Chakana Copper Intersects 52.0 Metres with 1.48% Copper and 5.14 G/T GOLD (5.35% Cu Eq) and 78.1 Metres with 1.36% Copper and 1.37 G/T GOLD (3.00% Cu Eq) IN Breccia Pipe 1
NEWS RELEASE
CHAKANA COPPER INTERSECTS 52.0 METRES WITH 1.48% COPPER and 5.14 g/t
GOLD (5.35% CU EQ) AND 78.1 METRES WITH 1.36% COPPER AND 1.37 g/t GOLD
(3.00% CU EQ) IN BRECCIA PIPE 1
Vancouver, B.C., March 2, 2018 – Chakana Copper Co rp. (TSX-V: PERU; OTC:
CHKKF; FWB: 1ZX) (the “ Company ” or “ Chakana ”), is pleased to announce assays from
five additional step-out holes in Breccia Pipe 1 (Bx 1) at its Soledad copper-gold-silver project in
central Peru, optioned from Condor Resources Inc. The Soledad project (the “Project”) is located
35 km south of the Pierina mine in the prolific Mio cene metallogenic belt of Peru. These results
are a successful continuation of the drilling progr am that was initiated August 16, 2017, with the
results of the first twenty-seven drill holes relea sed previously (see: www.chakanacopper.com).
This Phase 1 drilling program is ongoing with a total of 10,629m drilled to date out of an original
planned program of 16,660m and is ahead of schedule and under budget.
“One of our initial goals in this drill program was to increase the grade profile from previous
explorers by drilling across the pipes to thoroughl y test the margin zones”, said President and
CEO David Kelley. “The results in these last five h oles from Bx 1 demonstrate the high-grade
nature of this pipe and the margin zone grades at t he edge of the pipe. Three of the five holes
have very high-grade margin zones such as 10.1m of 2.53% Cu, 7.72 g/t Au, and 26.0 g/t Ag in
hole SDH18-044. Hole SDH18-046 has high-grade margi n zones on both sides of the breccia
pipe with 8.0m of 3.33% Cu, 11.70 g/t Au, and 24.8 g/t Ag on the northeast margin, and 6m of
2.37% Cu, 3.12 g/t Au, and 139.9 g/t Ag on the sout hwest margin. These higher grades along the
margins may be due to a greater amount of open spac e between the fragments in the breccia
during pipe formation, and subsequent mineralizatio n by a hydrothermal fluid. Also included in
these results are significantly longer high-grade i ntercepts across the pipe including 52.0 metres
with 1.48% Cu, 5.14 g/t Au, and 60.2 g/t Ag and 78. 1 metres with 1.36% Cu, 1.37 g/t Au, and
87.2 g/t Ag.”
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New mineralized intervals from Breccia Pipe 1 are:
DDH #
Az Dip From - To
(m)
Core
length
(m)
Au
g/t
Ag
g/t
Cu
%
Zn
%
Pb
%
Cu-
eq
%*
Au-
eq
g/t*
Note
SDH18-
044 233 -44 66.00 123.00 57.00 3.93 61.6 1.00 4.1 0 6.27
including 70.90 81.00 10.10 7.72 26.0 2.53 7.80 11.93 Margin
SDH18-
045 232 -51 78.00 153.00 75.00 1.07 92.7 1.21 2.7 0 4.13
SDH18-
046 225 -41 70.00 122.00 52.00 5.14 60.2 1.48 5.3 5 8.19
including 72.00 80.00 8.00 11.70 24.8 3.33 11.19 17.12 Margin
including 116.00 122.00 6.00 3.12 139.9 2.37 0.87 0.54 5.61 8.57 Margin
SDH18-
047 224 -50 79.00 157.10 78.10 1.37 87.2 1.36 3.0 0 4.59
including 147.00 156.25 9.25 0.84 81.2 3.24 4.48 6.86 Margin
SDH18-
048 220 -56 95.00 147.00 52.00 0.38 39.4 1.01 1.6 0 2.44
* 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). Assays for zinc and lead are not used in the metal equivalent calculations.
