VANCOUVER, BC, Aug. 29,
2023 /CNW/ - Luca Mining Corp. ("Luca" (TSXV:
LUCA) (OTCQX: LUCMF) (FSE: Z68) and EnviroGold Global Limited (CSE:
NVRO) (OTCQB: ESGLF) (FSE: YGK) ("EnviroGold Global"), a clean
technology company accelerating the world's transition to a
circular-resource economy, are pleased to announce the signing of a
Memorandum of Understanding (" MOU"), dated 1st August 2023, to process the tailings at
Luca's 100% owned Campo Morado Mine in Guerrero State, Mexico (the "Project").
The scope of the initial project is to evaluate the reprocessing
of the historical Campo Morado
("Campo") tailings that are currently being stored in Campo's
original tailings storage facility. These tailings contain
approximately 3,290,622 tonnes @ 1.32% Zn, 0.3%Cu, 0.49%Pb, 1.57g/t
Au, and 94 g/t Ag (based onLuca's internal company estimate from
historical production records).
EnviroGold and Luca will work together to develop a definitive
processing agreement that will provide a stage-gated approach to
the development of the Project. The Project will follow the
standard approach with EnviroGold working with Luca to complete a
preliminary economic assessment ("PEA").
This project follows successful pilot plant scale testwork on
tailings for the Hellyer Project in Australia (refer to EnviroGold's news release
dated June 29, 2023). The
historic Hellyer Mine is also a volcanogenic massive sulphide
("VMS") type deposit, with very similar characteristics to Campo
Morado. The 500kg sample tested had grades of 2.59 g/t Au, 59
g/t Ag, 0.11% Cu, and 0.84% Zn. Average gold and silver
recoveries achieved by EnviroGold were both over 90%, on a cyanide
leach feed using the LeachwellTM Accelerated cyanide
leach technologies. Also, 91% of the copper and 82% of the zinc
contained in the tailings reported to a pregnant leach solution,
suitable for subsequent recovery and the pyrite within the sulphide
minerals was broken down from 38% to less than 1%.
Initial testwork on Campo
Morado tailings samples in 2021 achieved preliminary gold
recoveries of approximately 60% using EnviroGold's proprietary NVRO
technology. This is similar to Hellyer's initial testing and
EnviroGold will look to increase these recovery rates in the next
stage of testing.
Following a definitive agreement between the parties, the
initial stage of the project will include further data and samples
collection and testwork, followed by a PEA-level study and NI
43-101 Technical Report outlining the project concepts, costs,
development timeline etc.
A positive outcome from this initial tailings project could lead
to applying the same technologies to the current plant and tailings
stream at the Project.
Dr. Mark Thorpe (CEO of
EnviroGold) commented, "We are looking forward to working with
the Luca team. Having recently completed our pilot plant testing on
the Hellyer Project, we are confident that the NVRO process can be
adjusted to work on the Campo tailings. Furthermore, it will be a
pleasure to be back working in Mexico again."
Mr. Mike Struthers (CEO of Luca)
commented, "We're excited to work with EnviroGold on this
project, building on the initial testwork in 2021. The encouraging
results from those initial tests, plus the very real potential to
also recover base metals from the tailings, could generate
significant value from this old tailings facility. More
importantly, if the initial project is successful, the potential to
add this metals recovery stream to the existing plant could add
considerable future value to Campo
Morado."
Marketing Agreement
The Company has retained the services of Robert Sinn ("Sinn") as an investor relations
consultant to provide communication and marketing services
including the redistribution of corporate news releases via social
media, production of two corporate videos and the production of
featured articles. Sinn has been paid US$25,000 effective July
7, 2023 for a 12 month term. Sinn is an arm's-length,
independent contractor with offices in Fort Lauderdale, FL. Sinn has a background in
capital markets as a trader, portfolio manager and analyst. He is
an investor and market analyst focused on the precious metals and
junior mining sectors. Over the past decade he has developed an
audience that appreciates his writing, technical analysis
charts and market commentary. No stock options were granted
to Sinn in relation to this engagement.
About Luca Mining Corp.
Luca Mining Corp. is a Canadian based mining company with two
100% owned Mexican gold, silver, and base metal mining
projects.
Luca's Tahuehueto Gold Mine Project is in north-western Durango
State, Mexico where construction
of an initial 500 tonnes per day ("tpd") operation is well
advanced. The second stage, the 1000 tpd project, will follow
immediately after commissioning the initial stage. The operation is
generating gold, silver, lead, and zinc in concentrates.
Campo Morado is an operating
polymetallic base and precious metals mine currently producing at
an average of 2,400 tpd, generating zinc and copper concentrates
with significant precious metals credits.
About EnviroGold Global
EnviroGold Global is a CleanTech company that uses proprietary
technologies to reduce the environmental liabilities of wastes from
mining projects while maximizing return for its shareholders. The
Company is dedicated to establishing ESG and circular economy
leadership by profitably reprocessing and remediating mine waste
(tailings) to recover precious, critical, and strategic metals –
including gold, silver, copper, zinc and nickel.
Visit: www.lucamining.com
On Behalf of the Board of Directors
(signed) "Mike Struthers"
Mike Struthers, CEO and
Director
Cautionary Note Regarding
Production Decisions and Forward-Looking
Statements
It should be noted that Luca declared commercial production at
Campo Morado prior to completing a
feasibility study of mineral reserves demonstrating economic and
technical viability. Accordingly, readers should be cautioned that
Luca's production decision has been made without a comprehensive
feasibility study of established reserves such that there is
greater risk and uncertainty as to future economic results from the
Campo Morado mine and a higher
technical risk of failure than would be the case if a feasibility
study were completed and relied upon to make a production decision.
Luca has completed a preliminary economic assessment ("PEA") mining
study on the Campo Morado mine
that provides a conceptual life of mine plan and a preliminary
economic analysis based on the previously identified mineral
resources (see News Release dated November
8, 2017, and April
4,2018).
Statements contained in this news release that are not historical
facts are "forward-looking information" or "forward-looking
statements" (collectively, "Forward-Looking Information") within
the meaning of applicable Canadian securities laws. Forward Looking
Information includes, but is not limited to, disclosure regarding
the planned recommencement of mining operationsty6 at Campo Morado; and other possible events,
conditions or financial performance that are based on assumptions
about future economic conditions and courses of action; the timing
and costs of future activities on the Company's properties, such as
production rates and increases; success of exploration, development
and bulk sample processing activities, and timing for processing at
its own mineral processing facility on the Tahuehueto project site.
In certain cases, Forward-Looking Information can be identified
using words and phrases such as "plans," "expects," "scheduled,"
"estimates," "forecasts," "intends," "anticipates" or variations of
such words and phrases. In preparing the Forward-Looking
Information in this news release, the Company has applied several
material assumptions, including, but not limited to, that the
current exploration, development, environmental and other
objectives concerning the Campo Morado Mine and the Tahuehueto
Project can be achieved; that recommencement of operations at
Campo Morado will proceed as
planned; the continuity of the price of gold and other metals,
economic and political conditions, and operations. Forward-Looking
Information involves known and unknown risks, uncertainties and
other factors which may cause the actual results, performance, or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
the Forward-Looking Information. There can be no assurance that
Forward-Looking Information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on Forward-Looking Information. Except as
required by law, the Company does not assume any obligation to
release publicly any revisions to Forward-Looking Information
contained in this news release to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Luca Mining Corp.