Name of the Project
Invicta gold project.

Location
The project is located 120 km north of Lima, Peru.

Client
Lupaka Gold.

Project Description
The Invicta project is a polymetallic development with a mineral resource, comprising three-million tonnes of indicated mineral resources at 5.78 g/t gold equivalent (Au-Eq) ounces, using a 3 g/t cutoff, and 600 000 t of inferred mineral resources grading at 5.49 g/t Au-Eq.

A preliminary economic assessment (PEA) on the project has evaluated the economic viability of the underground extraction of indicated and inferred mineral resources from the Atenea vein close to the existing 3400 Level adit (up to 130 m above the 3400 Level) using a sublevel long-hole open stoping mining method, with waste rock as backfill where possible.

Using some existing historical mine development, the main extraction level will be on the 3400 Level, with surface access through the adit. A secondary ramp from surface will develop drilling horizon sublevels spaced 15 m to 30 m. Long-hole drilling and blasting techniques will be used. The blasted material will be mucked from the extraction level by four load-haul dump trucks, where it will be dumped directly into 30 t haulage trucks. The trucks will then transport the material from the adit to an off-site mill processing facility.

The 130-m-high, 40-m-long, 4-m- to 12-m-wide stopes will be separated by rib pillars and filled with available waste rock from mine development waste.

Production as outlined by the PEA considers an average peak steady-state rate of about 350 t/d. The initial six-year mine life is expected to produce 669 813 t of mineralised material inclusive of an 11% external dilution with an 83% mine recovery.

Results of metallurgical tests indicate that conventional flotation technology can be used to treat the mineral resources from Invicta.

The flowsheet includes crushing, a coarse primary grind; bulk lead, copper, gold and silver flotation; flotation of a zinc concentrate; bulk concentrate regrinding; and selective copper/lead flotation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $53.6-million, with a payback of less than one year.

Value
Preproduction capital has been estimated at $12.7-million.

Duration
Not stated.

Latest Developments
Lupaka plans to increase the resource confidence level of Invicta, expanding the resource base and evaluating the opportunities for the company to acquire or develop its own processing plant.

Key Contracts and Suppliers
SRK Consulting (Peru), SRK Consulting (Canada) and Transmin Metallurgical Consultants in collaboration with Lupaka (PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Lupaka Gold, tel +1 604 681 5900, fax +1 604 637 8794 or email info@lupakagold.com.