The true widths of the mineralized intervals report ed in this release are difficult to ascertain and
additional drilling will be required to constrain the geometry of the mineralized zones.
Exploration Update
A total of 9 mineralized breccia pipes have been id entified by mapping on the Project thus far.
The pipes form a cluster within an area of four-squ are kilometers and are spaced between 175m
to 625m apart with vertical relief between the pipes of over 500m.
The focus of the drilling program is to determine t he economic potential of several of the quartz-
tourmaline-sulfide breccia pipes that crop out at surface. Phase 1 is directed toward pipes 1 and 5
(Bx 1 and Bx 5). Phase 2 will be an expanded drill program proposed under a Semi-detailed
Environmental Impact Assessment permit (EIA-SD) tha t was submitted for review to the
Ministry of Energy and Mines on December 29, 2017. Phase 2 will allow for additional drill
platform locations and more drill holes to test sev eral other pipes and targets identified on the
Project. Based on detailed mapping, Bx 1 has a surf ace diameter of 40m and Bx 5 of 50m.
Mineralization is open at depth in both pipes based on previous drilling. Current drilling is
designed to determine the geometry (volume) and gra de of the breccia hosted mineralization.
Tourmaline breccia pipes can have diameters that increase at depth, and often have higher grades
at the margins of the pipe, interpreted to result f rom higher permeability of the breccia. Drilling
at the Project is designed to test this in each pip e from surface to 400m depth based on: 1)
drilling from a central platform at various azimuth s and dip angles to penetrate the margin of the
breccia throughout its vertical extent; and 2) from platforms outside the pipe to drill across the
breccia body. The five holes from Bx 1 reported her e were drilled from a step-out platform 80m
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northeast of the breccia pipe. Mineralized intercep ts will vary in length due to the shape of the
breccia body and the orientation of the drill hole (see Figure 2). For example, shallow holes
drilled near the perimeter of the pipe may have sho rter intercepts compared to steeper holes.
Nonetheless, all holes that intersect mineralized breccia are important for constraining the overall
shape and grade of the breccia body. Once a suffici ent number of intercepts are obtained and
modelled, the overall geometry of the breccia body and the grade profile will become apparent.
Sampling and Analytical Procedures
Chakana follows rigorous sampling and analytical pr otocols that meet industry standards.
Samples for assay are stored in a secured area unti l transport in batches to the ALS facility in
Callao, Lima, Peru. Samples are processed under th e control of ALS with the samples including
certified reference materials, a coarse and finely- crushed blank and duplicates samples. All
samples are analyzed using the ME-MS41 procedure in order to obtain a comprehensive multi-
element overview of the geochemistry. Gold is analy zed by ME-MS41 (considered to be least
reliable), AA24 (higher precision) and GRA22 when v alues exceed 10 g/t. Over limit silver,
copper, lead and zinc is analyzed using the OG-46 procedures.
Additional information concerning the Project is av ailable in a technical report prepared in
accordance with National Instrument 43-101 made ava ilable 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
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 poli cies of the
Exchange) accepts responsibility for the adequacy o r accuracy of this release.
This release may contain forward-looking statements . Forward-looking statements involve known and unkn own
risks, uncertainties, and other factors which may c ause the actual results, performance, or achievemen ts of Chakana
to be materially different from any future results, performance, or achievements expressed or implied by the
forward-looking statements. Forward looking stateme nts 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
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expand the mineralization, the planning for further exploration work, the ability to de-risk the poten tial exploration
targets, and our belief about the unexplored parts of the Project. These forward-looking statements ar e based on
management’s current expectations and beliefs but g iven the uncertainties, assumptions and risks, read ers are
cautioned not to place undue reliance on such forwa rd- 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 – High grade margin zone mineralization fr om hole SDG18-044 in Bx 1. The six metre
interval from 70.0-76.0 averages 2.76% Cu, 8.33 g/t Au, and 19.6 g/t Ag.
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Figure 2 – Diagram showing relationship between dri ll intercepts and breccia pipe geometry with
emphasis on vertical and horizontal grade variation . For the purpose of the orientation of the disclos ed
drill holes, the Company assumes that the breccia pipe is orientated vertically.