Chakana Copper Corp. (TSX-V: PERU; OTC: CHKKF; FWB:
1ZX) (the “
Company” or
“
Chakana”), is pleased to announce it has
completed infill drilling on the upper 340m mineralized extent of
Breccia Pipe 5 (Bx 5) at the Soledad copper-gold-silver project in
central Peru. All drilling to date has been on the portion of the
Soledad Project optioned from Condor Resources Inc. The four holes
reported here were designed to explore the upper 200m extent of the
breccia pipe from surface (Figs. 1 and 2). Chakana had previously
released thirteen drill holes from Bx 5 (see news releases dated
February 22, 2018 and November 13, 2018 on www.sedar.com), that
included a 264m intercept with 0.71% Cu, 1.30 g/t Au and 24.3 g/t
Ag (1.77% Cu_EQ; 2.82 g/t Au_EQ) from surface in hole SDH18-080.
All four holes intersected significant intervals
of mineralization. Hole SDH18-084 was drilled to the south from a
collar located on the east-central part of the breccia pipe and
intersected 103.3m of mineralized breccia from surface with 0.42%
Cu, 1.36 g/t Au, and 46.7 g/t Ag. Excluding the oxide zone, primary
grades are 0.56% Cu, 1.07 g/t Au, and 31.4 g/t Ag for 72.3m
starting at 31m depth. Hole SDH18-086 intersected 140.4m of primary
mineralization from 13m with 0.46% Cu, 1.70 g/t Au, and 23.5 g/t
Ag. “These results compliment results from the previous thirteen
holes in Bx 5 and demonstrate good continuity of mineralization in
the breccia. As with Bx 1, mineralization at Bx 5 remains open at
depth. In addition, numerous known breccia pipes and exploration
targets remain to be tested,” said President and CEO David Kelley.
Examples of mineralized breccias from holes in this release are
shown in Figure 3.
Previously unreported mineralized intervals from Breccia Pipe 5
are:
| Bx 5 - Infill Holes |
|
DDH # |
Az |
Dip |
From - To(m) |
CoreLength (m) |
Aug/t |
Agg/t |
Cu % |
Cu-eq %* |
Au-eqg/t* |
Note |
|
SDH18-083 |
61 |
-79 |
0.00 |
38.60 |
38.60 |
1.24 |
19.2 |
0.07 |
1.04 |
1.60 |
Oxide |
|
and |
|
|
57.00 |
59.50 |
2.50 |
0.54 |
72.0 |
0.31 |
1.28 |
1.96 |
Primary |
|
and |
|
|
83.00 |
112.00 |
29.00 |
1.35 |
18.5 |
0.24 |
1.28 |
1.96 |
Primary |
|
SDH18-084 |
185 |
-70 |
0.00 |
103.30 |
103.30 |
1.36 |
46.7 |
0.42 |
1.71 |
2.61 |
|
|
including |
|
|
0.00 |
31.00 |
31.00 |
2.01 |
82.3 |
0.11 |
2.13 |
3.25 |
Oxide |
|
including |
|
|
31.00 |
103.30 |
72.30 |
1.07 |
31.4 |
0.56 |
1.53 |
2.34 |
Primary |
|
SDH18-085 |
255 |
-68 |
0.00 |
98.00 |
98.00 |
0.73 |
35.0 |
0.34 |
1.12 |
1.71 |
|
|
including |
|
|
0.00 |
42.00 |
42.00 |
0.94 |
53.7 |
0.03 |
1.1 |
1.69 |
Oxide |
|
including |
|
|
42.00 |
98.00 |
56.00 |
0.57 |
21.0 |
0.57 |
1.12 |
1.72 |
Primary |
|
SDH18-086 |
300 |
-82 |
0.00 |
153.40 |
153.40 |
1.68 |
25.2 |
0.42 |
1.73 |
2.65 |
|
|
including |
|
|
0.00 |
13.00 |
13.00 |
1.42 |
44.4 |
0.03 |
1.34 |
2.05 |
Oxide |
|
including |
|
|
13.00 |
153.40 |
140.40 |
1.70 |
23.5 |
0.46 |
1.77 |
2.71 |
Primary |
* 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).
Reported mineralized intervals are not true
widths given the vertical nature of the breccia pipe and the steep
inclination of the holes.
Surface Exploration and Permitting
Update
Surface exploration continues throughout
Chakana’s 3,085 hectare concession area. Detailed soil sampling
covering the entire Soledad cluster of breccia pipes has been
completed and downhole electromagnetic (EM) and surface surveys are
underway. Two downhole EM surveys as well as 7 out of a planned 17
surface loops have been completed using imported Crone geophysical
equipment. Integration of these data sets will be used to
prioritize drill targets.
Soil geochemistry results covering the entire
Soledad cluster of breccia pipes have been received and further
document the extent of mineralization hosted in breccia (Fig. 4).
