VANCOUVER, BRITISH COLUMBIA, January 8, 2012 -- Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX:LPK) announces that it has received assay results from six additional drill holes from the completed 2012 drilling program on its Crucero Gold Project. Of the holes reported, all six were drilled on the A-1 resource zone. These holes along, with the remaining holes still to be assayed, will be incorporated into a NI 43-101 resource estimate update, expected in the first quarter of 2013.
DDH-39, in the southwest section of the A-1 Zone mineralized envelope, reported 10 metres at 2.09 g/t gold. DDH-40 in the northeast section on the A-1 Zone contains a significant width of 46 metres at 1.42 g/t gold. DDH-58, also in the northeast section of the A-1 Zone reported 12 metres at 3.17 g/t gold. The results confirm that the A-1 Zone mineralization is continuous along strike and to depth. See Figure 1 below for the A-1 Zone drill hole locations.
Significant intercepts from the six 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")]:
|Drill Hole||Depth||From||To||Intercept *||Gold g/t|
*The Company does not have sufficient geological data to determine true widths of the intercepts
Mr. Edwards continued, "We are encouraged with our exploration drilling results north of the A-1 Zone. Having identified the northern continuation of the structures controlling the gold mineralization, our 2013 drill plan will follow these structures farther north where there is exploration data that suggests the mineralization swells and rises nearer to the surface."
As planned, the Company ceased drilling activities for the 2012 season on December 10, 2012. A total of 20 core drill holes and over 8,250 metres were drilled from May 2012 through to the end of the 2012 drilling season, and was mainly focused on resource expansion at the A-1 Zone. Final assay results to date show that the controlling structures of the A-1 Zone continue to the north, where the mineralized envelope plunges to depth and tightens in width.
The outline of the A-1 mineralized envelope, along with the drill hole locations projected to surface, is shown below as Figure 1:
Eric Edwards, President and CEO of Lupaka Gold, commented, "We have completed another successful year of exploration in 2012, by exceeding our planned drilled-metres resource expansion objective for the A-1 Zone, while delivering consistent grade and width intercepts in step-out drilling. The deeper holes completed during the year have demonstrated that the A-1 Zone continues beyond our current drilling depths."
2013 Drill Program and Field Work
The Company currently plans to drill 10,000 metres in 2013 commencing in Q2, versus the 8,258 metres drilled in 2012. The 2013 Drill Program will be preceded by comprehensive field work on various Crucero anomalies intended to identify exploration drill targets. As in prior years, the Company does not plan to conduct any drilling for the 3-4 month period beginning in January, as the typical seasonal rain in the central-Andes makes access difficult and increases the potential negative environmental impact from drilling. Ground studies and field work will continue through this drilling hiatus.
The Company has approximately $10.7 Million in cash as at December 31, 2012, which the Company anticipates will be sufficient to fund planned exploration of the Crucero Gold Project through mid-2014.
About the Company
Lupaka Gold is a well-financed, Peru-focused gold explorer with geographic diversification and balance through its interests in 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 Gold Project. 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 in the first quarter of 2011 and 2012 (see the Company's most recent technical report on www.sedar.com).
As a result of the Company's recent acquisition of Andean American, Lupaka Gold's assets now include the 100% owned Invicta Gold Project (central 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 northern Peru.
Quality Control and Assurance
The analyses for this drilling campaign were carried out by SGS, an accredited laboratory, 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 the SGS sample preparation facility in Juliaca, Peru.. 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.
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, the 2012 and 2013 Crucero Project Drill Programs, 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 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.
Crucero Gold Project
A-1 Zone Drill Results
*The Company does not have sufficient geological data to determine true widths of the intercepts