Lupaka Gold (LPK-V) Oct 6, '16 is pleased to provide an update regarding its three development projects, as follows: I
nvicta Gold Project ("Invicta")
Invicta continues to move forward and we anticipate start-up of on-site work shortly. Although the Pre-Paid Forward Gold Purchase Agreement with PLI Huaura Holdings LP was signed on June 30, 2016, the actual receipt of funding has experienced some significant delays due to a number of items such as clarification of tax issues, re-structuring of pre-existing royalty agreements on the Invicta property and the very slow process of formally registering the liens and mortgages required under the financing agreement.
As soon as funding is received, the Company intends to ramp-up to a 350 tonnes per day ("tpd") production rate as soon as reasonable while processing all mineralized material on a contract basis. Once a steady-state 350 tpd production rate is established, expansion potential and a timetable for the construction of Invicta's own processing facility will be developed.
Please also see "Cautionary Note Regarding the Invicta Production Decision" below.
Josnitoro Gold Project ("Josnitoro")
Lupaka Gold is also moving forward with its Josnitoro project, a joint venture with Hochschild Mining.
Company geologists have visited the Josnitoro site and confirmed historical geologic mapping and conducted a limited confirmation sampling program. Company geologists sampled the disseminated gold halo zone, obtaining values of 9 grams gold per tonne ("g/t") at surface, and sampled the central copper skarn zone receiving values of 1.76% copper and 1.2 g/t gold.
Please see the Company's news release dated November 26, 2013 for further information on Josnitoro and the Hochshild Joint Venture.
The Company is now focusing on the core copper/gold skarn zone where the former Josnitoro owner, Minerales del Suroeste S.A., reported high-grade sampling results for copper (of 3 to 9 percent) from samples taken in 2008 from existing mining works and from the sacks of mineral rock accumulated by artisanal miners from a four km long corridor. Currently this area is being mined by local artisanal miners on a small scale of a few hundred tonnes per day. Processors and off-takers for the artisanal miners' mineralized rock report consistent high-grade (of 2 to 5 percent) copper with gold being delivered to two different plants that are processing material from the copper skarn.
Readers are cautioned that the historical sample results and the related reported grades and the sampling, analytical and test data underlying the historical sample results and reported grades have not been verified by the Company. Further, the samples were selectively collected and may not have been subjected to modern quality assurance and quality control measures, and therefore the results may not be representative or reliable.
The Company will be stepping up its exploration of the property after the rainy season ends in early 2017.
Crucero Gold Project ("Crucero")
Crucero contains a pit constrained indicated/inferred resource estimate which is reported below. Geochem and rock samples indicate that additional gold anomalies may be present along strike both north and south of the main zone. Lupaka Gold is currently entertaining joint venture proposals for the Crucero property.
Gordon Ellis, President and CEO commented, "The Company has three good properties, each of which has either a defined resource or ongoing small-scale mining over potentially large deposits." Mr. Ellis further commented that "After a number of years of challenging market conditions to find sufficient funding, we look forward to further exploring and developing these assets at a much accelerated rate in today's improving metals markets."
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release.
About Lupaka Gold
Lupaka Gold is a Peru-focused gold explorer and developer with geographic diversification and balance through its interest in asset-based resource projects spread across three regions of Peru.
Invicta Gold Project - the Company's 100%-owned Invicta Gold Project is a well-developed, poly-metallic gold-copper underground deposit located approximately 120 kilometres by road north of Lima. Management expects to commence production in 2016 by using third-party mining contractors and utilizing the adit and workings completed by previous owners.
Mining operations would be focused on accessing Invicta's Measured and Indicated resource estimates, which are comprised of:
Measured - 131,000 tonnes grading 6.65 grams per tonne ("g/t") gold equivalent for 28,000 contained ounces ("ozs") gold equivalent, from: 18,000 ozs Au grading at 4.29 g/t, 133,000 ozs Ag grading at 31.71 g/t, 2,119k lbs Cu grading at 0.73%, 1,110k lbs Pb grading at 0.39% and 1,105k lbs of Zn grading at 0.38%.
