Friday, March 16, 2018 Derek Macpherson

LPK Sampling Program Confirms Grades & Continuity

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Lupaka Gold Corp. (TSXV:LPK) completed an underground sampling program, reporting similar and higher grades than outlined in the company’s recently announced PEA for its Invicta project. Sampling targeted the 3400 Level Atenea Vein, with average results returning 9.86 g/t AuEq over 130m (width 6.1m), in the footwall vein and 7.00 g/t AuEq over 70m (width 6.0m) in the hanging wall vein split. Therefore, with a combined width of 12m, the Invicta deposit extends for over 130m along strike on the 3400 level, which is expected to be accessible once the mine is operational later this year. The purpose of the sampling program was to compliment past sampling work (2014), results have provided additional confidence in continuity of the mineralized system, including further affirmation of grades. The company has recently released a PEA for its Invicta project forming the basis of our valuation of Lupaka, which is a NAVPS10% of C$0.55 assuming a 350tpd operation. We believe that first production, expected in H2 2018 is going to be the next key re-rating catalyst for Lupaka. read more

Monday, March 05, 2018 Derek Macpherson

LPK PEA Confirms View; Provides Upside to Previous Estimates

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Lupaka Gold Corp (TSXV:LPK) released an updated resource estimate and PEA for its Invicta project in Peru, which was better than we expected after our recent site visit. As a result of higher than expected grades, higher than expected overall tonnes, our base case 350 tpd 10% NAVPS has increased to $0.55 (Figure 1 - was $0.34). While this is only a PEA, Lupaka is funded to production and is already building the mine, which suggests to us that this company is poised to quickly close the valuation gap to peers (0.44x base case NAV, peers 0.56x). We believe that first production, expected in H2 2018 is going to be the next key re-rating catalyst for Lupaka. read more

Thursday, March 01, 2018 Derek Macpherson

RCKS Charts: SLL & LPK

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In this edition of RCKS Charts, Keith has evaluated Standard Lithium Ltd. (TSXV:SLL) and Lupaka Gold Corp. (TSXV:LPK). We remain constructive towards metals, mining and exploration stocks looking forward in the coming months. Near term there is conflict within the investment community regarding the outlook for US interest rates and the dollar which is resulting in a more defensive posture by investors. Technically this is visible by the reduced volumes across many names. However, pockets of accumulation are surfacing and, in addition to the four names highlighted last week, we add two other names which look interesting. read more

Tuesday, February 27, 2018 Derek Macpherson

RCKS 6th Annual Pre-PDAC Mining Showcase Presenter Preview

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On Friday, March 2, 2018, Red Cloud Klondike Strike Inc. will be hosting its 6th Annual Pre-PDAC Mining Showcase. The event features presentations from 30 companies, including a breakfast panel focused on new technology in mining and a keynote lunch presentation from Osisko Mining Inc. (TSX:OSK), SolGold Plc. (TSX:SOLG) and Ascot Resources Ltd. (TSXV:AOT). For more details, please visit our events page. In this post, we provide a brief preview on the 30 presenting companies and a list of banner participants that will be in attendance.  read more

Tuesday, February 13, 2018 Derek Macpherson

Lupaka Secures Funding to put Invicta into Production

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Lupaka Gold Corp. (TSXV:LPK) has reported that it has secured the necessary funding required for the rehabilitation, preparation and development work at the Invicta Gold Development Project, which the company hopes to advance towards production in H2 2018. The company received $2.5M in proceeds from Tranche 3 of the total $7M Pre-Paid Forward Gold Purchase Agreement with PLI Huaura Holdings LP, as well as approximately $3M from the sale of 3.1M shares in GoldMining Inc. (TSXV:GOLD). The company is now well-funded with a cash balance of $7.6M and 400,000 free trading shares of GoldMininig Inc. This puts the company in a great position to execute on its plans for the Invicta project this year and unlock the value we highlighted in our recent site visit note. A PEA has been initiated for Invicta and is on track to be completed in Q1 2018, which is another step towards beginning potential production in H2 2018.  read more

Tuesday, February 13, 2018 Derek Macpherson

RCKS Charts: LPK & ANX

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In this edition of RCKS Charts, Keith has evaluated Lupaka Gold Corp. (TSXV:LPK) and Anaconda Mining Inc. (TSX:ANX). After recently visiting Lupaka’s polymetallic Invicta project and reporting our initial estimates for Anaconda, we asked Keith to provide technical analysis on these names, that we have a fundamentally positive view. read more

Sunday, February 11, 2018 Derek Macpherson

Lupaka Site Visit: Ready, Set, Grow

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Our recent site visit to Lupaka Gold Corp’s (TSXV:LPK) polymetallic Invicta project suggests that the market has mispriced, both the near-term production potential and the likely stepwise growth. Based on this growth potential, we believe a fair 10% NAVPS estimate for Lupaka is C$0.79 (5% NAVPS of C$0.97) and that the company, should be able to demonstrate this potential to the market over the next 18 months. We note that this estimate is underpinned by a 10% NAVPS, base case estimate of C$0.34. The difference between the likely case and base case is an expansion from 350 tpd to 500 tpd in 2020, and 25% mineable resource growth. We believe the stock does not fully reflect our base case view given that a technical report outlining economics for the project won’t be released until later this year. The company is a mere few months away from production and is currently rehabbing and installing the necessary infrastructure, upgrading the mine access road, creating an operations team, evaluating toll milling alternatives and negotiating an offtake agreement. Two 4.2-yard PLH Scoops have arrived on site along with a single boom drill jumbo in preparation of accelerated development and stope preparation. Upgrading the site access road is approximately three months away from being completed to accommodate the larger production profile considered in our likely case. We believe the company is taking the appropriate steps to demonstrate the potential that we see, through expanded production and drilling. Part of this process is evaluating slashing the existing access adit to 4.5x4.0 metre which would help improve operating efficiency; lower operating costs and improve the ability to ramp up production to a higher rate. We expect a number of catalysts over the next two years, which should demonstrate the potential we see, in the near-term, we believe additional funding from Pandion and marketable security sales (~US$7 million), an updated technical report highlighting project economics, an off-take agreement and initial production.   read more

Monday, January 22, 2018 Derek Macpherson

Lupaka Continues to Make Progress at Invicta

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Lupaka Gold Corp. (TSXV:LPK) provided an update regarding operational advancements at its Invicta Gold development project. Rehabilitation, preparation and development work has started and is expected to be completed mid-2018, mobilization is expected to be completed in 2-3 weeks. Road construction is ~20% complete after a brief break over the holidays. Development activities continue to progress with the goal of beginning potential production in the second half of 2018. The PEA remains on schedule for Q1 2018, which should be an important catalyst for the company in the near-term. read more


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