|Drilling Works at Lupaka’s Crucero gold project, located in Puno, southern Peru. (Photo: Lupaka Gold website)|
Canadian-based Lupaka Gold Corp. reported it has completed eight drill holes and over 2,700 metres since commencing the 2011 drill program on its Crucero Gold Project, located in Puno. The company added it has received assay results on the first three drill holes and is waiting on results for the remianing five holes.
Two drill rigs are actively drilling on the Crucero Gold Project site with a total of 11,000 metres planned to be drilled by December 2011.
The results have extended the northern boundary and the depth of known mineralization of the envelope at the A-1 Zone.
The 2011 drill program is focused on resource expansion at the A-1 Zone and investigating other identified anomalies on the 5,500 hectare claim area.
Eric Edwards, President and CEO of Lupaka Gold said dilling is scheduled to commence on the first of the other identified anomalies by the end of August.
"We continue to demonstrate the continuity of mineralization and gold grade within the A-1 Zone at the Crucero Gold Project. The results returned in hole DDH-41 are compelling in that the hole is located outside of the existing resource envelope, we are growing the boundaries of the known mineralized envelope to the north," he said.
Edwards said DDH-21 is also significant in that we drilled to a depth of 388.05 metres and bottomed in mineralization, with the final 13.05 metres averaging 1.56 g/t gold.
"The A-1 Zone mineralization outcrops at surface, and this result extends and leaves open the ultimate depth of mineralization at Crucero," he added.
Lupaka Gold Corp also reports that, on July 14, 2011, it completed the third acquisition payment, in the amount of US$3.0 million, for its 60% interest in Minera Pacacorral (MP) under the purchase agreement dated July 23, 2010.
MP is the Peruvian company that holds a 100% interest in the nine claims that comprise the Crucero property. The purchase agreement also grants the company an option to acquire the remaining 40% interest in MP at any time until July 2015.
The fourth and final acquisition payment for the company’s 60% interest in the amount of US$3.0 million is due on July 15, 2012. Pursuant to an agreement between the company and one of the vendors, the company is entitled to satisfy US$750,000 of the July 15, 2012 payment by issuing common shares of the company in lieu of cash.
Lupaka Gold is aggressively exploring and developing the Crucero Gold Project, its 5,500 hectare gold property located in southern Peru.
The company, based in Vancouver, Canada, is project operator and holds a 60% indirect interest in the property and has an option to acquire the remaining 40% interest in MP at any time until July 2015.
Since commencing active exploration in April 2010, the Company has reported a NI 43-101 compliant gold resource.
In addition to the existing resource, Lupaka Gold has identified several exploration targets within the Crucero Property that display similar anomalous characteristics.
Lupaka Gold is led by a strong management team with the proven ability to develop, finance and operate mining projects. The company completed an initial public offering of its common shares and warrants on the Toronto Stock Exchange (TSX) on June 28, 2011.