Just want to clarify that Lupaka Gold’s current resource is 1,145,000 indicated ozs Au and 647k oz Au inferred. And that is with having drilled only 15,000m to date.

Apparently before Victor Jaramillo left (it was April btw) he wrote an internal report for Lupaka where he concurred with their interpretation of the prospectivity of the other 10 prospect zones and their program for this year. The guy is an important Peru geologist so it’s good outside confirmation of Lupaka’s prospectivity I think.

Not such an early stage, really! They have 1Moz right now; they drill 3 targets this year, out of the 10 they’ve identified. If 1-2 of those 3 targets shows a good long intercept comparable to the first, then not only can you assume a doubling or tripling of the resource across those zones, you can assume they’ll hit more intercepts in the remaining 7 zones in 2013 – and all of a sudden you have the possibility of a 5-10Moz property.

I suspect the significance of that is if you only have 1Moz, the fixed capex costs (hydro, road, water) to start production way up in the mountains will be quite large. But the marginal increase in capex when you double or triple the resource will be minor.

So the question you want to ask yourself is, will they hit anything at all in those other 2-3 zones this year? The first zone had gold sure, but I’m under the impression it is outcropped so it was easy to prove it was worth drilling before it ever got drilled.

Who knows… I like Lupaka.