LUCA DRILLS 55.8 METRES OF 5.90 G/T AUEQ AT CAMPO MORADO - CONFIRMS NEAR-MINE HIGH-GRADE MINERALIZATION AND EXPANDS EXPLORATION PROGRAM
Luca Mining Unlocks High-Grade Gold Tonnage at Campo Morado as Exploration Strategy Gains Momentum
On January 12, 2026, Luca Mining reported significant drilling results from its Reforma deposit at the Campo Morado mine in Mexico. The headline intercept was 55.8 metres grading 5.90 g/t AuEq (including 1.21 g/t Au). Other notable intercepts included 25.1 metres of 8.31 g/t AuEq and 9.1 metres of 7.11 g/t AuEq. The company has mobilized a second surface rig and expanded the drilling program by an additional 10,000 metres following these results. Management noted that the mineralization is gold-rich VMS and is located near existing underground infrastructure, facilitating potential inclusion in near-term mine plans.
The news is Material - Positive for three reasons: - Grade and Width: Intercepts like 55.8m of 5.90 g/t AuEq are exceptional for a VMS system and represent significant tonnage potential. - Proximity to Infrastructure: Being located near existing workings at Campo Morado reduces the capital expenditure (CAPEX) required to bring this material into the production profile. - Exploration Expansion: The decision to double the surface rig count and add 10,000 metres to the program indicates high confidence and immediate scalability of the discovery.
However, a critical review of the historical data shows that while exploration is succeeding, the financial statements reveal a complex picture. The Q3 2025 news release claimed "Net Earnings" of $12.8 million, yet the SEDAR interim financial statements for the same period showed a "Net Loss" of $16.02 million. This discrepancy is largely due to non-cash derivative liabilities related to the silver stream agreement. Investors must distinguish between "Adjusted EBITDA" and IFRS net losses when evaluating the company's actual cash-generating ability.
Luca Mining Corp. operates two primary mines in Mexico: - Campo Morado (Guerrero): A polymetallic VMS mine currently producing at approximately 2,000 tonnes per day. It is the company's primary base-metal producer with significant gold-silver potential now being unlocked through the Reforma and El Rey deposits. - Tahuehueto (Durango): A gold-silver-polymetallic epithermal vein system that achieved commercial production on March 31, 2025. It is the company's flagship high-grade gold asset.