TORONTO, Aug. 29, 2023 (GLOBE NEWSWIRE) -- 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 and Luca Mining Corp. (“Luca” (TSX-V: LUCA; OTCQX: LUCMF; FSE: Z68) are pleased to announce the signing of a memorandum of understanding, dated August 1, 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 on Luca’s internal 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 test work 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 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 test work on Campo 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 test work, 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 test work 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.”
About EnviroGold Global
EnviroGold 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.
About Luca Mining Corp.
Luca 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.
Contact Information
Dr. Mark B. Thorpe
Chief Executive Officer
Telephone: +1 416 777 6720
Email: InvestorRelations@EnvirogoldGlobal.com
Website: https://envirogoldglobal.com
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of applicable securities laws, including, without limitation, earnings guidance, economic guidance, operational guidance and future capital spending amounts. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements.
Graphical representations included in this news release are approximate representations which may vary from defined regulatory boundaries.
Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements pertaining to the Company’s proprietary hydrometallurgical process, further bench scale optimisation test work to be completed to update the Technical Report, Front End Engineering Design work to be completed, and the Company’s ability to accelerate the world’s transition to a circular resource economy. Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company’s ability to continue as a going concern; the continued commercial viability and growth in the clean technology and mining waste reprocessing industry; continued approval of the Company’s activities by the relevant governmental and/or regulatory authorities; the continued development of clean technology and mining waste reprocessing technology; and the continued growth of the Company. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the potential inability of the Company to continue as a going concern; the Company’s inability to accelerate the world’s transition to a circular resource economy, the risks associated with assessing metallurgical recovery rates from mine tailings and waste and related volumetric assessments, the risks associated with the mining and mining waste recycling industry in general; increased competition in the clean technology and waste reprocessing market; the potential unviability of the clean technology and mining waste reprocessing market; incorrect assessment of the value and potential benefits of various transactions; risks associated with potential governmental and/or regulatory action with respect to clean technology and mining waste reprocessing; risks associated with a potential collapse in the value of clean technology and waste reprocessing; and risks relating to the Company’s potential inability to expand its reprocessing pipeline.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
