"In June 2023 we received a permit to drill on the southern half of the Soledad project. This includes a porphyry target, referred to as Mega-Gold, and a high-sulfidation epithermal target called La Joya."

David Kelley

CEO AND PRESIDENT, CHAKANA COPPER

March 25, 2024

What is the history of the Soledad project?

Since making an initial high-grade copper/gold silver discovery in 2017, we have drilled 62,000 m of exploration and resource drilling. We published an initial inferred resource on seven breccia pipes in 2022, and believe that there is potential for 50-100 breccia pipes on the project. The resource is open at depth and we have defined 54 additional breccia targets, giving us excellent potential to expand the breccia resource. 

In June 2023 we received a permit to drill on the southern half of the Soledad project, enabling us to explore different types of mineralization. This includes a porphyry target, referred to as Mega-Gold, and a high-sulfidation epithermal target called La Joya. These targets will be the focus of the next exploration drill campaign, beginning in March 2024. 

We were fortunate to raise C$3 million recently in a private placement to fund the drilling program. The industry is currently experiencing very difficult capital markets for junior mining companies, so it was gratifying to have notable investors like Gold Fields and Rick Rule in our financing. 

Can you describe your results from a geological standpoint and the Aija-Ticapampa district more generally?

We believe we have identified the principal intrusion that is driving not only the formation of the tourmaline breccia pipes but also the prominent distinct scale zoning in the Aija-Ticapampa mining district. We believe we sit on the intrusive center of the district, where there is rich copper and gold mineralization. We are surrounded by an extensive 150 km2 district dominated by lead, zinc and silver mineralization, which is the focus of Lincuna’s mining operation. This distinct zoning is typical of large porphyry districts. The excitement, which included a recent doubling in our share price, is around our ability to test the Mega-Gold and La Joya targets. The mining industry in Peru is defined by its giant copper and gold deposits; we are on the doorstep of discovering the next one.

Many of the copper deposits in Peru have distinct zoning, with porphyry mineralization in the center that is surrounded by distal high-grade veins, mantos, and replacement deposits. We are in the Miocene mineral belt, one of South America's most prolific porphyry belts. There is no better place to make a tier-one discovery than to be in the vicinity of other world-class deposits.

Can you discuss possible mining scenarios for your current identified targets?

Predominately the exploitation of the breccia pipes would be underground mining, with small starter pits at the top. We have topography working in our favor, which will allow us to drive horizontal adits into the hillside to intersect the breccia pipes, which are vertically extensive. By driving audits at different elevations on the mountainside, we can quickly access different levels of mineralization. 

What role will Peru play in meeting the world’s increasing copper demand?

Peru went through a tumultuous time, but I think investor confidence is returning. A multi-billion-dollar discovery could have a long-term economic impact on Peru. We hope to play a role in Peru’s copper future with our Soledad project.

What does a junior need to succeed in the current market conditions?

You need a good team, not just technically, but also a well-established board with a track record. We have Douglas Silver, who is one of three people to have been inducted into both the American and Canadian Mining Hall of Fame. Additionally, we have John Black, a very successful exploration geologist and CEO. The quality of the asset is also fundamental since even the best team in the world cannot guarantee the quality of the deposit. Location is also pivotal. Ancash is one of the best provinces in the country for mining operations, largely because of the success of the Antamina and Pierina operations, which established the province as a world-class mining destination. 

What timeline should investors expect moving forward? 

The focus for us is preparing for the next drill program, which is fully funded and will start at the end of March. We have a 3,000 m program planned that will include drilling several targets in the Mega-Gold area, La Joya, and additional mineralized breccias. 

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