Canadian mining company Luca Mining has started commercial production at its Tahuehueto gold-silver mine in Durango, Mexico.

The company has achieved a consistent throughput rate of more than 800 tonnes per day (tpd) at the project.

The construction of the Tahuehueto mine was completed in July 2024.

For 2025, Luca Mining anticipates producing between 85,000 and 100,000 gold equivalent ounces, with payable ounces expected to range from 65,000 to 80,000.

Luca Mining president Ramon Perez said: “This milestone marks a significant step in the mine’s development, reflecting the operational team’s dedication and the effectiveness of recent optimisation efforts.”

The company projects generating free cash flow before working capital adjustments of $30–40m.

In 2025, the company will invest $27.4m (C$39.44m) in its projects, allocating $23.5m to sustaining capital and $3.9m to exploration across its two operating mines, funded by operational cash flow.

In Tahuehueto, infrastructure enhancements including the construction of a spare parts warehouse are being prioritised to improve operational resilience.

The processing plant, with an installed capacity of 1,000tpd and production rates of up to 1,200tpd, currently operates at 82% availability, with plans to increase this to 85–90%.

In Tahuehueto, $10.5m is planned for capital expenditures, with $6.5m for mine workings and $2.6m for a 5km drilling exploration programme aimed at resource expansion and mine life extension.

Efforts are also ongoing to increase throughput to above 2,000tpd by the end of 2025 at the company’s other mine, Campo Morado, with a focus on improving metal recoveries and grade consistency.

Campo Morado is an underground operation in Guerrero State, producing copper-zinc-lead concentrates with precious metals credits.

The development of a third copper concentrate is expected to improve the payability of precious metals.

A minimum 5km exploration programme is planned to expand mineral resources and continue production for the long term.

At Campo Morado, $13m is allocated to capital projects, including $10m for the development of mine workings. A 5km, $1.3m drilling exploration programme is set to increase high-grade resources and evaluate regional targets.