Lupaka Gold Intercepts 10 Meters at 3.11 g/t Gold and 17 Metres at 2.16 g/t Gold in A-1 Zone, and Reports on Chaska Drilling Progress at Crucero Gold Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/29/12 -- Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX: LPK) announces that it has received assay results from five additional drill holes from the ongoing 2012 drilling program on its Crucero Gold Project in southeast Peru. Of the five holes reported, four were drilled on the A-1 resource zone and one drilled on the outer perimeter of the exploration target known as the Chaska Zone, located approximately two kilometres to the east of the A-1 Zone.
Diamond drill hole DDH-20 in the southwest section of the A-1 Zone mineralized envelope reported 10 metres at 3.11 gpt gold and 23 metres at 1.76 gpt gold. DDH-34 in the northeast section on the A-1 Zone contains a significant width of 17 metres at 2.16 gpt gold. Both of these holes were drilled to test the extent of the mineralization at depth and were successful in doing so. The results confirm that the A-1 Zone mineralization is continuous along strike and open to depth. Hole DDH-57 did not intercept significant mineralization. See Figure 1 below for A-1 Zone drill hole locations.
The Company also reports that it has received assay results from the first exploratory diamond drill hole on the Chaska Zone (DCH-01). The hole is located on the northwest boundary of the target area and encountered interesting sulphide mineralization and geology that is consistent with that found on the perimeter of the A-1 Zone. Drill core from the first hole did not encounter significant gold mineralization. Eric Edwards, President and CEO of Lupaka Gold, commented, "We are encouraged with the geologic information obtained from the first Chaska Zone hole and the presence of Crucero type exploration signature characteristics."
Significant intercepts from the four drill holes on the A-1 Zone are reported below. More comprehensive results are reported in Table 1 of this news release (all figures are in metres except Gold grams per ton ("g/t"):
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Total Intersection
Drill Hole Depth From To Intercept Gold g/t
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DDH-20 470.00 63.00 86.00 23.00 1.76
147.00 178.00 31.00 1.35
190.00 200.00 10.00 3.11
370.00 378.00 8.00 1.88
DDH-33 586.80 260.00 265.00 5.00 1.62
269.00 274.00 5.00 1.31
497.00 504.00 7.00 1.60
DDH-34 551.00 387.00 404.00 17.00 2.16
Including 391.00 403.00 12.00 2.66
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Mr. Edwards continued, "We are pleased with these results from our drilling in the A-1 Zone. Holes DDH-20 and DDH-34 found multiple sections of good gold mineralization throughout the hole, and we remain confident that our exploration efforts and results through 2012 will further grow our understanding of the exploration potential of the Crucero Project."
The new outline of the A-1 mineralized envelope, along with the drill hole locations and projected to surface, is shown below:
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/lpk-1029-fig1.pdf.
Current and Future Drill Programs
The Company currently has three diamond core drill rigs on site; two rigs on the A-1 Zone for resource expansion, and one rig on standby. To date, the Company has completed in excess of 6,500 metres of core drilling in more than 17 holes, and is on schedule to exceed the 8,000 metre total drilling target for 2012. As in prior years, the Company plans to drill through mid-December, before ceasing drilling for 3-4 months due to the typical seasonal rain in the central-Andes.
Following completion of the recent merger with Andean American Gold, the Company has approximately $14 Million in cash which the Company anticipates will be sufficient to fund planned exploration of the Crucero Gold Project through 2014.
Crucero Gold Project Concession Granted
The Company announces that the petition for its Pacacorral 4 mineral claim has been granted as a fully registered mining concession by the Peruvian government. Mr. Edwards commented, "The Mining Ministry in Peru is continuing its administrative processes to advance petitions and grant mining concessions. The awarding of the Pacacorral 4 concession assures our rights to the mineral inventory within that concession, and is a clear indication that the Peruvian government continues to supports exploration."
About the Company
Lupaka Gold is a well-financed, Peru-focused gold explorer with geographic diversification and balance through its asset-based resource projects spread across three regions of Peru.
