#01-2023 OTCQB: Chkkf Fra: 1ZX Chakana Prepares to Drill the MEGA-GOLD and LA Joya Hse Targets and Advances Drill Permit - Soledad Project, PERU
NEWS RELEASE
For Immediate Release TSX-V: PERU
#01-2023 OTCQB: CHKKF
FRA: 1ZX
CHAKANA PREPARES TO DRILL THE MEGA-GOLD AND LA JOYA HSE TARGETS
AND ADVANCES DRILL PERMIT - SOLEDAD PROJECT, PERU
Vancouver, B.C., February 22, 2023 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX)
(the “Company” or “Chakana”), is pleased to provide this update on the Soledad project, located in the Ancash
Province of Peru within the Miocene mineral belt. Soledad is an emerging copper -gold-silver discovery in the active
Aija-Ticapampa mining district. An initial Inferred Resource (MRE) of 191,000 ounces of gold, 11.7 million ounces
of silver, and 130 million pounds of copper hosted in tourmaline breccia pipes and open at depth was published in Q1
2022 (see news releases dated January 11 and February 23, 2022) contained within 4.8 million tonnes grading 0.72 g/t
gold, 61 g/t silver and 0.97% copper assumed to be extractable by underground mining methods, plus an
additional Inferred Resource of 1.9 million tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65% copper assumed to
be extractable by open pit mining methods . This resource reflects only a small portion of the potential of the Soledad
mineral system as the tourmaline breccias are just one of several mineralization styles related to a major intrusive center
at Soledad that are subject to ongoing exploration. The environmental permit for the southern half of the Soledad
project was recently approved and on ce finalized, will allow exploration drilling on several of our largest exploration
targets now defined through systematic multidisciplinary exploration.
“Getting access to the south half of the Soledad project for exploration drilling is an important milestone for the
company, as it allows us to explore the complete mineral system with intrusion -hosted copper -gold zones at lower
elevations that pass upwards into tourmaline breccia pipes and high -sulfidation epithermal gold-silver zones. These
targets are exceptional . We have completed the surface exploration needed to spot drill holes , including detailed
mapping and spectral alteration studies; soil and rock geochemistry; heavy mineral stream concentrates; ground
magnetic, electromagnetic, gradient-array induced polarization, and offset (3D) induced polarization surveys,” stated
President and CEO David Kelley.
Exploration Targeting
Three principal target areas have been chosen for drilling once permits are finalized : 1) Mega-Gold target, and 2) La
Joya high-sulfidation epithermal (HSE) zone, and 3) the Compañero breccia complex and other high-grade tourmaline
breccia targets (Figure 1). This new area of exploration covers different geological environments at Soledad, including
multiple intrusions centered upon the Lincuna fault, and distal high -sulfidation precious metals mineralization. The
Lincuna fault is an important arc-normal structure related to the Querococha Arch, extending to the northeast just north
of the Antamina mine. Intrusive phases at Soledad cut Jurassic to Cenozoic sedimentary and volcanic rocks and are
closely related in space and time to the tourmaline breccia pipes and mineralization (Figure 2). The young intrusive
rocks include granodiorite, dacite porphyry, and monzodiorite, ranging in age from 15.2 +/= 0.3 million years. These
intrusive rocks are cut by tourmaline breccias , which are probably coeval with the waning stages of intrusive and
hydrothermal activity. The late-stage copper replacement mineralization encountered in drilling is believed to have also
formed during the waning stages of the Soledad mineral system (Figure 3).
Mega-Gold Target Area
The Mega -Gold target is a very large area occupying 2.5 km 2 with anomalous gold in soil overlying pervasive
tourmaline-quartz-white mica alteration, overprinted by localized advanced argillic alteration zones and tourmaline
breccias. The target area is oriented northeast and is underlain by older andesitic tuff (Calipuy Formation) and a pre -
mineral granodiorite, thought to be the first pulse of intrusive activity in the Soledad mineral system . Within the
anomaly is a distinct Offset (3D) induced polarization chargeability feature with a similar orientation as the soil
anomaly (Figure 4). The chargeability feature is modelled to be a vertical intrusive or pipe-like body on the south side
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of the Lincuna fault with a sub-horizontal feature extending up the hill to the southwest (Figure 5). Soil gold values
over the vertical chargeability body reach up to 0.325 g/t. The vertical body is interpreted to be a blind intrusion cutting
the earlier granodiorite. The planned drilling will test these features for gold mineralization and base metal sul fides.
La Joya High-Sulfidation Epithermal Target Area
The La Joya target area is associated with high -sulfidation advanced argillic alteration consisting of vuggy silica,
alunite, dickite, zunyite, diaspore, and pyrophyllite. The zone of alteration extends 700 metres in a north-south direction
at an elevation of approximately 4,500 metres (Figures 1 and 2). Surface rock samples collected from the alteration
zone have silver and gold values up to 1,300 g/t and 0.36 g/t, respectively. An access road from off -property leads to
five scattered drill pads on the southernmost 200 metre segment of La Joya, and locals report that Buenaventura
completed seven short drill holes over 20 years ago, encountering silver mineralization and some gold. A QP is unable
to confirm the Buenaventura history.
