Chakana Intercepts 76 M of 0.93 G/T Au, 1.04% Cu, and 53.1 G/T AG and Provides Exploration Update
CHAKANA COPPER CORP.
NEWS RELEASE
CHAKANA INTERCEPTS 76 M OF 0.93 g/t Au, 1.04% Cu, AND 53.1 g/t Ag AND
PROVIDES EXPLORATION UPDATE
Vancouver, B.C., February 7, 2018 – Chakana Copper Corp. (TSX-V: PERU) (the
“ Company ” or “ Chakana ”), is pleased to provide a general exploration upd ate and announce
assays from an additional six holes at its Soledad copper-gold-silver project in central Peru,
optioned from Condor Resources Inc. The Soledad pro ject (the “Project”) is located 35 km south
of the Pierina mine in the prolific Miocene metallo genic belt of Peru. These results are a
successful continuation of the drilling program tha t was initiated August 16, 2017, with the
results of the first ten drill holes released previously (see: www.chakanacopper.com ).
“The latest results are consistent with the earlier results in confirming the high-grade nature of
the mineralization in the first of nine mineralized breccia pipes to be drilled by the company,”
said President and CEO David Kelley. “We continue to see strong mineralization in the matrix
of the breccia (see Figure 1). In addition to the n ine confirmed pipes, there are numerous other
occurrences of strongly altered andesite with sheet ed quartz-sericite-sulfide veining, indicating
the possible presence of blind pipes. These will be tested in our drill program throughout the
year.”
Significant 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*
SDH17-027 190 -65 0.0 12.0 12.0 3.54 78.1 4.56
and 133.4 143.0 9.6 1.60 6.0 0.29 1.39 2.12
and 161.0 168.0 7.0 0.81 49.4 1.93 0.76 0.36 2.88 4.4 1
SDH17-028 255 -75 0.0 14.0 14.0 4.48 27.3 4.84
and 204.25 231.4 27.15 0.76 74.0 2.51 3.64 5.57
SDH17-029 210 -75 0.0 14.4 14.4 5.84 38.0 6.34
and 94.9 121.0 26.1 0.63 226.6 3.69 0.84 0.76 6.04 9. 24
and 133.0 145.0 12.0 0.17 8.5 0.69 0.87 1.34
and 203.0 222.0 19.0 2.01 32.4 1.97 3.56 5.45
SDH17-030 170 -77 0.0 14.0 14.0 3.29 68.6 4.19
and 98.0 118.0 20.0 0.71 18.1 0.44 1.06 1.62
SDH17-031 145 -83 0.0 135.0 135.0 1.02 35.2 0.60 1.57 2.40
including 0.0 59.0 59.0 1.15 12.1 1.31
including 59.0 135.0 76.0 0.93 53.1 1.04 2.10 3.22
SDH17-032 270 -70 0.0 28.0 28.0 3.39 13.0 3.56
* Cu_eq and Au_eq values were calculated using copp er, 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 l ead are not used in the metal equivalent calculatio ns. The true widths of the
mineralized intervals reported in this release are difficult to ascertain and additional drilling will be required to constrain the
geometry of the mineralized zones.
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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. Phase 1 of the program is ongoing for a
total of 9,191m drilled to date of an original plan ned program of 16,660m. Phase 1 is directed
toward pipes #1 and #5 (Bx #1 and Bx #5). Phase 2 i s an expanded drill program proposed under
a Semi-detailed environmental impact assessment per mit (EIA-SD) that was submitted for
review to the Ministry of Energy and Mines on Decem ber 29, 2017. Phase 2 will allow for
additional step-out drilling and testing a number o f other pipes and targets identified on the
Project.
The pipes form a cluster within 4 km 2 and are spaced between 176m to 625m apart with ver tical
relief between the pipes of over 500m. Based on det ailed mapping, Bx #1 has a surface diameter
of approximately 40m and Bx #5 of approximately 50m . Mineralization is open at depth in both
pipes based on previous drilling. Drilling is desig ned to determine the geometry (volume) of the
breccia hosted mineralization and the grade. Tourma line breccia pipes can have diameters that
increase at depth, and often have higher grades at the margin of the pipe where permeability of
the breccia is highest. Drilling at the Project is designed to test this from surface to 400m depth
based on: 1) drilling from a central platform at va rious azimuths and dip angles to penetrate the
margin of the breccia throughout its vertical exten t; and 2) from platforms outside the pipe to
drill across the breccia body. The six holes being reported were drilled from a central platform.
Mineralized intercepts will vary in length due to the shape of the breccia body and the orientation
of the drill hole (see Figure 2). For example, shal low holes drilled near the perimeter of the pipe
may have shorter intercepts compared to steeper hol es. Nonetheless, all holes that intersect
mineralized breccia are important for constraining the overall shape and grade of the breccia
body. Once a sufficient number of intercepts are o btained 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 (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
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.
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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 – Core from SDH17-031 for 105.9 to 111.3m showing strong copper mineralization in the matrix
of the tourmaline breccia.
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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.