Breccia 7: First Pass Drilling Confirms a Fourth Mineralized Breccia Pipe at Soledad Intersects 31 Metres with 0.68 G/T GOLD, 205.9 G/T Silver, and 0.23% Copper (3.72 G/T Au_eq, 2.44% Cu_eq)
NEWS RELEASE
BRECCIA 7: FIRST PASS DRILLING CONFIRMS A FOURTH MINERALIZED
BRECCIA PIPE AT SOLEDAD
INTERSECTS 31 METRES WITH 0.68 g/t GOLD, 205.9 g/t SILVER, AND 0.23%
COPPER (3.72 g/t Au_EQ, 2.44% Cu_EQ)
Vancouver, B.C., July 29, 2019 – Chakana Copper Cor p. (TSX-V: PERU; OTCQB:
CHKKF; FRA: 1ZX) (the “ Company ” or “ Chakana ”), is pleased to release the first drill results
from scout drilling on Breccia Pipe 7 (Bx 7) at the Soledad copper-gold-silver project in central
Peru. All four drill holes intersected significant mineralization, including 31.0m with 0.68 g/t Au,
205.9 g/t Ag, and 0.23% Cu from 157m in hole SDH19-111 a nd 35.0m with 0.80 g/t Au, 53.8 g/t
Ag, 0.35% Cu from surface in hole SDH19-114. This is the first time Bx 7 has been drilled.
Bx 7 is located 340 metres northeast of Bx 1 and is one of twenty-three outcropping breccia pipes
identified to date on the property (Fig. 1). Includ ing Bx 7, only five of the twenty-three breccia
pipes have been drilled to date. The four shallow holes reported here were designed to explore
the uppermost 200m segment of Bx 7 (Figs. 2 and 3) and to provide some indication of pipe
geometry and grade distribution. Drill collars were located outside of the breccia pipe within the
wall rock that hosts the breccia. All drill holes a chieved the objective of intersecting the pipe,
defining contacts on opposite sides of the pipe.
“These initial scout drilling results are excellen t in that they confirm a fourth mineralized breccia
pipe on the property. Bx 7 appears to be more enric hed in silver and gold compared to copper
although that could change with depth. It is diffic ult to determine the geometry of the pipe with
just four drill holes, but we currently estimate th e diameter between 40-50m,” said President and
CEO David Kelley. “It is also noteworthy that hole SDH19-111 intersected 12.6m of mineralized
breccia 15m north of the main breccia body (Fig. 3) . This is reminiscent of the blind breccia body
encountered in drilling Bx 1 (see news release dated June 26, 2018). Several additional holes will
be drilled under SDH19-111 after the scout drilling of the Phase 3 drill program is nearing
completion,” added Kelley. Examples of mineralized breccias from holes in this release are
shown in Figures 4 and 5.
About the Phase 3 Drill Program
The Phase 3 drill program is planned for 20,000m to test a variety of targets on the expanded
property and to complete additional definition dril ling. Based on extensive surface exploration
work completed since Phase 2 drilling, a total of 92 targets have been defined and ranked. Targets
are categorized as 1) outcropping breccia (n=45), 2 ) inferred breccia on the basis of breccia float,
geochemistry or geophysics (n=39); and 3) non-brecc ia or intrusive-hosted mineralization and
polymetallic vein occurrences (n=8). Of these targe ts, 23 are tourmaline breccia pipes, and 12
others are areas possessing the alteration characte ristic of the halo proximal to known breccia
pipes. The strategy is to drill approximately 750m into each target in accordance with permitting
and ranking criteria to further determine if closer -spaced drilling is justified. The drill rig will
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move to other targets for initial scout drilling an d Bx 6 for additional drilling on the upper
breccia.
Mineralized intervals from Breccia Pipe 7 include:
Bx 7 - Exploration Holes
DDH #
Az Dip From - To
(m)
Core
Length (m)
Au
g/t
Ag
g/t
Cu
%
Cu-eq
%*
Au-eq
g/t*
Note
SDH19-111 146.6 -70.6 42.00 54.60 12.60 0.38 6.3 0.22 0.52 0. 80
and 132.65 195.00 62.35 0.43 118.4 0.13 1.42 2.18
including 157.00 188.00 31.00 0.68 205.9 0.23 2.43 3.72
and 202.00 213.00 11.00 0.08 29.1 0.03 0.33 0.51 1.13% Pb
SDH19-112 84.6 -70.2 65.35 197.00 131.65 0.59 56.9 0.09 0.96 1.47
including 149.00 181.00 32.00 0.83 127.4 0.14 1.77 2.71
and 211.00 215.00 4.00 0.06 36.9 0.05 0.40 0.62 1.92% Pb
SDH19-113 113.9 -67.4 0.00 99.00 99.00 0.43 15.2 0. 13 0.54 0.83
including 10.50 31.00 20.50 0.68 21.0 0.33 0.95 1.46
and 109.00 118.00 9.00 0.50 10.1 0.05 0.46 0.71
SDH19-114 197.1 -55.3 0.00 95.80 95.80 0.70 22.7 0.21 0.86 1.32
including 0.00 35.00 35.00 0.80 53.8 0.35 1.33 2.04
* 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 pr otocols that meet or exceed industry
standards. Core samples are stored in a secured are a until transport in batches to the ALS facility
in Callao, Lima, Peru. Sample batches include cert ified reference materials, blank, and duplicate
samples that are then processed under the control o f ALS. All samples are analyzed using the
ME-MS41 (ICP technique that provides a comprehensiv e multi-element overview of the rock
geochemistry), while gold is analyzed by AA24 and G RA22 when values exceed 10 g/t. Over
limit silver, copper, lead and zinc are analyzed us ing the OG-46 procedure. Soil samples are
analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).
