Lupaka Gold (LPK.TO) has announced a first resource estimate at its Crucero project which takes pit constraints into consideration. Using a cutoff-grade of 0.4t/t and capping the gold grade at 17g/t, the Crucero project currently has an in-pit resource estimate of 2.03M ounces in the indicated and inferred categories at an average grade of 1.01g/t.
As Lupaka is now able to report a resource estimate based on this pit-constrained model, the quality of the ounces is increasing. As 92% of the ounces has been confirmed inside a pit outline, the geological model and the exploitation potential have now been validated. The ounces that aren’t located within the pit shell also have a lower average grade and are located at depth, which makes those ounces uneconomical at the current gold price.
As Lupaka now officially confirmed 2.03M ounces of gold within a preliminary pit outline, the quality and value of the Crucero project has obviously increased. We are looking forward to further exploration efforts at the project as there still are a lot of untested zones which might add more ounces to the project as a whole.
Disclosure: The author holds a long position in Lupaka Gold. Lupaka is a sponsor of the website. Please see our disclaimer for current positions.