CHKKF - Chakana Copper Corp (CHKKF)(PERU:CA) - Preparing for the Next Round of Drilling

Drilling expected to resume in May. In 2022, the company will likely conduct a 10,000-meter exploration drilling program to test 20 new targets. We expect the company’s geophysics program and target ranking to be completed in April with drilling beginning in May using one rig. Outcomes from exploration drilling will likely determine high priority targets for a future resource drilling program.Expectations for 2023. We anticipate Chakana will drill test 20 new targets, or 500 meters of drilling on each target, in the southern portion of the project area, conduct a 30,000-meter resource drilling program on new discoveries, and to update its mineral resource estimate.Taking ownership. The company will make the final cash payment of US$4.4 million by April 23 to fully exercise the Condor option on the Soledad project. While investors may have anticipated the payment to be funded with cash on hand and the issuance of equity, we think the January release of its initial inferred resource estimate may have expanded the company’s funding options to potentially include streaming or royalty agreements. The payment has been expected, is manageable, and is a key component of project ownership.Rating is Outperform. Chakana’s exploration and drilling program has exceeded our expectations and we believe the company could more than double the inferred resource within 12 to 24 months. While the upcoming Condor payment has been an overhang, it may offer a catalyst for the stock once the option is fully exercised. Read More >>