Chakana Copper - CEO Profile

About Chakana Copper

Chakana Copper is a Canadian-based minerals exploration company that is currently advancing the Soledad high-grade copper-gold-silver discovery located in the Ancash region of Peru. This mineralisation is hosted in Tourmaline breccia pipes. A breccia pipe is a mass of ‘breccia’ often found in irregular and cylindrical shapes. Broken fragments or minerals and rock cemented together make up a breccia. An initial inferred resource estimate for seven breccia pipes was announced in Q1 2022, with 6.73 million tonnes containing 191,000 ounces of gold, 11.7 million ounces of silver, and 130 million pounds of copper. Only a small fraction of the property has been explored to date.

Read the full Chakana Copper Company Note here.

Interview with President & CEO David Kelley

What’s your company, title, and role? For how long?

Chakana Copper Corporation, Founder, Director, President and CEO, for 5 years.

What have you been charged with doing for the company? 

Creating shareholder value through the discovery and delivery of a project ready for development.

What characteristics do you think one needs to be a CEO?

Experience and success in the industry. Knowledge of capital markets with vision and decisiveness; the ability to recognise opportunities and seize them. Also strong interpersonal communication skills.

What has/have your position as CEO taught you: good and bad?

You can never predict what the markets will do and the importance of communicating the vision for the company/project.

What’s the one thing that a mentor/boss taught you that you still think about / use today?

How to stay positive when nearly everyone else is negative.

In a sector known for its ups and downs, what’s the hardest decision you had to make?

When to finance.

What are you most proud of?

Building a team that has made an important discovery that will contribute to economic growth in Peru.

Tell us something that few people know about you.

I grew up in Texas but I know nothing about horses.

What does the future of this sector look like? What needs to change to get there?

I think the future of the mining industry is bright, but it will take a while to get there. It is a difficult industry to invest in because of the long timelines involved from discovery to production due to permitting delays and the cyclical nature of the business.

There needs to be better acceptance and support of mining throughout society. The mining industry has a history of being vilified, much like the oil and gas industry is currently experiencing, yet we are part of the solution, not the problem. 

What is driving the need to change?

A massive amount of new resources are needed in order for us to be better stewards of the planet. We cannot have clean energy without developing the resources needed to get us there. 

What type of people are / should be attracted to this sector?

I think all people should have a better understanding of what mining does for society. Educators have a pivotal role in helping society see the benefit of responsible resource management. We also need those in favour of clean energy to actively participate in the industry, be it mining copper or lithium, nuclear energy, or environmental and permitting regulations. 

Which companies or individuals do you look up to?

I have a lot of experience working with majors and I like the ones that have a sense of humility. Arrogance is a characteristic you do not want and success often breeds this. I look up to people that have been successful but at the same time are open-minded. The past is not always the key to success in the future, so people that can adapt are people that I look up to. 

What is your educational background?

I have a BSc degree in Geology from Colorado State University and an MSc degree in Geology from the Colorado School of Mines.

Did you know what industry you wanted to work in straight away? What did you want to do? 

I originally planned to get a business degree but geology allowed me to pursue my passion for science, the outdoors and finding something really valuable.

What is your professional background?

I spent 22 years with the majors – BHP, Western Mining Corporation (WMC), Newmont, and MMG. This gave me exposure to global exploration for multiple commodities. Because of this, I prefer systematic multidisciplinary exploration approaches with a team of professionals. 

When did you move into management? When did you move into a board position?

In 2007 I became the Americas Exploration Manager for Zinifex (which later became Oz Minerals, then MMG). I developed the exploration program throughout the Americas for copper, nickel and zinc. 

In December 2016, I founded Chakana with a few initial investors. This company became publicly traded on the TSX.V in January 2018, where I am currently serving as a Director, President, and CEO.

What do you think your best attributes are for running a company?

I think having a strong technical background is very helpful, but also the ability to communicate with investors, explaining very technical concepts in simple terms. 

What kind of people do you surround yourself with?

Self-motivated people that know how to get the job done and get on with it. 

What are the KPIs that you focus on for yourself and for your team?

One of our core principles is doing what you say you are going to do. Taking accountability, being open and honest in our communications, and being trustworthy.

Shareholders are nervous with current market conditions. How do you maintain confidence for current shareholders, and attract new potential investors?

It is very difficult in times like these. Having a great project helps, but you need more than that. We have the benefit of having a resource, so there is a residual value there that can be compared to other assets. For new investors, explaining that we have ~460,000 gold equivalent ounces in the ground starting at surface in an active mining district that are valued at $15/oz makes a compelling investment thesis. We know the resources will continue to grow, they are open at depth and the exploration throughout the rest of the district is exceptional. 

What do you think are the challenges currently facing the mining industry?

Global economic issues and where commodities fit in.

Is gold an inflationary hedge or not? 

When will the copper supply and demand imbalance happen and what will that do to the copper price?

Too many junior companies, many of which have nothing but a ground position in a good area.

Too many socialist governments trying to take more from the mining industry without acknowledging how much they already give. 

Final question, what do you want investors to think of when they hear your name?

Someone that is ethical that has worked tirelessly to make them money on their investment.