Chakana Copper Intersects 71.4 Metres with 2.91% Copper Eq IN Breccia Pipe 1 and 164.0 Metres with 1.84% Copper Eq IN Breccia Pipe 5
CHAKANA COPPER CORP.
NEWS RELEASE
CHAKANA COPPER INTERSECTS 71.4 METRES WITH 2.91% COPPER EQ IN
BRECCIA PIPE 1 AND 164.0 METRES WITH 1.84% COPPER EQ IN BRECCIA PIPE 5
Vancouver, B.C., February 22, 2018 – Chakana Copper Corp. (TSX-V: PERU) (the
“ Company ” or “ Chakana ”), is pleased to announce assays from the first tw o step-out holes in
Breccia Pipe #1 (Bx #1) and the first nine holes fr om Breccia Pipe #5 at its Soledad copper-gold-
silver project in central Peru, optioned from Condo r Resources Inc. The Soledad project (the
“Project”) is located 35 km south of the Pierina mi ne in the prolific Miocene metallogenic belt of
Peru. These results are a successful continuation of the drilling program that was initiated August
16, 2017, with the results of the first sixteen dri ll holes released previously (see:
www.chakanacopper.com).
“These outstanding drill results continue to demons trate both the continuity and grade potential
of mineralization hosted in the breccia pipes,” sai d President and CEO David Kelley. “The first
two holes (SDH17-033 and SDH17-034) drilled from a platform 80 metres off-pipe northeast of
BX #1 intersected high-grade breccia mineralization . Hole 33 intersected 30 m grading 2.26%
Cu, 0.52 g/t Au and 78.9 g/t Ag while hole 34 retur ned 71.4m of 1.53% Cu, 1.05 g/t Au and 81.7
g/t Ag, including a very high-grade margin zone wit h 34.4m of 2.84% Cu, 1.30 g/t Au and 89.3
g/t Ag from 354.6m. Individual one-metre assay sam ples in this margin region of Bx #1 reach
6.92% Cu (Figure 1). This interval is particularly interesting because clasts in the breccia are
completely replaced by chalcopyrite, representing a new style of mineralization at Soledad,
which is open at depth beneath this zone. Hole 34 a lso has strong mineralization in the halo of
the breccia, with 31.5m of 93.8 g/t Ag, 0.57% Cu, 2 .46% Zn and 2.03% Pb.” He adds, “We
intend to continue our aggressive drill program which is moving along faster than expected.”
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*
SDH17-
033 220 -55 112.00 142.00 30.00 0.52 78.9 2.26 3.27 5.01
and 158.00 161.00 3.00 0.22 28.9 2.00 2.39 3.66
SDH17-
034 220 -70 250.50 282.00 31.50 93.8 0.57 2.46 2. 03 1.37
and 317.60 389.00 71.40 1.05 81.7 1.53 0.63 1.1 2.91 4.46
including 354.60 389.00 34.40 1.30 89.3 2.84 4.45 6.81
* 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
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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.
At Bx #5, located 850m west-northwest of Bx #1, nin e holes were completed from a central
platform on top of the pipe. “Mineralization was in tersected to a depth of 340m and open to
extension with deeper drilling with some very encou raging grades,” states Kelley; “all of the
intercepts are greater than 1% Cu eq. Holes 41 and 42 demonstrate the vertical continuity of
shallow mineralization with 164m of 1.84% Cu_eq fro m 12m and 182m of 1.49% Cu_eq from
33m, respectively.”
