Lupaka Gold Corp. · TSXV:LPK
Lupaka Gold — Investor Presentation (March 2015)
43 slides from Lupaka Gold's investor presentation, March 2015
Slide 1: A Peru-Focused Gold Developer
LUPAKA GOLD CORP. Peru:LPK LPK Peru: TSX: LPK LQP Germany:LQP LPK Germany: A Peru-Focused Gold Developer | March 2015 TSX.V: LPK TSX.V: Peru: LPK Germany: LQP 1
Slide 2: Important Cautionary Statements
IMPORTANT CAUTIONARY STATEMENTS Qualified Person The technical information in this presentation, other than metallurgical and processing information, has been reviewed and approved by Julio Castañeda Mondragon, MAIG, the President of Lupaka Gold Peru S.A.C., a Peruvian subsidiary of the Company, and
Slide 3: Peru-Focused Gold Developer
PERU-FOCUSED GOLD DEVELOPER Commencing gold production in 2015 at the Invicta Gold project Josnitoro Gold Project exploration JV with Hochschild Mining near Las Bambas copper project in Apurimac 2 million oz pit constrained gold resource at the Crucero Gold project Strong Peruvian profession
Slide 4: Peru – Strong Mining Environment
PERU – STRONG MINING ENVIRONMENT Outstanding mineral exploration potential Government supportive of resource development and commodity export World Class Discoveries: Yanacocha, Pierina, Antamina World mining heavyweight jurisdiction(1) #2 in Silver #2 in Copper #6 in Gold Investment
Slide 5: Proven Exploration Ability: Growth in Total Gold Resources
PROVEN EXPLORATION ABILITY GROWTH IN TOTAL GOLD RESOURCES Moz Gold Equivalent Resource Estimates Growth 4.0 Invicta in Invicta Inferred (1) Invicta Indicated development with 3.5 production planned in Crucero Inferred (2) 2015 Crucero Indicated 0.24 Moz 3.0 0.24 Moz Invicta resource open 2.5 0.9
Slide 6: Invicta Gold Project: Mid-Year 2015 Production Planned
INVICTA GOLD PROJECT: MID-YEAR 2015 PRODUCTION PLANNED Permitted for Mine Operations Positive Cash-flow potential in 2015 Primary 1.2 km development in place Mineralization exposed in 200 m of crosscut LQP 2014 Metallurgical Germany:LQP testing >86% LPK Germany: recovery(1) TSX: LPK TSX.V:
Slide 7: Invicta Gold Project: Overview
INVICTA GOLD PROJECT: OVERVIEW Existing Federal Permit (EIA for mine operation) & Certificate of Mining (COM), closure plan, archeological certificate, water license, and community agreement Progress through 2014 & Q1 2015: Certificate Of Mining (“COM”) permit received Mine engineering and d
Slide 8: Invicta Gold Project: 2014 Metallurgy Update
INVICTA GOLD PROJECT 2014 METALLURGY UPDATE Recovery results – October 2014 Recovery of metal in Concentrate Streams (%) Concentrate Au Ag Pb Cu Zn Fe Copper (Cu) 72.2 31.6 21.6 80.3 24.8 10.8 Lead (Pb) 14.6 43.0 70.5 12.0 20.8 2.6 Zinc (Zn) 4.9 6.0 0.9 1.1 43.0 33.3 Global Recovery 1 94.6% 94.6% 96
Slide 9: Invicta Gold Project: 2014 Resource Block Model
INVICTA GOLD PROJECT 2014 RESOURCE BLOCK MODEL Recent Sampling Confirms Block Model Atenea Vein Length Width Au Ag Cu Pb Zn Meters Meters gpt gpt % % % Footwall split 105 6.40 6.38 83.00 1.68 0.79 0.75 Hanging wall split 125 6.16 2.15 59.22 1.52 1.87 0.70 LPK Germany: Peru:LPK LPK Peru: LQP Germany:
Slide 10: Invicta Production Strategy
INVICTA PRODUCTION STRATEGY Highest Grade Blocks Accessible through Existing Development(1) LQP Germany:LQP LPK Germany: Invicta resource block model: Peru:LPK Red blocks > 6 g/t Eq Au LPK Peru: TSX: LPK TSX.V: (1) – Managements objectives based on internally generated geology and engineering estima
