Lupaka GOLD Appoints William Ansley as Chief Executive Officer
LUPAKA GOLD APPOINTS WILLIAM ANSLEY AS CHIEF EXECUTIVE OFFICER
VANCOUVER, BRITISH COLUMBIA, September 25, 2017 -- Lupaka Gold Corp. ("Lupaka Gold" or
the “Company") (TSXV:LPK, FRA:LQP) is pleased to announce that the Company has appointed
Mr. William (Will) Ansley as President and Chief Executive Officer , and as a Director of the
Company.
Mr. Ansley was a member of two teams that placed six mines into production over an eight year
period in Sudbury and Timmins, Ontario ; Mr. Ansley was the Director of Business Development
for FNX Mining Company Inc. and the Vice President of Corporate Planning & Strategy for Lake
Shore Gold Corp ., Will was also the Chief Operating Officer of Min eral Streams Inc. where he
helped orchestrate its successful sale to A uRico Metals Inc. in 2015. Most recently, Will was
President and Chief Executive Officer of Satori Resources Inc., where he led a successful upgrade
in Mineral Resources at the Tartan Lake Gold Mine Project. Will has over 12 years of senior mining
and corporate development experience and is a Chartered Professional Accountant (CPA, CA).
Mr. Gordon Ellis will continue to serve as Chairman of the Board of Directors.
“Mr. Ansley’s appointment is an important step in the evolution of Lupaka Gold into a potential
gold producer,” stated Mr. Ellis, Chairman of the Company. “Will brings a strong set of skills and
experience to lead the Company and guide the Invicta Gold Development Project potentially
towards a cash -flow generating mine . He has helped successfully build underground mines,
managed public companies, and over the years, has built extensive networks in capital markets
and in mining.”
“I am honored to join Lupaka Gold and very excited to lead the Company in reaching its long-term
growth potential,” said Mr. Ansley. “My vision is to transform the well -funded Invicta Gold
Development Project into a cash-flow generating asset in short order and unlock the potential of
Lupaka Gold’s extensive exploration portfolio to drive organic growth in the long-term. With the
recently secured permits and project debt financing in place for Invicta, my first order of business
will focus on procuring and developing a Per u based operating team capable of overseeing and
managing the necessary site upgrades, mining contractor, and our contracted toll processing
facility. As the Company transitions from the permitting phase to one where Lupaka Gold can
focus on building, commissioning and marketing, and given that we are funded to production, we
are excited about the re-rating potential of our Company.”
Effective September 22, 2017, the Company has granted to Mr. Ansley , pursuant to its 2010
Incentive Stock Option Plan, incentive stock options to purchase of 1,000,000 shares in the capital
stock of the Company. The options vest o ver 18 months from the date of grant and are
exercisable on or before September 22, 2022, at a price of $0.15.
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 Development Project - the Company’s 100% -owned Invicta Gold Development
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 2018 by using third-party mining contractors and utilizing the adit and workings
completed by previous owners.
Extraction of mineralized rock 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”) 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 - 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 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 resources are stated at a 1.30 g/t gold equivalent cut‐off. Metal prices assumed for the
gold equivalent calcul ation 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 400 tpd.
Cautionary Note Regarding the Invicta Production Decision
The decision to commence 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 c onjunction with management’s
knowledge of the property and the existing estimate 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 construction 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 rock
it produ ces to local custom toll mills on the terms it expects, or at all; production 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 Pr oject – 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 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.
Crucero Gold Project – the Company holds a 100% interest in the Crucero Gold Project located
in southern Peru. As announced on September 19, 2017 the Company has agreed to sell the
Crucero Gold Project to GoldMining Inc. (TSXV: GOLD) for 3,500,000 common shares of
GoldMining and $750,000 in cash.
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 31,201,64 8 tonnes at 1.03 g/t gold (capped). These mineral
resource estimates have been constrained by a conceptual pit shell in order to support
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:
Will Ansley, President & C.E.O.
Tel: (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. Mr. Castañeda has
verified the scientific and technical information, including sampling, anal ytical 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" (the “Invicta Technical Report”) , and prepared by SRK Consulting (U.S.)
Inc., which 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 t he prices of precious metals can fluctuate in wide ranges over short
periods of time.
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 Prov ince, 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.
Cautionary Statements Regarding Forward Looking Information
All statements, trend analysis and other information contained in this press release relative to
anticipated future events or results constitute forward-looking statements. All statements, other
than statements of historical fact, include d herein, including, without limitation, statements
relating to 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 su pplies,
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 accident, 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 planned production expenses; that mineralizatio n 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 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 risks described in this news release; failure of
the PLI financing to complete on the proposed terms or at all, inc luding 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 ob ligations in the PLI financing a greement 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 more 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 to shipping mineralized rock; the risk that lo cal 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 exploration; 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 an nual
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. Lupaka 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.