelerate repayment timelines. CEO Dan Barnholden highlighted the company’s strategic focus: “2025 will be a transformative year for Luca Mining as we anticipate increased production and robust cash flow from our two operating mines. Our long-term vision is to establish Luca as a leading mid-tier mining company with annual production exceeding 200,000 gold equivalent ounces.”
The company’s broader strategy includes identifying new growth opportunities through exploration success and potential mergers or acquisitions (M&A).
Luca plans to invest $27.4 million in sustaining capital expenditures ($23.5 million) and exploration ($3.9 million) across its projects in 2025. Campo Morado will receive $13 million for mine development and infrastructure improvements alongside a $1.3 million exploration program targeting high-grade resources near existing operations. Similarly, Tahuehueto will see $10.5 million allocated for mine workings and infrastructure upgrades while $2.6 million will fund exploration focused on resource expansion and mine life extension.
The company’s anticipated free cash flow underscores its operational efficiency and financial resilience. This cash generation is expected to support debt repayment efforts while enabling reinvestment into growth initiatives and potential shareholder returns.
While Campo Morado continues producing copper-zinc-lead concentrates with precious metals credits, it operates without feasibility studies demonstrating economic viability based on mineral reserves, a factor that introduces uncertainty until such studies are completed. Luca is working with independent consultants on a mineral resource update to address this issue.
With two operating mines positioned within Mexico’s prolific Sierra Madre mineralized belt, Luca Mining appears to be poised for significant growth in 2025. Its strategic focus on operational excellence, exploration success, and financial discipline aligns with its vision of becoming a leading mid-tier mining company in the years ahead.
