Chakana Copper Expands Mineral Rights BY 1,066 Hectares Acquiring Second Cluster of Copper-GOLD-Bearing Breccia Pipes
CH
ACQU
Vancouv
FWB: 1Z
mineral r
Inc. Cha
clusters o
acquired
Project is
Peru.
“We are
mineral r
pipes and
referred t
The clu s
outcrop
breccias
formation
chip sa m
significan
5 over th
pipes, wi
sheeted q
bodies.
Surface
encounte
pervasive
crystal-li
both type
breccia a
Soledad
Chakana
potential
18,600m
HAKANA C
UIRING SEC
ver, B.C., Ju
ZX) (the “C
rights adjace
kana now h
of breccia p
through an
s located 3 5
excited to h
rights to the
d occurrence
to as Compa
ster consists
like many o
occur in b
n. Results f r
mples with r
nt as they su
he last 11 mo
ith an addit i
quartz-serici
exposures
ered in out c
e q u a r t z - s e ri
ithic tuff and
es of breccia
at the breccia
Drilling Up
began a 16,
of several
have been
COPPER E
COND CLU
uly 16, 2018
Company” o
ent to the S o
has, or can e
pipes show n
option agre
5 km south o
ave complet
south of Sol
es to the pr o
añero, is lo c
o f 5 p r i n ci
of the othe r
both andesit
rom surface
results up t
uggest simila
onths. The 5
ional 11 are
te-tourmalin
show bot h
crop and d r
icite-tourma
d sericite alte
a can be stron
a pipe margin
pdate
,000m drill p
quartz-tourm
drilled to d a
NEW
EXPANDS M
USTER OF
8 – Chakan
or “Chakan
oledad proje
earn, a 100 %
n in Figure
eement with
of the Pieri n
ted this agre
ledad and br
oject”, said P
cated 2.5 k m
iple tourma l
r k n o w n b re
ic tuff of t
sampling sh
to 14.25 g/ t
ar mineraliza
breccia pip
as having s t
ne veining be
h shingle a
rilling in t h
aline replac e
eration of are
ngly minera
n.
program in A
maline-sulfid
ate in 68 ho l
WS RELEAS
MINERAL R
COPPER-G
a Copper C
a”), is plea s
ect (the “Pr o
% interest i n
1 . T h e n ew
Minera Bar
na mine in t h
ement with
rings a new c
President an
m southwest
line breccia
eccia pipes
the Calipuy
hows strong
t A u ( F i g s .
ation to what
es at Compa
trongly alter
elieved to be
and mosai c
he Soledad
ement of al l
enite clasts.
alized, with e
August of 2
de breccia p
les. The dri l
SE
RIGHTS BY
GOLD-BEA
Corp. (TSX-
sed to anno u
oject”) optio
n a t o t a l o f
w 1,066 hec
rrick Misqui
he prolific M
Barrick, wh
cluster of mi
nd CEO Da v
of the mai n
bodies, on e
in the Sole d
y formation,
gly anomalou
3a and 3 b
t has already
añero bring t
red andesitic
e the vertica
c-textured b
cluster (Fi g
l p r i m a r y m
Drilling at B
exceptional g
017 designe
pipes that cr o
ll program w
Y 1,066 HE
ARING BRE
-V: PERU;
unce that it
oned from C
3,085 hecta
ctares of mi n
ichilca S.A.
Miocene met
hich significa
ineralized to
vid Kelley. “
n cluster of p
e o f w h i c h
dad cluste r
a n d a r e n it
us gold fro m
b) . T h e s e re
y been drille
the project t
c volcanic r o
al expression
breccias, fa v
g. 4). Alter a
minerals in t h
Bx 1 and Bx
grades often
ed to determ
op out at s u
was expande
ECTARES
ECCIA PIP
OTC: CHK
has expande
Condor Reso
res coverin g
neral rights
("Barrick")
tallogenic b
antly expand
ourmaline br
“The new cl u
pipes at Sol
has a pro m
(Fig. 2).” T
te of the C
m composite
esults are h
ed in Bx 1 an
total to 14 kn
ock consistin
n of blind b r
vorable fe a
ation consi s
he host an d
5 has shown
n found in sh
ine the econ
urface. A to t
ed after disc o
PES
KKF;
ed its
ources
g t w o
were
. The
elt of
ds our
reccia
uster,
edad.
