Chakana Copper Releases Final Results of Infill Drilling at Breccia Pipe 1 and Provides Exploration Update, Intersects 102 Metres with 0.75% Copper, 3.77 G/T GOLD and 55.9 G/T Silver (3.69% Cu_eq, 5.65 G/T Au_eq) from Surface IN the Main Zone
NEWS RELEASE
CHAKANA COPPER RELEASES FINAL RESULTS OF INFILL DRILLING AT
BRECCIA PIPE 1 AND PROVIDES EXPLORATION UPDATE,
INTERSECTS 102 METRES WITH 0.75% COPPER, 3.77 g/t GOLD AND 55.9 g/t
SILVER (3.69% Cu_EQ, 5.65 g/t Au_EQ) FROM SURFACE IN THE MAIN ZONE
Vancouver, B.C., October 18, 2018 – Chakana Copper Corp. (TSX-V: PERU; OTC:
CHKKF; FWB: 1ZX) (the “ Company ” or “ Chakana ”), is pleased to announce it has completed
infill drilling on the upper 450m mineralized exten t of Breccia Pipe 1 (Bx 1) at the Soledad
copper-gold-silver project in central Peru. All dri lling to date has been on the portion of the
Soledad Project optioned from Condor Resources Inc. Results of the previous fifty-eight drill
holes have been released and are also available at www.chakanacopper.com . Two of the holes
reported here were designed to explore the western extent of the Main zone, one was designed to
penetrate the southern limit of the Main zone, and one (SDH18-078) was drilled outside and
parallel to the breccia pipe to serve as a platform hole for a down-hole electromagnetic (EM)
survey intended to more accurately identify drill t argets extending beyond 450m depth (Figs. 1
and 2).
The two holes that test the western limit of the Ma in zone intersected thick intervals of
mineralized breccia. Drill hole SDH18-075 intercept ed 102m with 0.75% Cu, 3.77 g/t Au and
55.9 g/t Ag (3.69% Cu_EQ; 5.65 g/t Au_EQ) and hole SDH18-077 intersected 244m with 0.91%
Cu, 1.41 g/t Au and 55.6 g/t Ag (2.31% Cu_EQ; 3.53 g/t Au_EQ) before each hole exited the
breccia pipe. “The results of these latest holes ha ve identified mineralization consistent with the
previous results released for Bx 1 and demonstrate the high-grade nature of the mineralized
breccia pipe” states David Kelley, President and CE O. Examples of mineralized breccias from
holes in this release are shown in Figure 3.
New mineralized intervals from Breccia Pipe 1 are:
Bx #1 - Main and North Zone Targeted Holes
DDH #
Az Dip
From - To
(m)
Core
Length (m)
Au
g/t
Ag
g/t Cu %
Cu-eq
%*
Au-
eq
g/t*
Note
SDH18-075 30 1 -81 0.00 102.00 102.00 3.77 55.9 0.75 3.69 5.65 Main zone
including 0.00 40.00 40.00 4.19 31.5 4.60 Oxide
including 40.00 102.00 62.00 3.50 71.7 1.22 4.12 6.30 Main zone
and 138.00 207.00 69.00 0.77 106.5 1.62 3.03 4.64 Main zone
and 316.80 345.70 28.90 0.44 44.5 1.86 2.53 5.87
SDH18-076 138 -79 0.00 15.00 15.00 4.40 38.0 4.90 Oxide
and 50.00 62.00 12.00 1.74 5.6 1.81 Main zone
and 103.80 116.16 12.36 0.76 116.2 2.37 3.86 5.90 Main zone
SDH18-077 265 -83 0.00 244.00 244.00 1.41 55.6 0.91 2.31 3.53 Main zone
including 0.00 50.00 50.00 1.68 17.7 1.91 Oxide
including 50.00 244.00 194.00 1.34 65.4 1.13 2.57 3.92 Main zone
SDH18-078 155 -74 218.83 225.70 6.87 4.43 455.4 1.14 7.93 12.13
* 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).
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Reported mineralized intervals are not true widths given the vertical nature of the breccia pipe and
the steep inclination of the holes.
