We had a chat with Lupaka Gold’s (LPK.TO) CEO Eric Edwards to discuss the progress at the company’s Invicta project, which Lupaka aims to bring back into small-scale production within the next few months. A first round of metallurgical test work on the Invicta mineralization has been completed, and everything points in the direction of a recovery rate which is slightly higher than previously expected. A second round of testing is underway to make sure the ore can be treated using the existing flow sheets of the processing plants with excess capacity in the neighborhood. We are hoping to get more details on this within the next few weeks.
Meanwhile, we understand that the company may be close to reaching an agreement with one of the local communities to use and upgrade the access road from the valley to the Invicta project. This will be an important milestone as Lupaka will be able to effectively start the road upgrade work, and it’s quite important to have substantially finished the construction work on the road before the rainy season starts in Peru.
The next few weeks will be important for Lupaka as it expects to finalize a toll milling agreement with one of the potential toll mills nearby the Invicta project. This will give us a better indication on the expected production cost and will allow us to fine-tune our calculations and expectations for the Invicta project. Additionally, the last permit for the project should be issued shortly as well, and we are expecting more details on the metallurgical test work.
Disclosure: The author holds a long position in Lupaka Gold. Lupaka is a sponsor of the website. Please see our disclaimer for current positions.