Chakana Releases Infill Drilling Results at Breccia Pipe 5, Intersects 264 Metres with 0.71% Copper, 1.30 G/T GOLD and 24.3 G/T Silver (1.77% Cu_eq, 2.70 G/T Au_eq) from Surface
NEWS RELEASE
CHAKANA RELEASES INFILL DRILLING RESULTS AT
BRECCIA PIPE 5,
INTERSECTS 264 METRES WITH 0.71% COPPER, 1.30 g/t GOLD AND 24.3 g/t
SILVER (1.77% Cu_EQ, 2.70 g/t Au_EQ) FROM SURFACE
Vancouver, B.C., November 13, 2018 – Chakana Copper Corp. (TSX-V: PERU; OTC:
CHKKF; FWB: 1ZX) (the “ Company ” or “ Chakana ”), is pleased to announce additional
results from infill drilling on Breccia Pipe 5 (Bx 5) at the Soledad copper-gold-silver project in
central Peru (the “Soledad Project”). All drilling to date has been on the portion of the Soledad
Project optioned from Condor Resources Inc. The fou r holes reported here were designed to
explore the upper 250m extent of the breccia pipe ( Figs. 1 and 2). Chakana had previously
released nine drill holes from Bx 5 (see news relea se dated February 22, 2018
at www.sedar.com ), including 164m with 0.51% Cu, 1.68 g/t Au and 27 .4 g/t Ag (1.84% Cu_EQ;
2.82 g/t Au_EQ) from 12m in hole SDH17-041.
All four holes intersected significant intervals of mineralization. Hole SDH18-080 was drilled to
the southeast from a collar located on the northeas t part of the breccia pipe and is the best hole
drilled to date on Bx 5 in terms of grade-thickness . Excluding the oxide zone, primary grades are
0.79% Cu, 1.30 g/t Au, and 21.6 g/t Ag for 234m sta rting at 30m depth. Previous results from
hole SDH17-038, drilled to the east at 82 degrees a zimuth from the same collar location, also had
high copper grades with 1.21% Cu, 0.70 g/t Au, and 53.8 g/t Ag for 23m starting at 38m depth.
“These results are very encouraging for Bx 5 in ter ms of continuity of mineralization and the
suggestion of higher copper grades on the eastern s ide of the breccia pipe. Drill results from both
Bx 1 and Bx 5 are open at depth and numerous additi onal targets remain to be tested,” said
President and CEO David Kelley. Examples of mineral ized breccias from holes in this release are
shown in Figure 3.
New mineralized intervals from Breccia Pipe 5 are:
Breccia Pipe 5
DDH #
Az Dip From - To
(m)
Core
Length (m)
Au
g/t
Ag
g/t Cu %
Cu-eq
%*
Au-eq
g/t*
Note
SDH18-079 243 -82 0.00 178.00 178.00 1.50 24.8 0.48 1.67 2.56
including 0.00 26.00 26.00 1.81 53.4 2.51 Oxi de
including 26.00 178.00 152.00 1.45 20.0 0.56 1.68 2.57
SDH18-080 111 -83 0.00 264.00 264.00 1.30 24.3 0.71 1.77 2.70
including 0.00 30.00 30.00 1.33 45.8 1.93 Oxide
including 30.00 264.00 234.00 1.30 21.6 0.79 1.82 2.79
SDH18-081 168 -83 0.00 201.00 201.00 1.63 22.2 0.40 1.66 2.53
including 0.00 29.00 29.00 0.78 43.6 1.35 Oxi de
including 29.00 201.00 172.00 1.77 18.6 0.45 1.77 2.70
SDH18-082 333 -78 0.00 111.00 111.00 1.02 34.3 0.54 1.50 2.29
including 0.00 12.00 12.00 1.89 35.2 2.35 Oxi de
including 12.00 111.00 99.00 0.92 34.2 0.61 1.50 2.30
* 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 Update
Surface exploration continues throughout Chakana’s 3,085 hectare concession area, including
detailed mapping, rock sampling and soil surveys. P lanned electromagnetic surveys in down hole
and surface loop configurations will be initiated i n the next two weeks using imported Crone
geophysical equipment. Integration of these data sets will be used to prioritize drill targets.
A soil orientation study has been completed to dete rmine the optimal sampling media, sample
spacing, and analytical protocols to best detect mi neralization related to tourmaline breccia pipes.
In addition, soil sampling covering a large portion of the Soledad breccia pipe cluster has been
completed (Fig. 4). Sampling further north covering Bx 6, and further west covering the Corral
and Western Breccias is underway. A separate survey covering the Compañero breccia pipe
cluster will also be completed.
To date, soil results for gold show a strong correl ation with the known breccia pipes and further
highlight several additional exploration targets (F ig. 4). There is a corridor of anomalous gold
extending NNE from Huancarama to Bx 5, an area of a pproximately 1,400m by 300m. “The soil
geochemistry is working exceptionally well in identifying exploration targets, particularly in areas
with little or no outcrop. There is a very impressi ve anomaly northeast of Bx 1 where mineralized
breccia is poorly exposed. Other areas of interest include anomalies east of breccias Bx 5 and Bx
3W, and a continuous anomaly surrounding and extend ing beyond the Paloma East and West
pipes. South of this area, a broad area of anomalou s gold in soil 400m by 100m surrounds the
Huancarama Breccia Complex,” stated 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 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-two 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 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 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 dis cussed in this release.
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Figure 2 – Section looking east showing the breccia pipe at Bx 5 highlighting holes in this release. L ight 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)
SDH18-079 – high-grade shingle breccia with larger blocks of andesite tuff; the interval 103-109m assa ys 8.43 g/t Au, 2.24%
Cu, and 46.5 g/t Ag; B) SDH18-080 – high-grade chao tic shingle breccia and mosaic breccia; the interval 234-240m assays
2.30 g/t Au, 3.29% Cu, and 27.2 g/t Ag; C) SDH18-08 1 – high-grade chaotic shingle breccia; the interva l 32-38m assays 2.94
g/t Au, 1.73% Cu, and 64.3 g/t Ag; D) SDH18-082 – h igh-grade shingle breccia; the interval 55-60m assa ys 0.90 g/t Au, 1.82 %
Cu, and 92.7 g/t Ag; E) euhedral chalcopyrite and p yrite in SDH18-079 at 136.47m; F) chalcopyrite filling open space in
breccia matrix intergrown with fine tourmaline crystals rimming fragments and larger quartz crystals; SDH18-080 at 239m.
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
breccias and occurrences (stars). Color image shows gold in soils collected on 50m centers. Anomalous areas without
confirmed breccia pipes or occurrences are consider ed exploration targets. Gold is determined by Fire Assay on a 30g
sample.