minent
These
Chimu
e rock
highly
nd Bx
nown
ng of
reccia
atures
sts of
desitic
n that
hingle
nomic
tal of
overy
- 2 -
o f a b l i n d b r e c c i a p i p e a d j a c e n t t o B x 1 ( s e e n e w s r e l e a s e d a t ed June 26, 2018 at
www.chakanacopper.com). Definition drilling has been completed at Bx 1 down to
approximately 450m and is still open at depth. Additional defi nition drilling is now underway at
Bx 5. Highlights from Chakana d rilling include 187.0m of 1.05% Cu, 1.18 g/t Au, and 64.9 g/t
Ag (2.38% Cu_eq, 3.63 g/t Au_eq) from 46m 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, 2.82 g/t Au_eq) from 12m in Bx 5 (see news releases dated June 26
and Feb 22, 2018 at www.chakanacopper.com).
Summary of Mineral Rights Acquisition
As per the agreement signed July 12, 2018, Barrick grants Chaka na an option to acquire a 100%
interest in three concessions adj oining the southern extent of the Soledad project (Fig. 1). Under
terms of the agreement, Chakana has 5 years to complete a minim um of 2,000m of drilling and
produce a Preliminary Economic Assessment (PEA) report complian t with National Instrument
43-101. Upon exercise of the option, Barrick will retain a 2% N SR subject to Chakana’s right to
purchase 50% of the royalty for US$2,000,000. Barrick will have a one-time right to re-acquire a
70% interest in the concessions within 120 days of exercising t he option by paying Chakana
three times the aggregate amount o f exploration expenditures in curred since the execution date
and cancelling the 2% NSR. If a production decision is not made within 7 years of the Back-in
Closing Date, Barrick will make pre-royalty payments of US$75,0 00 per year until a production
decision is made for a maximum of 5 years (US$375,000). If Chak ana does not contribute its
share of project costs their interest will be diluted until 10% , upon which their interest will be
converted to a 2% NSR with Barrick’s right to purchase 50% of the royalty for US$2,000,000.
Sampling and Analytical Procedures
Chakana follows rigorous sampling and analytical protocols that meet industry standards.
Analytical results in this rel ease are based on composite rock chip samples over a 1 x 2m area.
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
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
- 3 -
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.
Figure 1 –
position op
(green). Ne
Map showing
ptioned from C
ew Compañero
the entire 100
Condor Resourc
o breccia pipe c
% Chakana-co
ces (blue), and
cluster shown s
- 4 -
ontrolled land p
d the recent exp
southwest of m
position (black
panded land po
main Soledad c
k outline), the o
osition from th
cluster.
original Soleda
he Barrick agre
ad land
eement
Figure 2 –
of outcropp
View looking
ping pipe is ap
east at promin
proximately 25
nent outcroppin
5m.
- 5 -
ng mineralized
breccia pipe in
n the Compañe
ero cluster. Dia
ameter
Figure 3 –
Compañero
nature, sele
– M a p s s h o w in
o c l us t er, and
ective and are u
ng gold in sur
(B) the Com p
unlikely to rep
face composite
pañero Wes t p
present average
- 6 -
e r o c k c h i p sa
ipe. Readers
e grades on the
amples collecte
are cautioned
Project.
ed by Chakan a
that surface r
a over (A) th e
rock samples a
e m a i n
are, by
Figure 4 –
mosaic bre
quartz-tour
quartz aren
– images showi
eccia with tourm
rmaline breccia
nite clasts, 4.03
ing breccia tex
maline matrix
a, 2.22 g/t Au a
3 g/t Au.
xtures and assa
from prominen
and 0.13% Cu;
- 7 -
ay values in sa m
nt outcropping
; C) chaotic shi
amples collecte
g breccia pipe,
ingle breccia,
ed from the C o
14.25 g/t Au; B
1.91 g/t Au; an
ompañero clust
B) malachite-s
nd D) shingle-s
ter; A)
stained
shaped