Chilean Metals Highly Encouraged by Initial Drill Results
Chilean Metals Highly Encouraged by Initial Drill Results
Toronto, ON. February 27, 2017 . Chilean Metals Inc. (“Chilean Metals,” “CMX” or the
“Company”)(TSX.V:CMX, OTCQB: CMETF, SSE:CMX, MILA:CMX, FRA: IVV1, BER : IVV1).
Chilean Metals Inc is pleased to provide an update on the drill program currently underway on the Zulema project
located near Copiapo, Chile and 30 Km's from Lundin Mining’s Candelaria mine. With Candelaria as a model, the
exploratory drill program is testing two geologically distinct targets: a 1+ square km. area of intense garnet scapolite
skarn breccia (Skarn Target) and a large Induced Polarization chargeability anomaly on its eastern flank. (IP Target)
Initial drill results support that host rocks, alteration and mineralization all fit the Candelaria model. The presence of
copper-bearing magnetite skarn, interbedded magnetite chal copyrite bands, biotite magnetite alteration, magnetite
and hematite veining and local mineralized breccias suggests proximity to a main mineralized target.
To date, approximately 1200 meters have been drilled in 5 hol es with assays received on the first three holes. Drill
holes 1, 2 and 3 targeted the skarn breccia projected to overlay copper mineralizati on at depth. Drill Hole #1
intersected sporadic copper while Drill Hole #2, collared approximately 1 kilometer to the west, encountered
numerous 10 – 20 meter sections with visible chalcopyrite however results were sub-economic. Drill Hole #3
intersected two IOCG (Iron Oxide-Copper-Gold) lenses of modest width comprising magnetite and garnet
accompanied by chalcopyrite and pyrite as disseminations, st ringers and veinlets. Assay results have confirmed the
additional presence of gold (Table 1). These three drill holes are now interpreted as peripheral to the main target on
this extensive surface alteration zone. Drilling is ongoing and expected to continue through March.
“Our Geologists & Geoscientists are very encouraged with our results to date. While highlighted results are across
narrow widths, they prove that high grade IOCG mineralization is present in this system. While Hole #2 was sub
economic, the numerous sections and widths shows we are in a copper bearing system. With the assistance of
Minotaur Exploration (Australia), the data will undergo fu rther review by our Technical Team, enabling them to
refocus their understanding so future drilling can help us achieve our ultimate objective of a commercial
discovery.”, commented Patrick J Cruickshank, President & CEO.
Please visit the Chilean Metals Inc Boot h #2143 @ PDAC in Toronto March 5-8 th, 2017 and view drill core
firsthand and meet the Chilean Metals Team.
Table 1 Assay Results Highlights
Drill Hole From (m.) To (m.) True Width
(m.)
Cu (%) Au (g/t)
#3 285.32 287.32 2 1.189 0.99
287.32 289.32 2 0.503 0.28
289.32 291.32 2 0.283 0.29
325.20 327.20 2 0.678 0.28
327.20 329.20 2 0.577 0.21
The samples were cut with a saw in the field and delivered to the ActLabs preparation facility in Copiapo Chile were
they were crushed, dried, pulverized and screened. The resulting pulps were shipped to the ActLabs Laboratory in
Coquimbo Chile where they were analyzed by AAS following aqua regia digestion. Gold analysis was by industry
standard fire assay with an AA finish Standards provided by Canadian Resource Laboratories Ltd. were inserted into
the sample stream to ensure quality control.
Garnet Skarn, Magnetite veinlets, Quartz Vein with chalcopyrite, Drill Hole #3
Chalcopyrite, Magnetite Drill Hole #3
About Chilean Metals
www.chileanmetals.com/
Chilean Metals Inc. is a Canadian Junior Exploration Company focusing on high potential Copper Gold prospects in
Chile & Canada.
Chilean Metals Inc is 100% owner of five properties comprising over 50,000 acres strategically located in the
prolific IOCG (“Iron oxide-copper-gold”) belt of northern Chile. It also owns a 3% NSR royalty interest on any
future production from the Copaquire Cu-Mo deposit, recently sold to a subsidiary of Teck Resources Inc. (“Teck”).
Under the terms of the sale agreement, Teck has the right to acquire one third of the 3% NSR for $3 million dollars
at any time. The Copaquire property borders Teck’s producing Quebrada Blanca copper mine in Chile’s First
Region.
Chilean Metals Inc is the 100% owner of four Copper Go ld exploration properties in Nova Scotia on the western
flank of the Cobequid-Chedabucto Fault Zone (CCFZ); Fox River, Parrsboro, Lynn and Bass River respectively.
Initial targeting and geophysics has been conducted on all properties, At Bass River North, airborne
geophysics identified a major VTEM cluster on trend with the Pb/Zn/Ag mineralization exposed at surface and in
drill holes to the southwest. Modeling of the airborne data by Minotaur Exploration (Australia) identified 3 priority
targets recommended for ground based geophysics prior to drilling.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Chilean Metals Inc.
“Terry Lynch” “Patrick J Cruickshank”
Terry Lynch, Chairman Patrick J Cruickshank, President & CEO
Contact: [email protected] [email protected]
The Qualified Person for Chilean Metals Inc., as defined by National Instrument 43-101, is Gary Lohman, P. Geo.,
Vice President, Exploration.
Forward-looking Statements: This news release may contain certain statements that may be deemed "forward-looking statements". All statements
in this release, other than statements of historical fact, that address events or deve lopments that CMX expects to occur, are f orward looking
statements. Forward-looking statements are st atements that are not historical facts and are generally, but not always, identifi ed by the words
"expects", "plans", "anticipates", "believes", "intends", "estim ates", "projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" o ccur. Forward-looking statements in this document include statements regarding cur rent and future
exploration programs, activities and results. Although CMX believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of fu ture performance and actual resu lts may differ materially from those in forward-
looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices,
exploitation and exploration succe ss, continued availability of capital and financ ing, inability to obtain required regulatory or governmental
approvals and general economic, market or business conditions. Investor s are cautioned that any such statements are not guarant ees of future
performance and actual results or developments may differ materially from those projected in the forward looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provid er (as that term is defined in the policies of the TSX Ventu re Exchange)
accepts responsibility for the adequacy or accuracy of this release