Mineralized intervals from the first nine holes in Breccia Pipe #5 are:
DDH #
Az Dip From - To
(m)
Core
length
(m)
Au
g/t
Ag
g/t
Cu
%
Cu -eq
%*
Au -eq
g/t*
SDH17-
035 205 -88.0 0.0 101.0 101.0 0.95 31.8 0.34 1.23 1 .89
including 0.0 25.0 25.0 1.15 56.2 1.88
including 25.0 101.0 76.0 0.87 23.7 0.43 1.20 1.84
SDH17-
036 47 -46.0 0.0 7.0 7.0 1.74 34.1 2.19
SDH17-
037 85.2 -60.5 0.0 30.0 30.0 1.00 26.2 1.34
SDH17-
038 82 -81.0 0.00 61.00 61.00 0.86 39.1 0.50 1.40 2 .14
including 0.00 38.00 38.00 0.95 30.2 1.34
including 38.00 61.00 23.00 0.70 53.8 1.21 2.13 3.25
and 104.00 143.00 39.00 1.27 15.6 0.20 1.16 1.78
and 189.20 198.00 8.80 0.87 8.1 1.20 1.84 2.81
and 210.00 254.00 44.00 1.02 7.5 0.85 1.58 2.42
and 295.00 340.30 45.30 0.56 5.8 0.85 1.27 1.94
SDH17-
039 280 -72.0 0.00 95.00 95.00 0.86 29.7 1.25
including 14.00 40.00 26.00 0.67 45.3 0.46 1.29 1.97
SDH17-
040 128 -71.0 0.00 96.00 96.00 1.53 21.9 1.82
including 30.00 71.00 41.00 1.76 26.3 0.54 1.92 2.93
and 177.00 184.00 7.00 3.29 81.0 0.37 3.21 4.92
SDH17-
041 267 -80.0 0.00 176.00 176.00 1.81 27.5 2.17
including 12.00 176.00 164.00 1.68 27.4 0.51 1.84 2.82
SDH17-
042 146 -81.0 0.00 215.00 215.00 1.16 25.8 1.5
including 33.00 215.00 182.00 1.17 22.8 0.53 1.49 2.28
SDH17-
043 300 -60.0 0.00 49.00 49.00 0.89 42.6 1.45
including 27.00 49.00 22.00 0.72 32.3 0.50 1.25 1.91
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The focus of the drilling program is to determine t he economic potential of several quartz-
tourmaline-sulfide breccia pipes that crop out at s urface. A total of 9 mineralized breccia pipes
have been identified on the property thus far. Phas e 1 of the program is ongoing with a total of
10,168m drilled to date out of an original planned program of 16,660m and is ahead of schedule
and under budget. Phase 1 is directed toward pipes #1 and #5. Phase 2 is an expanded drill
program proposed under a Semi-detailed Environmenta l Impact Assessment permit (EIA-SD)
that 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 that test a number of other
pipes and targets identified on the Project. The pi pes form a cluster within four-square kilometer
areas and are spaced between 175m to 625m apart wit h vertical relief between the pipes of over
500m. Based on detailed mapping, Bx #1 has a surfac e 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 where permeability of th e breccia is highest. Drilling at the Project is
designed to test this in each pipe from surface to 400m depth based on: 1) drilling from a central
platform at various azimuths and dip angles to pene trate the margin of the breccia throughout its
vertical extent; and 2) from platforms outside the pipe to drill across the breccia body. The two
holes from Bx #1 reported here were drilled from a step-out platform and the 9 holes reported
from Bx #5 were drilled from a central platform. Mi neralized intercepts will vary in length due
to the shape of the breccia body and the orientatio n of the drill hole (see Figure 2). For example,
shallow holes drilled near the perimeter of the pip e may have shorter intercepts compared to
steeper holes. Nonetheless, all holes that intersec t mineralized breccia are important for
constraining the overall shape and grade of the bre ccia body. Once a sufficient number of
intercepts are obtained and modelled, the overall g eometry 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 (not considered reliable),
AA24 (higher precision) and GRA22 when values excee d 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
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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
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.
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Figure 1 – High grade margin zone mineralization fr om hole SDG17-034 in Bx #1. Note
replacement of breccia clasts with chalcopyrite. The five metre interval from 373.0-378.0
averages 4.94% Cu, 0.17 g/t Au, and 103.8 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, Chakana assumes that the breccia pipe is orientated vertically.