Chakana Copper Corp. reported initial results from three scout drilling holes from the Mega-Gold target area within the southern half of the expanded Soledad project, Ancash, Peru. These results are part of the fully funded 3,000 m drill program that started April 5, 2024, to test three target types: high-grade breccia-hosted mineralization at Estremadoyro; porphyry-related mineralization in the Mega-Gold target area; and precious metal mineralization at the La Joya high-sulfidation epithermal zone.

In addition to the three holes reported here, five additional holes have been completed in the central and western part of the Mega- Gold target area for a total of 2,425.2 m drilled at Mega-Gold, and three holes have been completed at La Joya, totaling 465.5 m (assays pending). Results reported here are part of an option agreement with Minera Barrick Peru S.A. Initial Mega-Gold Scout Drilling: Chakana's first three scout holes at Mega-Gold were drilled on the eastern side of the target area along a section trending north-south and northeast. MGD H2 4-001 was drilled to the northeast to a depth of 353.8 m. The hole targeted strong soil geochemistry responses up to 0.325 g/t gold and 54 ppm molybdenum.

Volcanic rocks were intersected over the entire length, consisting of andesitic tuff and volcanic breccia, intruded by dikes of dacite porphyry. There is deep oxidation from the surface to 109.0 m depth, with development of supergene clay and the strong presence of iron oxides (goethite-limonite) in fractures and veinlets; partial oxidation is observed to 178.0 m depth. Fresh rocks below the zone of supergene alteration are sericite-quartz-pyrite (phyllic) altered that is overprinting earlier chlorite (propylitic) alteration to the end of the hole.

The volcanic breccia hosts clasts of andesitic tuff with phyllic alteration and quartz fragments. In the phyllic alteration, pyrite occurs up to 15% as disseminations and veinlets and within pyrite- tourmaline, quartz-pyrite, and quartz-tourmaline-pyrite veins (A-C). Tourmaline is present up to 7% in structures as veinlets and replacement with quartz, pyrite and traces of chalcopyrite and molybdenite.

Molybdenite occurs within sugary-textured quartz-pyrite veins from 180 m depth to the end of the hole interpreted as ?B? veins, and chalcopyrite occurs within quartz-pyrite and quartz-tourmaline veins from 220 m depth to the end of the hole. Dikes of dacite porphyry show phyllic alteration with iron oxide veinlets in the oxidized zone, plus pyrite veinlets at depth with traces of molybdenite in fractures. Analytical results for this hole display anomalous low-level enrichment of gold, copper, and molybdenum, reaching values of 0.213 gpt, 411 ppm, and 74 ppm, respectively.

Hole MGD H2 4-002 was drilled to the south from the same platform as MGD H2 4-001 to a depth of 453.15 m. This hole targeted a magnetic body surrounded by strong induced polarization chargeability to the north and south. The hole cut a similar volcanic rock sequence as MGD H2 4-001, intruded by a narrow dacite porphyry dike at 62.45m depth, several hydrothermal breccias, and granodiorite at 225.8 depth. Oxidation from surface to 66 m depth is associated with moderate to intense argillic alteration with up to 20% iron oxides (goethite-limonite).

The alteration transitions to quartz-sericite-pyrite beneath the zone of oxidation with pyrite reaching 10% as disseminations and in veins. Vein types include drusy quartz veins with pyrite and tourmaline, tourmaline-pyrite with traces of chalcopyrite and molybdenite, and magnetite veinlets. The dacite porphyry hosts pyrite up to 6% pyrite as disseminations and in veinlets, and iron oxides filling fractures when oxidized.

The granodiorite exhibits chlorite alteration overprinted by quartz-sericite- tourmaline-pyrite in veins and zones of replacement with molybdenite and chalcopyrite. The granodiorite is cut by 105.1 m of tourmaline breccia with highly altered quartz-tourmaline-replaced granodiorite clasts with pyrite and traces of chalcopyrite and molybdenite. A late-mineral porphyritic granodiorite with mineralized xenoliths of quartz- tourmaline-chalcopyrite and disseminated chalcopyrite (up to 0.5%) intrudes the older granodiorite between 399.85 m and 409.05 m depth.

Trace chalcopyrite and molybdenite associated with quartz-tourmaline veinlets occurs to the end of the hole. A 2.0 m interval from 89.0 m depth contains 1.8 gpt gold and 0.35% copper. Excluding this zone, low-level enrichment of gold, copper, and molybdenum occurs, reaching values of 0.296 gpt, 1,480 ppm (0.148%), and 149.5 ppm, respectively.

Hole MGD H2 4-003 was drilled to the south from a platform 100 m south of MDG H2 4-001/002 where it was stopped prematurely at a depth of 234.1m in a fault zone. The hole was intended to drill beneath higher temperature advanced argillic alteration identified at surface by Terraspec analysis and a moderate strength chargeability response adjacent to a magnetic high. The surface alteration is characterized by silicified volcanic rocks with pyrophyllite, diaspore, zunyite, muscovite-sericite, and biotite.

The hole intersected andesitic tuff and andesite from surface to 130.59 m depth. The andesitic tuff hosts iron oxides (goethite-limonite) up to 20% in fractures and veinlets whereas the andesite has rounded volcanic clasts with chlorite alteration overprinted by sericite-quartz-pyrite (phyllic) alteration and hosts pyrite up to 7% as disseminations and veinlets with quartz-tourmaline-anhydrite and traces of chalcopyrite. Pyrite veins with sericite halos are interpreted as ?D? veins.

Three intervals of hydrothermal breccia were intersected between intervals of granodiorite. The breccias have quartz-tourmaline matrix and clasts of tuff and granodiorite. Magnetite occurs in clasts up to 3% and with quartz-tourmaline-pyrite veins with traces of chalcopyrite.

A 1.5 m interval from 127.5 m depth contains 11.05 gpt gold that occurs at the contact between andesitic tuff, hydrothermal breccia and granodiorite associated with quartz-sericite-pyrite veining. Sections of the breccia and granodiorite show evidence of acid leaching with cavities filled with tourmaline and pyrite. An interval of partially leached granodiorite from 185.45 m-197.75 m has promoted gold of 0.190 to 0.322 gpt.

The hole was stopped prematurely at 234.1 m depth in hydrothermal breccia after cutting 40 m of broken rock with fault gauge, preventing the hole reaching its target depth of 400 m. It is possible this target is associated with proximal porphyry mineralization and is a high priority for the next phase of drilling. The patterns of alteration and sulfide mineralization seen to date confirm a large hydrothermal system driven by intrusive activity. Key features include the extensive phyllic alteration, abundant disseminated pyrite and quartz- tourmaline-sulfide veins with subordinate chalcopyrite and molybdenite interpreted as pyrite halos.