Vancouver, B.C., June 26, 2018 – Chakana Copper Corp. (TSX-V: PERU; OTC: CHKKF; FWB: 1ZX) (the “Company” or “Chakana”), is pleased to announce assays from thirteen additional holes in Breccia Pipe 1 (Bx 1) at its Soledad copper-gold-silver project in central Peru, optioned from Condor Resources Inc. The Soledad project (the “Project”) is located 35 km south of the Pierina mine in the prolific Miocene metallogenic belt of Peru. These results are a successful continuation of what has become a definition drilling program that was initiated August 16, 2017, with the results of the first forty-one (41) drill holes released previously (see: www.chakanacopper.com). This Phase 1 drilling program is ongoing with a total of 17,590m in sixty-three (63) holes drilled to date out of an original planned program of 16,660m, the results of which will be suitable for future resource estimates. The original Phase 1 drill program was expanded due to the discovery of a blind breccia body immediately north of the exposed main breccia pipe. Four of the holes reported here were designed to explore the main breccia pipe (Main Zone) and nine holes were designed to explore the blind breccia body (North Zone) of Bx 1 from a central platform (Fig. 1).
“The drill holes in the main zone were successful in extending the mineralization deeper while also demonstrating continued high grades,” said President and CEO David Kelley. “Hole 59 is particularly interesting as it has 233m of 0.85% Cu, 1.36 g/t Au, and 57.2 g/t Ag (2.24% Cu_eq) from surface, then penetrates 74m of 0.43% Cu, 0.43 g/t Au, and 47.5 g/t Ag (1.12% Cu_eq) from 253m that we interpret as being part of the North Zone (Figs. 1 and 2). The discovery of the North Zone is attributed to hole 25 (see January 31, 2018 news release) which we intentionally drilled well beyond the Main Zone. That hole hit 13m of breccia about 50m north of the Main Zone with a grade of 2.41% Cu, 3.57 g/t Au, and 892.5 g/t Ag (12.37% Cu_eq). Hole 62 was designed to test approximately 30m beneath this zone and returned 83.1m of 0.85% Cu, 0.51 g/t Au, and 166.8 g/t Ag (2.62% Cu_eq) from 104.9m. Hole 63 was drilled above hole 25 without intersecting breccia from the North Zone, confirming the blind nature of the breccia body. This is highly relevant as it confirms that we are seeing the uppermost part of the breccia pipes, some of which have been exposed by weathering, and others that may not have been. Our mapping to date has identified eleven (11) strongly altered zones with sheeted quartz-sericite-tourmaline veining that we think may represent surface expression of blind other blind pipes. This is in addition to the nine confirmed pipes mapped at surface (see May 23, 2018 news release)”, states Kelley.
New mineralized intervals from Breccia Pipe 1 are:
|Main Zone Targeted Holes|
|DDH #||Az||Dip||From - To
|North Zone Targeted Holes|
* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu_eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au_eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).
Reported mineralized intervals are not true widths given the vertical nature of the breccia pipe and the steep inclination of the holes.
Sampling and Analytical Procedures
Chakana follows rigorous sampling and analytical protocols that meet industry standards. Samples for assay are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Samples are processed under the control of ALS with the samples including certified reference materials, a coarse and finely-crushed blank and duplicates samples. All samples are analyzed using the ME-MS41 procedure in order to obtain a comprehensive multi-element overview of the geochemistry. Gold is analyzed by ME-MS41 (considered to be least reliable), AA24 (higher precision) and GRA22 when values exceed 10 g/t. Over limit silver, copper, lead and zinc is analyzed using the OG-46 procedures.
Additional information concerning the Project is available in a technical report prepared in accordance with National Instrument 43-101 made available on Chakana’s SEDAR profile at www.sedar.com.
David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.
ON BEHALF OF THE BOARD
(signed) “David Kelley”
President and CEO
For further information contact:
Michelle Borromeo, Manager – Corporate Communications
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Soledad Project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief about the unexplored parts of the Soledad Project. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward- looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
Figure 1 – Section looking west showing the Main and North Breccia bodies at Bx 1 highlighting holes in this release. Light red 3D shapes based on Leapfrog model of breccia from all holes drilled by Chakana. Highlighted drill holes show tourmaline breccia (red), andesitic wall rock (green), and other host rocks (other colors). Section includes data from 50m in front of and behind section.
Figure 2 – Mineralized intercepts from four holes discussed in this release showing different styles of mineralization in Bx 1: A) SDH17-025 high grade intercept now considered the discovery hole of the North Zone (see January 31, 2018 news release); B) SDH18-058 high grade mineralization from the Main Zone; C) SDH18-059 dense tourmaline-cemented breccia with abundant chalcopyrite from the North Zone; D) SDH18-064 high grade shingle breccia with abundant chalcopyrite and reddish-brown sphalerite.