Chakana Reports Channel Sampling at Huancarama Returns 21M with 2.52 G/T Au and 100.4 G/T Silver
NEWS RELEASE
CHAKANA REPORTS CHANNEL SAMPLING AT HUANCARAMA
RETURNS 21M WITH 2.52 g/t Au AND 100.4 g/t SILVER
Vancouver, B.C., November 19, 2019 – Chakana Copper Corp. (TSX-V: PERU; OTCQB:
CHKKF; FRA: 1ZX) (the “ Company ” or “ Chakana ”), is pleased to provide new surface and
subsurface assay results from the Huancarama Brecci a Complex, a general exploration update,
and additional reconnaissance drilling results for the Soledad project in Peru.
Huancarama Channel Sampling
The Huancarama Breccia Complex (HBC) is a large exp osure of mineralized tourmaline breccia
within the main Soledad cluster of breccia pipes (F ig. 1). Several breccia bodies are exposed over
a width of approximately 200m. Previous surface sam pling and continuous underground channel
sampling along a 170m long adit revealed strong gol d and silver values (Fig. 2; also see news
release dated May 23, 2018). Copper values are gene rally low due to the oxidized nature of the
surface samples. Recent detailed mapping identified a 15m-long adit into one of the smaller
breccia bodies (HBx2). Twenty-one metres of continu ous channel samples on one metre intervals
were collected from the adit and exposure of brecci a outside the adit (Figs. 3 and 4). This
continuous channel sample of 21 metres averaged 2.5 2 g/t Au and 100.4 g/t Ag. The estimated
true width of the breccia from this sampling is 14. 3m. Huancarama will be drilled tested during
the next campaign when final drilling permits are obtained.
“The recent sampling provides additional confirmati on of the potential of the Huancarama
breccias,” said President and CEO David Kelley. “Th ese breccias and the Paloma East and West
breccias are examples of the numerous high priority targets we have yet to drill,” added Kelley.
Exploration Program Update
A total of 5,717m of drilling has been completed in the Phase 3 drill program that began in June,
2019. The drilling has been successful in
1) confirming mineralization in Bx 7 that requires additional drilling,
2) in-fill drilling on Bx 6 that we expect will contri bute to an inferred resource in the upper
levels of breccia,
3) extending mineralization in Bx 5 at depth to the ea st and north with significant copper
grades encountered, and
4) confirming that the Corral breccias are mineralized and require additional drilling from
more optimal platform locations when permits are obtained.
In addition, Bx 3W is mineralized with pyrite in a well-developed tourmaline breccia but lacks
significant grade to the depths tested. This may be a function of zoning with the potential for
copper at depth.
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Continued permitting delays have limited our ability to drill in the Huancarama and Paloma areas.
While we have successfully completed drill testing on other priority targets to date, we have
decided to temporarily suspend drilling until the p ermits are obtained for these higher priority
targets. This will ensure that we have the capital available to drill high priority drill targets as
soon as the proper permits are obtained. The recent dismissal of Congress by the current
administration and subsequent temporary replacement of Cabinet positions until elections are held
has caused additional disruptions in the permitting process. We remain persistent in our approach
to obtain the necessary permit approvals that will allow the restart of drilling.
Additional Drill Results
Assay results are provided for two additional holes in Bx 5 East, two holes in the Corral Breccia,
and one hole testing a target southeast of Bx 1. Th e two holes in Bx 5 East were drilled from new
platform locations to provide better control on the geometry of the breccia (Fig. 5). The first hole
at the Corral target intersected two mineralized br eccia bodies, Corral Bx 1 and Corral Bx 2. The
second hole intersected Corral Bx 1. Both holes wer e drilled downhill at shallow angles due the
restricted access pending permits closer to the bre ccia bodies. Recoveries in the mineralized
breccia were poor due to the shallow angles and bro ken nature of the rock. One exploration hole
southeast of Bx 1 was drilled beneath a mineralized structure. Only a narrow interval of
mineralization was encountered.
