Skip to content

Campo Morado

Campo Morado is a polymetallic underground operation located in the state of Guerrero, Mexico.

368 K

M&I Oz Gold

18 M

M&I Oz Silver

0 M

M&I Oz Au Eq

Resources, reserves and contained metal estimates based on Preliminary Economic Assessment dated March 31, 2018

Overview

Campo Morado is a fully operating asset that brings a consistent cash flow to the Company and provides exposure to base metal markets.

Campo Morado is an underground multi-metal mine with infrastructure, installations and equipment capable of processing 2,500 tonnes of ore per day. There are over 700 exploration diamond drill holes in place which have outlined six mineralized bodies containing approximately 16.6 million tons of measured and indicated resources grading 4.01% zinc, 0.80% copper, 0.93% lead, 123 g/t Ag and 1.70 g/t Au plus, an additional 1 million tons of inferred mineral resources as calculated and released by Titley Consulting Ltd. in November 2017. The Campo Morado Mine was commissioned and commenced operations in 2009 by Farallon Resources. Nyrstar purchased Farallon Resources in a friendly takeover in 2010 for the equivalent of approximately C$420 million thereby gaining control of Campo Morado. Nyrstar produced up to the end of 2014 when mining operations were suspended in January 2015 and the mine was placed on care and maintenance due to deteriorating industry conditions.

On April 27, 2017 Luca signed an agreement with Nyrstar to acquire 100% of the Campo Morado mine. On September 18, 2017, Luca announced that it had secured the funding required to initiate the restart of continuous mining operations at the Campo Morado Mine and on October 23, 2017 the Company announced the restart of full scale mining and mill processing on a pre-production basis from mine development at a starting rate of 1,400 tonnes per day. On May 23, 2017 the Company was pleased to announce the start of commercial production with the aim of increasing throughput at the mill to its 2,500 tonne per day capacity.

Technical Reports

Location & Infrastructure

Nestled in the northeastern region of Guerrero State, Mexico, lies the Campo Morado Project area. This expansive property, spanning an impressive 12,090 hectares, is situated 160 km southwest of Mexico City and 20 km southeast of the municipality of Arcelia’s city centre. Seven contiguous mineral concessions grace this land, each contributing to the vast wealth that lies beneath the surface.

The journey to Campo Morado from Mexico City is a scenic one, traversing the length of Highway 95, a major artery linking the bustling capital to the coastal city of Acapulco. From there, the route diverts to Highway 51, leading west towards Arcelia. This all-weather, two-lane road serves as the main east-west highway in Guerrero State. A further 25 kilometres southeast from Arcelia, on a mostly unpaved municipal road, the western boundary of the Mine Property emerges. A few kilometers further east, the Campo Morado process plant stands, a testament to the mining prowess of the region.

The drive from Mexico City to Campo Morado is a journey of approximately 360 km, typically taking five to six hours. However, the distance is not just measured in kilometers, but also in the transformation of the landscape, from the urban jungle of the capital to the rugged beauty of Guerrero State.

Luca has been diligent in their recruitment efforts, focusing on hiring and training local workers. This policy, initially put into place by Farallon in 1996, has been continued by Luca, fostering a sense of community and providing valuable skills to the local population. Many of these workers have been part of the G9 Mine and Mill complex operations, which started in 2009.

The Company’s commitment to the local communities extends beyond employment. Goods and services required for mining operations are primarily sourced from Mexico City, stimulating the local economy. Additionally, Luca has ensured sufficient surface rights and the availability of power and water for mining operations, ensuring a sustainable and profitable future for Campo Morado.

Resources & Reserves

The following mineral resources have been calculated using a cut-off of 5.5% Zinc Equivalent.  These resource numbers are preliminary in nature.  They include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. 

Measured & Indicated Resources

Classification
ZnEq%
Tonnes
Gold
Silver
Copper
Lead
Zinc
Total M&I
8.68
16,627,000
1.32 g/t
116 g/t
0.64 %
0.92 %
3.2 %
Measured
9.27
9,292,000
1.7 g/t
124 g/t
0.82 %
0.94 %
4.56 %
Indicated
7.94%
7,335,000
1.7 g/t
123 g/t
0.80 %
0.92 %
3.31 %

Inferred Resources

Classification
ZnEq%
Tonnes
Gold
Silver
Copper
Lead
Zinc
Inferred
7.27
998,000
1.32 g/t
116 g/t
0.64 %
0.92 %
3.2 %

History

1810
The Campo Morado mine in Mexico has a rich history dating back to the Mexican War of Independence in 1810. During this time, General Guerrero paid his soldiers with copper pesos derived from Campo Morado.
1885
In 1885, Don Vicente Ortiz obtained mineral rights in the area and named it Campo Morado. Mining took place on a small scale until 1903 when a more substantial discovery of gold and silver-bearing oxide material led to increased production.
1912-1940
Operations were halted in 1912 due to the Mexican revolution but resumed intermittently between 1920 and 1940.
1995-1998
In 1995, Farallon Resources Limited began exploration around the Reforma Mine deposit, discovering several previously unknown massive sulphide bodies. However, exploration work was put on hold in 1998 due to unfavorable metal prices.
2004-2007
Exploration resumed in 2004 and continued until 2010, leading to several new discoveries. In 2007, Farallon received its primary mine permit and by 2008, the mine and mill were fully operational.
2010
In 2010, Farallon announced that Nyrstar Canada (Holdings) Ltd would acquire a 100% interest in the Campo Morado property and the Campo Morado mine at a cost of CAD$420M.
20??
Under Nyrstar, the mine was in production until January 2015, when operations were suspended due to deteriorating metal prices and security concerns. The mine was placed on care and maintenance status until it was sold to Luca for US$20M. Luca restarted operations at 1,400 tpd, ramping up to 2,500 tpd by 2H 2017.

Geology

Regional Geology

The Campo Morado area lies in the Eastern part of the Teloloapan Subterrane of the Guerrero Terrane close to its margins with the Mixteco Terrane to the east, the Sierra Madre Occidental to the west, and the Trans-Mexican Neogene Volcanic belt to the north (Figure 7-1). An elongate, fault bounded, composite terrain, the Guerrero Terrane sits along the Mexico’s southwestern edge, with the Pacific Ocean and the Cocos plate to its west (Coney, 1985). It primarily consists of submarine, or rarely, subaerial volcanic and sedimentary successions ranging from Upper Jurassic to Middle Upper Cretaceous in age (Centeno-García et al., 2003).

Property Geology

The Campo Morado property hosts several precious metal-rich volcanic associated massive sulphide deposits, which occur in a sequence of felsic to intermediate flows and tuffs, and heterolithic fragmental rocks. Most are in the upper part of the felsic pile or at the contact with stratigraphically overlying, fine-grained, chemical and clastic sedimentary rocks. The five major lithostratigraphic units from oldest to youngest are the Guerrero Ridge intermediate volcanicsubvolcanic unit, the Naranjo sedimentary unit, the Campo Morado felsic volcanic unit, the La Canita volcanic unit and, the Reforma sedimentary unit. Two stages of magmatic pulses intrude all of these units except La Canita. One is associated with the Campo Morado felsic unit, the other being of Tertiary age.

Drilling & Exploration

The Campo Morado property has been extensively explored over a broad area with modern surface and underground core drilling equipment during 16 of the previous 22 years.

A total of 3,069 core holes with a total drilled length of 580,886 metres have been completed on the property for exploration and mine development purposes between 1995 and 2014 by previous operators. Luca has not completed any drilling at the Campo Morado since taking over the property in 2017.

Photo Gallery

Watch our progress at Campo Morado