Chakana Copper (TSX-V: PERU)(OTC: CHKKF) CEO David Kelley on More High-Grade Copper-Gold-Silver at Soledad Project

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Chakana Copper, Mr. David Kelley. Dave, how are you today?

David Kelley: I'm doing great, Gerardo. How are you doing?

Gerardo Del Real: I am well, thank you for asking. You had some news yesterday that just highlights the impressive, impressive mineralization from Breccia Pipe 5. Let me read the headline.

Chakana intersects 10 meters with 15.48 g/t gold, 1.27% copper and 82.4 g/t silver or 18.50 g/t gold equivalent. Or if you want it in copper equivalent, 12.09% copper equivalent. That was within 237 meters of 1.74 g/t gold, 0.59% copper and 25.2 g/t silver.

By the way, from surface, again Breccia Pipe 5 continues to deliver. I would love your take on the drilling and the results.

David Kelley: Yeah. Gerardo, both of those intervals are really spectacular when you think about it. 237 meters of continuous mineralization from surface, really spectacular. We've already been recognized as having the best gold intercept on the TSX for the week with that gold intercept over 237 meters, and second in silver. For a copper company, that's pretty darn good. But the other comment to make is that it reminds me of the really high grade zone we found in Breccia 1. You remember that 12 meters of massive sulfide that had 27% copper and 35% copper equivalent, really spectacular. And this is another one of these zones, very, very, very high grade.

With more drilling around this zone in Breccia 5, I wouldn't be surprised if we see massive sulfide similar to what we saw in Breccia 1. But it really just highlights the really special and spectacular nature of the mineralization we can find in these breccia pipes. I love to see the long runs of good, what I call high grade and then within those zones, some really spectacular zones of super high grade. I think that just bodes well for the future economic potential of these mineralized breccia pipes.

Gerardo Del Real: Some fantastic looking rock. I encourage everyone to go to the news release and just look at some of the core that you included in the release. Now, obviously the resource estimate is the next major catalyst, though assays are still pending. But we do have six pipes that will go into that. You have over 110 targets. Again, for people that aren't familiar with the project, can you speak a bit to the importance of setting the table and the expectation for this upcoming resource estimate? Because although it is long awaited and people are eager to see that initial number, it is going to be a very, very small snapshot as to the potential of the entire property. Right?

David Kelley: Yeah, that's exactly right. And I think in terms of multiples. What's the multiple going to be on top of the initial resource estimate? Is it going to be four times? Is it going to be eight times? If you do the math and look at all the targets that we have and what we have found so far with just, we've only tested 16 targets total out of 110 that we have. And I know that number's going to increase with the geophysics that we're doing now. So tons of targets, very, very high quality targets. I'm absolutely convinced that discoveries are going to continue. We also have the open ended nature of the breccia pipes that will be in the resource estimate to begin with and expanding and increasing resource beyond the initial zero surface to 300 meter depth.

So it's very much a blue sky project in terms of how we can grow that resource. And the geophysics we're doing now is really, really exciting. It's really dialing in discreetly where we need to drill and test these targets and adding new targets to the inventory we already have. And then we haven't even touched the south half of the project yet, which is in permitting. We're well advanced in that. That's going to be the second wave of target testing that'll come on the heels of the first wave, which is probably, I think it's around 56 to 60 targets, somewhere in there, on the north side where it sits right now. So we've got a lot of work still to do, but the resource estimate, I think, will give some indication of what the economic potential of these breccia pipes can be.

Gerardo Del Real: You have a major involved with the company, obviously that has to be loving the results and the exploration upside. How aggressive do you plan on being in 2022?

David Kelley: We'd like to be really aggressive. I think the strategy in 2022 will be a little bit different than it was this year, because we did a lot of resource drilling this year. And that was really to put the resource estimate together. I think now that we've demonstrated that these breccia pipes drill out really well, that we find even better grade in some cases, when we drill in more detail. In other words, the breccia pipes get better with more drilling. I think that that's going to be a proof of concept. And then in 2022 really it's, I think, about getting out there, being an aggressive and testing a lot of targets. Let's get out there and test the top 20 targets on the north side. Let's get the permitting on the south side. Let's get down there and test the top 20 targets or so down on the south side and really try to blow this project wide open.

We still have some more conceptual type of targets. We're starting to key in on this concept of megabreccias, where the breccia pipes coalesce at depth into much larger breccia bodies. Those are underlaid by intrusions and we've never seen the causative intrusion, and that's another target concept that can be tested in the future. So I think the project's going to do really well with a initial or maiden resource to put it in the books and show everybody what the potential can be. And then it's really about trying to open it up and see if we can turn this into a Tier 1 discovery.

Gerardo Del Real: It's going to be fun multiplying that initial resource by two, and then by three, and then by four, and then by 5. 2022 should be a really fun year, a lot of year left. Dave, thank you so much for the update. Anything else to add?

David Kelley: No, Gerardo, just happy Thanksgiving to you and your family and everyone. And thanks for supporting the story.

Gerardo Del Real: No, I really appreciate it. Same to you and your family. And thank you for delivering just outstanding results all year long. It's appreciated. It makes telling the story a whole heck of a lot easier.

David Kelley: Absolutely. No, we enjoy it. We're having fun.

Gerardo Del Real: All right, Dave. You take care. Thank you so much.

David Kelley: Thank you.