Starcore's Carbonaceous Ore Breakthrough: A Game Changer for Mining

In the ever-evolving world of mining, Starcore International Mines Ltd. has just made a significant breakthrough that could redefine its future. The company recently announced the successful results of an in-plant test to process carbonaceous ore at its flagship San Martin mine in Queretaro, Mexico. This development is not just a technical achievement but a strategic move that could significantly boost the company's cash flow and profitability.

The in-plant test, conducted by Kappes, Cassiday & Associates (KCA), processed approximately 2,000 tonnes of carbonaceous ore with a gold grade of 2.2 g/t and silver 20.7 g/t. The results were impressive: the plant, as currently configured, can recover over 80% of the gold and 63% of the silver from these ores. This is a game-changer for Starcore, as carbonaceous ore has historically been difficult to process and has not been accounted for as ore resources.



The strategic advantages of this new capability are manifold. Firstly, the carbonaceous ore has a gold content nearly twice the grade of the 600 tonnes/day of oxide ore. This higher grade means that processing it can lead to higher gold recovery rates and, consequently, increased revenue. Secondly, the plant modifications allow for the processing of carbonaceous ore on a continuous basis, enhancing operational efficiency. The company plans to gradually increase the processing of carbonaceous ore from 100 tonnes/day to 180 tonnes/day within a few months, with further plant modifications by the end of 2025 allowing for processing at the full plant capacity of 800 tonnes per day.

The addition of carbonaceous ore processing is expected to significantly increase the mine life and open up new exploration opportunities. The geological department at San Martin is continually evaluating these ores and expects to report a substantial increase in both tonnes and gold grade of the available resource. The carbonaceous mineral reported in the latest NI 43-101 amounts to 880 thousand tonnes in the different proven, probable, and inferred categories, yielding a total of 77,461 ounces of gold equivalent. This indicates a significant potential for increased production and reserves.

The financial implications of this breakthrough are also substantial. The company reported earnings from mining operations of $2.1 million and positive cash flow for the three-month period ended January 31, 2025. With the finalization of the carbonaceous ore tests, the company expects further increase in monthly metal production going forward, which will contribute to improved financial results.



However, the road ahead is not without its challenges. The key risks and uncertainties associated with the continuous processing of carbonaceous ore include technical challenges, operational disruptions, and financial uncertainties. The processing of carbonaceous ore has historically been difficult, and while the in-plant test was successful, there is no guarantee that the processing methods will be fully effective. Any delays or issues in the plant modifications could impact production schedules, and unexpected costs could negatively impact the company's financial performance.

In conclusion, Starcore's breakthrough in processing carbonaceous ore is a significant development that could redefine its future in the mining industry. The strategic advantages of this new capability, coupled with the potential for increased production and reserves, position Starcore more competitively in the market. However, the company must navigate the technical, operational, and financial challenges that lie ahead to fully realize the benefits of this breakthrough. As always, investors should stay tuned for further developments and keep a close eye on the company's performance in the coming months.