Vancouver, B.C., May 28, 2018 – Chakana Copper Corp. (TSX-V: PERU; OTC: CHKKF; FWB: 1ZX) (the “Company” or “Chakana”), is pleased to announce assays from five 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 the drilling program that was initiated August 16, 2017, with the results of the first thirty-six drill holes released previously (see: www.chakanacopper.com). This Phase 1 drilling program is ongoing with a total of 14,700m in 55 holes drilled to date out of an original planned program of 16,660m and is ahead of schedule and under budget. The five holes were designed to explore the west and northwest contacts of Bx 1 from a central platform (Fig. 1).
“These latest results continue to highlight the high grade nature of Bx 1 from surface,” said President and CEO David Kelley. “All of the holes penetrate the upper supergene zone where copper is leached, but gold is retained. Beneath this, copper, gold and silver are strongly enriched in the primary zone with abundant visible chalcopyrite mineralization (Fig. 2). Holes 54 to 57 also penetrate a lower mineralized zone with copper grades in excess of 1.58%. In holes 56 and 57, the upper part of this zone is strongly mineralized with 22m of 2.96% Cu and 1.30 g/t Au, and 23m of 2.82% Cu and 1.10 g/t Au, respectively. Most of the mineralization occurs as matrix sulfides in either shingle or mosaic breccia, but hole 54 shows some very impressive massive and semi-massive sulfide zones dominated by chalcopyrite (Fig. 2). It’s also important to note that hole 34, drilled to the southwest from a step out platform 80 northeast of the central platform, intersected the southwest margin of the breccia pipe approximately 100 to 125m below the mineralized breccia zone in holes 54 to 57 and returned 71.4m of 1.53% Cu, 1.05 g/t Au and 81.7 g/t Ag from 317.6m, including a very high-grade margin zone with 34.4m of 2.84% Cu, 1.30 g/t Au and 89.3 g/t Ag from 354.6m (see news release dated February 22, 2018 at www.chakanacopper.com). Our drill program will continue to track this impressive mineralization to depth.” states Kelley.
New mineralized intervals from Breccia Pipe 1 are:
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* 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). Assays for zinc and lead are not used in the metal equivalent calculations.
The true widths of the mineralized intervals reported in this release are difficult to ascertain and additional drilling will be required to constrain the geometry of the mineralized zones.
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 Project, the potential to grow the 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 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 (above) – Plan and sections highlighting holes in this release. Light red 3D shapes based on Leapfrog model from all holes drilled by Chakana. Highlighted drill holes SDH18-053 to SDH18-057 show tourmaline breccia (red), andesitic wall rock (green), and other host rocks (other colors). Light grey traces show other holes drilled by Chakana projected onto section from 37.5m in front of and behind section.
Figure 2 – High grade intercepts from four of the five holes reported in this release showing different styles of mineralization in Bx 1: SDH18-053 classic shingle breccia with matrix sulfides, interval from 44.0-49.0 averages 3.37% Cu, 9.33 g/t Au, and 30.0 g/t Ag; SDH18-054 massive to semi-massive sulfides in tourmaline breccia, interval from 224.5-230.0 averages 4.90% Cu, 4.22 g/t Au, and 252.5 g/t Ag; SDH18-055 mosaic breccia with sulfides in matrix and partially replacing clasts, interval from 46.3-52.0 averages 1.99% Cu, 14.12 g/t Au, and 27.3 g/t Ag; SDH18-057 chaotic shingle breccia with matrix sulfides, interval from 53.0-59.0 averages 3.46% Cu, 10.39 g/t Au, and 30.4 g/t Ag.