Lupaka Gold (LPK.TO) has announced the results of metallurgical test work which has been conducted on the high-grade ore of the company’s poly-metallic Invicta project in Peru. It’s a very important achievement to see that Lupaka’s test work revealed that three clean concentrates could be produced from the Invicta ore, and with recovery rates in the mid-nineties it should now be quite easy to discuss toll milling agreements with the owners of the mills which are running below capacity. As there are no penalty elements, the concentrate could easily be used to blend with other concentrates and could even improve the characteristics of concentrate which does contain certain penalty elements.

The expected recovery rate is an excellent outcome of the test work, and as 87% of the gold will be produced in the copper and lead concentrate, only 13% of the gold will get ‘lost’ as Lupaka probably won’t get paid for the gold in the zinc concentrate. With these results in hand we expect Lupaka Gold to sign a deal with a nearby mill before the end of this year which would keep the company on track to meet its Q1 2015 production target. As a reminder, Invicta will start production at an average rate of 300 tonnes of ore per day, and as the company is targeting to get the higher grade ore out first, the rock value per tonne will be quite high. The project should be viable at the current commodity prices, and we’re looking forward to see Lupaka tick more boxes.

> Click here to read the press release

Disclosure: The author holds a long position in Lupaka Gold. Lupaka is a sponsor of the website. Please see our disclaimer for current positions.

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