Share in Lupaka Gold Corp (CVE:LPK) shone bright on Tuesday after the Canadian miner took another step towards production at its Invicta gold project in Peru.
Lupaka has received the third and final US$2.5mln tranche from its pre-paid forward gold purchase agreement with PLI Huara.
Production targeted in H2
All of that will help to fund the rehabilitation, preparation and development work at Invicta which is already underway and on track to be completed within the next four months.
“With a consolidated cash balance of approximately US$7.6 million, along with 400,000 free trading shares of GoldMining, the company remains well funded to deliver on its objectives of advancing the Invicta Gold Development Project towards potential production in the second half of 2018,” said president and chief executive Will Ansley.
PEA on track for H1 completion
Previous developers at Invicta - which has a measured and indicated resource of 600,000 ounces of gold along with copper, lead and zinc credits - spent US$15mln on the mine’s development and infrastructure.
Lupaka will make the most of that previous work at the project and there is already a mining contractor in place.
But the firm is also exploring new areas at Invicta to see if there is more gold and a preliminary economic assessment which will be used as a basis for additional development is on course to be completed in the current quarter.
Lupaka shares were up 8.1% to C$0.20 on Tuesday afternoon.