CHKKF - Chakana Copper Corp (CHKKF)(PERU:CA) - Initial Resource Estimate Provides Solid Foundation on Which to Grow Increasing Price Target

Initial resource estimate. Chakana Copper released an initial inferred resource estimate for its Soledad project in Peru. The resource estimate encompasses seven breccia pipes that start at surface and extend to an average depth of approximately 300 meters. Inferred mineral resources included 1.9 million tonnes grading 1.29 grams of gold per tonne, 37.1 grams of silver per tonne, and 0.65% copper that could be extracted via open pit, and an additional 4.8 million tonnes grading 0.72 grams of gold per tonne, 61 grams of silver per tonne, and 0.97% copper that could be mined underground.Starter pit opportunities. The resources at Soledad are polymetallic and strong silver and gold grades are common near surface with copper grades increasing at depth. We think the current drilling program down to 300 meters has affirmed an economic opportunity for open pits for near surface resources that could also fund resource development at depth.Plans for 2022. This year Chakana plans to test 20 new targets. Recall that 110 targets have been identified, of which only 16 have been tested. In 2022, the company will likely conduct a 10,000 meter exploration drilling program to test 20 new targets, or 500 meters of drilling on each target. Outcomes from exploration drilling would likely determine high priority targets for a future 2,000 to 5,000 meter resource drilling program.Rating is Outperform. Last year was a challenging year for junior exploration companies in terms of price performance. Chakana was not an exception with its stock was down 48.9% in 2021 despite significant exploration progress and favorable drill results. With the completion of the initial resource estimate and the potential to double the inferred resource within 12 to 24 months, we think the equity offers significant upside for investors and believe the current price offers an attractive entry point. We have increased our per share price target to C$0.85 or US$0.70 from C$0.75 or US$0.60. Read More >>