Canada’s Luca Mining (TSX-V: LUCA) has bought 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 25 sq. km 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.
The acquisition strengthens the company’s near-term exploration strategy, CEO Dan Barnholden said in a press release. “With this acquisition we have significantly increased both the size and exploration potential of our mineral tenure at Tahuehueto,” Vice-President of Exploration Paul Gray said.
The Tahuehueto gold-silver mine declared commercial production in April and is to produce 85,000 to 100,000 gold-equivalent oz. 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.
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