Compañero Breccia Complex (and other Tourmaline Breccias)
The Compañero breccia complex is a cluster of breccia bodies located in the southwest part of the Soledad mineral
system (Figures 1 and 4). The breccias include one monument outcrop ( BxC1) surrounded by three other breccias
(Figure 6). Another additional tourmaline breccia is located about 500 m to the west. All of the breccias are gold -
bearing, with one channel sample collected on the top of BxC1 reporting 14.4 g/t Au (see news release dated July 16,
2018). Several of the breccias show copper oxides on the weathered surfaces. The Compañero breccias are similar to
the mineralized breccia pipes in the MRE on the north side of the project where strongly elevated gold in surface rock
channel samples correlate well with underlying mineralization . The Estremadoyro breccia pipe is exposed along the
road near the bottom o f the valley and has artisanal workings where copper oxides are clearly visible. Rock samples
from breccia exposures reported values up to 1.25 g/t gold, 0.57% copper, and 37.6 g/t silver. None of these targets
have been previously drilled.
Permitting Update
The Company has received approval of the environmental permit for the modification of the semi -detailed
environmental impact assessment (EIAsd) to allow exploration drilling on the south half of the project and has now
entered the final Initiation of Activities (AIA) stage. Our permitting team meets regularly with the Ministry of Energy
and Mines, who remain attentive in completing the final stage of the permit as soon as possible. Once the AIA is
approved, drilling can begin.
Visit Chakana at PDAC
The company will be exhibiting at the PDAC Investor’s Exchange in booth #2313 , March 5-8, 2023, Metro Toronto
Convention Centre, South Building. Please stop by to see the latest polished core specimens and speak with the team.
About Chakana Copper
Chakana Copper Corp is a Canadian -based minerals exploration Company that is currently advancing the Soledad
Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The
Soledad Project is notable fo r the high -grade copper-gold-silver mineralization that is hosted in tourmaline breccia
pipes. An initial mineral resource estimate for seven breccia pipes was announced in Q1 2022 (see news release dated
February 23, 2022) , with an Inferred Resource of 4.8 million tonnes grading 0.72 g/t gold, 61 g/t silver and 0.97%
copper assumed to be extractable by underground mining methods, plus an additional Inferred Resource of 1.9 million
tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65% copper assumed to be extractable by open pit mining
methods. The total initial Inferred Resource contains 191,000 ounces of gold, 11.7 million ounces of silver, and 130
million pounds of copper.
In addition, our extensive multidisciplinary exploration has defined 1 54 exploration targets, 28 of which have been
tested to date (18%), confirming that Soledad is a large, well-endowed mineral system with strong exploration upside.
Chakana’s investors are well positioned as the Soledad Project provides exposure to copper and precio us metals. For
more information on the Soledad project, please visit the website at www.chakanacopper.com.
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Results of an initial inferred mineral resource estimate and additional information concerning the Project, including a
technical report prepared in accordance with National Instrument 43 -101, are available on Chakana’s profile at
www.sedar.com.
Stock Option Plan
The Company advises that its shareholders approved the Company’s amended 10% rolling stock option plan at the
Annual General Meeting held on November 17, 2022. There are currently 11,125,000 stock options issued out of a
total of 16,952,925 available to be issued under the plan.
Qualified Person
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”
David Kelley
President and CEO
For further information contact:
Investor Relations: Info
Email: [email protected]
Telephone: 720-233-2166
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.
Forward-looking Statement Advisory: 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 natur e of
the mineralization at the Soledad copper -gold-silver project (the “Project”), the potential to expand the mineralization, and
to develop and grow a resource within the Project, the planning for further exploration work, the ability to de -risk the potential
exploration targets, and our belief in the potential for mineralization within 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.
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Figure 1 – Map showing defined targets by type for the Soledad project. Principal target areas on the south side that
are subject to the recent environmental approval includes the Mega-Gold target, La Joya high-sulfidation alteration
zone, and the Compañero breccia complex. Section line (D-D’) for Figure 2 indicated. Breccia pipes included in the
initial inferred resource estimate labeled in dark blue.
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Figure 2 – Interpretive cross section showing main geologic features of the Soledad project. Drilled tourmaline breccia
pipes on the north half of the project shown in red with the depth of breccia, wall rock, and resource estimate indicated
where relevant. All breccias are open at depth.
Figure 3 – Core photos from previous drilling showing late-stage copper replacement mineralization seen within and
adjacent to tourmaline breccia pipes at Soledad: A) massive chalcopyrite replacement of tourmaline breccia from the
north blind breccia pipe at Bx 1; B) massive chalcopyrite replacement of monzodiorite wall rock outside of breccia at
Bx 1; C) progressive chalcopyrite-pyrite replacement front from Bx 1; D) selective chalcopyrite-pyrite clast replacement
from Paloma West; and E) partial to complete chalcopyrite-pyrite replacement of tourmaline breccia (matrix and clasts)
in Bx 5. Core diameter is 6.35cm (HQ) in all instances.
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Figure 4 – Map showing soil gold for the southern half of the Soledad project, covering the Mega-Gold and Compañero
target areas. Outline of the Mega-Gold target based on the 30 ppb soil gold value shown as the dashed black line;
maximum value of 0.325 g/t gold; outline of the Offset (3D) induced polarization chargeability feature shown by dotted
dark blue line. Section line A-A’ for Figure 5 indicated.
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Figure 5 – Section from 3D model showing topography and chargeability feature from the Offset (3D) induced
polarization survey underlying the Mega-Gold target area.
Figure 6 – Photo looking southwest showing the Compañero breccia complex.