Chakana Copper Receives Key Permit Approval for Large-Scale Drilling Program at Soledad Project in Peru

Summary

Chakana Copper Corp (TSX-V: PERU), an exploration company focused on advancing the high-grade Soledad copper-gold-silver project in Peru, announced on July 5th that it has received final approval to drill several high-priority targets on the southern half of its concessions. This is an important milestone for Chakana, as it allows the company to test large-scale copper-gold porphyry and epithermal targets that have never been drill tested before.

According to Chakana President and CEO David Kelley, "Drilling can now proceed in some of the most exciting targets ever defined on the Soledad project." The company plans to start with a 4,000m drill program focused on three main targets: the Mega-Gold intrusion-hosted copper-gold zone, the La Joya high-sulfidation epithermal gold-silver zone, and the Estremadoyro tourmaline breccia pipe.

The Mega-Gold target in particular is described by the company as having "enormous upside potential" based on a large 2.5km2 soil gold anomaly coincident with porphyry-style alteration. Chakana believes this target has the potential to host a major copper-gold porphyry deposit.

This is an important development for Chakana Copper, as the permit delays over the past 2.5 years have hampered exploration efforts and weighed on the company's share price. However, with permitting now in place, Chakana can finally test these compelling large-scale targets that could be transformative for the project.

Chakana's financial backer Gold Fields also sees big potential here, having invested over $12 million to date in the company. As Chakana works to finance its upcoming drill programs, the company emphasized it will aim to do so in a non-dilutive manner to current shareholders.

Interview with Chakana Copper

Risks & Opportunities for Investors

Risks

• Exploration is inherently risky - the upcoming drill targets may not yield significant results. More drilling is needed to prove up a major discovery.
• Permitting delays have held back work on these targets for years already. Further delays could continue to hamper exploration efforts.
• Share dilution may occur if the company needs to raise significant capital for ongoing work.
• The company's share price has languished due to the permitting delays. Speculative investors will need to be patient for results.

Opportunities

• The new drill targets have major discovery potential and offer significant upside if drilling intersects significant mineralization.
• Recent permitting allows Chakana to finally test these high-priority copper-gold targets. Drill results could catalyze the share price.
• Long-term supporter Gold Fields sees big potential and has invested over $12M to date. Their ongoing support validates the project's prospects.
• Current market conditions have left the company undervalued, presenting an intriguing entry point for speculative investors.
• Experienced management team with track record of success in making discoveries.
• Further exploration and resource expansion could quickly boost value. The initial resource is open at depth.

5 Takeaways for Investors

1. Permitting delays finally resolved, allowing drilling on high-priority copper-gold targets. This is a major positive milestone.
2. Upcoming 4,000m drill program will test large-scale bulk tonnage targets Mega-Gold and La Joya for the first time. Significant discovery potential.
3. Current share price undervalues Chakana's exploration upside potential. Speculative entry point for investors.
4. Experienced management team and supportive strategic investor in Gold Fields provide credibility.
5. Initial resource shows high grades and is open at depth, providing a baseline value with room to grow. More exploration upside exists across the concessions.

Conclusion

In summary, Chakana offers an intriguing speculative investment opportunity in copper and gold exploration. The long-awaited drill permits finally put the company in a position to unlock the value of its compelling targets. Drill results in the near-term could act as share price catalysts if significant mineralization is encountered. With an experienced team, strong financial backing, and vast untested exploration potential, Chakana presents a turnaround opportunity after past permitting delays. Investors with a high risk tolerance could be rewarded for their patience and belief in the project's prospective geology.