Lupaka Gold Corp.
TSX : LPK

Lupaka Gold Corp.

November 03, 2011 07:46 ET

Lupaka Gold Corp. Drills 204 Metres at 1.14 g/t Gold Including 6 Metres at 7.3 g/t Gold, and Continues to Expand Crucero Mineralized Zone to the North

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 3, 2011) - Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX:LPK) announces that it has received assay results on six additional drill holes from the ongoing drilling program being carried out this year on its Crucero Gold Project in southern Peru. The Company reports results on one of the broadest mineralized intercepts ever encountered at Crucero assaying 1.14 g/t gold over 204 metres, and containing several higher grade intercepts of up to 7.3 g/t gold over 6 metres.

The significant new gold intercepts are highlighted below, with the complete results and drill hole co-ordinates reported in Table 1. All of these results are from the A-1 Zone and all numbers are in metres except Gold which is in grams per tonne ("g/t"):


Drill Hole
Total Depth
From
Intersection
To

Intercept

Gold g/t
DDH-37 494.35 158.00 177.00 19.0 1.64
202.00 239.00 37.0 2.10
Including 206.00 216.10 10.1 3.11
288.00 302.00 14.0 1.94
DDH-38 315.00 42.00 246.00 204.0 1.14
Including 96.00 102.00 6.0 7.33
Including 209.00 246.00 37.0 1.82
Including 231.00 239.45 8.4 3.20
DDH-44 280.00 98.00 125.00 27.0 1.47
160.00 165.00 5.0 5.98
DDH-46 200.20 88.00 136.00 48.0 1.20

To date, Lupaka Gold has completed seventeen drill holes and over 5,400 metres since commencing the 2011 drill program, and is awaiting assays from its first exploratory hole in the A-11 Zone. The 2011 drill program is focused on resource expansion at the A-1 Zone and investigating other identified anomalies on the 5,500 hectare claim area.

Eric Edwards, President and CEO of Lupaka Gold, commented, "The most recent drilling shows the consistency, strength and growth potential of mineralization throughout the A-1 Zone. DDH-38, in a void near the heart of the mineralized envelope, returned one of the largest mineralized intercepts ever encountered by us at Crucero."

Mr. Edwards continued, "DDH-46 is also significant in that we have a mineralization intercept of 48 metres averaging 1.2 g/t gold. More important is the evidence of the northward turn of the A-1 Zone which opens up exciting possibilities and upside. These new results are exceeding our expectations and could positively impact resource growth and the economic potential of Crucero."

The Company also completed exploration holes DDH-47 and DDH-48, which returned no significant assay results. These holes were drilled outside of the current mineralized envelope to test the possible eastward extension of mineralization.

To view the "Plan View of A-1 Zone at Crucero Project", please click the following link: http://media3.marketwire.com/docs/1103_lpk_map.pdf.

Professional Staff Additions

The Company also reports that it has added to its professional exploration staff in Peru with the hiring of Carlos Yrigoyen as Country Manager. Carlos is a mining industry professional who has been involved with many Peruvian and Canadian major and small-cap mining companies over a 30-year career. Carlos will be located in the Lima, Peru office of Minera Pacacorral, the Company's 60% owned subsidiary.

The Company continues to search for a Vice President Exploration to assist the Company in advancing the Crucero Gold Project from advanced exploration to early-stage development.

Drilling for 2011

The Company has revised its expectation for total drilled metres for the 2011 drilling campaign to 9,000 metres -- the Company originally planned to drill 11,000 metres. The revision is due to delays in receiving exploration and drilling permits on certain exploration anomalies at Crucero; these permits are now expected to be received in early 2012. The Company will exceed its originally planned 5,500 metres for resource expansion drilling on the A-1 Zone.

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% indirect interest 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 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, an accredited laboratory. 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 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
A-1 Zone Drill Results
Total
Depth
Metres

From
Metres

To
Metres

Intercept*
Metres

Gold g/t
DDH-37 494.35 158.00 177.00 19.0 1.64
Including 163.00 170.00 7.0 2.55
202.00 239.00 37.0 2.10
Including 206.00 216.10 10.1 3.11
266.00 274.00 8.0 1.75
288.00 302.00 14.0 1.94
Including 288.00 297.00 9.0 2.49
417.00 455.00 38.0 0.58
468.00 472.60 4.6 1.28
480.00 494.35 14.4 0.82
DDH-38 315.00 42.00 246.00 204.0 1.14
Including 62.00 65.00 3.0 3.06
Including 79.00 90.00 11.0 1.81
Including 96.00 102.00 6.0 7.33
Including 119.00 123.00 4.0 2.26
Including 142.00 157.00 15.0 0.88
Including 166.70 183.00 16.3 1.23
Including 175.00 180.00 5.0 2.17
Including 209.00 246.00 37.0 1.82
Including 219.10 246.00 26.9 1.54
Including 231.00 239.45 8.4 3.20
DDH-44 280.00 84.00 88.00 4.0 0.98
98.00 125.00 27.0 1.47
148.00 151.00 3.0 0.84
160.00 165.00 5.0 5.98
DDH-46 200.20 88.00 136.00 48.0 1.20
Including 133.00 136.00 3.0 0.63
DDH-47 270.00 149.00 151.00 2.0 1.96
DDH-48 300.00 - - - -
*The Company does not have sufficient geological data to determine true widths of the intercepts

HOLE LOCATIONS
Metres
Elevation
East North Azimuth Inclination
DDH-37 410731.70 8433010.89 4467.30 53° -60°
DDH-38 410724.09 8433080.72 4459.30 50° -60°
DDH-44 410731.19 8433285.19 4417.92 236° -45°
DDH-46 410722.80 8433344.60 4409.97 236° -45°
DDH-47 410753.500 8433262.10 4427.400 56° -60°
DDH-48 410732.000 8433285.000 4417.000 56° -45°

Contact Information

  • Lupaka Gold Corp.
    Scott Warren
    Manager, Investor Relations
    +1 (604) 681-5900
    www.lupakagold.com