Luca Mining acquires mining concession adjacent to Tahuehue mine, Mexico
Luca Mining Corp. [TSXV: LUCA; OTCQX: LUCMF; FSE: Z68] reported that it has executed a purchase agreement and closed a transaction with Minera Mexicana La Ci├⌐nega S.A. de C.V., a subsidiary of Fresnillo plc, to acquire a 100% interest in a large mining concession adjacent to the company’s Tahuehueto Mine in Durango, Mexico.
As consideration for a 100% interest in the Humaya 3 mining concession, which covers 2,507 hectares and directly surrounds the Tahuehueto Mine, Luca has paid Fresnillo a cash purchase price of US$400,000. The acquired concession is not subject to any underlying NSR royalties. With this acquisition, Luca expands its land position at Tahuehueto by more than 25%, reaching approximately 10,000 hectares.
Dan Barnholden, Luca’s CEO, commented: “Acquiring this strategic mining concession, which directly surrounds our Tahuehueto Mine, aligns with our growth strategy as we add value to our assets. Luca will continue to demonstrate our ability to increase shareholder value through our commitment to exploration and discovery programs. This ground will play a key role in our near-term exploration strategy at Tahuehueto as we expand our exploration efforts.”
Paul D. Gray, VP of Exploration, added: “The Humaya 3 mining concession surrounds the Tahuehueto Mine and with this acquisition we have significantly increased both the size and exploration potential of our mineral tenure at Tahuehueto. Known veins hosting our current mineral resources are interpreted geologically to extend along strike both to the northeast and the southwest onto this newly acquired concession. In particular, the Santiago vein, which hosts Mineral Resources and Reserves at the mine and is the focus of our current surface drilling program, extends to the northeast directly onto this ground and represents a high-priority drill target.”
Luca Mining Corp. has two wholly owned mines located in the prolific Sierra Madre mineralized belt in Mexico. These mines produce gold, copper, zinc, silver, and lead and generate strong cash flow. Both mines have considerable development and resource upside as well as world-class exploration potential.
The company’s Campo Morado Mine, Guerrero State, Mexico, hosts VMS-style, polymetallic mineralization within a large land package comprising 121 km2. It is an underground operation, producing zinc, copper, gold, silver and lead.
The Tahuehueto Mine is a large property covering 100 km2 in Durango State. The project hosts epithermal gold and silver vein-style mineralization. Tahuehueto is a newly constructed underground mining operation producing primarily gold and silver. The company has successfully commissioned its mill and is now in commercial production.
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