Peruvian Gold
Southeast Peru

History


The documented history of exploration of the Property began in 1996 when CEDIMIN first began exploring here. Between 1996 and 2003, CEDIMIN carried out the following activities:

• Regional stream sediment sampling;
• Topographic and geological mapping at 1:10,000 (2,400 Ha) and 1:1,000 scales (80 Ha);
• Road construction (eight Km);
• Channel sampling of the A-1 Zone (2,700 linear meters in 22 trenches to produce 630 channel samples );
• Magnetic (13.8 line Km) and Induced Polarization (14 line Km) surveys;
• Core drilling in seven holes with an aggregate length of 1,767 meters (A-1 Zone);
• Metallurgical testing of core samples.

The geophysical programs identified a number of anomalies that were named A-1 through A-6. (Figure 6.1) The A-1 Anomaly became the focus of most subsequent exploration activity.

The trenches tested the A-1 Zone and were dug or cut at approximately 50-meter intervals across the trend of the mineralization and most were located within the 500-meter long main portion of the zone, although a small number were dug elsewhere to test the trend along strike or laterally. Sampling was continuous along each trench and the sample results effectively outline the limits of mineralization on surface. Analytical results ranged from a minimum of zero to a maximum of 27.9 g/t gold; the average for all trench samples was 0.55 g/t gold; 102 of the 630 assay values were greater than 1.0 g/t gold. Contoured gold grades from trench samples are shown in Figure 6.2.

The seven holes drilled by CEDIMIN (CR-01 to CR-07) tested the southern half of the A-1 Zone. A total of 1,173 samples were assayed. Values ranged from zero to a maximum of 13.9 g/t gold; the average was 0.55 g/t gold.

These programs were successful in identifying the A-1 Zone and in determining its general configuration and size, both on surface and underground. The metallurgical test program confirmed that the contained gold is amenable to conventional extraction.

In 2009 Lupaka's Peruvian corporate entity assumed control of the Property and during 2009 carried out:

• 36 line kilometers of magnetic surveying;
• Geological mapping (600 Ha);
• Core drilling in 11 holes with an aggregate length of 3,621 meters (A-1 Zone).

The various exploration programs provided more information with respect to the subsurface distribution of gold mineralization in the A-1 Zone but the magnetic survey, which extended beyond the limits of the A-1 Zone, also demonstrated the possible existence of similar mineralization to the east of the A-1 Zone. The 11 holes (DDH-01 to DDH-11) drilled in 2009 resulted in 890 assays. Values ranged from zero to a maximum of 1,075 g/t gold with an average for all samples of 2.1 g/t gold. The second-highest value was 34.9 g/t gold and the average of the population, with the single extreme value removed, is 0.87 g/t gold.
In early 2010, Lupaka Gold Corp. acquired a 60% interest in the Peruvian corporate entity that own 100% of the Property.

Lupaka set forth the following activities:

• Drilled six holes in early 2010 as part of the due diligence
• Initial NI 43-101 resource completed in July 2010
• Twelve additional holes in late 2010
• Updated NI 43-101 completed in February 2011