Slide 11: Invicta Gold Project: 2014 Sampling of Exposed Mineralization
INVICTA GOLD PROJECT 2014 SAMPLING OF EXPOSED MINERALIZATION Results Confirm Block Model * ATENEA 3400 SW - footwall Split Width (m) Au g/t Ag g/t Cu % Pb % Zn % 5.05 4.05 29.43 1.26 0.20 0.5 8.30 3.19 20.81 0.69 0.12 0.87 4.15 3.43 72.31 2.79 0.67 0.59 6.90 5.96 116.19 2.38 2.36 0.87 5.00 2.07 49.7
Slide 12: Invicta Gold Project: Resource Block Model & Production Schedule
INVICTA GOLD PROJECT RESOURCE BLOCK MODEL & PRODUCTION SCHEDULE Resource Block Model Mineralization Accessible from Existing Infrastructure * Invicta Elevation Tonnes Width Au Ag Cu Pb Block Model m T m g/t g/t % % 3359 159,751 18.36 6.43 33.25 1.13 0.25 3383 154,010 13.53 5.48 29.74 0.84 0.37 3407
Slide 13: Invicta Gold Project
INVICTA GOLD PROJECT TSX: LPK TSX.V: LPK Peru: Peru:LPK LPK Germany: Germany:LQP LQP 13
Slide 14: Invicta Underground Workings
INVICTA UNDERGROUND WORKINGS INTERSECTING THE HIGHEST GRADE AREAS WITHIN ATENEA VEIN Peru:LPK LPK Peru: TSX: LPK LQP Germany:LQP LPK Germany: Primary Development TSX.V: 1.2 km adit 14
Slide 15: Representative Atenea Vein Cross-Sections
INVICTA GOLD PROJECT REPRESENTATIVE ATENEA VEIN CROSS-SECTIONS TSX: LPK TSX.V: Peru:LPK LPK Peru: LQP Germany:LQP LPK Germany: Atenea Vein 1) Up to 25 meters thickness 2) Continuous along strike 3) Open at depth 15
Slide 16: Lupaka's Production Strategy: Existing Development
LUPAKA’S PRODUCTION STRATEGY Existing Development(1) Existing Development: • Primary haulage • Ore drifts • Cross cuts Over $15.0 million invested in mine development by previous owners TSX: LPK TSX.V: Peru:LPK LPK Peru: LQP Germany:LQP LPK Germany: (1) – Managements objectives based on internally g
Slide 17: Lupaka's Production Strategy: Mining Method
LUPAKA’S PRODUCTION STRATEGY Mining Method(1) Production Mining: Sub-Level Open Stoping Sub-Level Open Stoping (SLOS) • Productive and cost effective method • Used for the remainder of mine life • Scalable for higher production tonnages Mechanized cut and fill (MCF) • Used for initial development in
Slide 18: Lupaka's Production Strategy: Highest Grade Blocks Around Existing Adit
LUPAKA’S PRODUCTION STRATEGY Highest Grade Blocks Around Existing Adit(1) Invicta Elevation Tonnes Au Ag Cu Pb Zn NSR Block Model m t g/t g/t % % % $/t 3427 -> 3431 14,266 6.65 48.86 1.08 0.55 0.59 263.53 3423 -> 3427 18,848 6.84 50.05 1.12 0.56 0.57 271.29 3419 -> 3423 21,191 6.79 47.83 1.07 0.56 0
Slide 19: Existing Infrastructure: Invicta Underground Workings
EXISTING INFRASTRUCTURE INVICTA UNDERGROUND WORKINGS TSX: LPK TSX.V: LPK Peru: Peru:LPK LPK Germany: Germany:LQP LQP 19
Slide 20: Lupaka's Production Strategy: Current Status & Remaining Activities
LUPAKA’S PRODUCTION STRATEGY(1) Current Status & Remaining Activities Completed Remaining (2) (1) – Management’s objectives based on Resource block modelling internally generated Mining production schedule geology and Conceptual engineering engineering estimates. Contractor RFQ & site visits
Slide 21: Crucero Gold Project: Classic Orogenic Gold Deposit
CRUCERO GOLD PROJECT CLASSIC OROGENIC GOLD DEPOSIT ECUADOR COLOMBIA Gold Belts of the Eastern Andean Cordillera and Sierras Pampeanas Balsas Bolivar BRASIL The Crucero Project lies within Pataz Parcoy Ongon the well established orogenic Buldibuyo PERU gold mining belt Huachón Sto. Domingo Madre de
Slide 22: Crucero Gold Project: Strong Mining Jurisdiction
