Chilco River Holdings Acquires Major Stake in Mexican Iron Ore Producer and Exporter Leuffer Desarrollos S.A. de C.V. - Seite 2

The company owns and operates 11 mining leases, with four of them currently in production in the state of Sonora, with the other leases located in Michoacan and Jalisco in Mexico. All of the mines are conveniently located near major maritime ports of cargo, with railroad and highways facilities. Two of the largest iron ore mining operations in Mexico are in Michoacan, in close proximity to the Leuffer´s company mining leases in Michoacan state. Those like, (i)Las Encinas mines is in Michoacan. It is owned by Ternium and produced an estimated 1.93 million metric tons of iron ore in 2022, the mine will operate until 2038. The Las Truchas mine, owned by ArcelorMittal, is a surface mining operation located in Michoacan, and produced an estimated 1.61 million metric tons of iron ore in 2022. That mine will operate until 2040.

The Mexican Geological Service (SGM) and other international geological engineering specialists are currently conducting surveys to determine the SK-1300 assay for the Mineral Resources as proven. The surveys are being conducted on four mines in Sonora, which have probable mineral resources (iron ore reserves) of around 60 million metric tons, guaranteeing more than 30 years production. The survey will also determine the presence of Gold, Silver, Copper, and rare earths (17 elements existent in the Sonora leases), which will project growth exponentially in the coming 2 years. Meanwhile, Leuffer´s mining operation will continue with the exploitation and exploration of iron ore and export without rest, which will allow it to position itself in the markets of large consumers. Their expansion mining plan was meticulously designed by technic geologists and mining operation professionals from around the world.

In 2023, the operating budget for Leuffer Desarrollos S.A. de C.V. aimed to generate roughly 1 million metric tons of Iron Ore. The company has invested significantly in infrastructure and consolidation of their mining concessions, and presently operates four leases in Sonora state. By using advanced machinery, equipment, and expertise, the company is witnessing a monthly rise in production.

Starting in 2024, Leuffer Desarrollos S.A. de C.V. plans to boost production by 50% each year and to add two more open operational pits, and increase their attendance near to the mining operation, and acquire more leases to production annually. The firm primarily exports through the Guaymas (Sonora) maritime port, although it also utilizes alternate port facilities in Lazaro Cárdenas (Michoacan) and Manzanillo (Colima) maritime ports.