Mexico's Media Luna and Tahuehueto close to starting production

Mexican mining projects Media Luna and Tahuehueto entered the final stage of construction before starting commercial production this year, Canadian companies Torex Gold and Luca Mining reported.

Toronto-based Torex said in a release construction of its US$950mn Media Luna project in Guerrero state is “substantially complete,” and the first copper concentrate is on track for March. 

As of end-2024, Media Luna's overall development was 94% complete, up from 87% at the start of Q4. 

The miner reported engineering was concluded in 3Q24, procurement is 99% complete and underground and surface development/construction are at 90% and 85%, respectively. The most significant outstanding item in the category of surface construction is the paste plant, which is scheduled for commissioning in early Q2.

“We are well on track to complete the project and produce first copper concentrate by the end of 1Q25, with engineering concluded, procurement substantially complete, underground development tracking well ahead of schedule, and surface construction advancing per plan,” said CEO Jody Kuzenko.

“The tie-ins at the processing plant are on track to commence towards the end of February, with all major deliveries required to support the tie-in period now on site. In Q4, teams were able to take advantage of a planned maintenance period at the process plant and conducted initial synchronization and testing of the variable frequency drives for the ball mill, which we expect will streamline and de-risk the installation process and support efficient commissioning in March.” 

The miner expects 1Q25 to be the last quarter of material investment in Media Luna. “With commercial production expected in early 2Q25, we are well-positioned to pivot back to positive free cash flow generation by mid-year,” Kuzenko said.

The company has not provided guidance for production at Media Luna.   

Tahuehueto

Vancouver-based Luca Mining said the commissioning of its US$27.52mn Tahuehueto gold-silver mine in Durango state is nearing completion.  

“Throughput at the Tahuehueto mill has started to stabilize at the 1,000t/d level. In the month of January 2025, even with a planned shutdown of greater than one week (consisting of testing and commiserate adjustments), the mill processed over 24,700t of ore; an exciting milestone for Luca,” the company said in a statement. 

In preparation for commercial production, Luca is purchasing and stocking a new warehouse currently under construction on-site to ensure sufficient parts and commodity supply redundancy for its operations. 

“I am very pleased to see that our careful planning is allowing us to meet these important throughput objectives. Steady and stable operations with backup contingencies are key to consistent results,” said CEO Dan Barnholden.

“We’ve been able to quickly increase production at both operations [Tahuehueto and Campo Morado] and we can clearly see a path forward for further increases ahead,” he added.

According to a 2022 prefeasibility study, Tahuehueto would produce an average of 25,987oz/y gold, 453,952/oz silver, 827t/y of copper, 3,155t/y of lead and 6.1Mlb/y zinc over 10.9-year mine life.