Lupaka Commences Toll Processing of Mineralized Development Material from Invicta
Lupaka Commences Toll Processing of Mineralized
Development Material from Invicta
VANCOUVER, BRITISH COLUMBIA, August 21, 2018 -- Lupaka Gold Corp. (" Lupaka
Gold" or the “Company") (TSX-V: LPK, FRA: LQP) is pleased to provide an update on
recent development activities at the Invicta Gold Development Project (“ Invicta”).
Processing of mineralized development material from Invicta has recently commenced
and the first concentrates have been successfully produced. The mineralized
development material was transported to two local toll milling facilities, following
substantial completion of the road rehabilitation and upgrade project.
Highlights:
• Rehabilitation and upgrade of the 26 kilometre (“km”) main access road is
substantially complete; transportation of mineralized development material
to local toll milling facilities was initiated during Q2 2018
• Approximately 6,500 tonnes (“t”) of mineralized development material was
extracted from the 3400 Level, the 3430 sublevel, and the relief raise,
stockpiled on surface and systematically sampled returning an average
grade of 7.21 grams per tonne (“g/t”) gold equivalent (“Au-Eq”)*
• The 6,500 t of mineralized development material was transported to two
local toll milling facilities, and to date, approximately 1,900 t have been
processed
• In September, an additional 6,000 t of mineralized development material will
be transported to a third toll milling facility for processing
• Inspection by the Ministry of Mines and Energy for the mining exploitation
license is expected to be completed before the end of October
• Production from the first test mining stope expected during Q3 2018
* Au-Eq. calculations are based on US$1250 for gold (“Au”), US$17.00 for silver (“Ag”), US$3.00 for copper (“Cu”),
US$1.25 for zinc (“Zn”), and US$1.05 for lead (“Pb”), with a ssumed metallurgical recoveries of 85% for Au, 80% for
Ag, 82 % for Cu and Pb, and 77% for Zn. Individual grades were 3.23 g/t Au, 49.13 g/t Ag, 1.3% Cu, 1.22% Pb, and
1.04% Zn
“We are encouraged by the development activities achieved to-date at Invicta.
Substantial completion of the road rehabilitation project has allowed us to
commence the evaluation of local toll processing facilities and the ability to
generate some initial cash flow ahead of production. Our operations team have
been working diligently on all fronts, and we are on track to commence test
mining within our budgeted timeline.”
Will Ansley, CEO and President of Lupaka
Transportation of Mineralized Material & Toll Processing Activities
Upgrade and rehabilitation work to the 28 km main access road, from the paved highway
to Invicta, is now substantially complete. This work included widening the road from 4
metres (“m”) to approximately 6 m, construction of four by-passes to circumvent
communities and difficult portions of the road where numerous switchbacks occurred,
improving the road surface to allow 30 t haulage trucks and heavy machinery to travel,
and the installation of berms and drainage ditches. Along with the reduction of traffic
within the communities and increasing the efficiency of hauling, the main and most
important benefits of these improvements is in creasing safety conditions for transporting
mineralized material and people.
Completion of the road project allowed the Company to initiate transportation of
mineralized development material. Approx imately 6,500 t of mineralized development
material was extracted from the 3400 Level, the 3430 sublevel, and the relief raise,
stockpiled on surface and systematically sa mpled returning an average grade of 7.21 g/t
Au-Eq*. This material was transported to two toll milling facilities comprising 5,000 t to
the Coriland plant and 1,500 t to the Huari plant, located some 170 km and 365 km from
Invicta, respectively. To-date, 1,900 t of mineralized material has been processed and it
is expected that the remaining 4,600 t will be processed by the end of Q3 2018.
Concentrate sale proceeds from the 6,500 t will be used to offset Invicta’s development
costs.
In September an additional 6,000 t of mineralized development material will be
transported to a third, larger, toll milling facility, located 340 km from Invicta, for
processing and evaluation.
Development Activities and Exploitation License
In addition to completion of the road rehabilitation and upgrade project, recent
development activities consisted of: 146 m of development on the 3430 sublevel; 30 m
of vertical development for a relief slot between the 3400 Level and 3430 sublevel;
slashing and rehabilitation from 3.5 m x 3.0 m to 4.5 m x 4.0 m; installation of ground
support over 176 m on the 3400 Level; establishment of the ventilation circuit,
installation of the underground electrical, compressed air, and mine water catchment
and related treatment facilities. Figure 1 illustrates the development and mining
schedule through October 2018.
With the advancement of Invicta’s development to-date, the Company is preparing a
filing to obtain the final mining exploitation license, which requires an inspection by the
Ministry of Mines and Energy. It is anticipated the inspection will be performed before
the end of October and upon successful receipt of the exploitation license, the Company
will have the ability to produce at a rate of 400 t per day (“tpd”), or approximately 12,000
t per month.
Figure 1 – Invicta Development and Mining Schedule
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 $12 million of capital has been spent by previous
owners on development and infrastructure at Invicta, and management expects to
commence production in the second half of 2018 by using third-party mining contractors
and utilizing the existing adit and workings. The Invicta project is fully permitted and
community agreements are in place.
