Solely on the basis of the previously proven gold deposits and the cash balance is the "real" value of gold Lupaka share at 1.12 CAD (about 0.83 euros). At current price levels are shrewd investors with a potential rate of over 200%!
But that is only the beginning! Read the travelogue of our top experts from the gold mountains of Peru!
On 28 May 2013, we kicked off a team of commodity experts from Europe, to Peru. LAN Airlines went around Hergottsfrühe directly from Madrid to Lima. After a 11 hour flight and a smooth entry check was the obligatory medical check at Lupaka gold, as had to be checked if you ever coped with the trip to the Peruvian highlands health - after all, it went to over 4,300 meters! All persons received from the doctor "green light" and also some good advice - in addition to a high fluid intake is through the taste of coca tea (mate de coca) is very helpful.
We then drove to the local subsidiary of Lupaka gold in Centro Comercial El Polo Lima office (opposite the U.S. Embassy) - in my hand a health safety tests confirmation that I will definitely framing my home.
There we had the opportunity with local geologists and the CEO of Lupaka Gold, Eric H. Edwards to speak. After a comprehensive corporate presentation we received further information on the projects "Invicta" and "Crucero" based on extremely detailed geological maps.
Eric, the CEO of Lupaka gold, goodbye as usual here at lunch time, however, to meet with two new and influential board members who have recently strengthened the company. On a siesta obviously you did not pay too large value at Lupaka gold. This has surprised me positively.
Normally I would have just taken note, but when I heard who it is, I pricked up my ears, for it was the Lords Hernan Barreto and Jaime Pinto. Insiders are these gentlemen well known for a long time - I'll give you some background information at hand.
Hernan Barreto was in October 2007, Executive Chairman of Consorcio Peruano de Minerales, SA, a private mining and trading company based in Lima (Peru), the mining company advises on the development of gold and base metal projects and in the evaluation of mining operations.
This new board member with 35 years of business experience in the mining and energy industries. He has held various management positions in companies and has worked as a manager for listed and private companies throughout Peru and Latin America. Since March 2012, Mr. Barreto is director and secretary of the Peruvian Institute of Mining Technology (IIMP). He was also between March 2005 and March 2011 at the Executive Committee and Board of Directors of Ferreyros, a Peruvian industrial group represented.
Jaime Pinto is since 1982 in the Law and in October 2010 the main partner in the law firm Pinto & Abogados in Lima (Peru). From August 2008 to September 2010 he was a partner at Lema, Solari & Santiváñez, a law firm in Lima, where he was responsible among other things, corporate finance, privatization and licensing system.
He was also a board member of several companies earlier with reference to the mining and energy sector, and is currently Chairman of Mantaro Peru SA, which have a large phosphate concession area.
Between 2001 and 2007, Jaime Pinto was also the representative of the Ministry of Finance of Peru in the Board of Executive Directors of the Inter-American Development Bank (IDB), headquartered in Washington, DC!
Lupaka Gold - The # 1 in Peru
These two personalities in the board wins gold Lupaka significantly to the right vitamins and therefore has - in my opinion - especially in the company of the present period of strong growth, a not inconsiderable advantage over other Peruvian competitors. I am thinking primarily of the beneficial Lupaka network Pintos from his Washington time.
Here it is important to know that there is currently a lot of promising projects in Peru, which will be on sale date because the previous owners simply the money has gone. Due to its excellent political contacts Lupaka Gold now has the opportunity to "pick the raisins out of the cake" itself.
But back to the topic. After lunch we drove on through the jeeps - for us Europeans - acting totally insane traffic Limas another 150 kilometers to the north of the city of Huacho. With the first ray of sunshine, we went along with Terry Murphy, the competent geologists for several hours distant Invicta project in 3,750 meters altitude.
The Invicta Project is a vast 30,000 hectares of open area. The previously proven gold deposits in the amount of 1.2 million ounces is located in an area of ??just 600 acres. These are just 2 percent of the entire property! Was made in October 2012 by the acquisition of Andean American Gold is gold Lupaka secured 100 percent absolute top in this project, which formerly belonged to Barrick Gold.
In the current year the exploration potential of the remaining area to be examined. In addition, management of Lupaka Gold is currently exploring options with regard to the conclusion of a joint venture agreement or even a complete sale if the price is right.
During my trip's specific interest of 6-7 companies in this advanced project from various sources was confirmed to me. It should be predominately financially strong companies who are familiar with the local situation well and could go into production within 2-3 years!
Why do these companies show interest right now and not before, when the project was still part of Andean American Gold?
Peruvian mining companies have no interest in listed companies, such as Andean American Gold to buy if they only have one main project and an official takeover offer for such companies would be inevitable. For these companies, the acquisition of a single project is much more attractive and much smaller, also of the transaction costs. Because of the interest in Invicta is currently so massive.
I see the potential not only a very short production startes, but due to a variety of first-class drill targets also a very high probability to a significant increase in the gold deposit.
After my conversations locally, I am convinced that with a transaction with regard to Invicta, either in the form of a complete sale or a joint venture can be expected in the next 2-3 months. A complete sales could even flush so much money in the till, how the company is currently in the stock market on the scale! However, I would prefer a joint venture in which a financially strong partner brings the Invicta project in production and Lupaka gold reserves a percentage of profits. That would be a win-win situation for all involved.
In any case, one should - of whatever type - transaction, be it a joint venture or a sale, a significant positive impact on the share price of Lupaka gold, because there will only be a deal that brings the shareholders to shine. Finally, management of Lupaka Gold has no financial pressure.
