LUCA DRILLS 28.6 METRES OF 5.35 G/T AUEQ AT THE EL REY DEPOSIT AT CAMPO MORADO
Production Turnaround Meets High-Grade Exploration Success as Balance Sheet Risk Recedes
The news release dated January 30, 2026, details significant diamond drilling results from the El Rey deposit at the Campo Morado mine in Mexico. Key results include hole CMRY-25-02, which intercepted 28.6 metres grading 5.35 g/t Gold Equivalent (AuEq), and hole CMRY-25-06, which hit 29.5 metres of 4.87 g/t AuEq. This represents the first drilling at El Rey in over 14 years. Exploration has confirmed that El Rey is a "faulted-off" portion of the nearby Reforma deposit, extending mineralization along the western margin and at depth. Concurrently, the company announced that drilling has commenced at the Zapata target, one of 38 defined prospective targets on the property.
- Resource Expansion: The results confirm thick, gold- and silver-rich Volcanogenic Massive Sulphide (VMS) mineralization outside current mine plans. The "faulted-off Reforma" interpretation suggests a much larger mineralized system than previously modeled.
- Mine Life and Flexibility: El Rey provides a potential unmined source of high-grade feed, which improves production flexibility and could meaningfully extend the life of the Campo Morado operation.
- Geological Validation: Successful testing of historical anomalies (Zapata) and extensions (El Rey) validates the current management's aggressive exploration strategy and the 2025/2026 US$25 million budget.
- Contextual Success: This news follows a January 19, 2025, announcement that the company achieved full-year production guidance and reduced its debt principal to a negligible $2.5 million.
Luca Mining Corp. operates two primary assets in Mexico: the Campo Morado mine (Guerrero) and the Tahuehueto mine (Durango). - Campo Morado: A polymetallic VMS mine producing zinc, copper, and precious metals. It is currently the primary cash flow driver. - Tahuehueto: A high-grade epithermal gold-silver mine that recently declared commercial production (March 31, 2025). - Strategy: The company's "Optimize, Explore, Expand" strategy focuses on maximizing mill throughput while aggressively drilling near-mine targets to extend mine life.