Chakana Copper Intersects More High Grade - 119.4 Metres with 1.14% Copper and 3.36 G/T GOLD (3.86% Cu_eq) and 114 Metres with 0.97% Copper and 2.86 G/T GOLD (3.32% Cu_eq) IN Breccia Pipe 1
NEWS RELEASE
CHAKANA COPPER INTERSECTS MORE HIGH GRADE - 119.4 METRES WITH
1.14% COPPER AND 3.36 g/t GOLD (3.86% Cu_EQ) AND 114 METRES WITH 0.97%
COPPER AND 2.86 g/t GOLD (3.32% Cu_EQ) IN BRECCIA PIPE 1
Vancouver, B.C., May 28, 2018 – Chakana Copper Corp . (TSX-V: PERU; OTC: CHKKF;
FWB: 1ZX) (the “ Company ” or “ Chakana ”), is pleased to announce assays from five additio nal
holes in Breccia Pipe 1 (Bx 1) at its Soledad coppe r-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 Miocene metallogenic b elt of Peru. These results are a successful
continuation of the drilling program that was initi ated August 16, 2017, with the results of the
first thirty-six drill holes released previously ( see: www.chakanacopper.com ). This Phase 1
drilling program is ongoing with a total of 14,700m in 55 holes drilled to date out of an original
planned program of 16,660m and is ahead of schedule and under budget. The five holes were
designed to explore the west and northwest contacts of Bx 1 from a central platform (see: figure
1).
“These latest results continue to highlight the hig h grade nature of Bx 1 from surface,” said
President and CEO David Kelley. “All of the holes p enetrate the upper supergene zone where
copper is leached, but gold is retained. Beneath th is, copper, gold and silver are strongly enriched
in the primary zone with abundant visible chalcopyr ite mineralization (see: figures 2 through 5
here) . Holes 54 to 57 also penetrate a lower mineralized zone with copper grades in excess of
1.58%. In holes 56 and 57, the upper part of this z one is strongly mineralized with 22m of 2.96%
Cu and 1.30 g/t Au, and 23m of 2.82% Cu and 1.10 g/ t Au, respectively. Most of the
mineralization occurs as matrix sulfides in either shingle or mosaic breccia, but hole 54 shows
some very impressive massive and semi-massive sulfi de zones dominated by chalcopyrite (see:
figure 3 here) . It’s also important to note that hole 34, drille d to the southwest from a step out
platform 80 northeast of the central platform, inte rsected the southwest margin of the breccia pipe
approximately 100 to 125m below the mineralized bre ccia zone in holes 54 to 57 and returned
71.4m of 1.53% Cu, 1.05 g/t Au and 81.7 g/t Ag from 317.6m, including a very high-grade
margin zone with 34.4m of 2.84% Cu, 1.30 g/t Au and 89.3 g/t Ag from 354.6m (see news release
dated February 22, 2018 at www.chakanacopper.com ). Our drill program will continue to track
this impressive mineralization to depth.” states Ke lley.
New mineralized intervals from Breccia Pipe 1 are:
DDH #
Az Dip From - To
(m)
Core Length
(m)
Au
g/t
Ag
g/t
Cu
%
Cu-eq
%*
Au-eq
g/t*
Note
SDH18 -053 325 -72 0.00 119.40 119.40 3.36 61.3 1.14 3.86 5.91
including 0.00 41.00 41.00 4.16 20.7 4.43
including 41.00 119.40 78.40 2.94 82.5 1.72 4.35 6.65
SDH18 -054 290 -85 0.00 115.00 115.00 1.66 56.5 0.59 2.16 3.30
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including 0.00 50.00 50.00 0.42 8.9 0.54
including 50.00 115.00 65.00 2.61 93.1 1.03 3.53 5.40
and 140.00 251.00 111.00 0.82 83.9 1.58 2.83 4.33 Lower zone
SDH18 -055 290 -80 0.00 122.00 122.00 2.14 37.9 0.56 2.28 3.49
including 0.00 46.30 46.30 0.72 12.0 0.88
including 46.30 122.00 75.70 3.01 53.8 0.88 3.31 5.06
and 140.00 214.70 74.70 0.88 112.1 2.04 3.57 5.47 Lower zone
SDH18 -056 258 -80 0.00 116.00 116.00 2.05 53.5 0.99 2.79 4.26
including 0.00 52.40 52.40 2.27 10.5 2.41
including 52.40 116.00 63.60 1.87 88.9 1.77 3.75 5.74
and 181.00 246.00 65.00 1.28 103.9 1.96 3.69 5.64 Lower zone
including 181.00 203.00 22.00 1.30 16.6 2.96 3.95 6.04 Margin zone
SDH18 -057 254 -82 0.00 114.00 114.00 2.86 55.7 0.97 3.32 5.07
including 0.00 49.70 49.70 2.49 11.1 2.64
including 49.70 114.00 64.30 3.15 90.2 1.68 4.51 6.90
and 179.00 233.70 54.70 0.95 93.3 1.73 3.15 4.82 Lower zone
including 179.00 202.00 23.00 1.10 31.98 2.82 3.81 5.83 Margin zone
* 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.
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
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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 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 cause th e actual results, performance, or achievements of Chakana to be
materially different from any future results, performance, or achievements expressed or implied by the forward-
looking statements. Forward looking statements or i nformation relates to, among other things, the interpretation of
the nature of the mineralization at the Project, th e 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 Projec t. These forward-looking statements are based on ma nagement’s
current expectations and beliefs but given the unce rtainties, assumptions and risks, readers are cautioned not to
place undue reliance on such forward- looking state ments or information. The Company disclaims any obl igation to
update, or to publicly announce, any such statements, events or developments except as required by law .
Figure 1 - Plan and sections highlighting holes in this release. Light red 3D shapes based on Leapfrog model from all
holes drilled by Chakana. Highlighted drill holes S DH18-053 to SDH18-057 show tourmaline breccia (red) , andesitic
wall rock (green), and other host rocks (other colo rs). Light grey traces show other holes drilled by Chakana
projected onto section from 37.5m in front of and b ehind section.