VANCOUVER, Nov. 28, 2017 /CNW/ - Lupaka Gold Corp.
("Lupaka Gold" or the "Company") (TSXV:LPK, FRA:LQP)
is pleased to report that the Company has engaged SRK Consulting
Canada Inc. ("SRK") as the lead contractor to prepare a
Preliminary Economic Assessment ("PEA") on its 100%-owned
Invicta Gold Development Project ("Invicta" or the
"Project"), an advanced stage gold-copper polymetallic
underground Deposit located approximately 120 kilometres by road
north of Lima.
Will Ansley, President and CEO of
Lupaka, said, "We believe that moving ahead with a PEA is the next
step towards demonstrating the economic potential of Invicta,
affirming what we believe is a robust Project based on our internal
mining studies and the extensive due diligence conducted by our
lender, PLI Huaura Holdings LP (Pandion Mine Finance). We selected
SRK based on their expertise and extensive experience with
similar-type deposits as Invicta. In addition, SRK provides a
seamless continuity of project knowledge as the project's 2012
resources estimate was prepared by SRK and Lupaka's own internal
mining studies of Invicta were prepared with assistance from SVS
Ingenieros of Lima, Peru, a
subsidiary of the SRK Consulting Group. The Company anticipates the
completion of the PEA technical report in the first quarter of
2018."
While the approved EIA allows for mine production of 1,000
tonnes per day ("tpd"), the PEA will focus on an initial
mining rate of 350 tpd, and will update the existing mineral
resource to conform with the current metal price environment.
Transmin Metallurgical Consultants, a leading metallurgical
consulting firm in South America,
will be responsible for reviewing metallurgy, processing and
recoveries. It is anticipated the PEA will be completed in
Q1, 2018, with the results being used as a basis to validate and
potentially enhance existing internal studies.
Grant of Incentive Stock Options
Effective
November 27, 2017, the Company has
granted, pursuant to its 2010 Incentive Stock Option Plan,
incentive stock options to directors, officers and employees of the
Company for the purchase of up to 1,200,000 shares for an aggregate
of 9,755,000 or 8% in the capital stock of the Company. The options
vest over 18 months from date of grant and are exercisable on or
before November 27, 2022, at a price
of $0.15 per share.
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 by road north of Lima. Over $15 million in mine and related development has
been by spent previous owners, and management expects to commence
potential production in 2018 by using third-party mining
contractors and utilizing the adit and existing workings. The
project is fully permitted and community agreements are in
place.
Extraction of mineralized rock 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 - 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 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 resources are 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.
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 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 produces 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 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.
About SRK Consulting Canada Inc.
SRK Consulting Canada
Inc. form part of the SRK Consulting Group which is an independent,
international consulting company that provides focused advice and
solutions to clients, mainly from earth and water resource
industries. Formed in 1974, SRK now employs more than 1,400
professionals in over 40 offices on 6 continents. Among SRK's 1,500
clients are most of the world's major- and medium-sized metal and
industrial mineral mining houses, exploration companies, banks,
petroleum exploration companies, construction firms and government
departments.
About Transmin Metallurgical Consultants
Transmin is
an independent consulting firm that provides metallurgical
expertise and services to mining projects and operations throughout
South America.
About Pandion Mine Finance
Pandion is the general
partner of PLI Huaura Holdings LP and is a mining-focused
investment firm backed by MKS PAMP Group and Ospraie Management,
LLC that provides flexible financing solutions to developing mining
companies.
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,
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., 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 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 anticipated
future events or results constitute forward-looking statements. All
statements, other than statements of historical fact, included
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
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
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 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 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, 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 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 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 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 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. 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.
SOURCE Lupaka Gold Corp.