Chakana Reports 220m of 0.62 g/t Gold, 79.0 g/t Silver, and 0.20% Copper (1.96 g/t Au-EQ) from Surface at Breccia Pipe 7 and Provides Exploration Update Soledad Project Highlights: Five additional exploration drill holes completed on Bx 7 with significant intercepts
Chakana Reports 220m of 0.62 g/t Gold, 79.0
g/t Silver, and 0.20% Copper (1.96 g/t Au-EQ)
from Surface at Breccia Pipe 7 and Provides
Exploration Update
Soledad Project Highlights:
Five additional exploration drill holes completed on Bx 7 with significant intercepts
Marker breccia tested with three shallow drill holes
Resource definition drilling completed on six breccia pipes; assays from 51 drill holes
pending
Gradient-array and offset induced-polarization (IP) surveys identify new targets, define
prospective corridors, detect mineralized breccia pipes, and refine the ranking of 110
existing targets identified to date; property-wide surveys ongoing
Vancouver, British Columbia--(Newsfile Corp. - October 12, 2021) -
Chakana Copper Corp. (TSXV:
PERU) (OTCQB: CHKKF) (FSE: 1ZX)
(the
"
Company
"
or
"
Chakana
"), is pleased to provide results
from five additional exploration holes drilled in Bx 7 (totaling 792.75m) at the Soledad project, Ancash,
Peru (see table below). The exploration drilling is part of a fully funded 26,000m exploration and resource
drilling program planned for 2021 (Fig. 1).
"The long-mineralized intercept in hole SDH21-212 at Bx 7 is important in understanding the
geometry and potential of this breccia pipe. Bx7 has stronger precious metal grades than copper at
the depths drilled so far. Bx 7 is an excellent exploration target that requires additional drilling to
constrain its shape and depth extents before initiating resource definition drilling. Beyond this, we
have 51 resource definition drill holes from Bx 5 and Huancarama to report leading up to the initial
resource estimate which is expected by the end of the year. We have paused our drill program to
complete the geophysical surveys that are in progress. Results from these geophysical surveys have
been transformational in our understanding of the structural framework that controls the breccia pipe
locations, including numerous responses interpreted to be additional concealed breccia pipes that do
not crop out at surface. We are fully permitted to test a multitude of targets on the north half of the
project, and are well advanced in permitting the southern half, where numerous outcropping
mineralized breccia pipes occur,"
stated President and CEO David Kelley.
Exploration Drill Results
Bx 7 (Exploration)
DDH #
From
-
To (m)
Core Length (m)
Au
g/t
Ag
g/t
Cu %
Au-eq g/t*
SDH21-209
106.90
118.60
11.70
0.66
4.1
0.71
SDH21-210
121.80
166.00
44.20
0.27
89.2
1.44
SDH21-212
0.00
220.00
220.00
0.62
79.0
0.20
1.96
including
93.00
114.00
21.00
0.77
245.2
0.32
4.47
including
124.00
134.00
10.00
1.21
265.9
0.30
5.15
including
191.00
209.00
18.00
1.73
244.5
0.25
5.31
SDH21-214
0.00
20.00
20.00
0.40
15.0
0.18
0.87
SDH21-215
0.00
25.00
25.00
0.33
12.3
0.12
0.67
DDH #
From
-
To (m)
Core Length (m)
Au
g/t
Ag
g/t
Cu %
Au-eq g/t*
* 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).
Exploration Drilling
The holes reported in this release are a smaller number of exploration holes testing two targets, Bx 7 and
the Marker breccia.
The purpose of the exploration holes is to test to see if additional resource definition
drilling is warranted. Exploration drilling at Bx 7 has encountered a breccia pipe from surface to a depth
of 220m that is open at depth (Figs. 2B and 3).
Drill hole SDH21-212 intersected mineralization along
this entire extent. Three higher grade intervals were encountered at depth with increasing gold grades,
high silver grades, and moderate copper grades. The overall geometry of Bx 7 remains to be defined
with additional exploration drilling.
Three shallow drill holes were completed in the Marker breccia, located 200m south-southwest of
Paloma West (Fig. 2A) where a small breccia is exposed at surface. All three holes intersected
tourmaline breccia with apparent thicknesses ranging from 19.90m to 42.40m but no significant grades
were encountered. One additional hole was attempted at Paloma West, but the hole was lost in a fault
before the target depth was reached (Fig. 2A). This drill rig then returned to Bx 5 to complete additional
resource drilling.
Geophysical Surveys
Two different types of geophysical surveys have been tested to identify new breccia pipe targets and
help refine the ranking of the existing 110 targets identified to date. Orientation surveys based on
gradient-array induced-polarization (IP) and offset IP were completed over several known and well
understood mineralized breccia pipes to determine the optimal survey configuration for breccia pipe
targets; both techniques are highly effective in delineating mineralized breccia pipes. Surveys are now
being completed throughout the 12-km
2
footprint of the Soledad mineral system where tourmaline
breccias are known.
