Chakana Copper Releases Results of Infill Drilling at Breccia Pipe 5 and Provides Exploration Update, Intersects 140.4 Metres with 0.46% Copper, 1.70 G/T GOLD and 23.5 G/T Silver (1.77% Cu_eq, 2.71 G/T Au_eq) from 13 Metres
NEWS RELEASE
CHAKANA COPPER RELEASES RESULTS OF INFILL DRILLING AT BRECCIA
PIPE 5 AND PROVIDES EXPLORATION UPDATE,
INTERSECTS 140.4 METRES WITH 0.46% COPPER, 1.70 g/t GOLD AND 23.5 g/t
SILVER (1.77% Cu_EQ, 2.71 g/t Au_EQ) FROM 13 METRES
Vancouver, B.C., January 10, 2019 – 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 340m mineralized exten t of Breccia Pipe 5 (Bx 5) 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. The four holes reported here were designed
to explore the upper 200m extent of the breccia pip e from surface (Figs. 1 and 2). Chakana had
previously released thirteen drill holes from Bx 5 (see news releases dated February 22, 2018 and
November 13, 2018 on www.sedar.com ), that included a 264m intercept with 0.71% Cu, 1. 30 g/t
Au and 24.3 g/t Ag (1.77% Cu_EQ; 2.82 g/t Au_EQ) from surface in hole SDH18-080.
All four holes intersected significant intervals of mineralization. Hole SDH18-084 was drilled to
the south from a collar located on the east-central part of the breccia pipe and intersected 103.3m
of mineralized breccia from surface with 0.42% Cu, 1.36 g/t Au, and 46.7 g/t Ag. Excluding the
oxide zone, primary grades are 0.56% Cu, 1.07 g/t A u, and 31.4 g/t Ag for 72.3m starting at 31m
depth. Hole SDH18-086 intersected 140.4m of primary mineralization from 13m with 0.46% Cu,
1.70 g/t Au, and 23.5 g/t Ag. “These results compli ment results from the previous thirteen holes
in Bx 5 and demonstrate good continuity of minerali zation in the breccia. As with Bx 1,
mineralization at Bx 5 remains open at depth. In ad dition, numerous known breccia pipes and
exploration targets remain to be tested,” said Pres ident and CEO David Kelley. Examples of
mineralized breccias from holes in this release are shown in Figure 3.
Previously unreported mineralized intervals from Breccia Pipe 5 are:
Bx 5 - Infill Holes
DDH #
Az
Dip From - To
(m)
Core
Length (m)
Au
g/t
Ag
g/t Cu %
Cu-eq
%*
Au-
eq
g/t*
Note
SDH18-083 61 -79 0.00 38.60 38.60 1.24 19.2 0.07 1.04 1.60 Oxide
and 57.00 59.50 2.50 0.54 72.0 0.31 1.28 1.96 Primary
and 83.00 112.00 29.00 1.35 18.5 0.24 1.28 1.96 Primary
SDH18-084 185 -70 0.00 103.30 103.30 1.36 46.7 0.42 1.71 2.61
including 0.00 31.00 31.00 2.01 82.3 0.11 2.13 3.25 Oxide
including 31.00 103.30 72.30 1.07 31.4 0.56 1.53 2.34 Primary
SDH18-085 255 -68 0.00 98.00 98.00 0.73 35.0 0.34 1.12 1.71
including 0.00 42.00 42.00 0.94 53.7 0.03 1.1 1.69 Oxide
including 42.00 98.00 56.00 0.57 21.0 0.57 1.12 1.72 Primary
SDH18-086 300 -82 0.00 153.40 153.40 1.68 25.2 0.42 1.73 2.65
including 0.00 13.00 13.00 1.42 44.4 0.03 1.34 2.05 Oxide
including 13.00 153.40 140.40 1.70 23.5 0.46 1.77 2.71 Primary
* 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.
Surface Exploration and Permitting Update
Surface exploration continues throughout Chakana’s 3,085 hectare concession area. Detailed soil
sampling covering the entire Soledad cluster of bre ccia pipes has been completed and downhole
electromagnetic (EM) and surface surveys are underw ay. Two downhole EM surveys as well as 7
out of a planned 17 surface loops have been complet ed using imported Crone geophysical
equipment. Integration of these data sets will be used to prioritize drill targets.
