Luca Mining (TSXV:LUCA) - High-Grade Drilling Results Boost Mexican Mining Operations

Описание: Interview with Dan Barnholden, CEO of Luca Mining Corp.

Our Previous Interview: https://www.cruxinvestor.com/posts/lu...

Recording date: 25th July 2025

Luca Mining has emerged as a compelling turnaround story in the precious metals sector, transforming from financial distress to robust cash generation under CEO Dan Barnholden's leadership. The company operates two mines in Mexico: the Tahuehueto gold-silver mine in northwest Durango and the Campo Marado polymetallic VMS deposit in Guerrero State.

The financial transformation has been remarkable. "When I joined we had a million in the bank and we had $18.2 million in debt. Today we sit with almost $25 million cash in the bank and $7.7 million in debt," Barnholden explained, representing a $40 million balance sheet improvement. The company generated $11.7 million in free cash flow during Q1 2025, positioning it to achieve annual forecasts of $30-40 million.

Recent exploration success at Campo Marado has validated the company's strategic pivot toward high-grade gold zones. Surface drilling at the La Reforma zone intercepted 15.12 meters of 5.5 grams per ton gold, 150 grams per ton silver, and 8.5% zinc—significantly higher grades than current mining areas. This represents the first surface drilling into La Reforma since 2010, unlocking 15 years of untested potential.

Operational improvements have been equally impressive. Campo Marado's mill capacity utilization increased from 60% to near-optimal levels at 2,100 tons per day, while Tahuehueto achieved commercial production in Q1 2025, producing 30,000-35,000 ounces of gold annually.

The company's share price has tripled over 12 months, reflecting successful execution and favorable precious metals market conditions. Management is working on mill upgrades to double gold recovery from the current 25-30%, while exploring tailings reprocessing opportunities containing an estimated billion dollars worth of gold.

With institutional ownership at just 6%, Luca Mining targets growth to 20% near-term, capitalizing on renewed investor appetite for precious metals exposure during what Barnholden describes as "a bull market for precious metals companies."

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