Lupaka Gold Corp.
TSX : LPK

Lupaka Gold Corp.

May 18, 2012 08:30 ET

Lupaka Gold Corp. Resumes Drilling at Crucero Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2012) - Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX:LPK) announces that it has resumed drilling on its 100% owned, 5500 ha Crucero Gold Project in southern Peru.

Lupaka Gold has planned an 8,000 metre drill campaign for calendar 2012 and will most immediately focus on expansion of the A-1 Zone resource. Commencing in the third quarter of 2012, the Company also plans to drill for the first time on the A-3 Zone, A-4 Zone and A-5 Zone area to the east of the current resource at the A-1 Zone.

Eric Edwards, President and CEO of Lupaka Gold, commented, "The weather has improved substantially in the last two weeks and we have used that time to mobilize our field crews and contractors back to site. Drilling has now commenced on the northern extension of the A-1 resource envelope. We expect our 2012 drill program to continue to follow and identify the northern extension of the A-1 Zone at Crucero." Final assay results from the 2011 drill program show that the A-1 Zone mineralized envelope remains open and continues to the north, and that the Company has not yet defined the northern limit of the A-1 resource.

The Company stopped drilling for the 2011 season as planned in December 2011 because of the rainy season that typically runs from January through March. Based on the drilling results of the 2011 campaign, the Company announced an updated National Instrument ("NI") 43-101 resource on March 5, 2012. The Company reported an indicated resource of 34.6 million tonnes at 1.03 gold grams per tonne (g/t) capped grade for 1,144,667 gold ounces at the A-1 Zone within the Crucero Gold project. In addition, the company reports an inferred resource of 29.0 million tonnes at 0.69 gold grams per tonne (g/t) capped grade for 646,716 gold ounces at the A-1 Zone. See the technical report dated March 5, 2012, titled "Technical Report for the Crucero Property, Peru" and prepared by Tetra Tech Wardrop, which is available at www.sedar.com under the Company's name.

2012 Drill Program

The Company is currently planning for 8,000 metres of diamond core drilling for the 2012 program, with 4,000 metres for resource expansion on the A-1 Zone, and 4,000 metres for exploration on other identified anomalies within the Company's 5,500 hectare property area. The Company had initially planned an 11,000 metre drill program for 2012 to begin April 1st. However drilling was delayed by six weeks due to an extended rainy season, and the Company now plans to drill 8,000 metres for calendar 2012.

The Company's priority exploration target for calendar 2012 is the A-3/A-4/A-5 Zone area, approximately two kilometres to the east of the A-1 Zone. The Company plans to conduct extensive field geological studies on all 10 of the other known Crucero Gold Project exploration anomalies including, outcrop and structural mapping and soil and stream sediment sampling, as well as geophysical surveys. Based on the results of this field work, exploration drilling on the A-3/A-4/A-5 Zone area is planned to commence in the third quarter of this year.

The Company has sufficient funding to fully execute the 2012 Drill Program and related technical work.

Professional Staff Update

The Company also reports that Victor Jaramillo, who was previously announced as the Company's Vice-President, Exploration on February 20, 2012, has resigned his position with the Company citing "personal reasons." To maximize its access to multiple experts, the Company has, and will continue to, hire employees and contractors who are geological specialists, to meet the exploration and development objectives for 2012. The Company would like to thank Mr. Jaramillo for his contribution during his brief stay.

Qualified Person

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.

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 100% indirect interest in the property. Since commencing active exploration in April 2010, the Company has reported NI 43-101 compliant gold resource updates in the first quarter of 2011 and 2012 (see the Company's most recent technical report on sedar.com). In addition to the existing resource, Lupaka Gold has identified a number of exploration targets within the Crucero Project 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.

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 approval required to conduct the Company's planned exploration and development activities will be available on reasonable terms 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 governmental or community approvals or 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.

Contact Information

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