Metals is plea d on its Zulem -line kilomet arget selectio tive, delineat Reduced to ysical Prog 6, 2018 Chi B: CMETF, S ased to annou n ma IOCG Proj ters of data w
Ne ew Geophy ysical Prog gram Ident tifies 4 Add ditional La arge Priorit ty Targets , Chile At Zulem ma Project,
Toronto, ON. Feb. 6, 2018 Chi ilean Metals Inc. (“Chile ean Metals,” “CMX” or the “Company”) (TSX.V:C CMX, OTCQB B: CMETF, S SSE:CMX, M MILA: CMX).
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Chilean M Metals is plea ased to announ nce the result ts of a proper rty wide 10 s sq kms ground magnetic su urvey d by Southern conducted d on its Zulem ma IOCG Proj ject south of C Copiapo, Chi ile. Conducted nRock Geoph hysics S.A., 242-line kilomet ters of data w was collected along 55 nor rth – south su urvey line seg gments in ord der to assist in ta arget selectio on prior to the e Company’s planned Phas se II drill program. The results of the su urvey w up in 2018.
were positive, delineating 4 key targ get areas for d detailed follow
Figure 1. Reduced to Pole Magnet tics and Zule ema Targets
The Zulema project is located along the Atacama Fault system 35 kilometers south of Copiapo Chile and 30 kilometers south west of Lundin Mining’s Candelaria mine. In 2017, diamond drilling encountered IOCG style mineralization in numerous drill holes, the best intersections located along the west flank of an extensive Reduced to Pole magnetic anomaly. With copper mineralization identified on both the northern and southern project boundaries, Santa Candelaria and Mina Restauradora respectively, a phase 2 drilling program was warranted. Following consultation with industry partners, the Company proceeded with project wide ground-based geophysics, commencing with magnetics and to be followed by gravity and deep penetrating I.P. over select targets.
The magnetic survey delineated a 2km. wide corridor trending northeast from the southern margin of the survey area north to the Santa Candelaria workings as shown in Figure 1. A preliminary review of the data indicates there are 4 target areas that require detailed follow-up. From north to south, the targets are Santa Candelaria West, the West Flank, SW Magnetic High and SSE / DDH#1.
The Santa Candelaria target lies due west of the Santa Candelaria mine workings where Cu mineralization is characterized by chalcopyrite disseminations and veins within a magnetite / hematite calcsilicate skarn. Exposure is relatively abundant west of the workings and will be investigated prior to prior to the commencement of a gravity survey.
The West Flank of the magnetic corridor is a priority target due to the style of mineralization encountered in drill hole #5 where coarse-grained chalcopyrite was noted at depth. Elevated magnetics northwest of Drill hole #5 in addition to a large peak along the western edge of the corridor are priority targets.
In the western portion of the project, the SW Magnetic Target is easily identifiable and located due east of a copper showing and along a NW trending lineament. The target is covered by alluvial material and will require additional ground geophysics and processing to resolve its potential.
To the southeast of drill hole #1, a magnetic high has been identified along the eastern edge of the magnetic corridor. This target is along the eastern edge of a copper bearing hydrothermal breccia that was drilled in 2017. Its location along a very sharp magnetic boundary at an interpreted intersection of the same NW trending lineament crosscutting the SW Magnetic Target makes it a priority.
Gary Lohman, P. Geo & VP of Exploration stated “We are very fortunate to have engaged Southern Rock Geophysics. Their experience with IOCG exploration, specifically at Lundin Mining’s Candelaria Mine, is a great asset and has advanced understanding of the Zulema Project. Chilean Metals looks forward to Stage 2 of our Program”.
About Chilean Metals,
www.chileanmetals.com/
Chilean Metals Inc. is a Canadian Junior Exploration Company focusing on high potential Copper Gold prospects in Chile & Canada.
Chilean Metals Inc is 100% owner of five properties comprising over 50,000 acres strategically located in the prolific IOCG (“Iron oxide-copper-gold”) belt of northern Chile. It also owns a 3% NSR royalty interest on any future production from the Copaquire Cu-Mo deposit, recently sold to a subsidiary of Teck Resources Inc. (“Teck”). Under the terms of the sale agreement, Teck has
| the right | to acquire | one third of | the 3% NS | R for $3 mil | lion dollars | at any time | . The Copa | quire |
| property | borders Tec | k’s produci | ng Quebrada | Blanca cop | per mine in | Chile’s Firs | t Region. |
| Chilean | Metals Inc | is the 100 | % owner of | four Copp | er Gold exp | loration pr | operties in | Nova |
|---|---|---|---|---|---|---|---|---|
| Scotia o | n the west | ern flank o | f the Cobe | quid-Cheda | bucto Fault | Zone (CC | FZ); Fox R | iver, |
| Parrsbor | o, Lynn and | Bass Rive | r North res | pectively. In | itial targeti | ng and geo | physics has | been |
| conducte | d on all pro | perties, At | Bass River N | orth, airbor | ne geophys | ics identifie | d a major V | TEM |
| cluster o | n trend wit | h the Pb/Zn | /Ag mineral | ization exp | osed at surf | ace and in | drill holes t | o the |
| southwe | st. Modeling | of the airb | orne data b | y Minotaur | (Australia) | identified | 3 priority ta | rgets |
| recomme | nded for gr | ound-based | geophysics | prior to drill | ing. |
| TORS OF | ||||
| ON BEH | ALF OF T | HE BOARD | OF DIREC | TORS OF |
| Chilean | Metals Inc. | k” | com | |
| “Patrick | Cruickshan | k” | ||
| Patrick C | ruickshank, | CEO | ||
| Contact: | patrick@ch | ileanmetals. | com |
The Qualified Person n for Chilean n Metals Inc c., as defined d by Nationa al Instrumen nt 43-101, is Gary Lohman, P. Geo., Vice President t, Exploratio on.
Forward- -looking Sta atements: Th his news re elease may contain cert tain stateme ents that ma ay be ments". All statements i deemed "forward-loo oking statem in this relea ase, other th han statemen nts of historical l fact, that address eve ents or developments th hat CMX ex xpects to oc ccur, are for rward storical facts and looking s statements. F Forward-loo oking statem ments are sta atements tha at are not his are gene erally, but not always s, identified d by the w words "expe ects", "plans s", "anticipa ates", "believes s", "intends"
", "estimates", "projects"
", "potential" and simila ar expression ns, or that e events tions "will", "would", "m or condit may", "could d" or "shoul ld" occur. Fo orward-look king statemen nts in this docu ument includ de statement ts regarding g current and d future exp ploration pro ograms, activities and resu ults. Although CMX b believes the e expectations expresse ed in such forward-loo oking statemen nts are based d on reasona able assump ptions, such statements are not gua arantees of f future performa ance and act tual results m may differ m materially fro om those in forward-loo oking statem ments. Factors t that could c cause the actual results to differ m materially fro om those in forward-loo oking oration success, continued availabili statemen nts include m market prices s, exploitatio on and explo ity of capital a and financin ng, inability to obtain r required reg gulatory or g governmenta al approvals s and general economic, market or business co onditions. I Investors ar re cautioned d that any such statemen nts are not g guarantees o of future per rformance a and actual results or de evelopments may differ ma aterially from m those proje ected in the forward-look king stateme ents.
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