Luca Mining expands Tahuehueto mine with Fresnillo land deal

[Ben Graham]

Canada’s Luca Mining (TSX-V: LUCA) has acquired the Humaya 3 mining concession in Durango, Mexico, from Minera Mexicana La Ciénega, a unit of Fresnillo (LON: FRES), the country’s largest silver producer.

The Humaya 3 mining concession surrounds Luca’s Tahuehueto mine in Durango, covering 2,507 hectares and with no underlying net smelter return royalties.

The $400,000 cash deal increases Luca’s Tahuehueto land package by more than 25%, bringing its total holdings to about 10,000 hectares.

said the acquisition strengthens the company’s near-term exploration strategy. “With this acquisition we have significantly increased both the size and exploration potential of our mineral tenure at Tahuehueto,” added Paul D. Gray, VP of Exploration.

The Tahuehueto gold-silver mine commenced commercial production in April and is projected to produce 85,000 to 100,000 gold-equivalent ounces this year, including 65,000 to 80,000 payable ounces.

The deal comes just days after Luca reported strong drill results at its Campo Morado mine in Guerrero, which revealed new gold and silver zones at the polymetallic operation.