Chakana Provides Corporate Update
Chakana Provides Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - December 21, 2022) -
Chakana Copper Corp.
(TSXV: PERU) (OTCQB: CHKKF) (FSE: 1ZX)
(the
"
Company
"
or
"
Chakana
"), is pleased to
announce that it has modified the payment terms with M&R Aija S.A.C. for the Aija Option Agreement
(the "Agreement") covering a portion of the Soledad project, located in the Ancash Province of Peru. The
agreement relates to 10 mining concessions totalling 639 hectares covering the Huancarama, Paloma
East, and Paloma West breccia pipes that are included in the initial inferred mineral resource estimate
(MRE) published Q1 2022 (see news releases dated January 11 and February 23, 2022). In addition,
there are numerous untested exploration targets within this ground.
Under the existing agreement, a final payment of US$1.5 million dollars was due on May 1, 2023. The
parties have agreed to extend and amend the terms of the agreement as follows:
2022
2023
2024
2025
2026
Aija Option
01-Dec-22
01-May-23
01-Nov-23
01-May-24
01-Nov-24
01-May-25
01-Nov-25
01-May-26
01-Nov-26
Cash (US$)
$100,000
$100,000
$100,000
$150,000
$150,000
$150,000
$150,000
$150,000
$250,000
Shares (US$)
$75,000
$125,000
$150,000
$75,000
$75,000
N/A
N/A
N/A
N/A
The number of shares will be determined based on the greater of (i) the ten (10) day volume weighted
average trading price of the Chakana common shares as of the date of issuance of such Chakana
Shares, or (ii) the market value at the time the obligation arises, provided that the shares for each
payment may not be issued at a price of lower than CAD $0.05 per share.
The Agreement is subject to
the approval of the TSX Venture Exchange.
"This is a great outcome as it ensures that the company's capital is more proportionately allocated to
advancing the Soledad project with additional exploration and studies on our existing mineral
resource. We continue to make steady progress with our permit to allow drilling some very exciting
targets on the south half of the project,"
stated President and CEO David Kelley.
Permitting Update
Chakana is in the process of modifying the semi-detailed environmental impact assessment (EIAsd) to
allow exploration drilling on the south half of the project. The Company is in the final stage of the
environmental permit certification. Once approved, the permit moves to the final Initiation of Activities
(AIA) stage.
Approval of the modified EIAsd will allow drill testing in three principal target areas on the south side of
the project: 1) Compañero breccia complex, 2) Mega-Gold target, and 3) La Joya high sulfidation zone
(Figure 1). The Compañero breccias are similar to the mineralized breccia pipes in the MRE on the
north side of the project with strongly enriched gold in surface rock channel samples (see news release
dated July 16, 2018). The Mega-Gold target is defined by an extensive soil anomaly that is strongly
anomalous in gold-molybdenum-tin, in part overlying a poorly exposed, phyllic-altered granodiorite
intrusion. The La Joya target area has strong silver mineralization in surface rock samples associated
with high sulfidation advanced argillic alteration with vuggy silica, alunite, dickite, zunyite, diaspore, and
pyrophyllite.
About Chakana Copper
Chakana Copper Corp is a Canadian-based minerals exploration Company that is currently advancing
the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with
supportive communities. The Soledad Project is notable for the high-grade copper-gold-silver
mineralization that is hosted in tourmaline breccia pipes. An initial mineral resource estimate for seven
breccia pipes was announced in Q1 2022 (see news release dated February 23, 2022), with an Inferred
Resource of 4.8 million tonnes grading 0.72 g/t gold, 61 g/t silver and 0.97% copper assumed to be
extractable by underground mining methods, plus an additional Inferred Resource of 1.9 million tonnes
grading 1.29 g/t gold, 37.1 g/t silver and 0.65% copper assumed to be extractable by open pit mining
methods. The total initial Inferred Resource contains 191,000 ounces of gold, 11.7 million ounces of
silver, and 130 million pounds of copper.
In addition, extensive multidisciplinary exploration has defined 154 exploration targets, 28 of which have
been tested to date (18%), confirming that Soledad is a large, well-endowed mineral system with strong
exploration upside.
Chakana's investors are uniquely positioned as the Soledad Project provides
exposure to copper and precious metals. For more information on the Soledad project, please visit the
website at
www.chakanacopper.com
.
Results of an initial inferred mineral resource estimate and additional information concerning the Project,
including a technical report prepared in accordance with National Instrument 43-101, are available on
Chakana's 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:
Investor Relations:
Email:
Telephone: 720-233-2166
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Forward-looking Statement Advisory:
This release may contain forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors which
may cause the 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 information relates to, among other things, the
interpretation of the nature of the mineralization at the
Soledad copper-gold-silver
project (the
"Project"), the potential to expand the mineralization, and to develop and grow a resource within the
Project, the planning for further exploration work, the ability to de-risk the potential exploration targets,
and our belief in the potential for mineralization within unexplored parts of the Project. These forward-
looking statements are based on management's current 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 to update, or to
publicly announce, any such statements, events or developments except as required by law.
Figure 1 – Map showing total defined targets for the Soledad project by type. Principal target areas on
the south side of the project that will be drill tested after approval of the EIAsd drill permit highlighted
(black dashed outlines).
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/2172/148870_793bdff934df6b0c_001full.jpg
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/148870