Soil geochemistry results covering the entire Soled ad cluster of breccia pipes have been received
and further document the extent of mineralization h osted in breccia (Fig. 4). Results previously
released (see news release dated November 13, 2018) highlighted an anomalous zone of gold in
soil corresponding to several known and potential b reccia pipes extending north-northeast from
Huancarama to Bx 5. In addition, a very prominent s oil anomaly related to Bx 1, and a new
breccia pipe, Bx 7, are clearly delineated in the r esults. New results from extensions of the
original soil grid show anomalous gold in soil at t he Western and Corral breccias, north of Bx 5,
and Cima Blanca. Cima Blanca is an area of silica-illite-paragonite-tourmaline alteration hosted in
dacite tuff associated with east-west-trending gold -bearing quartz veins (Fig. 4). “The expanded
soil geochemistry results delineate a more complete picture of the additional mineralization at
Soledad. In addition to confirming the gold-bearing nature of several known breccias, several
areas with anomalous gold in soil highlight other e xploration targets for testing. The large
anomalous area covering the Western and Corral brec cias is particularly exciting, highlighting
new targets in this area,” stated Kelley.
Three component surface time domain EM data was col lected over Bx 1 and Bx 7 using
transmitter loops designed to preferentially couple with conductive sulfides hosted within known
or blind breccia pipes. Data was collected within t he transmitter loop along north south oriented
lines every 25m with line density of 50m. Results f or the vertical component of the measured
field for a relatively early time window detected r esponses from confined conductors that
correlate well with known breccias (Fig. 5). “The t ime domain EM results are outstanding in that
this technique confirms a robust response from Bx 1 where we have had excellent high-grade drill
results. The response at the untested Bx 7 pipe is even more impressive in comparison to the Bx 1
response,” commented Kelley.
As previously reported, Chakana received government approval for a Semi-detailed
Environmental Impact Assessment (EIAsd) covering a portion of the Soledad project (see news
release dated November 26, 2018). The approval appl ies to the original area of the Declaration of
Environmental Impact (DIA) on the Soledad explorati on permit and includes 120 additional
drilling platforms. In order to drill in the new co ncessions acquired by Chakana, a modification to
this permit is required. This modification has been submitted and once approved will allow
drilling the Huancarama and Paloma breccia pipes and concession area.
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. Sample batches include cert ified reference materials, blank, and duplicate
samples that are then processed under the control o f ALS. All samples are analyzed using the
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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 are analyzed us ing the OG-46 procedure. Soil samples are
analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).
Results of the previous sixty-six drill holes from the Soledad Project have been released and are
also available at www.chakanacopper.com . Additional information concerning the Project is
available in a technical report prepared in accorda nce with National Instrument 43-101 made
available on Chakana’s SEDAR profile on 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 ma y 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, performanc e, or
achievements expressed or implied by the forward-lo oking statements. Forward looking statements or inf ormation
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 wor k, the ability to
de-risk the potential exploration targets, and our belief about the unexplored parts of the Project. T hese forward-
looking statements are based on management’s curren t expectations and beliefs but given the uncertaint ies,
assumptions and risks, readers are cautioned not to place undue reliance on such forward- looking stat ements 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 dis cussed in this release.
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Figure 2 – Section looking north showing the brecci a pipe at Bx 5 highlighting holes in this release. Light red 3D
shapes based on Leapfrog model of breccia from all holes drilled by Chakana. Drill holes show tourmali ne breccia
(red), andesitic wall rock (green), and other host rocks (other colors). Section includes data from 75 m in front of and
behind section.
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Figure 3 – Mineralized intercepts from drill holes reported in this release showing different styles of mineralization in
Bx 5: A) SDH18-083 – shingle breccia with strong to urmaline replacement; the interval 93.85-99m assays 1.79 g/t
Au, 0.42% Cu, and 24.1 g/t Ag; B) SDH18-084 – chaot ic shingle and mosaic breccia; the interval 49-55m assays 0.49
g/t Au, 1.77% Cu, and 18.86 g/t Ag; C) SDH18-085 – shingle breccia with strong tourmaline replacement; the
interval 82-88m assays 0.42 g/t Au, 2.13% Cu, and 2 7.6 g/t Ag; D) SDH18-086 – shingle breccia with var iable clast
sizes; the interval 27-33m assays 1.24 g/t Au, 1.43% Cu, and 59.9 g/t Ag; E) breccia with interstitial chalcopyrite and
pyrite in SDH18-084 at 37.17m; F) chalcopyrite and pyrite filling open space in shingle breccia; SDH18 -086 at
89.6m.
A
C
D
B
E
F
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Figure 4 – 3D perspective view looking northeast of the main Soledad breccia pipe cluster showing conf irmed breccia
pipes (circles) and occurrences (stars). Color image shows gold in soils collected on 50m centers. Ano malous areas
without confirmed breccia pipes or occurrences are considered exploration targets. Gold is determined by Fire Assay
on a 30g sample.
Figure 5 – Images showing results for the time doma in surface EM survey over Bx 1 (A) and Bx 7 (B). Re sults are
for the vertical component, Channel 10 (0.268ms to 0.328ms).