STRONG MINING JURISDICTION CRUCERO GOLD PROJECT: TSX: LPK TSX.V: LPK Peru: Peru:LPK LPK Germany: Germany:LQP LQP 22
Slide 23: Crucero Gold Project: Growing Discovery Curve
CRUCERO GOLD PROJECT GROWING DISCOVERY CURVE Gold Resource Estimates Growth 100% owned(2) 2.5 Updated resource estimate 2013(1). Pit Inferred 2.0 constrained economics applied Indicated Orogenic gold deposit; strong structural control 1.5 1.03 Moz on mineralization 1.0 Resource estimate(1) c
Slide 24: Crucero Gold Project: Pit-Constrained Resource
CRUCERO GOLD PROJECT: PIT-CONSTRAINED RESOURCE OCTOBER 2013 NI 43-101 GOLD RESOURCE ESTIMATE(1) PIT-CONSTRAINED RESOURCE GRADE CONTAINED Cut-off Tonnes Au Au Cap* Au Au Cap* Category (g/t) (kt) (g/t) (g/t) (koz) (koz) Indicated 0.4 30,919,873 1.118 1.009 1,111,494 1,003,041 Inferred 0.4 31,201,648 1
Slide 25: Crucero Gold Project: Distinct High-Grade Core
CRUCERO GOLD PROJECT: DISTINCT HIGH-GRADE CORE (2) Resource Capped (3) Cutoff Tonnes Au g/t Au g/t Au Oz Cap Au Oz 1.0 g/t (1) Indicated 14,534,067 1.57 1.35 733,670 629,748 Inferred 14,144,793 1.66 1.41 754,419 638,724 0.4 g/t Indicated 30,919,873 1.12 1.01 1,111,494 1,003,041 Inferred 31,201,648 1
Slide 26: Crucero Gold Project: Insensitive to Gold Price Weakness
CRUCERO GOLD PROJECT: INSENSITIVE TO GOLD PRICE WEAKNESS Gold resource based on gold price, Crucero Pit sensitivity summary 2.25 Gold $/oz Tonnes Au oz 2.00 1008 191,957,202 1,637,605 Gold mined (oz) Millions 1.75 1036 200,835,882 1,677,509 1.50 1092 218,972,536 1,758,361 1120 232,370,970 1,807,706
Slide 27: Crucero Gold Project: A-1 Zone Distinct Higher Grade Core
CRUCERO GOLD PROJECT: A-1 ZONE DISTINCT HIGHER GRADE CORE A-1 Zone mineralized envelope A-1 Zone view surface outcrop assay values looking north east imposed on photos 0.4 g/t 1.0 g/t 2.0 g/t Visible outcrop within red outline View 2 g/t looking surface north outcrop >900 east meters in surface
Slide 28: Crucero Gold Project
CRUCERO GOLD PROJECT: TSX: LPK TSX.V: LPK Peru: Peru:LPK LPK Germany: Germany:LQP LQP 28
Slide 29: Crucero Gold Project: Classic Orogenic Gold Structural Setting
CRUCERO GOLD PROJECT: CLASSIC OROGENIC GOLD STRUCTURAL SETTING EXPLORATION PLAN Detailed work along A1 A-7 structural corridor A-8 Extension along A-6 Limbani Monzanite Stock Northwest and A-1 Southeast of A1 A-5 LQP Germany:LQP A-3 Early fieldwork has LPK Germany: A-11 A-4 shown promising Ana
Slide 30: Crucero Gold Project: Exploration Strategy – A-1 Structural Corridor
CRUCERO GOLD PROJECT: EXPLORATION STRATEGY -- A-1 STRUCTURAL CORRIDOR TSX: LPK TSX.V: Peru:LPK LPK Peru: LQP Germany:LQP LPK Germany: 30
Slide 31: Josnitoro Gold Project: JV with Hochschild Mining PLC
JOSNITORO GOLD PROJECT: JV WITH HOCHSCHILD MINING PLC 600 km by road southeast of Lima Historical work has returned results of up to 7.74 g/t Au for chip samples and 33.6 g/t Au for trench samples Rotary drilling on LQP Germany:LQP the property totalling 2,856m LPK Peru: TSX: LPK TSX.V: LPK Ge
Slide 32: Josnitoro Gold Project: Classic Copper-Gold Porphyry Setting
JOSNITORO GOLD PROJECT CLASSIC COPPER-GOLD PORPHYRY SETTING Central copper skarn Disseminated gold outer halo Gold hosted in quartzite and sandstones Copper skarn mineralization is related to the calcareous formation and associated LQP with the diorite intrusion, Germany:LQP which presents t
Slide 33: Josnitoro Gold Project: Rio Alto's La Arena Project Comparable
