Lupaka GOLD Appoints DAN Kivari as Director of Operations
LUPAKA GOLD APPOINTS DAN KIVARI AS DIRECTOR OF
OPERATIONS
VANCOUVER, BRITISH COLUMBIA, February 20, 2018 -- Lupaka Gold Corp.
("Lupaka Gold" or the “ Company") (TSX-V: LPK, FRA: LQP) is pleased to announce
the appointment of Daniel B.J. K ivari, P.Eng., as Director of Operations , and
commencement of an investor relations program.
Mr. Kivari is a Professional Engineer and holds a Bachelor of Engineering degree with
honors in metallurgy and mineral processing from Queen’s University in Kingston,
Ontario, Canada. He has more than 30 years of international experience in metallurgy,
engineering and mana gement of mineral projects through out various stages of
development. Most recently Mr. Kivari held the position of Chief Operating Officer at
Stellar Mining Corp., a privately held mining company in Peru with a focus on base
metals. Mr. Kivari’s previous work experience includes several senior operating roles
including Chief Operating Officer for Carpathian Gold Inc, Regional Manager for Agnico
Eagle Ltd.’s Western and Nunavut operations where he was responsible for the
development of the US$400-million Meadowbank gold project , and Vice President of
Operations with Yamana Gold Inc., based in Brazil, overseeing the development of the
US$200-milion Chapada copper -gold project (a 50,000 tpd operation) . H e also
managed open-pit and underground operations at the Mineração Maracá and Mineração
Fazendo Brasileiro mines and the open pit operation at the San Andrés Mine, in
Honduras.
Will Ansley, President and CEO of Lupaka stated: “We are fortunate to have Mr. Kivari
join our team as Director of Operations . Dan brings a tremendous depth of operational
experience and technical knowledge having developed and operated a variety of mining
projects all over the Americas, including Peru, where he is a resident and understands
the environment. We welcome Dan to the team knowing he will have an immediate
impact on the Invicta Gold Development Project by overseeing the rehabilitation and
development of site infrastructure , the selection of a processing facility, and ultimately
the commencement of production in the second half of this year. Looking forward, Dan
will also be of great value as we evaluate additional growth opportunities for Lupaka.”
Commensurate with his appointment, Mr. K ivari will be granted 750,000 stock options,
for the purchase of up to 75 0,000 common shares, pursuant to the Company’s 2010
Incentive Stock Option Plan. The options vest over 18 months and are exercisable on or
before February 16, 2023 at a price of $0.23.
In connection with the news release dated February 13, 2018, Lupaka Gold announces
that it has engaged WIN Expertise to provide Corporate Advisory and Investor Relations
services pursuant to a consulting agreement dated February 9, 2018 (the “ WIN
Consulting Agreement”).
The WIN Consulting Agreement has an initial 12 mont h term (which may be terminated
by the Company upon 30 days written notice) and is being granted stock options to
acquire up to 75,000 common shares in the capital of the Company at an exercise price
of $0.18 per share (as disclosed in the February 13, 201 8 news release). The Options
are exercisable for a period of three years from the date of grant.
The appointment of Mr. Kivari and the WIN Consulting Agreement are subject to the
approval of the TSX Venture Exchange.
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 Win Expertise
WIN Expertise is a corporate advisory and investor relations firm headquartered in
Toronto that assists small cap public companies with strategic investor relations
programs and marketing awareness campaigns focused on the investment community.
WIN Expertise will assist Lupaka Gold with enhancing market awareness by managing
corporate communications and marketing activities to achieve an effective flow of
information between the Company and shareholders, finance professionals, analysts
and the media.
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 m anagement 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% metal lurgical 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.
