Chakana Copper Looks to Unlock Value at Soledad with New Drilling Campaign

• Chakana Copper is raising $2.2M to fund upcoming 2400m drill program at Soledad project. First tranche closed on November 6th.
• Drilling will test the Mega Gold porphyry target, never before drilled.
• Porphyry target could represent the core of the entire mineral system at Soledad.
• Strategic partners Gold Fields validate exploration potential by following their money. Current investment takes them to 19.9% ownership of Chakana.
• Drill results in March could demonstrate existence of large copper-gold porphyry system, providing major upside for the stock.

About Chakana Copper

Chakana Copper is a junior exploration company focused on advancing its 100% owned Soledad project in Ancash, Peru. Soledad hosts high-grade copper-gold-silver mineralization in tourmaline breccia pipes and other intrusion-related deposit types. An initial inferred resource estimate delineated 6.73Mt grading 0.9 g/t gold, 117 g/t silver, and 0.73% copper over seven breccia pipes. The project exhibits significant exploration upside with over 150 defined targets, of which only 18% have been tested to date. Extensive exploration confirms Soledad is a large, well-endowed mineral system with potential to host substantial copper and gold resources. Soledad provides investors with attractive exposure to both precious and base metals in a top-tier mining jurisdiction.

Interview with President & CEO, David Kelley

Financing Positions Chakana for Aggressive Exploration

Chakana Copper recently announced the closing of the first tranche of a private placement financing, raising $1.1 million. The company is working to close a second tranche soon that would bring the total raised to $2.2 million. The financing was well supported, including lead orders from strategic investor Gold Fields who increased their equity position in Chakana to 19.9% with this financing.

The funds will allow Chakana to launch an aggressive 2400 meter drilling campaign starting in March 2024 at its Soledad project once the rainy season passes. The company had been waiting on permitting before it could access important targets on the southern half of the project. With the permit now in hand, Chakana is eager to restart drilling.

Testing High-Priority Porphyry Targets

The upcoming drill program will focus on testing the Mega Gold porphyry target at Soledad. This target sits in the center of the project area and exhibits all the hallmarks of a mineralized porphyry system - strong geochemical and geophysical anomalies, alteration, and veining with copper-gold mineralization. The induced polarization chargeability anomaly at Mega Gold has a +400 mV response over a 600-700m area, indicating significant sulfide content.

Chakana CEO David Kelley believes Mega Gold could represent the core of the entire mineral system at Soledad, which also includes high-grade tourmaline breccia pipes and epithermal targets that have been the focus of previous exploration. The breccia pipes are likely sourced from the underlying porphyry intrusion that Chakana is now targeting.

The upcoming drill program represents the first test of this important porphyry target. Chakana aims to demonstrate that a large mineralized porphyry system exists, which could host substantial copper and gold resources. Discovering and defining this porphyry is key to unlocking the full value of the Soledad project.

Encouraged by Analogous Results at Other Projects

Chakana Copper believes its Soledad copper-gold project in Peru could mirror the exceptional exploration success achieved by Hercules Silver at its project in Idaho. There are several key geological and technical similarities that provide grounds for optimism that Soledad may host a comparable large-scale porphyry discovery.

Both projects contain networks of high-grade polymetallic veins and breccias that are likely related to and sourced from an underlying porphyry system. Historic mining and exploration at each focused only on the near-surface vein horizons. However, in both cases, systematic modern-day exploration by the current operators has revealed strong evidence that a large mineralized porphyry lies at depth.

Detailed geophysical surveys have outlined sizable chargeability anomalies indicative of copper-gold bearing sulfide mineralization clustered within porphyry-style stockwork fracturing. The IP anomaly at Chakana's Mega Gold target shares a similar scale and geophysical response to Hercules Silver's anomaly, measuring approximately 600-700m in diameter versus 500-700m at Hercules.

Extensive geological mapping and geochemical sampling at surface above the two anomalies has revealed pervasive porphyry-type hydrothermal alteration and vein styles. Key minerals such as quartz, chalcopyrite and pyrite that are typical of fertile porphyry environments have been identified. The surface geochemical signatures are also characteristic of porphyry systems, with strongly elevated copper, gold, molybdenum and other porphyry indicator elements.

While Hercules Silver has already obtained a significant discovery intercept of 185m at 0.84% copper from their first test drill hole, Chakana Copper will be embarking on the initial drill program at Mega Gold in 2024. However, the host geology and extensive indicators of a porphyry system in place at Soledad provide encouragement that Chakana's upcoming drilling could yield similar success.

Unlike grassroots exploration plays, the presence of polymetallic veins and breccias, detailed geophysics and supportive alteration/geochem data de-risk Soledad substantially. Chakana also now has permitted drill access to the porphyry target. The company's goal is to replicate Hercules Silver's exceptional 1350% share price gains fueled by its virgin porphyry discovery. Soledad offers genuine multi-bagger potential if exploration efforts intersect economic porphyry mineralization.

Major Partners Validate Exploration Potential

Strategic investor Gold Fields has been a key supporter of Chakana since 2019, investing over $12 million to date. With this latest financing, Gold Fields increased their equity position in Chakana to the maximum 19.9%, investing an additional $342,000. The major gold producer sees huge potential at Soledad, evidenced by their willingness to continue participating even in today's tough markets. Gold Fields' technical team conducted extensive due diligence and views Soledad as an outstanding exploration opportunity. Their ongoing financial backing provides third-party validation of the exploration thesis and highlights the world-class nature of the project. Major investments from respected industry leaders like Gold Fields give credence to management's belief that they are sitting on a potential Tier 1 copper-gold porphyry discovery.

Moving Ahead Despite Tough Markets

Chakana opted to push forward with exploration and raise capital despite current depressed equity valuations and challenging market conditions. Raising funds now allows the company to maintain momentum rather than waiting on the sidelines hoping for a market recovery.

With targets defined and a permit in hand, Chakana's management team believes it's time to drill. They want to capitalize on the opportunity and work towards discovering and defining what they believe could be a company-making copper-gold porphyry deposit at Soledad.

Conclusion for Investors

Chakana Copper provides exposure to a potentially huge copper-gold porphyry discovery at its Soledad project, without the large valuation typically seen in exploration stories. Strategic partners validate the exploration thesis, and their involvement derisks the story substantially.

With its latest financing closed, Chakana now has the funds to drill its highest priority target. Investors get the chance to participate in this potential discovery at an early stage, before the market catches on to the upside potential. The upcoming drill program starting in March could be game-changing for Chakana if it intersects significant porphyry-style mineralization. Chakana presents an intriguing risk/reward opportunity for investors seeking leveraged exposure to a transformational exploration discovery.