Luca Mining starts phase 3 of Mexican optimization project

Luca Mining has begun stage 3 of the Campo Morado improvement project (CMIP) after successfully implementing the first two stages at the polymetallic mine in Mexico’s Guerrero state, the company said in a statement.

The Vancouver-based miner expects to complete the project in 2Q25.

In 4Q23, the company partnered with Ausenco México to implement the staged improvement project to increase metallurgical performance, mill throughput, sustaining plant performance and operating cash flow. 

“The initial phase of the project (stage 1) included a comprehensive geometallurgical program focused on sampling, training and procedures as well as optimizing the process controls in the plant. The primary goal of stage 2 was sustainable operations and improving plant reliability,” the statement said.

“Stage 3 will now build on the improvements to date and implement a new flow sheet with modest modifications to the plant with the goal of producing three high-quality, saleable concentrates of copper, lead and zinc,” the miner added. 

Work on stage 3 comprises a series of modifications to the processing plant.

Luca said CMIP has already delivered significant financial benefits to the Campo Morado operation with only minor changes to the processing plant. 

“These benefits have mostly come from higher copper recovery, which has improved by 53% over the same period in 2023. Copper recovery to the bulk concentrate year-to-date is 68.5% compared to 44.7% during the same period in 2023,” the company said. 

“We intend to produce three clean, fully saleable and higher value concentrates of copper, zinc, and lead, which will have an immediate, positive impact on revenues and, ultimately, cash flow,” CEO Dan Barnholden said. 

The Campo Morado underground mine also produces precious metals byproducts.

The company is also commissioning a mill at its Tahuehueto gold-silver underground mine in Durango state, and expects to achieve commercial production by the end of the year.