Cautionary Note Regarding the Invicta Production Decision
The decision to commence potential production at the Invicta Gold Project and the
Company’s plans for a mining operation as referenced herein (the “ Production
Decision and Plans ”) were based on economic models prepared by the Company in
conjunction with management’s knowledge of the property and the existing estima te of
measured, indicated and inferred mineral resources on the property. The Production
Decision and Plans were not based on a preliminary economic assessment, a pre -
feasibility study or a feasibility study of mineral reserves demonstrating economic and
technical viability. Accordingly, there is increased uncertainty and economic and
technical risks of failure associated with the Production Decision and Plans, in particular
the risk that mineral grades will be lower than expected, the risk that construct ion or
ongoing mining operations are more difficult or more expensive than expected, the risk
that the Company will not be able to transport or sell the mineralized material it produces
to local custom toll mills on the terms it expects, or at all; product ion and economic
variables may vary considerably, due to the absence of a detailed economic and
technical analysis according to and in accordance with NI 43-101.
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 800 kilometres
by road southeast of Lima in the Department of Apurimac, southern Peru, within the
Andahuaylas-Yaury Belt, in which the Las Bambas mine (MMG Limited) and the
Constancia mine ( HudBay Minerals) are located. Historical work on the disseminated
gold zones includes over 170 shallow drill holes and extensive surface trenching, as well
as artisanal mining.
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 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 Ins trument
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.
The Invicta Gold Project mineral 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" (the “Invicta Technical
Report”), and prepared by SRK Consulting (U.S.) Inc., whi ch is available at
www.sedar.com under Lupaka Gold Corp's profile. The metal prices used to calculate
the gold equivalent cut -off grade in the Invicta Technical Report are based on prices at
the time. Investors are cautioned that current metal prices are now lower and as a
result, the above-referenced cut-off grade could be materially affected based on current
prices. Investors are further cautioned that the prices of precious metals can fluctuate in
wide ranges over short periods of time.
Cautionary Statements Regarding Forward Looking Information
All statements, trend analysis and other information contained in this press release
relative to antic ipated future events or results constitute forward -looking statements. All
statements, other than statements of historical fact, included herein, including, without
limitation, statements relating to improvements in the road to the Invicta Project and its
anticipated benefits and the timing of completion of the improvements, the timing of the
commencement of potential production from the Invicta Project and the generation of
cash therefrom, the anticipated methods of production, the receipt of and anticipated use
of proceeds of the PLI Financing, the Company’s plans and intentions for Invicta, mineral
resource estimates , are forward -looking statements. Forward -looking statements are
based on assumptions, estimates and opinions of management at the date the
statements are made that the Company believes are reasonable, including: that the
repayment of the PLI Financing is consummated on the anticipated terms, that the
supplies, equipment, personnel, permits, and local community approvals required to
conduct the Company's planned pre -production and development activities will be
available on reasonable terms, that the Company will be able to comply with the delivery
and other obligations in the PLI Financing Agreement, that results of exploration
activities will be consistent with management's expectations and that the Company will
not experience any material acci dent, labour dispute, or failure of equipment 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 pl anned 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 mineralized rock at the
prices and in the manner 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 can be employed in the manner and at the costs expected and that
such methods yield the results the Company expects them to. However, forward-looking
information involves known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company to be
materially different fro m 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 risks described in this news release; failure of the PLI
Financing to complete on the proposed terms or at all, including due to the Company’s
inability to complete the conditions precedent, the risk that actual results of exploration
and development activities will be different than anticipated; that the Company will not be
able to comply with the delivery or other obligations in the PLI Financing Agreement and
the risk that PLI will enforce its security over the Company’s assets, including its mineral
properties; that cost of labour, equipment or materials will increase mor e than expected;
that the future price of gold will decline; that the Canadian dollar will strengthen against
the U.S. dollar; that mineral resources are not as estimated; unexpected variations in
mineral resources, grade or recovery rates; risks related t o shipping mineralized rock;
the risk that local mills cannot or will not buy or process mineralized rock from the
planned production for the prices expected or at all; risk of accidents, labour disputes
and other risks generally associated with mineral ex ploration; unanticipated delays in
obtaining or failure to obtain community, governmental or regulatory approvals or
financing; and all of the risks generally associated with the development of mining
facilities and the operation of a producing mine, as well as the risks 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 from 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 assurance that forward -
looking information will prove to be accurate, as actual results and future events could
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. L upaka Gold does not undertake any obligation to update forward -looking
statements except as required by applicable securities laws. Investors should not place
undue reliance on forward-looking statements.