Lupaka Gold has started underground mining at its wholly owned Invicta Gold Project in Lima, Peru, after completion of mobilisation and setup by country based underground mining contractor PLH SAC.

The contractor also started underground drilling and blasting, and will begin development of safety and ventilation infrastructure upon completing mining for process testing.

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Initially, the company plans to mine and transport up to 400t from the site through Haulage contractor Minera Lucero to a local toll process plant for bulk testing.

"Initially, the company plans to mine and transport up to 400t from the site through Haulage contractor Minera Lucero to a local toll process plant for bulk testing."

Minera Lucero will also improve and upgrade the Invicta access roads to accommodate 15t haul trucks.

Lupaka Gold contracted Peru’s Procesadora Leslie Semanco (PLS) to process the Invicta bulk sample to demonstrate recovery, capacity and cost performance.

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At its Invicta Gold Project, comprising a poly-metallic resource of mainly gold, mining operations will initially target some of the highest grade gold and copper mineralisation within the Atenea Vein.

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Starting July 2015, PLS will provide a minimum of 100t per day (tpd) of process capacity for the project, with further plans to construct an extra process line for milling Invicta material.

In order to secure additional milling capacity, Lupaka Gold has also identified additional permitted process plants that are at proximity to the Invicta minesite with which it is holding negotiations.

Lupaka Gold president and CEO Eric Edwards said: "The company is working on two process fronts. Firstly to secure tolling capacity that performs well and is immediately available to support start-up of the Invicta operation, and secondly to acquire our own permitted plant and optimise it for Invicta material."