Results of previous drilling and additional informa tion concerning the Project, including a
technical report prepared in accordance with Nation al Instrument 43-101, are made available on
Chakana’s SEDAR profile at www.sedar.com.
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
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For further information contact:
Michelle Borromeo, Manager – Corporate Communicatio ns
Phone: 604-715-6845
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Ser vices Provider (as that term is defined in the policies of the
Exchange) accepts responsibility for the adequacy o r accuracy of this release.
Forward-looking Statement Advisory: This release ma y contain forward-looking statements. Forward-looki ng
statements involve known and unknown risks, uncerta inties, and other factors which may cause the actua l results,
performance, or achievements of Chakana to be mater ially different from any future results, performanc e, or
achievements expressed or implied by the forward-lo oking statements. Forward looking statements or inf ormation
relates to, among other things, the interpretation of the nature of the mineralization at the Soledad copper-gold-
silver project (the “Project”), the potential to expand th e mineralization, and to develop and grow a resourc e
within the Project, the planning for further explor ation work, the ability to de-risk the potential ex ploration targets,
and our belief in the potential for mineralization within unexplored parts of the Project. These forwa rd-looking
statements are based on management’s current expect ations and beliefs but given the uncertainties, ass umptions and
risks, readers are cautioned not to place undue rel iance on such forward- looking statements or inform ation. The
Company disclaims any obligation to update, or to p ublicly announce, any such statements, events or de velopments
except as required by law.
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Figure 1 – View looking north showing breccia pipes and occurrences within the Soledad cluster. Pipes that have
been drilled are shown in red. Additional breccia pipes not shown occur in the Compañero cluster on the south half of
the property.
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Figure 2 – A) View looking east at drill set up for SDH19-112 on Bx 7; B) map showing drill holes with geology
discussed in this release. Dashed line shows approximate surface expression of breccia based on outcro p and float
mapping.
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Figure 3 – Section looking west showing the modeled breccia pipe at Bx 7 highlighting holes in this release. Light red
3D shape is based on Leapfrog model of breccia from the 4 holes in this release. Drill hole traces sho w tourmaline
breccia (red), andesitic tuff (green) and porphyrit ic andesite (dark green). Section includes data fro m 75m in front of
section. Red arrows indicate open direction of tourmaline breccia from this perspective.
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Figure 4 – Mineralized intercepts from drill holes reported in this release showing different styles o f mineralization in Bx 7 : A)
SDH19-111 – mosaic breccia with large clasts of vol canic wall rock and quartz- sulfide cemented matrix (note vugs with
euhedral quartz and sulfide minerals); the interval 157.0-163.0m assays 0.68g/t Au, 0.44% Cu, and 415 .6g/t Ag; B) SDH19-112
– mosaic breccia with quartz-sulfide cemented matrix ; the interval 153.0-158.0m assays 0.46g/t Au, 0.21 % Cu, and 194.2 g/t Ag;
C) SDH19-113 – clast supported breccia with sulfide matrix (note local intervals of shingle breccia); the interval 22.0-27.0 m
assays 0.57g/t Au, 0.37% Cu, and 39.4g/t Ag; D) SD H19-114 – mosaic breccia with quartz-sulfide cement ed matrix ; the
interval 22.0-27.0m assays 2.00g/t Au, 0.10% Cu, and 13.9g/t Ag.
A
B
C
D
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Figure 5 – Detailed core photos from drill holes di scussed in this release; A) SDH19-111, 158.0m, chao tic shingle breccia and
blocks with sheeted veining with quartz-pyrite-chal copyrite cemented matrix; B) SDH11-111, 175.3m, qua rtz-pyrite -
chalcopyrite cemented breccia; C) SDH19-112, 108.15 m, mosaic breccia with tourmaline cement and chalcopyrite replacing
clasts; D) SDH19-112, 157.9m, quartz-pyrite-chalcop yrite cemented breccia; E) SDH19-113, 15.4m, covellite in fracture at
contact between andesite and tourmaline breccia; F) SDH19-114, 93.0m coarse mosaic breccia with pyrite -chalcopyrite cement.
A
B
C
D
E
F