Chakana Copper Acquires Four New Breccia Pipes, Doubles Soledad Land Position
LEGAL_2915
CH
Vancouv
FWB: 1Z
mineral
Chakana
known br
in the pro
an option
“The exp
additiona
pipes fro
include t
the total
breccia t
areas w i
tourmalin
Mr. Kelle
Previous
respectiv
results ( F
Huancara
Sampling
“These s
to what
especially
far at sur
Huancara
metres in
metres an
main ma
periphera
collapse
56288.1
HAKANA C
ver, B.C., M
ZX) (the “C
rights at t h
now has, or
reccia pipes
olific Mioce
n, an outrigh
pansion and
al mineraliz e
om the valley
the Huancara
number of
textures tha t
ith strongl y
ne veining n
ey.
surface roc
vely) by C o
Fig. 2). Re c
ama pipes s
g of the Pere
sampling res
we have a l
y exciting a
rface,” states
ama is a brec
n diameter. I
nd a collap s
ssif is strong
al breccia b
feature is r e
COPPER AC
S
May 23, 2018
Company” o
he Soledad p
r can earn, a
shown in F
ene metallog
ht purchase, a
consolidatio
ed tourmali n
y below”, sa
ama Breccia
principal pi p
t make the m
y altered a n
now believe
ck chip and
ondor Reso u
cent rock c
show a si m
enne pipe is i
sults are high
lready drill e
s it is the la r
s Kelley.
ccia complex
t is surround
se zone adj a
gly anomalo
odies show
eported to h
NEW
CQUIRES F
SOLEDAD
8 – Chakan
or “Chakan
project (the
a 100% inter
Figure 1. T h
enic belt of
and staking.
on of ou r mi
ne breccia p
aid President
a Complex, P
pes to nine.
m highly pr o
ndesitic vo l
d to be the
channel sam
urces and M
hip and ch a
milar strong
in progress.
hly encourag
ed in Bx 1
rgest exposu
x with a mai
ded by 5 add
acent to the m
ous in gold w
that they a
have resulted
WS RELEAS
FOUR NEW
LAND POS
a Copper C
a”), is plea s
“ P r o j e c t ” )
rest in 2,018
he Project is
Peru. The n
ineral rights
pipes and it
t and CEO D
Paloma East
All hav e c
ospective dr i
lcanic rock
vertical ex p
mpling over
Mariana Re s
annel samp l
geochemica
ging as they
and Bx 5.
ure of miner
in massif on
ditional brecc
massif that
with values u
are anomalo
d from histo r
SE
W BRECCI
SITION
Corp. (TSX-
sed to anno u
optioned fr
8.89 hectares
located 35 k
new mineral
s at Soledad
allows acc
David Kelley
t and West p
characteristi
ill targets. I
consisting
pression of b
Breccia Pip
sources sho w
ling by Ch a
al response
y suggest a st
The Huan c
ralized brecc
n the east tha
cia bodies th
measures 30
up to 9.6 g/t
ou s w i t h v al
ric undergro
IA PIPES, D
-V: PERU;
unce that it
from Condo r
s covering th
km south of
rights were
is strategic
ess to the c
y. “The four
pipes, and P
ic surface m
In addition,
of sheete d
blind brecci
pes 1 and 5
w strongly
akana over
to Bx1 a n
tyle of mine
carama Bre
cia we have
at measures a
hat extend to
0 by 50 me t
Au. Limited
lues up to 1
ound remova
DOUBLES
OTC: CHK
has expande
r Resource s
he cluster of
f the Pierina
acquired thr
as it cover s
cluster of b r
r additional
Perenne, brin
mineralization
there are e
d q u a r t z - s er
ia bodies,” a
(Bx 1 and B
anomalous
the Palom a
nd Bx5 (Fi g
eralization si
ccia Comp l
encountered
approximate
o the west fo
tres (Fig. 3)
d sampling o
1.23 g/t Au .
al of miner a
KKF;
ed its
s I n c .
f nine
mine
rough
s four
reccia
pipes
nging
n an d
leven
ricite-
added
Bx 5,
gold
a and
g. 3).
imilar
lex is
d thus
ely 60
or 200
. The
of the
. T h e
alized
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LEGAL_29156288.1
material allowing the ground above to collapse. The breccia com plex is at an elevation of 3,950
metres, 450 metres below the highest pipe Breccia Pipe 6 (Bx 6) with an elevation of 4,400
metres.
The Paloma pipes include two prominent breccia pipes along a no rtheast trending structural zone
(Fig. 3). Paloma East is a conical shaped pipe with a diameter of 25 metres. The larger Paloma
West pipe measures 30 by 40 metres and is surrounded by smaller breccia bodies and strongly
sericite-altered andesitic tuff. The northeast trending Paloma zone measures 340 metres and
ranges in elevation from 4,000 to 4,165 metres. Surface rock s amples are strongly anomalous
with values up to 7.79 g/t Au (Fig. 3).