After a day of physical deserved rest we took our next target in attack: the Crucero project. From Lima we flew with the first machine in the early morning to Juliaca, a working-class town in southern Peru, the above sea level on the Altiplano, an endorheic plateau, located 3,825 meters.
Because a stopover in Arequipa the flight lasted about three hours. Afterwards we took the Jeep to a surprisingly good road about 100 kilometers towards the small town of Crucero, in just a street festival was celebrated. In the local office of the local subsidiary of Lupaka gold we had the opportunity to take together with the chief geologist, Julio Castaneda impressive drill core and detailed maps inspected.
Well rested, we then put the remaining 45 kilometers to the main project Crucero, which is located in a very well defined gold belt in the middle. I hoped to the end that it does not affect me, but at an altitude of around 4,300 meters stronger headaches were felt to me. Self-shortest paths, which we put back on foot, were an extreme effort due to the low oxygen content in the air.
But to return to the Crucero project: here eleven promising anomalies have been identified! Only the "A-1 zone" includes approximately 23,000 meters of drilling on the basis of already 2.2 million ounces of gold. The drilling efficiency is particularly high because of the detailed preparatory work and is about 100 ounces per meter drill. The boundaries of the near-surface A 1-occurrence were still had to be reached by the way to the north and at depth.
After our site visit I'm firmly believe that it is reasonable under just the tip of the iceberg with the 2.2 million ounces! By that I mean that Lupaka Gold has not only discovered a new gold deposits, but a huge gold district!
Where you see the blue color on the map, are heavily mineralized zones. Lupaka Gold has performed a detailed ground magnetic exploration, with particularly large anomalies (A-3, A-4 and A-5) were identified in the Chaska area. Each of these new anomalies is at least twice as large as the "tiny" A-1 zone, in which 2.2 million ounces gold already been proven!
It was particularly impressive that the gold mineralization is located in the A-1 zone directly on the surface - that is, it must be removed no overburden to get to the gold. Sometimes even in so-called outcrops (outcrops) takes the gold mineralization days. The highest gold concentration is a large area just below the surface - a unique constellation!
The Crucero property-with their wide and shallow valleys is easily accessible by road, with the last 20 kilometers were a very bumpy affair. As locals to work on the project, is also not a problem altitude sickness in Peru by the way is a producing mine, which lies at an altitude of 5,200 meters - in Europe unimaginable reality in Peru.
Before our trip I had the opportunity to Juliaca my raging headache successfully fight with a can of "mate de coca" - more than 4,000 meters in altitude in one day but then were too much for my body. The tip of the medical check thus proved to be extremely helpful.
In addition, we could still meet with the mayor of the small town of Crucero and convince us of the strong community support for the activities of Lupaka gold. This was important insofar as the municipality owns the surface rights to the Crucero project.
Due to this, a team of Lupaka gold locally continuous care of a good partnership for the community. Thanks Lupaka gold, there are now medical care locally and beyond, more than 2,000 children were treated in a dental hygiene campaign. Finally helps Lupaka gold in modernizing the infrastructure.
The next day we flew back to Lima and still had the opportunity to visit a pre-Inca temple. For further sightseeing unfortunately we had no time.
At the end of the Peru trip, we were all in agreement that it at Crucero is a monster project, which has the great potential to at least 10 million ounces to 15 million ounces include more or even 20 million ounces of gold.
Not only Lupaka Gold has impressed me - also the nature with its impressive mountain ranges, the getting used to, but very good food and other types of wildlife have left a lasting impression - is clear: I will definitely return to this exciting country.
Hasta la vista - Goodbye!
CONCLUSIONS: At present, the share of Lupaka Goldcorp. (WKN: A1JCNV) valued at less than 5.00 CAD per ounce in the ground. We see a fair, but also very conservative rating at 25.00 CAD per ounce in the ground. Based on the already proven gold deposits under consideration of approximately 85 million shares outstanding, we see the short-term price target of Lupaka Gold shares at 1.12 CAD or EUR 0.83 (exchange rate EUR / CAD 1,354).
We have left the high cash balance and participation in Southern Legacy Minerals Inc., which owns the copper-gold deposit in central Peru AntaKori will not qualify. The property adjoins AntaKori-Buenaventura's Tantahuatay gold mine and is located approximately 30 miles from Newmont's Yanacocha gold project away. Thus, there is a very high probability of takeover, which would flush a lot of cash in the till Lupaka gold.
At 10 million ounces of the Crucero project would correspond to a conservative estimate of 250 million CAD??. The value of the Invicta project, we appraise based on the above valuation basis to approximately $ 30 million.
In the medium term Lupaka gold stock has a an excellent opportunity to increase tenfold - that would be a classic Tenbagger. We see the medium-term price target based on a valuation of 280 million CAD ??at 3.29 CAD or EUR 2.43 per share.
In the second half of the year Lupaka Gold perform an extensive exploration program to identify the best targets for the next drilling campaign. In addition, gold Lupaka looking actively for new projects in Peru and is expected in the third quarter report execution! In our opinion, among other things, a small gold mine, which has a significant potential for expansion and cash flow would be generated, an ideal addition.
Lupaka Gold is the raw stock that is currently offering our readers the best reward ratio and a high upside potential. The currently ongoing roadshow in Europe should guarantee a strong interest in the Lupaka Gold share. The timing for entry could therefore not be better.
Lie urgently Lupaka Gold shares (ISIN: A1JCNV) to the depot. The short-term upside potential of over 200%. Medium term, even a tenfold increase in the price in the realm of possibility. The stock can be best traded in Stuttgart and XETRA.
Sincerely,
Your editorial Profiteer
Image sources: www.lupakagold.com, www.beprofiteer.com