VANCOUVER, BRITISH COLUMBIA, July 23, 2013 - Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX:LPK, BVL:LPK, FRA:LQP) announces that it has received a 4-year renewal of its Crucero Project community agreement, has been granted two mineral concessions from the Ministry of Energy and Mines of Peru ("MEM"), and reports on other progress for the Crucero and Invicta Gold Projects.
Crucero Gold Project
The community of Oruro voted by a substantial majority to renew the Company's exploration agreement with the community for a 4-year term, one year longer than the previous agreement. The Community recognized that the company has completed its obligations under the previous agreement including such beneficial initiatives as road maintenance, road upgrades, optometry and dental services, and alpaca veterinary programs. The renewed agreement includes certain commitments by the Company for annual rental payments and infrastructure improvements/additions in the community. The surface rights at the Crucero Gold project are owned communally, and the renewal of this agreement gives the Company legal right to continue exploration on the Crucero Gold Project area.
In addition to a community agreement, the Company is required to secure access agreements from the individual families that have historically used certain locations for alpaca grazing. The Company has already signed a number of family agreements to allow exploration work at Crucero and plans to continue to secure additional access agreements as necessary.
The Company has also been awarded mineral concessions for the Pacacorral 2 and Pacacorral 3 petition claims from the MEM. Mineral concessions are the highest and most secure form of mineral rights ownership in Peru, and with these two new concession grants, all nine of the Crucero Gold Project claims now have full concession status. The Company had established the claims and filed the related petition applications in early 2011.
Mr. Eric Edwards, the Company's CEO, commented that "The renewal of the Oruro community exploration agreement and the family access agreements entered into to date allow Lupaka Gold to continue to explore and develop the Crucero Gold Project. Our team of Peruvian professionals have worked closely with local community leadership and with members of the community to understand and address their interests, and that work was the foundation for the renewal of the community exploration agreement."
Mr. Edwards continued, "These events are further evidence that Peru is committed to resource development, and that the respective government levels are functioning effectively to provide responsible companies with the necessary permits and licenses to conduct their business."
Invicta Gold Project
To date, the Company has signed a 20-year agreement with the community of Santo Domingo de Apache and is working towards obtaining similar agreements with other communities within the Invicta Gold Project area of influence. In addition, the Company has signed several other related agreements to acquire secondary parcels of land for the purpose of infrastructure development to support the project.
All agreements signed by the Company include long-term commitments to contribute to social development and to maintaining a close partnership with the surrounding communities. In this regard, the Company has and is supporting the following ongoing initiatives:
- Pine Tree Nursery (Santo Domingo de Apache community) - 50,000 pine tree seedlings (40 ha's) planted, leading to a projected production of 100,000 trees per year once the community expands this project to encompass 300 ha's, and create a sustainable commercial wood source;
- CHURCA - CORONA, SAN MIGUEL DE LUCMACOTO (Santo Domingo de Apache community) and EL AHORCADO (Sayan community) Irrigation Channels - improvement and construction of 24 kms of irrigation channel, as well as training on the implementation of new irrigation technologies. These projects are being funded by the Government of Peru, and are expected to be completed by early 2014; and
- PICUNCHE - MIRAFLORES Road Upgrade (Lacsanga community) - improvement and construction of 17.9 km of road and related works, as well as maintenance training. This project will be funded by the Government of Peru, and is expected to be completed within 1 year, once contractor selection and final project approval is obtained by the community.
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 northern, central and southern Peru.
Lupaka Gold's flagship project is the Crucero Gold Project, its 5,500 hectare gold property is located in the northern part of Puno, a southern region of Peru. The Company holds a 100% interest through Minera Pacacorral S.A.C. in the Crucero Gold Project, containing an indicated resource of 1,017,999 gold ounces at 1.01 g/t and an inferred resource of 1,190,526 gold ounces at 1.00 g/t. Since commencing active exploration in April 2010, the Company has reported annual NI 43-101 compliant gold resource estimate increases for the Crucero Gold Project from 2011 to 2013 (see the Company's most recent technical report on www.sedar.com entitled "Technical Report for the Crucero Property, Carabaya Province, Peru" and dated January 17, 2013).
As a result of the Company's recent acquisition of Andean American, Lupaka Gold's assets also include the 100% owned Invicta Gold Project in the central Lima region of Peru, which has near-term underground gold, silver and copper development potential. Lupaka Gold also owns a 17% stake in Southern Legacy Minerals Inc., owner of the AntaKori copper-gold deposit located in the northern Cajamarca region of Peru.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lupaka Gold Corp.
+1 (604) 681-5900
or visit the Company's website at www.lupakagold.com.
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, additional community exploration and access agreements and related 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 and that the additional community exploration and family access agreements required to conduct the Company's planned exploration and development activities will be available on reasonable terms
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, that mineral resources are not as estimated, unexpected variations in mineral resources, grade or recovery rates and unanticipated delays in obtaining or failure to obtain additional community exploration or family access agreements. 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.