Lupaka Gold (LPK.V) has announced it has engaged a Peruvian mining contractor to start the underground mining operations at the Invicta poly-metallic project in Peru. The company intends to complete an initial batch of 400 tonnes to be processed at a toll mill in Chimbote.

This should allow Lupaka to fine-tunes its expectations regarding production costs and recovery rates and will add more certainty and credibility to its operating model. As the processing plant is approximately 350 kilometers away from the Invicta project, Lupaka is still investigating the possibility to purchase its own processing plant and is studying the impact on the operating expenses of an owner-operated plant versus using a toll milling facility.

We will be meeting with Lupaka’s management next week and will provide a more in-depth update shortly.

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

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