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Peru

Invicta Project

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Overview

Mine TypeUnderground
StatusInactive / Suspended
Commodities
  • Gold
  • Silver
  • Copper
  • Lead
  • Zinc
Mining Method
  • Longhole open stoping
  • Sub-level stoping
Backfill type ... Lock
Mine Life... Lock
SnapshotThe mine site for the Invicta Project extended across the respective territories of two communities, the Rural Community of Santo Domingo de Apache and the Rural Community of Lacsanga, and bordered land belonging to Parán.

On 19 June 2018, Parán organised the armed invasion of the Invicta Project, causing the temporary suspension of operations until Parán withdrew from the premises.

On 14 October 2018, Parán sent men to the premises of the Invicta Project, forcing Lupaka’s personnel from the area and subsequently blocking access routes to the mine. The Blockade continued indefinitely and Lupaka was never able to regain access to the site.

At the time of the blockade in October 2018, Lupaka had materially completed development of the Invicta Mine and was close to commencing production.

Owners

SourceSource
CompanyInterestOwnership
Invicta Mining Corp S.A.C. 100 % Direct
October 1, 2012 - Lupaka Gold Corp. (Lupaka) acquired 100% of the Invicta Mining Corp. S.A.C (IMC), the owner of the Invicta project.

On October 14, 2018, the rural community of Paraná blocked access to the mine. The blockade continued indefinitely, and Lupaka was never able to regain access to the site.

Lupaka was unable to produce gold and generate resulting cash flows to enable it to fulfil its financial obligations to creditors, including its obligation to make monthly deliveries of gold to Pandion Mine Finance L.P. (Pandion) under a prepaid gold purchase agreemen twith PLI Huaura Holding L.P. (PLI), an investment vehicle controlled by Pandion.

In July 2019, Pandion transferred its interest in PLI to Lonely Mountain Resources S.A.C. (Lonely). Subsequently, Lonely initiated foreclosure proceedings which resulted in the seizure of Lupaka’s shares in IMC and, therefore, of Lupaka’s ownership of the Invicta Project.

Contractors

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Deposit type

  • Epithermal
  • Vein / narrow vein

Summary:

The Invicta Gold Project geology comprises mainly mafic volcanic rocks of the Calipuy group that overlie diorite, tonalite and granodiorite of the Paccho pluton, an intrusive suite that is part of the Huaura plutonic complex (Coastal batholith). Diorite and granodiorite of the Paccho intrusion are exposed in the southwest and western portions of the Invicta Gold Project. These generally comprise massive, weakly to moderately silicified rocks, with strong kaolinite, limonite and hematite altered rocks associated with mineralized zones.

Mineralized veins at the Invicta Gold Project have many of the characteristics of epithermal vein systems. Buenaventura Ingenieros S.A. (2010) concluded on the basis of fluid inclusions studies, which indicated multiple fluid populations and homogenization temperatures between 250 and 400 degrees Celsius, that mineralization at the Invicta Gold Project was mesothermal. However, field observations, including the style of veining, alteration, and the presence of open-space, vuggy textures are more in support of epithermal-style veining. The results obtained by Buenaventura Ingenieros S.A. (2010) may be explained by a depositional process controlled by fluid mixing and the cooling of the hydrothermal system associated with multiple stages of mineral deposition over a protracted period of time.

Mineralization
Mineralization is closely linked to the first stage of deformation, and occurs in three principal settings:
• Along the principal southeast- to east-southeast-striking, steeply-dipping strike-slip fault zones (e.g. Pucamina and Dany faults).
• Along northeast-striking, southeast-dipping normal faults that developed in extensional (dilational) settings linking the principal faults.
• Along left-stepping (dilational) and right-stepping (compressional) jogs or bends along the principal strike-slip faults.

In general, mineralization is characterized by the presence of quartz-pyrite-chalcopyrite-acanthitehematite bearing quartz veins with common crustiform, banded and cockade textures exhibiting distinctive vugs (Figure 9). The sulphide mineralogy comprises stringers and blebs of pyrite and chalcopyrite and pods of sphalerite and galena. Minor chalcocite, digenite, chalcopyrite and bornite are also reported with traces of tennantite. Petrographic studies conducted by Pangea and Invicta Mining Corp suggest that gold occurs as free grains in fractured quartz and pyrite. These characteristics are typical of epithermal vein systems. Mineralization is hosted dominantly by (sub-) volcanic mafic rocks of the Calipuy group.

At least three mineralized zones have been identified to date which are spatially associated with the Atenea, Pucamina and Dany faults.

The primary mineralized zone, in terms of the mineral resources stated in Section 12, is the Atenea vein. Lesser mineral resources are hosted by, or associated with, the Pucamina and Dany faults and include Ydalias, Dany and Pucamina zones.

Other quartz-sulphide vein zones (e.g. Juan, Manuel, Zone 3, and Zone 7) are exposed at the Invicta Gold Project. Limited trenching and minimal drilling has tested these zones and indicated that these vein zones also carry gold, copper and silver attesting to the further exploration potential of the area. SRK has not inspected these vein zones in detail. The presence of copper-rich quartz-sulphide veins may suggest a stage of mineralization and deformation that may pre-date the dominant gold-silvercopper mineralization. However, on the basis of information available to date, it can be surmised that the character and extent of these vein zones including their metal content, is not well constrained and requires further investigation.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsLOM
Gold Equivalent Payable metal oz 145,765
Gold Equivalent Metal in concentrate oz 184,708

Operational metrics

Metrics
Daily ore mining rate 319 t *
Daily milling capacity 355 t *
Ore tonnes mined, LOM 669,813 t *
Tonnes milled, LOM 0.67 Mt *
* According to 2018 study.

Production Costs

CommodityUnitsAverage
Cash costs Gold Equivalent USD 508 / oz *  
All-in sustaining costs (AISC) Gold Equivalent USD 575 / oz *  
Assumed price Lead USD 1.05 / lb *  
Assumed price Zinc USD 1.25 / lb *  
Assumed price Copper USD 3 / lb *  
Assumed price Silver USD 16.8 / oz *  
Assumed price Gold USD 1,300 / oz *  
* According to 2018 study / presentation.

Operating Costs

CurrencyAverage
UG mining costs ($/t mined) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2018 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
UG OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 25.2
Transportation (haulage) costs $M USD 33.6
G&A costs $M USD 8.5
Total OpEx $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 5% $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

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Aerial view:

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