The underground operation of the Atenea vein will be focused initially on the extraction
of about 80,000 t of Indicated Mineral Resources that has been exposed on three sides
comprising the 3400 and 3430 sublevels plus the mining relief slot from the 3400 to the
3430 sublevel, and the Inferred Mineral Resource s within close proximity of the existing
3400 Level adit (up to 130 metres above the 3400 Level).
Invicta’s approved EIA allows for mine production of up to 1,000 tpd, although the
current conceptual mining plan is scheduling to commence at 350 tpd.
Cautionary Note Regarding the Invicta Production Decision
The PEA is preliminary in nature and includes inferred mineral resources that are
considered too speculative geologically to hav e the economic considerations applied to
them that would enable them to be categorized as mineral reserves and there is no
certainty that the PEA will be realized. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. The quantity and grade of reported
inferred resources referred to in the PEA are uncertain in nature and there has been
insufficient exploration to define these inferred resources as an indicated or measured
mineral resource category.
It is important to note while a mine production decision has been made by the Company,
that the information provided in this news release is preliminary in nature. There is no
certainty that a potential mine will be realized. A mine production decision that is not
based on a feasibility study demonstrating economic and technical viability does not
provide adequate disclosure of the increased uncertainty and specific economic and
technical risks of failure associated with such a production decision.
FOR FURTHER INFORMATION PLEASE CONTACT:
Will Ansley, President & C.E.O.
Tel: (416) 862-5257
or visit the Company’s profile at www.sedar.com or its website at www.lupakagold.com
Qualified Person
The technical information in this docum ent 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. 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.
Cautionary Statements Regarding Forward Looking Information
This press release contains forward-looking statements which constitute "forward-looking
information" within the meaning of applicable securities laws, including all statements, trend
analysis and other information relative to anticipated future events or results. All statements, other
than statements of historical fact, included here in are considered forward-looking statements,
including, without limitation, statements relati ng to: the processing of an additional 4,600 tonnes
of mineralized development material and the ant icipated timing and results thereof; the transport
of an additional 6,000 tonnes of mineralized develop ment material to a third toll milling facility,
and the timing and results thereof; any generati on of cash flow there-form; and the
commencement of production from Invicta in Q3 2018.
Forward-looking statements are based on assu mptions, estimates and opinions of management
at the date the statements are made and which the Company believes are reasonable. Such
information involves risks and uncertainties, and undue reliance should not be placed on such
information, as unknown or unpredictable factors could have material adverse effects on future
results, performance or achievements of the Co mpany. Among the key factors that could cause
actual results to differ materially from those pr ojected in the forward-looking information are the
following: that the repayment of the PLI Financing is consummated on the anticipated terms; that
the Company will not experience any material accident, labour dispute, shortage of skilled and
professional staff, changes in pr oject plans, equipment availabilit y and failures, process failures,
the ability of third party service providers to deliv er services on reasonable terms and in a timely
manner; future exploration activities plann ed at the Invicta Gold Project, and the timing and
results thereof; market conditions and general bu siness, economic, competitive, political and
social conditions and with respect to the planned mining operations at Invicta; that pre-production
mine development can be completed in the time and for the cost projected; that the Company will
be able to obtain funding for planned production expenses; that mineralization at Invicta will be of
the grades and in the locations expected; that the Company will be able to extract and transport
mineralized rock efficiently and sell the minera lized rock at the prices and in the manner
recoveries and quantities expected; that permits will be received on the terms and timeline
expected and that other regulatory or permitting issues will not arise; that mining methods and
reclamation can be employed in the manner and at the costs expected and that such methods
yield the results the Company expects them to. Forward-looking information involves known and
unknown risks, uncertainties and other factors which may cause t he actual results, performance
or achievements of the Company to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking information. Such risks, uncertainties
and other factors include, among others: all of the ri sks described in this news release; that the
Company will not be able to comply with the de livery or other obligations in the PLI Financing
Agreement and the risk that PLI will enforce its se curity over the Company’s assets, including its
mineral properties; s; changes in commodity pr ices; currency exchange rates (such as the
Canadian dollar versus the United States dollar); risks associated with dilution; labour and
employment matters; risks in the event of a potent ial conflict of interest; changes in general
economic, business and political conditions, includi ng changes in the financial markets; changes
in applicable laws; and compliance with ext ensive government regulation; and other risks
generally associated with mineral exploration. This forward-looking information may be affected
by risks and uncertainties in the regular c ourse of business and due to market conditions.
Additional risks are described in the Company’s annual information form, which is available on
SEDAR at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual
actions, events or results to differ materially fr om those described in forward-looking information,
there may be other factors that cause actions, events or results to not be as anticipated,
estimated or intended. There can be no assuranc e that forward-looking information will prove to
be accurate, as actual results and future events c ould differ materially from those anticipated in
such statements. Readers are cautioned not to place undue reliance on forward-looking
information due to the inherent uncertainty thereof. Lupaka Gold does not undertake any
obligation to update forward-looking statements exce pt as required by applicable securities laws.
Investors should not place undue reliance on forward-looking statements.