Lupaka Gold initiates development of Invicta Gold Project
Tuesday, Jan 23, 2018
Lupaka Gold Corp. is pleased to provide an update on operational advancements associated with the Invicta Gold Development Project ("Invicta", or "Invicta Project").


  • Mining contractor selected, mobilization has commenced and expected to take 2-3 weeks
  • Rehabilitation, preparation and initial development of Invicta will commence in February 2018 with 3 crews, new adit and 3430 Level to be constructed
  • Bulk samples to be extracted and sent to toll-milling facilities in order to test and optimize metallurgical recoveries and concentrate quality
  • Road construction resumes after holiday period and is approximately 20% complete
  • PEA on track for completion in the first quarter of 2018 ("Q1 2018")

Mining Contractor Commences Rehabilitation, Preparation and Development Work

PLH S.A.C. ("PLH"), the mining contractor selected for the Invicta Project, has commenced mobilization activities that will take 2-3 weeks to complete.  By early February 2018, the Company anticipates PLH will have established three crews at site focused on:

  • Rehabilitation of the existing 3400 Level including widening access points, reinforcing ground support, and the installation of services;
  • Driving a new access drift from surface to develop the first sublevel for mining and a cross-cut at the 3430 Level. This new access point, when connected by the raise from the 3400 Level, will complete the ventilation circuit and provide a secondary egress from underground;
  • Preparing initial development on the 3430 Level access to the mineralized zone. Sampling will be performed and cross-referenced with the block model. Bulk samples will be sent to toll-mill facilities to test and optimize throughput rates, metallurgical recoveries, and concentrate quality.
The rehabilitation, preparation and initial development activities are expected to be completed mid-2018.

Road Construction Progress Update

To avoid disruption with local communities over the holiday period, and maintain safety standards, road construction was temporarily suspended from December 22, 2017 until January 5, 2018.  Progress now continues on three fronts and project is approximately 20% complete.  Efforts to date have been primarily focused at the top section of the road in advance of the rainy season and in constructing bypasses around local communities.

Preliminary Economic Assessment

Further to the announcement on November 28, 2017, the Company has engaged SRK Consulting Canada Inc. ("SRK") as the lead contractor to prepare a Preliminary Economic Assessment ("PEA") on Invicta.  The PEA remains on track for completion in Q1 2018 and will be used as a basis for additional development by PLH.

Related Party Transaction

In December 2017, the Company sold 200,000 of its Goldmining Inc. (TSXV: GOLD) shareholdings, which were received as consideration for the Company's  November 2017 sale of the Crucero Project, to Mr. Will Ansley, CEO of the Company. This transaction was made in order to take advantage of an allowable, one-time block-sale under the Sale Purchase Agreement with Goldmining Inc.

The sale of the Goldmining shares is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101") because it involves a director and officer of the Company, Mr. Ansley.  The transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in reliance on the exemptions set forth in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the Goldmining shares nor the consideration for the Goldmining shares exceeded 25% of the Company's market capitalization (as determined in accordance with MI 61-101).  The Company did not file a material change report more than 21 days before the expected closing of the sale of the Goldmining shares as the details of the sale and the participation therein by Mr. Ansley were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.

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 is an active Canadian-based company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions of Peru.

Invicta Gold Development Project – 100% owned, the Company's flagship project is an advanced stage gold-copper polymetallic underground deposit located approximately 120 kilometres north of Lima.  Over $15 million of capital has been spent by previous owners on development and infrastructure at Invicta, and management expects to commence potential production in the second half of 2018 by using third-party mining contractors and utilizing the adit and existing workings. The Invicta project is fully permitted and community agreements are in place.

The potential underground operation will be focused on accessing Invicta's Measured and Indicated mineral resources, which was prepared by SRK Consulting (US) Inc. in 2012 estimated as:

Measured mineral resource - 131,000 tonnes grading 6.65 grams per tonne ("g/t") gold equivalent for 28,000 contained ounces ("ozs") of gold, 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 mineral resource - 8,513,000 tonnes grading 3.43 g/t gold equivalent for 939,000 contained ozs of gold, 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%.

An Inferred mineral resource estimate of 2,534,000 tonnes grading 2.90 g/t gold equivalent for 236,000 contained ozs of gold has also been established.

The 2012 Mineral Resource Estimate was stated at a 1.30 g/t gold equivalent cut‐off.  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. See further disclosure regarding the calculated gold equivalent cut-off grade, as below.

Invicta's approved EIA allows for mine production of 1,000 tpd, although the current mining plan is limited to 350 tpd. 

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