Lupaka Gold (LPK.V) has now completed a systematic underground sampling program on the 3400 level at its Invicta polymetallic project. The company has identified (and confirmed) high-grade footwall mineralization (9.86 g/t AuEq) over a length of 130 meters and an average width of 6.1 Meters. This is a very positive development as the average grades encountered in the sampling program are similar to, or even higher than the grades in the mine plan. The hanging wall sampling program returned 70 meters of 7 g/t AuEq with an average width of 6 meters.
This zone on the 3400 level will also be the first zone to be mined as part of the Invicta development plans. As a brief reminder, Lupaka Gold expects to produce 185,000 gold-equivalent ounces over a six year mine life which was optimized for the lowest possible upfront capital expenditures. The mine plan calls for a total mine production of 670,000 tonnes at an average grade of 8.6 g/t gold-equivalent for an annual payable gold-equivalent production rate of 26,800 ounces. This should result in a pre-tax NPV5% of US$54M (C$70M), and as Lupaka Gold has now secured funding for the project, we are looking forward to see the initial developments later this year.