Lupaka Gold (LPK.V) has already mined 900 tonnes from the footwall side of the drift. In our report last week we said we wouldn’t be surprised to see an average grade higher than the official resource estimate which contains 131,000 tonnes of ore in the Atenea vein at 6.65 g/t AuEq.
The results of the sampling program conducted by Lupaka Gold was very surprising as the average grade of the samples was a stunning 14.6 g/t gold, in excess of 5 ounces of silver per tonne of rock as well as 2.4% copper and 2.9% Zn+Pb. As the sampling program consisted of 48 samples we can exclude the possibility the results were a ‘lucky shot’. Even though investors shouldn’t count on this result being repeated throughout the entire production process, it definitely is a nice advantage to mill ore with an average grade of 0.7 gold-equivalent ounces per tonne of rock.
This also results in the fact we will have to upgrade our revenue expectations from this batch of ore as it wouldn’t be unreasonable to expect a cash inflow of at least a quarter of a million dollar after the 900 tonnes will have been processed at Lupaka’s toll mill.
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Disclosure: The author holds a long position in Lupaka Gold. Lupaka is a sponsor of the website. Please see our disclaimer for current positions.
