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Subject: ERN

Luca Mining's Q3 2023 Overview: Optimizing Campo Morado and Progress at Tahuehueto Mining Project

VANCOUVER, BC, Dec. 4, 2023 /CNW/ - Luca Mining Corp. ("Luca" or the "Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) announces its financial and operating results for the third quarter and nine months ended September 30, 2023. The Company reports net revenue of $15.1 million in Q3 2023, representing a 2% increase over net revenue of $14.8 million in Q3 2022.  Mine operating income (before depletion, depreciation, and amortization) in Q3 2023 was $0.30 million compared to $1.50 million in Q3 2022. The net mine operating loss in Q3 2023 was $0.74 million compared to a net mine operating gain of $1.16 million in Q3 2022.


"During the third quarter of 2023, the Tahuehueto Mining project continued progressing towards its objective of achieving 1,000 tonnes per day installed capacity by year-end and announcement of commercial production early in 2024," said Mike Struthers, CEO. "Following a challenging operational performance in Q3 2023 at Campo Morado, in large part due to reduced throughput as part of a new optimization program by our colleagues at Ausenco, we now have, for the first time in the history of this operation, an understanding of how to correctly operate the project to achieve consistent performance and profitability. The execution of a new mine-to-mill program, an effective blending strategy, and multiple initiatives in the processing plant, will translate into major improvements to the bottom line at Campo Morado. We are very grateful for the substantial support provided by the Ausenco engineers and look forward to the improved results to come to fruition in 2024."

Q3 2023 Overview

Campo Morado

Production and concentrate sales for the three months ended September 30, 2023:

C1 cash costs per pound of payable zinc for the Campo Morado Mine operation are estimated by adding the total cost to produce concentrate (mining, milling, site general and administration), adding the cost of transporting concentrate to the point of sale, adding the cost of smelter treatment and refining charges, subtracting the byproduct credits estimated from sales of lead, silver, gold and dividing by the pounds of payable zinc. By-product credits are calculated using the realized weighted average metal price, during the year.

Campo Morado Optimization Program

Tahuehueto Mining Project

While the project is still under construction, the following details the production and concentrate sales for the three months ended September 30, 2023:

Management Discussion and Analysis Refiling

On November 27, 2023, the Company filed its condensed interim consolidated financial statements and corresponding management discussion and analysis ("MD&A") for the period ending September 30, 2023. Subsequently, the Company became aware of minor update revisions and typographical corrections (including, but not limited to, page 7 of such MD&A under the heading "Operational Performance Results) required to the MD&A and as a result the Company has refiled its MD&A on November 30, 2023. These corrections do not materially impact the substantive content or key insights presented in the original MD&A but aim to ensure the precision and accuracy of our communication.

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.  With one mine ramping up, and another going through an optimisation program, the Company expects these operations to generate consistent, positive free cash flow starting in early 2024.

Luca's Tahuehueto Mine is a new underground gold mine in northwestern Durango State, Mexico, located within the prolific Sierra Madre Mineral Belt which hosts numerous producing and historic mines along its trend. Currently in the final stages of construction to the nameplate capacity of 1,000 tonnes per day, Tahuehueto is on track to become a significant and one of Mexico's newest gold mines to come into production. The Pre-Feasibility Study updated in 2022 contemplates an operation achieving production of 40,000 ounces gold-equivalent per year, with approximately 75% of the revenues from precious metals, and a 10-year mine life.

The Campo Morado Mine, located in Guerrero State, Mexico, is an operating underground base and precious metals mine with a throughput of approximately 600,000 tonnes per year, producing zinc, copper, and lead concentrates with significant precious metals credits. It is currently undergoing an optimisation program which is already generating significant improvements in recoveries and grades, and cashflows.

*Pre-feasibility report dated April 21, 2022.

Qualified Persons

The technical information contained in this News Release has been approved by Mr. Mike Struthers, C.Eng., CEO and Director at Luca Mining, a Qualified Person for the Company as defined in National Instrument 43-101.

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 program to improve mining operations 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 the program to improve mining  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. 

SOURCE Luca Mining Corp.

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