Chakana Copper Corp. [PERU-TSXV] shares began trading on the TSX Venture Exchange Wednesday January 30 as the company released new assays from its Soledad copper-silver-gold project in Peru. By early afternoon Wednesday, the shares were trading at 85 cents, up $0.76 or 844.44%.
Chakana is the product of a reverse takeover deal with Remo Resources Inc. Its Peruvian subsidiary owns the rights to acquire a 100% interest in the Soledad Project under an option agreement with Condor Resources Inc. [CN-TSXV].
Soledad is located in the Cordillera Negra, or western ranges of the Andes Mountains, 260 km northwest of Lima. Recent exploration has focused on a cluster of near-vertical magmatic-hydrothermal quartz-tourmaline breccia pipes hosted in andesite of the Calipuy group that contains attractive copper-gold mineralization, associated with silver, zinc, lead and molybdenum.
It has been postulated that the breccias are genetically related to a concealed copper porphyry deposit at depth. Previous work by Condor, Mariana Resources Ltd. and Compania Minera Casapalca S.A. included surface rock sampling, prospecting, grid-based magnetometer, and IP geophysical surveys, as well as two phases of core drilling, totaling 4,855 metres in 16 holes.
Last year, Chakana initiated a 16,660-metre drill program designed to determine the geometry of several pipes previously drilled, determine the true grade profile by drilling across pipes, define an initial inferred resource on two of the pipes, and test a broad scope of targets across the property. The drilling campaign was launched in August 16, 2017, and results of the first five holes were announced on October 6, 2017, and October 25, 2017.
All assays released to date have been from drilling on Breccia Pipe #1, where historic drilling had documented continuous mineralization to a depth of 490 metres until the hole exited the side of the breccia pipe. Drilling by Chakana has been from a central platform on top of Bx #1 with different azimuth and dip angles to define the geometry of the pipe and the grade profile within the pipe and at the contact with the wall rock. Results from five additional holes released on Wednesday, provide additional information on the geometry of Breccia pipe #1 and confirm high grades previously reported.
Hole SDH17-022 was drilled to the east-southeast at -80 degrees and intersected three breccia intervals along the margin of the pipe. Copper is leached in the top 21 metres but it increases with depth in the primary zone, with the lower 8-metre interval averaging 1.83% copper, 1.13 g/t gold and 35 g/t silver.
Hole SDH17-023 intersected 36 metres of breccia from surface and also a mineralized structure from 119 metres to 127. 4 metres (8.4 metres) that averages 9.73 g/t gold, 128 g/t silver, 0.12% copper, 0.67% zinc and 1.24% lead.
Under an agreement with Condor, Chakana can earn a 100% interest in the Soledad Project under the following terms:
- Completing 12,500 metres of drilling on the project
- Making cash payments of US$5.4 million
- Issuing 500,000 common shares to Condor
- Granting Condor a 2% net smelter return royalty on any mineral production from the Soledad Project. Chakana can buy back 50% of the net smelter return royalty at any time for US $2 million.