Chakana Copper Intersects 71.4 Metres With 2.91% Copper eq in Breccia Pipe 1 and 164.0 Metres With 1.84% Copper eq in Breccia Pipe 5

VANCOUVER, British Columbia, Feb. 22, 2018 (GLOBE NEWSWIRE) -- Chakana Copper Corp. (TSX-V:PERU) (the “Company” or “Chakana”), is pleased to announce assays from the first two step-out holes in Breccia Pipe #1 (Bx #1) and the first nine holes from Breccia Pipe #5 at its Soledad copper-gold-silver project in central Peru, optioned from Condor Resources Inc. The Soledad project (the “Project”) is located 35 km south of the Pierina mine in the prolific Miocene metallogenic belt of Peru. These results are a successful continuation of the drilling program that was initiated August 16, 2017, with the results of the first sixteen drill holes released previously (see: www.chakanacopper.com).

“These outstanding drill results continue to demonstrate both the continuity and grade potential of mineralization hosted in the breccia pipes,” said President and CEO David Kelley. “The first two holes (SDH17-033 and SDH17-034) drilled from a platform 80 metres off-pipe northeast of BX #1 intersected high-grade breccia mineralization. Hole 33 intersected 30 m grading 2.26% Cu, 0.52 g/t Au and 78.9 g/t Ag while hole 34 returned 71.4m of 1.53% Cu, 1.05 g/t Au and 81.7 g/t Ag, including a very high-grade margin zone with 34.4m of 2.84% Cu, 1.30 g/t Au and 89.3 g/t Ag from 354.6m.  Individual one-metre assay samples in this margin region of Bx #1 reach 6.92% Cu (Figure 1). This interval is particularly interesting because clasts in the breccia are completely replaced by chalcopyrite, representing a new style of mineralization at Soledad, which is open at depth beneath this zone. Hole 34 also has strong mineralization in the halo of the breccia, with 31.5m of 93.8 g/t Ag, 0.57% Cu, 2.46% Zn and 2.03% Pb.” He adds, “We intend to continue our aggressive drill program which is moving along faster than expected.”

New mineralized intervals from Breccia Pipe #1 are:

* 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). Assays for zinc and lead are not used in the metal equivalent calculations.

The true widths of the mineralized intervals reported in this release are difficult to ascertain and additional drilling will be required to constrain the geometry of the mineralized zones.

At Bx #5, located 850m west-northwest of Bx #1, nine holes were completed from a central platform on top of the pipe. “Mineralization was intersected to a depth of 340m and open to extension with deeper drilling with some very encouraging grades,” states Kelley; “all of the intercepts are greater than 1% Cu eq. Holes 41 and 42 demonstrate the vertical continuity of shallow mineralization with 164m of 1.84% Cu_eq from 12m and 182m of 1.49% Cu_eq from 33m, respectively.” 

Mineralized intervals from the first nine holes in Breccia Pipe #5 are:

The focus of the drilling program is to determine the economic potential of several quartz-tourmaline-sulfide breccia pipes that crop out at surface. A total of 9 mineralized breccia pipes have been identified on the property thus far. Phase 1 of the program is ongoing with a total of 10,168m drilled to date out of an original planned program of 16,660m and is ahead of schedule and under budget. Phase 1 is directed toward pipes #1 and #5. Phase 2 is an expanded drill program proposed under a Semi-detailed Environmental Impact Assessment permit (EIA-SD) that was submitted for review to the Ministry of Energy and Mines on December 29, 2017. Phase 2 will allow for additional drill platform locations and more drill holes that test a number of other pipes and targets identified on the Project. The pipes form a cluster within four-square kilometer areas and are spaced between 175m to 625m apart with vertical relief between the pipes of over 500m. Based on detailed mapping, Bx #1 has a surface diameter of 40m and Bx #5 of 50m. Mineralization is open at depth in both pipes based on previous drilling. Current drilling is designed to determine the geometry (volume) and grade of the breccia hosted mineralization. Tourmaline breccia pipes can have diameters that increase at depth, and often have higher grades at the margins of the pipe where permeability of the breccia is highest. Drilling at the Project is designed to test this in each pipe from surface to 400m depth based on: 1) drilling from a central platform at various azimuths and dip angles to penetrate the margin of the breccia throughout its vertical extent; and 2) from platforms outside the pipe to drill across the breccia body. The two holes from Bx #1 reported here were drilled from a step-out platform and the 9 holes reported from Bx #5 were drilled from a central platform. Mineralized intercepts will vary in length due to the shape of the breccia body and the orientation of the drill hole (see Figure 2). For example, shallow holes drilled near the perimeter of the pipe may have shorter intercepts compared to steeper holes. Nonetheless, all holes that intersect mineralized breccia are important for constraining the overall shape and grade of the breccia body. Once a sufficient number of intercepts are obtained and modelled, the overall geometry of the breccia body and the grade profile will become apparent.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet industry standards. Samples for assay are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru.  Samples are processed under the control of ALS with the samples including certified reference materials, a coarse and finely-crushed blank and duplicates samples. All samples are analyzed using the ME-MS41 procedure in order to obtain a comprehensive multi-element overview of the geochemistry. Gold is analyzed by ME-MS41 (not considered reliable), AA24 (higher precision) and GRA22 when values exceed 10 g/t.  Over limit silver, copper, lead and zinc is analyzed using the OG-46 procedures.

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 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 Communications
Phone: 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.

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.  

A photos accompanying this announcement are available at 
http://www.globenewswire.com/NewsRoom/AttachmentNg/62543839-c8fc-4050-84d3-700890885e5f
http://www.globenewswire.com/NewsRoom/AttachmentNg/7fb53fbc-4f9b-440b-97cb-eb37dfd3ae58

Figure 1 – High grade margin zone mineralization from hole SDG17-034 in Bx #1. Note replacement of breccia clasts with chalcopyrite. The five metre interval from 373.0-378.0 averages 4.94% Cu, 0.17 g/t Au, and 103.8 g/t Ag. Figure 2 – Diagram showing relationship between drill intercepts and breccia pipe geometry with emphasis on vertical and horizontal grade variation. For the purpose of the orientation of the disclosed drill holes, Chakana assumes that the breccia pipe is orientated vertically.