Luca Mining to study Campo Morado expansion

Executive Summary

• Luca Mining Corp. has approved a mill optimization and expansion study (Campo Morado Expansion or CME) to be prepared as a NI 43-101 technical report, expected for delivery in the second half of 2026.
• The project is led by engineering consultant Ausenco Pty. Ltd. and involves a two-phase approach: Phase 1 focuses on increasing throughput and recovering copper/zinc via bulk sulphide flotation, while Phase 2 evaluates recovering gold and silver from pyrite tailings into a dore product.
• The company is also updating its life-of-mine plan to include high-grade, unmined deposits (Reforma and El Rey) and is actively procuring long-lead-time equipment to support the expansion.

Key Details

• Study Scope & Timeline: A technical report under National Instrument 43-101 covering the CME, life-of-mine plan, and mineral reserve statement is expected in the second half of 2026.
• Phase 1 Objectives:
  • Implement a bulk sulphide flotation processing flowsheet with increased grinding capacity.
  • Target grind size reduction from 15 micrometres to 8–10 micrometres to improve separation of sulphide minerals.
  • Produce high-quality copper and zinc concentrates with higher recovery rates.
  • Relieve current grinding capacity bottlenecks; evaluating IsaMill and vertical stirred mill technologies.
  • Resulting tailings will be a pyrite concentrate containing gold and silver.
• Phase 2 Objectives:
  • Evaluate recovery of gold and silver from the pyrite concentrate remaining after Phase 1.
  • Base case involves direct conventional cyanide leaching to produce a gold-silver dore.
  • Evaluating construction of leach tanks, counter-current decantation filters, and a Merrill-Crowe process.
  • Alternate methods under evaluation include Glencore Technology’s Albion process and pressure oxidation.
• Mine Plan Update:
  • Includes updated metal prices, ore characterization, and optimized recovery assumptions.
  • Incorporates recent drilling success.
  • Specifically includes the high-grade, unmined Reforma and El Rey deposits in the updated mineral reserves.
• Procurement & Execution:
  • Advanced procurement of long-lead-time items is underway, including:
    • Courier 6G SL Elemental Analyzer (Metso)
    • Jameson cleaner flotation cell
    • Regrinding mills
    • Flotation cell mechanisms, pumps, tanks, and filters.
  • Metallurgical testwork is continuing at Luca’s labs and third-party facilities (e.g., ALS Environmental in Kamloops, B.C.).
  • Initial metallurgical test results for Phase 1 are expected in the first half of 2026.
• Financing:
  • Significant portion of capital for Phase 1 and 2 expected to be funded from cash flow from existing operations.
  • Discussions with capital providers are ongoing to secure additional funding if required.
• Permitting: Advanced permitting efforts are underway for required modifications and amendments.
• Qualified Persons:
  • Ramon Mendoza Reyes, PEng (COO and Technical Officer at Luca Mining).
  • Richard Whittering (Principal Process Engineer at Ausenco Pty. Ltd.).

Notable Quotes

• "The initiation of the Campo Morado expansion is a significant event for Luca and our shareholders. We are targeting improved metal recoveries, particularly for precious metals, at what we expect could be a long-lived mining operation with increased production levels at expanded margins. Given our existing processing facilities and mining operations at Campo Morado, we anticipate that the CME may be implemented for a capital cost reflective of the brownfield nature of the project. We are pleased to partner with industry-leading processing and metallurgical engineers at Ausenco as we advance and derisk this opportunity at Campo Morado." — Dan Barnholden, CEO and Director