JOSNITORO GOLD PROJECT RIO ALTO’S LA ARENA PROJECT COMPARABLE • Both Josnitoro and La Arena are each characterized by two different deposit types • Geochemical map showing targets beyond the porphyry Cu deposit. Minerals occur in disseminated gold hosted in sandstone and quartzite, and related to a
Slide 34: Josnitoro Gold Project: Hudbay Minerals' Constancia Project Comparable
JOSNITORO GOLD PROJECT HUDBAY MINERAL’S CONSTANCIA PROJECT COMPARABLE TSX: LPK TSX.V: Peru:LPK LPK Peru: LQP Germany:LQP LPK Germany: Source: Hudbay Minerals Inc. 34
Slide 35: LPK Germany: Germany: LQP
• More than 50 years operating experience with five mines in Latin America • Major precious metals producer, totalling 9.7 million silver equivalent ounces in H1 2013 • One of Peru’s most successful and established mining teams • Hochschild recognized Lupaka Gold’s strengths in exploration and commu
Slide 36: Josnitoro Gold Project: JV Summary Terms
JOSNITORO GOLD PROJECT JV SUMMARY TERMS -- INVESTMENT IN THE GROUND Lupaka Gold acts as project operator with the option to earn-in to 65% of the project within a 8-year period. In order to exercise the option, Lupaka Gold must: • Complete 10,000 meter diamond drill program • Complete a preliminary
Slide 37: Community Relations in Peru
COMMUNITY RELATIONS IN PERU Overview Peruvian professional staff History of successful permitting Permanent year-round local presence Building long-standing commitment to a sustainable community economy Company Initiatives Staff veterinarians LQP Germany:LQP Medical clinic at site LPK Ge
Slide 38: Management Team
MANAGEMENT TEAM EXPERIENCED, COMMITTED, FOCUSED MANAGEMENT Eric H. Edwards – President and CEO Geologist with over 25 years in the mining industry. Most recently served as CFO of Andean Resources (sold to Goldcorp in December 2010 for C$3.6 billion) and CEO of Ventura Gold Corp. (sold to Internation
Slide 39: Board of Directors
BOARD OF DIRECTORS CANADIAN AND PERUVIAN BUSINESS VISION AND EXPERIENCE BOARD OF DIRECTORS Eric H. Edwards – President and CEO Gordon Ellis (P.Eng, MBA) – Executive Chairman Mr. Ellis has been involved with the mining industry and resource development for over 40 years. He is a former owner/manager
Slide 40: Corporate Information
CORPORATE INFORMATION Capital Structure (as at December 31, 2014) Share Price $0.12 52 Week High / Low $0.25 / $0.07 Average Daily Volume (3 month) 70,000 Basic Shares Outstanding 92.5 million Warrants Outstanding (expire June 2014) 9.0 million Stock Options 9.2 million Fully Diluted Shares Outstand
Slide 41: Significant Milestones: Looking Forward to 2015
SIGNIFICANT MILESTONES LOOKING FORWARD TO 2015 OBJECTIVE TARGET Invicta final production licenses received Q1 2015 Invicta bulk sample mining Q2 2015 Potential toll process certification Q2 2015 Community agreement finalized Q2 2015 Road improvement work initiated Q2 2015 LQP Process option finalize
Slide 42: Lupaka Gold: Uniquely Positioned for Investment Upside
LUPAKA GOLD UNIQUELY POSITIONED FOR INVESTMENT UPSIDE • Near term production • Cash flow to fund exploration • Exploration partnerships • Cash balance • Strong Peruvian expertise TSX: LPK TSX.V: Peru:LPK LPK Peru: LQP Germany:LQP LPK Germany: 42
Slide 43: Investor Relations
INVESTOR RELATIONS Investor Relations Lupaka Gold Corp. Phone: 604-681-5900 Suite 220 – 800 West Pender Email: gold@lupakagold.com Vancouver, BC V6C 2V6 TSX: LPK TSX.V: Peru:LPK LPK Peru: LQP Germany:LQP LPK Germany: 43