Chakana Copper Announces $2.2 Million Private Placement as High-Grade Soledad Project Advances

About Chakana Copper

Chakana Copper Corp is a minerals exploration company advancing the high-grade Soledad copper-gold-silver project located in the Ancash region of Peru. Peru is known globally as a premier mining jurisdiction with a supportive mining culture and stable politics. Chakana is led by CEO David Kelley, an experienced mining executive with over 25 years in the industry.

The Soledad project is located in the prolifically mineralized Ancash region, home to many producing mines operated by majors like Barrick and Newmont. Soledad encompasses 12 mineral concessions totaling 7,400 hectares and is situated 35 km south of Barrick’s Pierina mine and directly adjacent to the producing Antamina copper-zinc mine owned by BHP, Glencore, Teck and Mitsubishi.

The Soledad project is emerging as a significant new copper-gold-silver discovery, with an initial inferred mineral resource published in early 2022. This initial resource estimate encompasses 4.8 million tonnes grading 0.72g/t Au, 61g/t Ag and 0.97% Cu, containing 191,000 ounces of gold, 11.7 million ounces of silver, and 130 million pounds of copper.

This resource is contained within seven tourmaline breccia pipes and is assumed to be extractable by underground mining methods. Additionally, an inferred resource of 1.9 million tonnes grading 1.29 g/t Au, 37.1 g/t Ag and 0.65% Cu is contained in material assumed to be extractable by open pit mining.

$2.2 Million Private Placement Announced

On October 18, 2023 Chakana announced a non-brokered private placement of up to 55 million units at $0.04 per unit to raise gross proceeds of $2.2 million.

Each unit will consist of one common share and one 2-year common share purchase warrant exercisable at $0.06. The financing provides an opportunity for new investors to gain exposure to this exciting copper-gold-silver discovery play on the eve of extensive exploration and resource expansion drilling.

The proceeds will primarily fund aggressive exploration drilling at Soledad, testing high priority targets across the under-explored southern half of the project. Additional funds will be used for ongoing development activities and general working capital.

Gold Fields Moves Towards 19.9% ownership

Notably, major gold producer Gold Fields has expressed intent to participate in the financing to maintain its equity ownership of up to 19.9% of Chakana. Gold Fields is an ideal strategic partner, providing key technical guidance and funding support as warranted.

Gold Fields’ involvement serves as third-party validation and represents a strong vote of confidence in the potential of the Soledad project. Gold Fields also positions Chakana well for potential future development partnerships and de-risking milestones.

Permitted to Drill High-Priority Southern Targets

Chakana recently received the final permit allowing extensive drill testing across the southern half of Soledad. This includes several compelling targets defined by previous surface exploration but yet to see the drill bit.

The permitted area covers over 4,000 hectares and contains multiple target styles prospective for additional high-grade mineralization similar to that discovered to the north.

Key southern targets include:

• Mega Gold Porphyry Target: A 1.2 x 1.0 km gold-in-soil anomaly centred on outcropping porphyry-style stockwork mineralization. Rock samples graded up to 4.6 g/t Au, suggesting potential for a significant bulk tonnage gold-rich porphyry.
• La Joya Ag-Cu Target: A 1.7 km long classic high-sulphidation epithermal system with outcropping banded quartz-alunite veins assaying up to 11.6 g/t Au and 7.2% Cu. Reminiscent of the silver-rich deposits in the region like Bethania and Santa Buena.
• Tourmaline Breccia Pipes: Additional outcropping tourmaline breccia pipes have been discovered adjacent to the initial seven breccias which comprise the current inferred resource. Existing breccias remain unconstrained at depth, with strong potential for higher grade plunging ore shoots.
• Cu-Mo Porphyry Targets: Broad 1 x 1.5km and 2 x 2km Cu-Mo soil anomalies associated with porphyry-style alteration and mineralization defined by previous mapping and sampling above exposed porphyry stocks. Excellent potential for major copper-molybdenum deposit discovery.

With permits in hand, Chakana can now aggressively drill test these highly promising targets over the coming year as the company rapidly advances the Soledad project. Each target type represents significant potential value creation catalysts for investors if drilling intersects economic-grade mineralization.

Advancing Soledad to the Next Stage

Soledad offers substantial resource growth potential, which if realized could re-rate Chakana toward a valuation more in-line with peers. Several near term catalysts promise to unlock this value over the coming year:

• Drill results from initial tests of southern targets - Potential for major new discoveries
• Expansion drilling around existing breccia resources - Opportunity to significantly increase tonnage
• Updated resource estimate incorporating new zones
• PEA Study evaluating economic potential
• Further metallurgical and engineering studies

Proceeds from the $2.2 million raise will drive these initiatives over the next 12 months. As Chakana systematically de-risks Soledad, demonstrates resource growth, and enhances fundamental knowledge of the geology, investors could be rewarded with significant upside. Soledad is still early days, with a huge amount of discovery potential remaining untapped by the drill bit.

Conclusion

Chakana Copper presents a compelling investment opportunity focused on advancing the large-scale, high-grade Soledad copper-gold-silver project in mineral-rich Peru.

The current inferred resource likely represents just the tip of the iceberg, with abundant exploration targets remaining undrilled across the 35 square kilometer property. Drilling permitted for the southern targets in particular provides outstanding discovery potential over the coming year.

With an enterprise value per ounce of resource well below comparable explorer/developers, Chakana remains undervalued at current levels. Systematically advancing Soledad up the value curve through drill-based resource expansion, engineering studies and economic evaluations provides strong re-rating potential.

Near term catalysts promise an exciting year ahead for Chakana investors, as the company unlocks the substantial upside inherent in the Soledad project. The current private placement offers an attractive entry point before an extensive flow of drilling results and project milestones. With major partner Gold Fields continuing involvement and Peru's favorable mining regime, Soledad checks all the right boxes for investors seeking meaningful copper-gold-silver exposure.