These surveys will help detect zones of mineralization, define the structural controls
on fertile corridors that host the breccia pipes, locate new breccia pipes that may not come to surface,
and refine the existing targets defined by several other overlapping exploration data sets.
Gradient-array IP is a rapid geophysical mapping technique designed to detect structure, alteration
(resistivity) and sulfide mineralization (IP) as well as structural corridors. Previous historical IP surveys at
Soledad were limited to smaller areas of the overall mineral system and were done using a variety of
contractors, instruments, and line spacings. This new property-wide survey is optimized for vertical
breccia pipe targets using a small footprint configuration. Results from orientation surveys at Soledad
show distinct corridors that host the known breccia pipes (Fig. 4). Extensions of these corridors and
newly identified corridors are considered highly prospective for the discovery of additional breccia pipes
throughout the 12-km
2
area of the Soledad mineral system.
Offset IP/Resistivity, another form of 3D tomographic IP/Resistivity surveying, is a follow-up technique
used to determine the depth and geometry of potentially mineralized breccia pipes and is used for drill
targeting. The offset IP surveys are designed to image singular and nested mineralized breccia pipes in
the 100-400m depth range depending on dipole spacing and topography. An example from
Huancarama shows a very prominent response in the metal factor (conductive chargeable zones)
directly over the known breccia pipe as defined by drilling (Fig 5).
Barrick Agreement Extension
An amendment agreement has been completed with Minera Barrick Peru S.A. (Barrick) regarding the
three concessions owned by Barrick that make up a large portion of the southern half of the Soledad
project. The concessions were part of an original Option and Mining Assignment Agreement dated July
11, 2018 (see news release dated July 16, 2018). Under the amendment, Chakana must obtain the
Authorization to Initiate Activities (AIA) for exploration drilling on or before September 27, 2023 (First
Option). Chakana then has 4 years from the date of the AIA to complete a minimum of 4,000m of drilling
and a 43-101 compliant Preliminary Economic Assessment (Second Option). Barrick will have a one-
time right to re-acquire the property with a 70% interest. If Barrick declines, an undivided 100% interest
in the concessions will be transferred to Chakana.
"
Based on our preliminary review of these concessions, we are excited about the additional
opportunities for potential resource expansion on this southern half of the Soledad project,"
stated
David Kelley, President and CEO of Chakana Copper.
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 consists of high-grade copper-gold-silver mineralization
hosted in tourmaline breccia pipes. A total of 60,854 metres in 261 diamond core holes for exploration
and resource definition drilling have been completed since 2017, testing 16 of 110 total exploration
targets, 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 base and
precious. For more information on the Soledad project, please visit the website at
www.chakanacopper.com
.
Sampling and Analytical Procedures
Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards.
Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima,
Peru.
Sample batches include certified reference materials, blank, and duplicate samples that are then
processed under the control of ALS. All samples are analyzed using the ME-MS41 (ICP technique that
provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by
AA24 and GRA22 when values exceed 10 g/t by AA24.
Over limit silver, copper, lead and zinc are
analyzed using 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 previous drilling and additional information concerning the Project, including a technical report
prepared in accordance with National Instrument 43-101, are 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.
ON BEHALF OF THE BOARD
(signed) "
David Kelley
"
David Kelley
President and CEO
For further information contact:
Joanne Jobin, Investor Relations Officer
Phone:
647 964 0292
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 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 - View looking north showing outcropping breccia pipes and occurrences within the northern
Soledad cluster. Pipes that have initial resource drilling completed shown in green. Breccia pipes shown
in yellow have had exploration drilling completed. Other pipes and occurrences remain to be tested by
drilling. Additional breccia pipes occur on the south half of the property and are not shown here.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2172/99297_12b4802c74454bed_001full.jpg
Figure 2 - Maps showing drill holes reported in this release, and modeled breccia pipes (light red
shapes) based on all drill holes. Light gray contours are at 25m intervals. Blue rectangles in the inset
map show the area of the two plan maps within the overall Chakana property.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/2172/99297_12b4802c74454bed_002full.jpg
Figure 3 - 3D sectional view of Bx 7 looking northwest. Light red 3D shape shows breccia pipe
geometry based on all drill holes. Previous holes drilled shown in grey.
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/2172/99297_12b4802c74454bed_003full.jpg
Figure 4 - Gradient-array IP map for the north-central Soledad project area showing metal factor - a
scaled ratio of the measured IP and resistivity responses. Warm colors depict areas where the rocks are
conductive and chargeable. Long linear trends are interpreted to be structures and are considered highly
prospective for hosting mineralized breccia pipes.
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/2172/99297_12b4802c74454bed_005full.jpg
Figure 5 - Isometric view of offset IP/Resistivity inversion model results showing metal factor - a scaled
ratio of the measured IP and resistivity responses. Warm colors depict areas where the rocks are
conductive and chargeable. Note correlation between strong metal factor response (red) and the
Huancarama breccia pipe confirmed in drilling.
To view an enhanced version of Figure 5, please visit:
https://orders.newsfilecorp.com/files/2172/99297_12b4802c74454bed_006full.jpg
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/99297