Vancouver, British Columbia--(Newsfile Corp. - October 8, 2024) - Chakana Copper Corp. (TSXV: PERU) (OTCQB: CHKKF) (FSE: 1ZX) (the "Company" or "Chakana"), reports that the Board has decided to relinquish its option to acquire three concessions from Condor Resources Inc. (TSXV: CN) ("Condor"), that make up approximately 25% of the Company's expanded Soledad project located in Ancash, Peru (the "Condor Concessions").
Mr. Douglas Silver, Chairman of Chakana, explains "during this time of difficult market conditions, we were told by investors that they will not fund a project with substantial outstanding property payments. The remaining property payments to Condor in addition to payments already made greatly exceeded the current value of the property. We tried over multiple months to negotiate a reasonable buyout price but were ultimately unsuccessful. While our preference is to keep the consolidated land position together, doing so only makes sense if it is economically feasible. We are still very optimistic about our remaining land holdings becoming a future precious metal and copper producing asset."
According to regulatory procedure, Chakana's existing exploration permits on the Condor Concessions will be cancelled and Condor will have to start a new permitting process should they elect to do so. Additionally, Chakana has requested that Condor take possession of the physical assets relating to the Condor Concessions, which includes 44,919 metres of drill core and 34 tonnes of rejects and analytical pulps currently stored at Chakana's warehouse facility. Chakana controls the surface rights over the expanded Soledad project, including the Condor Concessions, which means that Condor will not have access to the Condor Concessions without establishing an access agreement with Chakana. As part of a previous royalty purchase agreement with Condor, Condor will grant a 1% net smelter returns royalty in favor of Chakana over the Condor Concessions with a 2 km area of interest. Condor will have the right to purchase half of the royalty (0.5%) for US$1,000,000 (see Chakana's news release dated March 19, 2019).
Based on an initial inferred resource published in February 2022, approximately 1.2 million tonnes amenable to extraction by open pit mining methods and 4.7 million tonnes amenable to extraction by underground mining methods are located on the Condor Concessions (see Chakana's news release dated February 23, 2022 and the technical report titled "Independent Technical Report for the Soledad Copper Project, Ancash Department, Peru" dated February 23, 2022, available under the Chakana's issuer profile at www.sedarplus.ca).
Although the relinquishment of any portion of a consolidated land position is unfortunate, the Company's management believes that the remaining 2,775 hectares is highly prospective. Exploration initially began in 2017 on the Condor Concessions and systematically moved to the south based on the recognition of a much larger mineral system. In 2022, several higher-priority shallow targets were tested on the Condor Concessions with limited success (see Chakana's news release dated September 22, 2022). All of the obvious outcropping mineralized breccias on the Condor Concessions have been drill tested. Since 2023, the focus of exploration has been on the southern half of the project where recent drilling has discovered additional high-grade copper-gold-silver breccia mineralization at Estremadoyro, high-grade silver mineralization at the La Joya prospect, and defined two discrete porphyry targets within the large Mega-Gold target area (see Chakana's news releases dated May 8, 2024 and August 29, 2024).
Qualified person
David Kelley, an officer and a director of Chakana and a qualified person as defined by National Instrument 43-101 - Standards for Disclosure of Mineral Projects, reviewed and approved the technical information in this news release.
ON BEHALF OF THE BOARD
(signed) "Douglas Silver"
Douglas Silver
Chairman of the Board
For further information contact:
Phone: 720-233-2166
Email: info@chakanacopper.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking Statement Advisory: This release may contain forward-looking statements. Forward-looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Soledad copper-gold-silver project (the "Project"), the potential to expand the mineralization, and to develop and grow a resource within the Project, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief in the potential for mineralization within unexplored parts of the Project. These forward-looking statements are based on management's current expectations and beliefs and involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. including, without limitation, the need for additional capital by the Company through financings, and the risk that such funds may not be raised; the speculative nature of exploration and the stages of the Company's properties; the effect of changes in commodity prices; regulatory risks and risks that the development of the Company's material properties will not be acceptable for social, environmental or other reasons; availability of equipment (including drills) and personnel to carry out work programs; that each stage of work will be completed within expected time frames; that current geological models and interpretations prove correct; the results of ongoing work programs may lead to a change of exploration priorities; and the efforts and abilities of the senior management team. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Additional risk factors and details with respect to risk factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this news release are set out in the Company's management discussion and analysis, which is available under the Company's profile at www.sedarplus.ca. Accordingly, readers are cautioned not to place undue reliance on such forward- looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
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SOURCE: Chakana Copper Corp.