Lupaka Gold's flagship project is the Crucero Gold Project, its 5,500 hectare gold property located in southern Peru. The Company, based in Vancouver, Canada, is project operator and holds a 100% indirect interest in the Crucero property. Since commencing active exploration in April 2010, the Company has reported NI 43-101 compliant gold resource estimate updates for the Crucero property in the first quarter of 2011 and 2012 (see the Company's most recent technical report on sedar.com).
As a result of the Company's recent acquisition of Andean American, Lupaka Gold's assets now include the Invicta Gold Project (north Peru), which has near- term underground gold and poly-metallic development potential, and a strategic 17% stake in Southern Legacy Minerals Inc., owner of the AntaKori copper-gold deposit located in central Peru.
Quality Control and Assurance
The analyses for this drilling campaign were carried out by SGS in Lima, Peru, exercising a thorough Quality Control and Assurance program (QA/QC). As part of QA/QC protocol, duplicates, standards and blanks were inserted into the sample processing stream. The core was photographed for reference, logged and mineralized sections were sawed in half. Sample lengths vary between 0.5 to 2.0 metres. Half core samples were bagged, sealed and delivered to SGS in Juliaca, Peru, an accredited laboratory. The remaining core is stored at the Company's warehouse in Arequipa for reference. Gold was assayed by a 50 gram fire assay with an AAS finish. All SGS labs are ISO 9000 registered.
William Burstow, Lupaka Gold's consulting geologist and a "qualified person" as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this news release, and has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information or opinions contained in this news release.
Forward-Looking Information
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, statements with respect to mineral resource estimates, the 2012 Crucero Project Drill Program, the anticipated effect of completed drill results on the Crucero Gold Project, planned work programs, future upgrading of mineral resources and expected outcomes. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved.
The forward-looking information contained in this news release is based on certain assumptions that the Company believes are reasonable, including, with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based, that the current price of and demand for gold will be sustained or will improve, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms, that supplies, equipment, personnel, permits and local community approvals required to conduct the Company's planned exploration and development activities will be available on reasonable terms, 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.
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 factors include, among others, risk that actual results of exploration activities will be different than anticipated, 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, risk of accidents, labour disputes and other risks generally associated with mineral exploration and unanticipated delays in obtaining or failure to obtain community, governmental or regulatory approvalsor financing. 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.
Table 1
Crucero Gold Project
A-1 Zone Drill Results
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Total
Depth From To Intercept
Metres Metres Metres Metres Gold g/t
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DDH-20 470.00 63.00 86.00 23.00 1.76
147.00 178.00 31.00 1.35
164.00 174.00 10.00 2.57
190.00 200.00 10.00 3.11
323.00 339.00 16.00 1.17
363.00 380.30 17.30 1.20
including 370.00 378.00 8.00 1.88
402.00 405.00 3.00 1.30
DDH-33 586.80 224.00 231.00 7.00 1.27
248.00 274.00 26.00 0.89
including 260.00 265.00 5.00 1.62
including 269.00 274.00 5.00 1.31
418.00 441.00 23.00 1.03
including 421.00 428.00 7.00 1.42
497.00 504.00 7.00 1.60
DDH-34 551.00 359.00 362.00 3.00 1.10
387.00 404.00 17.00 2.16
including 391.00 403.00 12.00 2.66
504.00 505.00 1.00 4.61
DDH-57 300.35 - - - -
DCH-01 420.60 - - - -
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Hole Locations East North Elevation Azimuth Inclination
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DDH-20 410840.8 8432818.3 4,450.0 59 degrees -45 degrees
DDH-33 410766.3 8432773.6 4,448.0 59 degrees -45 degrees
DDH-34 410451.8 8433156.0 4,398.0 56 degrees -55 degrees
DDH-57 410648.6 8433481.2 4,409.0 236 degrees -45 degrees
DCH-01 412537.0 8432939.0 4,125.0 220 degrees -60 degrees
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(i)The Company does not have sufficient geological data to determine true
widths of the intercepts
Contacts:
Lupaka Gold Corp.
Investor Relations
+1 (604) 681-5900
www.lupakagold.com