Indicated - 8,513,000 tonnes grading 3.43 g/t gold equivalent for 939,000 contained ozs gold equivalent, from: 573,000 ozs Au grading at 2.09 g/t, 4,285,000 ozs Ag grading at 15.65 g/t, 79,048k lbs Cu grading at 0.42%, 45,171k lbs Pb grading at 0.24% and 53,482k lbs of Zn grading at 0.21%.
Inferred - 2,534,000 tonnes grading 2.90 g/t gold equivalent for 236,000 contained ozs gold equivalent, from: 131,000 ozs Au grading an average of 1.61 g/t, 979,000 ozs Ag grading at 12.02 g/t, 25,879k lbs Cu grading at 0.46%, 14,891k lbs Pb grading at 0.27% and 9,854k lbs of Zn grading at 0.18%.
The resources are stated at a 1.30 g/t gold equivalent cut-off contained within potentially economically mineable mineralized solids. Metal prices assumed for the gold equivalent calculation are US$1,500/oz for gold, US$32.50/oz for silver, US$3.90/lb for copper, US$1.05/lb for lead and US$1.00/lb for zinc. The gold equivalent calculation assumes 100% metallurgical recovery, and does not account for any smelting, transportation or refining charges.
Invicta's approved EIA allows for mine production at 1,000 tpd although the current mining plan is limited to 400 tpd.
Josnitoro Gold Project — the Company holds an option to earn a 65% interest on this project from Hochschild Mining PLC. The project is located approximately 600 kilometres by road southeast of Lima in the Department of Apurimac, southern Peru, within which lies the La Arena mine (Tahoe Resources) and the Constancia mine (HudBay Minerals). Historical work on the disseminated gold zones includes over 170 shallow drill holes and extensive surface trenching, as well as artisanal mining.
Crucero Gold Project — the Company holds a 100% interest in the Crucero Gold Project, a 5,500 hectare gold property located in southern Peru. Crucero has an Indicated mineral resource estimate of 1,003,041 ozs Au contained in 30,919,873 tonnes at 1.02 g/t gold (capped) and an Inferred mineral resource estimate of 1,027,806 ozs Au contained in 31,201,648 tonnes at 1.03 g/t gold (capped). These mineral resource estimates have been constrained by a conceptual pit shell in order to confirm reasonable prospects of economic extraction as set out in the CIM Definition Standards for Mineral Resources and Mineral Reserves and NI 43-101.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lupaka Gold Corp.
Investor Relations
+1 (604) 681-5900
or visit the Company's profile at www.sedar.com or its website at www.lupakagold.com
Qualified Person
The technical information in this document has been reviewed and approved by Julio Castañeda Mondragon, MAIG, the President of Lupaka Gold Peru S.A.C., a Peruvian subsidiary of the Company, and a Qualified Person as defined by National Instrument 43-101. Other than the scientific and technical information regarding Josnitoro which has not been verified as discussed above, Mr. Castañeda has verified the scientific and technical information, including sampling, analytical and test data underlying the information or opinions contained in this news release.
The Invicta Gold Project resource estimates referred to in this news release are disclosed in the technical report dated April 16, 2012, titled "Technical Report on Resources, Invicta Gold Project, Huaura Province, Peru", and prepared by SRK Consulting (U.S.) Inc., which is available at www.sedar.com under Lupaka Gold Corp's profile.
The Crucero A-1 mineral resource estimates referred to in this news release are disclosed in the technical report with effective date January 17, 2013, amended and re-stated October 22, 2013, titled "Technical Report for the Crucero Property, Carabaya Province, Peru", and prepared by Tetra Tech WEI Inc. and SRK Consulting (Canada) Inc. The Technical Report is available at www.sedar.com under Lupaka Gold's profile. |
