MINE PLAN APPROVED AND PERMITS RECEIVED TO START DEVELOPMENT ACTIVITIES AT THE INVICTA GOLD PROJECT
VANCOUVER, BRITISH COLUMBIA, December 18, 2014 — Lupaka Gold Corp (“Lupaka Gold” or the “Company”) (TSX:LPK, BVL:LPK, FRA:LQP) has been granted the permits and licenses necessary to commence mine preparation and development work at the Invicta Gold Project. These licenses and permits were granted as a result of the regulatory acceptance of the Company’s Mining Plan for Invicta.
Mr. Eric Edwards, President and CEO of Lupaka Gold commented, “We are pleased with the significant support that Invicta is receiving from the Federal Government as well as Regional and Municipal Government regulatory authorities. Agencies involved have done a thorough review of our business and mine plans, including assessing local impacts. The Invicta mining plan was prepared by the Company, with assistance from SVS Ingenieros of Lima, Peru, a subsidiary of the SRK Consulting Group.”
These licenses and certificates were granted for the Invicta Gold Project by the Direccion General de Mineria of the Ministry of Energy and Mines (“MEM”) under the existing federal EIA permit for Mine Operations. The Invicta site also has a closure plan, archeological certificate, one of two necessary community agreements, water license, as well as other licenses and certificates in place.
The Company is now able to finalize agreements with selected mining and haulage contractors, and prepare to mobilize contractors to site, as well as to start the mine preparation and development work. The Company has filed the application to obtain a Certificate of Mining Operations from the MEM, and then must file for the Global License for Explosives from the General Directorate of Arms, Ammunition and Explosives (“SUCAMEC”) — both of these permits must be renewed annually. The Company expects that these licenses and certificates will be issued in due course within the next 10 weeks. Construction of the Company’s explosives storage bunker has already been completed and approved by SUCAMEC. As well, an explosives handling certificate has been granted.
Management continues to evaluate additional capital financing alternatives which may be necessary to fund the estimated US$2,500,000 of expenditures needed to put the Invicta Gold Project into production as planned.
The Invicta Gold Project contains a poly-metallic resource with the majority of the value realized in gold with accessory copper and, to a lesser degree, lead, silver and zinc. As reported on March 17, 2014, the Company intends to commence production at an initial rate of 300 tpd, and initially target some of the highest grade gold and copper mineralization within the Atenea Vein.Mr. Edwards also re-emphasized the Company’s exploration vision, “While our efforts through early next year will be primarily focused on getting the Invicta Gold Project into production and generating cash flow, we remain committed to delivering the full exploration upside of our Josnitoro, Invicta and Crucero Gold Projects as available cash resources allow. We are confident that the anticipated cash flow from the Invicta Gold Project following commencement of production will provide the financial support needed for the Company’s other gold exploration and development activities.”
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. As of the date hereof, Lupaka Gold has cash reserves of approximately $2.2 million. The Company’s 100% owned Invicta Gold Project (central Peru) has near-term underground gold and poly-metallic production potential. The Company plans to implement a 300 tpd mining operation and complete permitting, development and engineering with production to commence in 2015.
The Company is earning into a 65% interest on the Josnitoro Gold Project from Hochschild Mining PLC. The project is located approximately 600 kilometres by road southeast of Lima in the Department of Apurimac, southern Peru. Historical work on the disseminated gold zones includes over 170 shallow drill holes and extensive surface trenching.
Lupaka Gold’s holds a 100% interest in the Crucero Gold Project, a 5,500 hectare gold property located in southern Peru. Crucero has an indicated mineral resource estimate of 1,003,041 ozs Au contained in 30,919,873 tonnes at 1.02 gpt gold (capped), and an inferred mineral resource estimate of 1,027,806 ozs Au contained in 31,201,648 tonnes at 1.03 gpt gold (capped), and the Company is actively exploring the property to identify future drill targets. These mineral resource estimates have been constrained by a conceptual pit shell in order to confirm reasonable prospects of economic extraction as set out in the CIM Definition Standards for Mineral Resources and Mineral Reserves and NI 43-101.