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Lupaka Announces Positive PEA for Invicta with Average Annual Pre-Tax Cash Flow of US$10.2 Million
Vancouver, British Columbia--(Newsfile Corp. - March 1, 2018) - Lupaka Gold Corp. (TSXV: LPK) ...
About this update from Lupaka Gold Corp.
[{"type":"text","content":"Lupaka Announces Positive PEA for Invicta with Average Annual Pre-Tax Cash Flow of US$10.2 MillionVancouver, British Columbia--(Newsfile Corp. - March 1, 2018) - Lupaka Gold Corp. (TSXV: LPK) (FSE: LQP) (\"Lupaka Gold\" or the \"Company\") today announced the results of the Preliminary Economic Assessment (\"PEA\") prepared pursuant to National Instrument 43-101 (NI 43-101) on the Company's 100% owned Invicta Gold Development Project (\"Invicta Project\" or \"Invicta\"), located 120km north of Lima, Peru. All values are in US dollars unless otherwise indicated.Invicta Project PEA Highlights: Updated Mineral Resource Statement of 3.0 million tonnes of Indicated Mineral Resources at 5.78 grams per tonne (\"g/t\") gold equivalent ounces (\"Au-Eq.\") using a 3.5 g/t cut-off, and 0.6 million tonnes of Inferred Mineral Resources at 5.49 g/t Au-Eq. Initial 6-year mine plan (underground) designed on a portion of the mineral resource utilizing the existing infrastructure and minimizing capital start-up costs Sub-level open stope mining producing ~ 670,000 minable tonnes at 8.6 g/t Au-Eq.* with production of ~ 185,000 Au-Eq. oz (within initial 6-year mine plan) Average annual pre-tax cash flows of $10.2 million, average annual after- tax cash flow of $8.2 million Annual production of 33,700 Au-Eq. oz, during steady state Annual payable metal of 26,700 Au-Eq. oz, during steady state All-in Sustaining Costs of $575 Au-Eq. oz over initial 6-year mine life, average annual pre-tax operating profit of $12.3 million Pre-tax 5% NPV of $53.6 million After tax 5% NPV of $43.4 million Low capital investment: $4.3 million in pre-production capital with a payback of less than one year Strong upside potential for additional mineral resource growth Located in a premier South American mining jurisdiction, operating permits and community agreement in place * Au-Eq. calculations in the PEA are based on $1300 Au, $16.75 Ag, $3.00 Cu, $1.25 Zn, and $1.05 Pb \"We are highly encouraged by the robust economics contained in the PEA, which considers only a small portion of the total resource adjacent to Invicta's existing infrastructure. A combination of the high-grade 6-year initial mine plan and the relatively low capital start-up costs results in immediate meaningful cash flows. The PEA demonstrates the viability of the project and provides us with confidence ...