Results previously released (see news release dated November 13,
2018) highlighted an anomalous zone of gold in soil corresponding
to several known and potential breccia pipes extending
north-northeast from Huancarama to Bx 5. In addition, a very
prominent soil anomaly related to Bx 1, and a new breccia pipe, Bx
7, are clearly delineated in the results. New results from
extensions of the original soil grid show anomalous gold in soil at
the Western and Corral breccias, north of Bx 5, and Cima Blanca.
Cima Blanca is an area of silica-illite-paragonite-tourmaline
alteration hosted in dacite tuff associated with east-west-trending
gold-bearing quartz veins (Fig. 4). “The expanded soil geochemistry
results delineate a more complete picture of the additional
mineralization at Soledad. In addition to confirming the
gold-bearing nature of several known breccias, several areas with
anomalous gold in soil highlight other exploration targets for
testing. The large anomalous area covering the Western and Corral
breccias is particularly exciting, highlighting new targets in this
area,” stated Kelley.
Three component surface time domain EM data was
collected over Bx 1 and Bx 7 using transmitter loops designed to
preferentially couple with conductive sulfides hosted within known
or blind breccia pipes. Data was collected within the transmitter
loop along north south oriented lines every 25m with line density
of 50m. Results for the vertical component of the measured field
for a relatively early time window detected responses from confined
conductors that correlate well with known breccias (Fig. 5). “The
time domain EM results are outstanding in that this technique
confirms a robust response from Bx 1 where we have had excellent
high-grade drill results. The response at the untested Bx 7 pipe is
even more impressive in comparison to the Bx 1 response,” commented
Kelley.
As previously reported, Chakana received
government approval for a Semi-detailed Environmental Impact
Assessment (EIAsd) covering a portion of the Soledad project (see
news release dated November 26, 2018). The approval applies to
the original area of the Declaration of Environmental Impact (DIA)
on the Soledad exploration permit and includes 120 additional
drilling platforms. In order to drill in the new concessions
acquired by Chakana, a modification to this permit is required.
This modification has been submitted and once approved will allow
drilling the Huancarama and Paloma breccia pipes and concession
area.
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. 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 the previous sixty-six 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 accordance
with National Instrument 43-101 made available on Chakana’s SEDAR
profile on 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 CommunicationsPhone: 604-715-6845 Email:
mborromeo@chakanacopper.com
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 Project, the potential to
grow the Project, the potential to expand the mineralization, 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 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 – Map showing drill holes with geology discussed in
this release.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/84df2add-15e1-4a77-bd62-1d74529cc2c8
Figure 2 – Section looking north showing the
breccia pipe at Bx 5 highlighting holes in this release. Light red
3D shapes based on Leapfrog model of breccia from all holes drilled
by Chakana. Drill holes show tourmaline breccia (red), andesitic
wall rock (green), and other host rocks (other colors). Section
includes data from 75m in front of and behind section.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/a905df20-bec6-4be5-b640-28899a7d40c4
Figure 3 – Mineralized intercepts from drill holes reported in
this release showing different styles of mineralization in Bx 5: A)
SDH18-083 – shingle breccia with strong tourmaline replacement; the
interval 93.85-99m assays 1.79 g/t Au, 0.42% Cu, and 24.1 g/t Ag;
B) SDH18-084 – chaotic shingle and mosaic breccia; the interval
49-55m assays 0.49 g/t Au, 1.77% Cu, and 18.86 g/t Ag; C) SDH18-085
– shingle breccia with strong tourmaline replacement; the interval
82-88m assays 0.42 g/t Au, 2.13% Cu, and 27.6 g/t Ag; D) SDH18-086
– shingle breccia with variable clast sizes; the interval 27-33m
assays 1.24 g/t Au, 1.43% Cu, and 59.9 g/t Ag; E) breccia with
interstitial chalcopyrite and pyrite in SDH18-084 at 37.17m; F)
chalcopyrite and pyrite filling open space in shingle breccia;
SDH18-086 at 89.6m.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/1c227747-fcb5-44b1-8969-80821435238d
Figure 4 – 3D perspective view looking northeast of the main
Soledad breccia pipe cluster showing confirmed breccia pipes
(circles) and occurrences (stars). Color image shows gold in soils
collected on 50m centers. Anomalous areas without confirmed breccia
pipes or occurrences are considered exploration targets. Gold is
determined by Fire Assay on a 30g sample.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/3b5a4a71-62a5-4bbb-be54-73faccfda185
Figure 5 – Images showing results for the time
domain surface EM survey over Bx 1 (A) and Bx 7 (B). Results are
for the vertical component, Channel 10 (0.268ms to 0.328ms).
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/3174f038-50ec-4072-ac18-6344bd6d8acb
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