VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2012) - Lupaka Gold Corp. ("Lupaka Gold" or "the Company") (TSX:LPK) announces that its 8000 metre drill program is on schedule at its 100%-owned, 5500 ha Crucero Gold Project in southern Peru.
A-1 Resource Expansion Drilling
Lupaka Gold now has two diamond drill core rigs working full-time on the Crucero Gold Project, and has completed four drill holes (DDH-19, DDH-53, DDH-54, DDH-55) for a total of approximately 1500 metres since the 2012 drilling season commenced in late May. The first of these holes was drilled to test the resource at depth in the southwest portion of the A-1 Zone, while the other three holes were drilled to test the northern extension of the existing A-1 mineralized envelope. The Company is currently drilling its fifth and sixth holes of the 2012 season, which will also test northern and depth extensions of the A-1 mineralized envelope.
A map illustrating the above-referenced drill holes accompanies this news release: http://media3.marketwire.com/docs/lpk719i.pdf.
Detailed geology and exploration field work is continuing on the A-3, A-4 and A-5 Zones, now collectively called the Chaska Zone, to identify high priority drill targets in that area. The Company has committed to a third drill rig and is mobilizing that rig to the Chaska Zone. Drilling is expected to commence on the Chaska Zone by mid-August 2012. The Company plans to drill a total of approximately 4,000 metres for A-1 resource expansion and 4,000 metres on additional targets, beginning with the Chaska Zone.
Based on internal Whittle pit results, the Company has selected four new composite metallurgical samples for the 2012 metallurgical testing program. The four composites lie within the ultimate conceptual Whittle pit shell, and represent the metallurgical characteristics that have been identified within the mineralized envelope. Metallurgical test results are expected to be available for release before the end of 2012.
Listing on Lima Stock Exchange
The Company is assessing the potential benefits of a listing of it shares on the Lima Stock Exchange or the "BVL". The Lima Stock Exchange is one of the major sources of capital funding for resource companies operating in Peru. The purpose of such a listing would be to expand the Company's financial and investor market access into Peru, as well as provide more direct access to the Company for investors throughout Latin America.
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 estimate 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 estimate, Lupaka Gold has identified a number of exploration targets within the Crucero Project that display similar anomalous characteristics.
On July 17, 2012, Lupaka Gold and Andean American Gold Corp. ("Andean American") announced that the companies have entered into an Arrangement Agreement that provides for a combination of the two companies to create a new Peru-focused gold exploration and development company. Please see www.sedar.com for details.
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 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, and a business combination with Andean American Gold Corp. (the "Business Combination") 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, that the Company will not experience any material accident, labour dispute, or failure of equipment, that the Business Combination will be approved by the shareholders of Lupaka Gold and Andean American and that the companies will receive all necessary judicial and regulatory approvals to complete the Business Combination.
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, judicial, regulatory or shareholder 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.