Mineralized intervals from Bx 5 East include:
Bx 5E - Exploration Holes
DDH #
Az Dip From - To
(m)
Core
Length (m)
Au
g/t
Ag
g/t
Cu
%
Cu-eq
%*
Au-eq
g/t*
Note
SDH19-128 192 -85 325.00 330.00 5.00 0.79 9.3 1.00 1.61 2.46
and 349.00 362.00 13.00 0.25 3.5 0.50 0.69 1.06
and 371.00 378.00 7.00 0.18 13.7 0.34 0.58 0.88
and 385.00 426.00 41.00 0.12 6.0 0.79 0.92 1.41
including 385.00 395.00 10.00 0.19 16.0 1.32 1.58 2.41
SDH19-132 300 -70 313.00 319.00 6.00 0.20 15.8 0.95 1.22 1.86
and 364.00 368.00 4.00 0.29 4.8 0.22 0.45 0.69
and 384.00 389.00 5.00 0.28 7.0 0.89 1.13 1.73
and 480.00 485.00 5.00 0.08 26.8 0.52 0.81 1.23
* 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).
Additional Exploration Holes
DDH #
Az Dip From - To
(m)
Core
Length (m)
Au
g/t
Ag
g/t
Cu
%
Pb
%
Zn
%
Note
SDH19-129 210 -44 85.00 87.00 2.00 0.23 122.1 0.01 1.28 Corr al Bx 1
and 99.00 119.00 20.00 0.27 49.4 0.04 0.53 Corral Bx 1
inc 113.00 119.00 6.00 0.72 121.8 0.10 0.95 Corr al Bx 1
and 204.00 211.00 7.00 0.09 66.2 0.03 3.22 Corra l Bx 2
SDH19-130 213 -59 159.00 162.00 3.00 0.23 21.6 0.01 0.54 Corral Bx 1
and 174.55 178.00 3.45 0.06 17.2 0.02 1.35 Corral Bx 1
SDH19-131 87 -53 72.75 73.55 0.80 2.22 249.0 0.28 2.32 1.8 Bx 1SE
Reported mineralized intervals are not true widths given the vertical nature of the breccia pipe and
the steep inclination of the holes.
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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. Sample batches include cert ified 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 previous drilling and additional informa tion concerning the Project, including a
technical report prepared in accordance with Nation al 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:
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 ma y 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, performanc e, or
achievements expressed or implied by the forward-lo oking statements. Forward looking statements or inf ormation
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 th e mineralization, and to develop and grow a resourc e
within the Project, the planning for further explor ation work, the ability to de-risk the potential ex ploration targets,
and our belief in the potential for mineralization within unexplored parts of the Project. These forwa rd-looking
statements are based on management’s current expect ations and beliefs but given the uncertainties, ass umptions and
risks, readers are cautioned not to place undue rel iance on such forward- looking statements or inform ation. The
Company disclaims any obligation to update, or to p ublicly announce, any such statements, events or de velopments
except as required by law.
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Figure 1 – View looking north showing breccia pipes and occurrences within the Soledad cluster. Pipes that have
been drilled are shown in red. Additional breccia p ipes not shown occur in the Compañero cluster on th e south half of
the property.
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Figure 2 – Map showing detailed geology of the Huan carama Breccia Complex and chip and channel assays for gold
from surface and adit exposures. Mineralized tourma line breccia are shown in red. Gold values greater than 1 g/t are
labeled and range up to 9.60 g/t Au.
Figure 3 – Map showing gold assays for detailed sur face and subsurface sampling of the Huancarama Brec cia 2
(HBx2) exposure. Mineralized tourmaline breccia are shown in red. Gold values greater than 1 g/t are labeled and
range up to 6.02 g/t Au. Continuous channel samples are shown by the dashed blue line.
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Figure 4 – Photos showing A) recently discovered un derground adit at the Huancarama Breccia 2 exposure , and B)
channel samples taken from breccia exposure. Note the generally oxidized nature of the breccia.
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Figure 5 – Plan map (looking down) showing the four drill holes that penetrate the Breccia 5 East zone . SDH19-128
and SDH19-132 this release; SDH19-126 and SDH19-127 news release dated September 10, 2019.