Chakana Relinquishes Condor Concessions, Soledad Project, Peru
Chakana Relinquishes Condor Concessions,
Soledad Project, Peru
Vancouver, British Columbia--(Newsfile Corp. - October 8, 2024) -
Chakana Copper Corp. (TSXV:
PERU) (OTCQB: CHKKF) (FSE: 1ZX)
(the "
Company
" or "
Chakana
"), reports that the Board has
decided to relinquish its option to acquire three concessions from Condor Resources Inc. (TSXV: CN)
("
Condor
"), that make up approximately 25% of the Company's expanded Soledad project located in
Ancash, Peru (the "
Condor Concessions
").
Mr. Douglas Silver, Chairman of Chakana, explains "during this time of difficult market conditions, we
were told by investors that they will not fund a project with substantial outstanding property payments.
The
remaining property payments to Condor in addition to payments already made greatly exceeded the
current value of the property.
We tried over multiple months to negotiate a reasonable buyout price but
were ultimately unsuccessful. While our preference is to keep the consolidated land position together,
doing so only makes sense if it is economically feasible. We are still very optimistic about our remaining
land holdings becoming a future precious metal and copper producing asset."
According to regulatory procedure, Chakana's existing exploration permits on the Condor Concessions
will be cancelled and Condor will have to start a new permitting process should they elect to do so.
Additionally, Chakana has requested that Condor take possession of the physical assets relating to the
Condor Concessions, which includes 44,919 metres of drill core and 34 tonnes of rejects and analytical
pulps currently stored at Chakana's warehouse facility. Chakana controls the surface rights over the
expanded Soledad project, including the Condor Concessions, which means that Condor will not have
access to the Condor Concessions without establishing an access agreement with Chakana. As part of
a previous royalty purchase agreement with Condor, Condor will grant a 1% net smelter returns royalty in
favor of Chakana over the Condor Concessions with a 2 km area of interest. Condor will have the right to
purchase half of the royalty (0.5%) for US$1,000,000 (see Chakana's news release dated March 19,
2019).
Based on an initial inferred resource published in February 2022, approximately 1.2 million tonnes
amenable to extraction by open pit mining methods and 4.7 million tonnes amenable to extraction by
underground mining methods are located on the Condor Concessions (see Chakana's news release
dated February 23, 2022 and the technical report titled "Independent Technical Report for the Soledad
Copper Project, Ancash Department, Peru" dated February 23, 2022, available under the Chakana's
issuer profile at
www.sedarplus.ca
).
Although the relinquishment of any portion of a consolidated land position is unfortunate, the Company's
management believes that the remaining 2,775 hectares is highly prospective.
Exploration initially began
in 2017 on the Condor Concessions and systematically moved to the south based on the recognition of
a much larger mineral system. In 2022, several higher-priority shallow targets were tested on the Condor
Concessions with limited success (see Chakana's news release dated September 22, 2022). All of the
obvious outcropping mineralized breccias on the Condor Concessions have been drill tested. Since
2023, the focus of exploration has been on the southern half of the project where recent drilling has
discovered additional high-grade copper-gold-silver breccia mineralization at Estremadoyro, high-grade
silver mineralization at the La Joya prospect, and defined two discrete porphyry targets within the large
Mega-Gold target area (see Chakana's news releases dated May 8, 2024 and August 29, 2024).
Qualified person
David Kelley, an officer and a director of Chakana and a qualified person as defined by National
Instrument 43-101 -
Standards for Disclosure of Mineral Projects
, reviewed and approved the technical
information in this news release.
ON BEHALF OF THE BOARD
(signed) "
Douglas Silver
"
Douglas Silver
Chairman of the Board
For further information contact:
Phone:
720-233-2166
Email:
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 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 and 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. including, without limitation, the need for additional
capital by the Company through financings, and the risk that such funds may not be raised; the
speculative nature of exploration and the stages of the Company's properties; the effect of changes in
commodity prices; regulatory risks and risks that the development of the Company's material
properties will not be acceptable for social, environmental or other reasons; availability of equipment
(including drills) and personnel to carry out work programs; that each stage of work will be completed
within expected time frames; that current geological models and interpretations prove correct; the
results of ongoing work programs may lead to a change of exploration priorities; and the efforts and
abilities of the senior management team. This list is not exhaustive of the factors that may affect any
of the Company's forward-looking statements or information. Additional risk factors and details with
respect to risk factors that may affect the Company's ability to achieve the expectations set forth in the
forward-looking statements contained in this news release are set out in the Company's management
discussion and analysis, which is available under the Company's profile at
www.sedarplus.ca
.
Accordingly, 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/225956