VANCOUVER, Dec. 12, 2017 /CNW/ - Lupaka Gold Corp. ("Lupaka Gold" or the "Company") (TSXV:LPK, FRA:LQP) is pleased to report on the following key operational advancements associated with the Invicta Gold Development Project ("Invicta", or "Invicta Project").
Road Construction Initiated
The Company has signed a contract with local operators to expand, enhance, and modify 27 kilometres of road commencing from the paved Huacho-Churin-Oyon highway, located at approximately 1,500 metres above sea level, up to the Invicta Project located at approximately 3,500 metres above sea level. This new road will provide access to Invicta for heavy machinery and trucks that can transport large loads of material, reduce travel time, significantly increase safety, and minimize the operational impact on certain local Lacsanga communities.
In addition, the existing road will be widened from 4 metres up to 6 metres, a safety berm will be created, and in three key areas the road will be diverted away from local Lacsanga communities. Crews and equipment were mobilized in early December, work is now underway on three separate fronts and is expected to be completed by the end of the first quarter of 2018. Members of the Lacsanga community are being employed by the contractors wherever possible to undertake and supervise road construction initiatives and the Company is proud to have such strong support from the community.
Pictures of the road construction program can be found on our website.
Will Ansley, President and CEO of Lupaka, stated: "My vision is to transform the well-funded Invicta Gold Project into a cash-flow generating asset in short order, with the strong support of our local team. Today's announcement demonstrates we're taking the right steps in that direction and we envision commencing potential production, with help from a third-party mining contractor, during the second half of 2018."
Mining Contractor Engaged
PLH S.A.C. ("PLH") has been selected as the mining contractor for the Invicta Project, a natural choice as PLH performed two bulk sample extraction programs for Lupaka Gold in 2015 and 2016, respectively. Final terms of the contract are currently being negotiated, and it is anticipated PLH will mobilize to site in the first quarter 2018. Initial development and rehabilitation of the existing infrastructure is expected to take approximately three months to complete.
Toll Milling & Offtake Agreement
Discussions are ongoing with several toll milling facilities and offtake traders for the concentrate, a decision is expected to be made in the first quarter of 2018.
