Lupaka Gold Corp.
TSX : LPK

Lupaka Gold Corp.

December 22, 2011 07:30 ET

Lupaka Gold Corp. Drills 17 Metres at 3.31 g/t Gold at Crucero Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2011) - Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX:LPK) announces that it has received assay results on five additional drill holes from the ongoing drilling program being carried out this year on its Crucero Gold Project in southern Peru. The most northerly hole, DDH-50 reported 42.0 metres grading 1.92 g/t including an intercept of 17.0 metres at 3.31 g/t at a true depth of 75 metres from surface. This is significant because it indicates a continuation of strong mineralization to the north of the previously reported A-1 Zone gold envelope. Significant gold intercepts are highlighted below (all numbers in metres except Gold grams per ton ("g/t")):

Total Intersection
Drill Hole Depth From To Intercept Gold g/t
DDH-50 350.0 111.0 153.0 42.0 1.92
including 123.0 140.0 17.0 3.31
Summarized widths and grades are reported in Table 1.

Eric Edwards, President and CEO of Lupaka Gold commented, "Hole DDH-50, the northern most hole in the A-1 Zone, extends the mineralized envelope an additional 35 metres to the north. We continue to be encouraged with the assay results, and the continuity and strength of the A-1 Zone mineralization. We are confident that our exploration results through 2011 will further grow the resource volume and ounces in the Crucero Gold Project's mineralized resource envelope."

Summary results are presented in Table 1 for A-1 Zone drill holes numbered 18, 32, 49 and 50. Hole DDH-49 was drilled down dip from DDH-50 and reported long intersections of low grade gold including 62 metres of 0.22 g/t. These numbers suggest that DDH-49 intersected the fringe of the mineralization to the east of DDH-50. DDH-32 was drilled on the extreme eastern edge of the known mineralized envelope, reporting only minor sections of low grade gold, defining the eastern extent of the envelope. DDH-18 was drilled completely outside of the current mineralized envelope to test the westward extension of mineralization at depth, and was not expected to increase A-1 Zone resource volume. Based on this information, additional holes are planned to be drilled to the north and west of DDH-50.

To date, Lupaka Gold has completed twenty-one core drill holes and over 6,800 metres since commencing the 2011 drill program in May, with all but 588 metres of that drilling completed in the A-1 Zone. The Company has exceeded its planned drilling program on the A-1 Zone and will be shutting down for the rainy season as the weather dictates. The Company is waiting for assays on two additional holes from the A-1 Zone.

The A-1 Zone mineralized envelope outcrops at surface and is continuous to the depth of current drilling. These new assay results extend the mineralization to the north at the Crucero Gold Project. The outline of the mineralized envelope at A-1 with the new drill hole locations is shown below:

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/LPK2212map.pdf.

Drilling on A-11 Anomaly

The Company received assay results from the first exploratory hole (DD11-01) outside of the A-1 Zone. The A-11 target is a geophysical and geochemical anomaly distinct from the A-1 Zone, located approximately 500m southwest from the A-1 Zone. Map details are available at www.lupakagold.com. Summary results are presented in Table 1.

The hole location was designed to test a strong geophysical anomaly within the generalized A-11 anomaly area. The assays returned a number of weak gold intersections as high as 0.77 g/t, but mineralization was not dominant and did not appear to be strong enough to explain the geophysical anomaly. Additional holes are planned be drilled in 2012 on the A-11 anomaly area.

About the Company

Lupaka Gold is aggressively exploring and developing 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 60% indirect interest in the property and has an option to acquire the remaining 40% interest in Minera Pacacorral at any time until July 2015. Since commencing active exploration in April 2010, the Company has reported a NI 43-101 compliant gold resource (see the Company's most recent technical report on sedar.com). In addition to the existing resource, Lupaka Gold has identified several exploration targets within the Crucero Property that display similar anomalous characteristics. Lupaka Gold is led by a strong management team with the proven ability to develop, finance and operate mining projects. The Company completed an initial public offering of its common shares and warrants on the Toronto Stock Exchange on June 28, 2011.

Quality Control and Assurance

Assaying for this drilling campaign was carried out by ALS Chemex and SGS in Lima, Peru, exercising a thorough Quality Assurance and Control 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 ALS Chemex in Arequipa, Peru and SGS labs in Juliaca, Peru, both accredited laboratories. The remaining core is stored on site for reference. Gold was assayed by a 50 gram fire assay with an AAS finish. All ALS Chemex and 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 is responsible for the disclosure of the drill results. Mr. Burstow has verified the technical and scientific information including sampling, analytical and test data underlying the information or opinions contained in this news release.

Forward Looking Information

This news release includes forward-looking statements or information, including statements relating to drilling results and geological interpretations for the Crucero Property, the size and quality of the Company's mineral resources, progress in development of the Crucero mineral property, the prospective mineralization of the Crucero Property and planned exploration programs. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the key assumptions and parameters on which the geological interpretations are based are reasonable, that the Company will be able to obtain the necessary supplies, equipment, personnel, permits and local community approval of drilling plans to conduct its planned exploration and development activities, that the exchange rates of the U.S., Canadian and Peruvian currencies will be consistent with the Company's expectations, that the Company's current exploration and other objectives concerning the Crucero Property can be achieved and that its exploration and other activities will proceed as expected. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and other factors include that actual results of exploration activities will be different than anticipated, that data and assumptions underlying the geological interpretations may prove to be inaccurate, incomplete or to have been incorrectly interpreted, that the Company may not be able to obtain the supplies, equipment, personnel, permits and local community approval of drilling plans required to pursue its exploration and development objectives, changes in exploration programs based upon results of exploration; currency fluctuations; equipment or materials; increased costs as a result of changes in project parameters; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks of the mineral exploration industry; political risks and risks related to community relations and activities of stakeholders. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required by applicable securities legislation.

Table 1
Crucero Gold Project
Summary Width and Grade Drill Results
Total
Depth From To Intercept Gold g/t
Metres Metres Metres Metres
A-1 Zone Drill Results
DDH-49
369.50 152.0 214.0 62.0 0.22
300.0 303.0 3.0 0.52
DDH-50 350.00 111.0 153.0 42.0 1.92
including 123.0 140.0 17.0 3.31
including 136.0 140.0 4.0 5.23
DDH-18 313.85 - - - -
DDH-32 371.35 - - - -
DD11-01 274.65 158.0 160.0 2.0 0.51
240.0 242.0 2.0 0.78

A-11 Anomaly Drill Results
DD11-01
274.65 158.0 160.0 2.0 0.51
240.0 242.0 2.0 0.78
* The Company does not have sufficient geological data to determine true widths of the intercepts
Hole Locations
East


North


Elevation


Azimuth


Inclination
DDH-49 410,715.08 8,433,373.09 4,416.00 236º - 60º
DDH-50 410,715.08 8,433,373.09 4,416.00 236º - 45º
DD11-01 410,660.72 8,432,584.46 4,504.00 233º - 45º
DDH-18 410,487.38 8,432,828.78 4,478.00 233º - 45º
DDH-32 410,941.97 8,433,219.78 4487.00 235º - 75º

Contact Information

  • Lupaka Gold Corp.
    Scott Warren
    Manager, Investor Relations
    +1 (604) 637-8787
    www.lupakagold.com