Exploration Update
Infill drilling has been completed on Bx 1 and Bx 5 ; Bx 3E and Bx 6 are currently being
evaluated with exploration drilling. Results from B x 5, Bx 3E and Bx 6 are pending. The
Company is waiting for the approval of its Semi-det ailed Environmental Impact Study (EIA-SD)
that will allow for additional platforms throughout the original Condor option area. This permit
has received technical review approval and has prog ressed to the legal review stage. Delays in the
receipt of the permit are a result of staff and man agement changes at the Ministry of Energy and
Mines following the recent change in administration and our delays are consistent with those
being experienced by other miners and explorers in Peru. Once approved, several additional high
priority targets can be tested, including Bx 3W, Bx 7, and several altered areas consistent with
being associated with mineralization seen in drilli ng. Upon receipt of the EIA-SD, a modification
to the EIA-SD will be submitted to allow for explor ation drilling on the mineral rights acquired to
the south (see news release dated May 23, 2018 at www.sedar.com ) covering the 200m long by
100m wide Huancarama Breccia Complex, the Paloma (E ast and West) pipes, and other breccia
pipes and targets. This modification is expected to take 4-6 months for approval. Finally, a
separate new permit, Declaration of Environmental I mpact (DIA), will be submitted to allow for
exploration drilling on breccia pipes and other tar gets in the Compañero cluster from the
concessions recently optioned from Barrick (see new s release dated July 16, 2018
at www.sedar.com ). We anticipate the DIA permit being submitted in November, 2018.
“We are excited about the project advancement thus far and impatiently await approval of the
EIA-SD permit that will allow several additional hi gh priority targets to be tested upon receipt.
Our team is ready to submit the modification that w ill provide access to the expanded mineral
rights where several additional outcropping mineral ized breccia pipes occur. In the meantime, we
continue to drill with a single rig and are expandi ng our detailed surface mapping and rock and
soil sampling across the broader 3,085 hectare land position that we have established. A second
rig is on the property at no cost to the Company an d can be deployed rapidly when access to the
Huancarama and Paloma pipes is granted. There are 1 5 known breccia pipes on the combined
property with an additional 15 high priority target s that may be blind breccia pipes. We also have
a pending down-hole and surface EM survey throughou t the expanded area of known breccia
pipes that will help us further define and prioriti ze drill targets. The Company believes that this
approach is fiscally prudent and ensures that the d rilling is focused on prioritized, well-defined
targets” added Mr. Kelley.
Sampling and Analytical Procedures
Chakana follows rigorous sampling and analytical pr otocols that meet or exceed industry
standards. Core samples are stored in a secured are a until transport in batches to the ALS facility
in Callao, Lima, Peru. Samples batches include cer tified reference materials, blank and duplicate
samples that are then processed under the control o f ALS. All samples are analyzed using the
ME-MS41 (ICP technique that provides a comprehensiv e multi-element overview of the rock
geochemistry), while gold is analyzed by AA24 and G RA22 when values exceed 10 g/t. Over
limit silver, copper, lead and zinc is analyzed using the OG-46 procedure.
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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 policies of the
Exchange) accepts responsibility for the adequacy o r accuracy of this release.
Forward-looking Statement Advisory: This release may contain forward-looking statements. Forward-looki ng
statements involve known and unknown risks, uncerta inties, and other factors which may cause the actua l results,
performance, or achievements of Chakana to be mater ially different from any future results, performance, 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 miner alization, 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 curren t 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 t o update, or to publicly announce, any such stateme nts, events
or developments except as required by law.
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Figure 1 – Map showing drill holes with geology d iscussed in this release.
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Figure 2 – Section looking east showing the Main an d blind North breccia bodies at Bx 1 highlighting h oles in this
release. Light red 3D shapes based on Leapfrog mode l of breccia from all holes drilled by Chakana. Dri ll holes show
tourmaline breccia (red), andesitic wall rock (gree n), and other host rocks (other colors). Section in cludes data from
50m in front of and behind section.
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A
C
D
B
E
Figure 3 – Mineralized intercepts from drill holes reported in this release showing different styles of mineralization in Bx 1: A)
SDH18-075 – high-grade shingle breccia from the Mai n Zone; the interval 47-53m assays 8.54 g/t Au, 1.9 7% Cu, and 15.3 g/t
Ag; B) SDH18-075 – mosaic breccia from the Main Zon e; the interval 152-158m assays 0.54 g/t Au, 2.39% Cu, and 119.2 g/t
Ag; C) SDH18-076 –mosaic breccia from the Main Zone ; the interval 103-108.5m assays 0.98 g/t Au, 4.87% Cu, and 100.4 g/t
Ag; D) SDH18-077 – chaotic shingle breccia from the Main Zone; the interval 52-57m assays 8.81 g/t Au, 2.71% Cu, and
186.6 g/t Ag; E) SDH18-077 – mosaic breccia from t he Main Zone; the interval 177-182m assays 2.35 g/t Au, 4.33% Cu, and
95.1 g/t Ag.