Breccia textures and alteration are consistent between the diff erent breccia pipes with shingle
and mosaic breccia being most common (Fig. 4). Alteration consi sts of pervasive quartz-sericite-
tourmaline replacement of all primary minerals in the host ande sitic crystal-lithic tuff. Drilling at
Bx 1 and Bx 5 has shown that both types are breccia can be stro ngly mineralized, with
exceptional grades found in shingle breccia at the breccia pipe margin. Chakana began a
16,000m drill program in August of 2017 designed to determine t he economic potential of
several quartz-tourmaline-sulfide breccia pipes that crop out a t surface. A total of 14,700m have
been drilled to date in 55 holes. Highlights from Chakana drill ing include 113.0m of 1.17% Cu,
3.58 g/t Au, and 51.5 g/t Ag (3.95% Cu_eq) from surface in Bx 1, and 164.0m of 0.51% Cu, 1.68
g/t Au and 27.4 g/t Ag (1.84% Cu_eq) from 12m in Bx 5 (see news releases dated Feb 7 and Feb
22, 2018 at www.chakanacopper.com).
Summary of Land Acquisition
In the first transaction, 10 mining concessions totaling 630.73 hectares were acquired April 1,
2018 through a purchase option agreement between Chakana Resour ces S.A.C. and a Peruvian
family. Pursuant to this option agreement, Chakana Resources S. A.C. can acquire a 100%
interest in the optioned properties in consideration for aggregate cash payments of US$2,300,000
over 4.5 years with US$1,500,000 of this amount due up exercise of the option. Under the terms
of the option agreement, the vendors are entitled, upon exercis e of the option, to a 2% NSR that
Chakana can purchase at any time for USD $2,000,000.
Two smaller mining concessions totaling 31.84 hectares were pur chased outright from a private
Peruvian company and an individual for USD$200,000. There are no retained royalties.
An additional 217.63 hectares of mining concessions have been a cquired directly by Chakana
through application with the Instituto Geológico Minero y Metalúrgico (INGEMMET).
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 blan k and duplicates samples. All
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LEGAL_29156288.1
samples are analyzed using the ME-MS41 procedure in order to ob tain a comprehensive multi-
element overview of the geochemistry. Gold is analyzed by ME-MS 41 (not considered reliable),
AA24 (higher precision) and GRA22 when values exceed 10 g/t. O ver 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 Ch akana’s SEDAR profile at
www.sedar.com.
Qualified Person
Technical information in this news release has been approved by David Kelley, Qualified
Professional - Geology designation from the Mining and Metallur gical Society of America, the
President, CEO and a Director of Chakana and a Qualified Person as defined by NI 43-101 –
Standards of Disclosure for Mineral Projects . Mr. Kelley has verified the sampling and
analytical procedures and has reviewed the assay data set out i n this News Release during
continued visits to the Soledad project; inspection of samples at site prior to shipment to the
assay laboratory; and as the dir ect recipient of the correspond ing assay results from the assay
laboratory.
ON BEHALF OF THE BOARD
(signed) “David Kelley”
David Kelley
President and CEO
For further information contact:
Michelle Borromeo, Manager – Corporate Communications
Phone: 604-715-6845
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Prov ider (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, pe rformance, 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.
LEGAL_2915
Figure 1 –
position (b
56288.1
Map showing
black outline).
g original Soled
dad land positi
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ion optioned fr
rom Condor R
Resources (blue
e) and expande
ed land
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Figure 2 –
(A) Bx 1,
www.chak
to represen
56288.1
Maps showing
a n d ( B ) B x
kanacopper.com
nt average grad
g gold in surfa
5. For additi o
m Readers are
des on the Proje
ace rock sample
onal results a n
e cautioned tha
ect.
- 5 -
es collected by
nd a discussi o
at surface rock
y Condor Reso
on of the sa m
samples are, b
ources and Mar
mpling and an a
by nature, selec
riana Resource
alytical metho d
ctive and are un
es over
ds see
nlikely
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Figure 3 –
Complex,
and analy t
nature, sele
56288.1
– M a p s s h o w in
and (B) the P a
tical methods
ective and are u
ng gold in su r
aloma East and
see www.chak
unlikely to rep
rface rock sa m
d Paloma West
kanacopper.com
present average
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mples collected
t pipes. For a d
m. Readers a
e grades on the
d by Chakana o
dditional result
are cautioned
Project.
over (A) the H
ts and a discus
that surface r o
Huancarama B
sion of the sa m
ock samples a
Breccia
mpling
are, by
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Figure 4 –
West. Note
across. Di
breccia, (B
(E) mosaic
56288.1
Images showi
e drill rig for s
stance betwee
B) mosaic brec
c breccia, (F) sh
ing surface exp
cale for Bx 1 a
n P a l o m a E as
cia (field of v i
hingle breccia;
pression of Bx
and Bx 5. Main
st and Paloma
iew 1.5 m wi d
; Paloma West
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x 1, Bx 5, Hua n
n massif on rig
West is 220
de); Bx 5 (C) s
(G) shingle br
ncarama Brecc
ght at Huancara
metres. Rock
shingle breccia
reccia, Paloma
cia Complex, a
ama measures
k samples fro m
a, (D) mosaic b
East (H) shing
and Paloma Ea
approximately
m: B x 1 ( A ) s
breccia; Huanc
gle breccia.
ast and
y 60 m
shingle
carama