Chakana Copper Intersects 0.61 g/t gold, 1.02% copper and 26.1 g/t silver at Estremadoyro Breccia Pipe in Soledad Project

• Chakana Copper intersects  23.0m of 0.61 g/t gold, 1.02% copper and 26.1 g/t silver (1.65% Cu-eq) at Estremadoyro breccia pipe in Soledad Project, Peru
• This intersects is the first occurrence of bornite mineralization and low-grade copper halo around breccia pipe
• Drilling is underway at Mega-Gold porphyry target with chalcopyrite and molybdenite identified
• The company's initial inferred resource of 191,000 oz gold, 11.7M oz silver, and 130M lbs copper across 7 breccia pipes
• Chakana Copper is fully funded 3,000m drill program in progress to expand mineralization

Chakana Copper Corp (TSXV: PERU) is a Canadian junior mining company advancing the high-grade copper-gold-silver Soledad project in the mining-friendly Ancash region of Peru. The project hosts numerous mineralized tourmaline breccia pipes that have returned impressive drill intercepts. An initial resource estimate in early 2022 defined 191,000 oz gold, 11.7 million oz silver and 130 million pounds copper in the inferred category across seven breccia pipes, with considerable expansion potential. The company is currently executing a 3,000m drill program to test high-priority targets and grow the resource base.

High-Grade Results from Estremadoyro Breccia Pipe

The latest drill results are from the Estremadoyro breccia pipe, located in the central part of the Soledad project. Two shallow holes intersected substantial mineralization:

• 17.7m @ 0.55 g/t Au, 0.77% Cu, 39.7 g/t Ag (1.48% Cu-eq) in SDH24-284
• 23.0m @ 0.61 g/t Au, 1.02% Cu, 26.1 g/t Ag (1.65% Cu-eq) in SDH24-285

These grades are on par with the average resource grades released in 2022, confirming the potential for Estremadoyro to host a meaningful deposit. Importantly, hole SDH24-285 returned mineralization extending into the wall rock around the breccia, including 2.2m on the east side and 1.35m on the west side. A low-grade copper halo in the wall rock adjacent to the pipe was also encountered, with 12.15m @ 0.30% Cu-eq in SDH24-284.

This represents the first reported occurrence of mineralization extending beyond the breccia-wall rock contact, suggesting potential for a larger mineralized footprint. Additionally, bornite, a high-tenor copper mineral, was identified with chalcopyrite for the first time at Soledad. These positive developments warrant follow-up drilling to determine the extent and grade of the Estremadoyro pipe at depth.

Promising Early Indications from Mega-Gold Drilling

Mega-Gold is a large 2.5 km2 target area 900m southwest of Estremadoyro characterized by anomalous gold-molybdenum soil geochemistry, pervasive alteration, and a strong chargeability signature. Three holes have been completed to date with assays pending.

The initial holes have all encountered long intervals of moderate-strong alteration, with pyrite, chalcopyrite and molybdenite mineralization hosted in andesitic volcanic rocks, hydrothermal breccias and granodiorite intrusions. Hole MGDH24-001 cut a pyrite-rich zone over its entire 353.8m length, associated with quartz-sericite-pyrite alteration and scattered molybdenite and chalcopyrite.

MGDH24-002 returned similar geology before entering a mineralized granodiorite at depth cut by over 100m of tourmaline breccia. Chalcopyrite was noted in quartz-tourmaline veins and as disseminations within the intrusion. The third hole, MGDH24-003, is currently in progress but has intersected a sulfide-rich structure and hydrothermal breccia at 130.5m depth.

While assays are required to gauge the significance of these sulfide-bearing intervals, the geology is highly encouraging for a porphyry copper-gold-molybdenum system at Mega-Gold. The mineralized granodiorite and breccias in hole 2 are especially promising. Chakana appears to be vectoring towards a potential porphyry center, providing a highly prospective target for ongoing and future drilling.

Excellent Exploration Potential

The Soledad project provides investors with exposure to an emerging copper-gold-silver district in Peru with excellent discovery potential. With an initial inferred resource already in hand, Chakana is aggressively exploring the 28 targets identified to date. The mineralized breccia pipes demonstrate significant vertical extent, supporting resource expansion at depth. New zones such as Estremadoyro also have the potential to add high-grade resources with further drilling.

Moreover, the early success at the Mega-Gold target is highly encouraging for a significant porphyry discovery. Porphyry deposits are known to host large, long-life resources that are coveted by major mining companies. Confirming a economic porphyry system at Soledad would be a game-changer for the project and the company.

Chakana is well-funded to continue its systematic exploration at Soledad, with a focus on drill testing the highest priority targets. The fully-permitted southern half of the property remains largely unexplored, providing a pipeline of prospective targets for drilling. As the company continues to report drill results, investors can expect a steady flow of news on exploration progress and growth of the mineralized footprint.

Peru is a world-class mining jurisdiction, ranking as the second largest copper producer globally. The country hosts numerous prolific mineral belts and is home to several tier-one copper mines. Chakana's Soledad project lies within the same Miocene metallogenic belt as major porphyry and epithermal deposits like Antamina, Yanacocha and Pierina. This highlights the district-scale potential of the land package.

Chakana is also benefiting from strong community relations in the area of the project. The Ancash region has a rich mining history and is supportive of responsible exploration and development. The company employs many local workers and is actively engaged with the community. This social license to operate de-risks the project and provides a smoother path to potential development and production.

Conclusion

The latest drill results underscore the prospectivity of the southern portion of the project, which will see increased exploration focus going forward. The mineralized granodiorite intercepts and long runs of alteration and sulfide mineralization at Mega-Gold are particularly exciting, pointing to a potential porphyry cluster discovery. Chakana is well positioned to create value through the drill bit in this prolific mineral belt.

With a strong treasury, experienced management team, and strategic land position in a world-class copper jurisdiction, Chakana has all the ingredients for exploration success. The company's aggressive drill program should generate strong news flow over the coming months as it aims to unlock the full potential of this emerging copper-gold-silver district. Positive drill results could quickly re-rate the stock to the upside.

Chakana Copper presents a compelling investment opportunity in the junior copper exploration space. The flagship Soledad project boasts an attractive combination of high-grade mineralization, resource expansion potential, and discovery upside. The initial resource is a great starting point, with ongoing drilling aimed at growing this inventory through targeting of known breccia pipes and testing of new high-potential areas like Mega-Gold.