Previous drilling at Bx 5 had outlined a mineralised, east-plunging breccia pipe to a depth of about 300m at the intersection of east and north-northeast trending structures. Two holes were drilled to test immediately east and down-plunge of the known breccia pipe from a 135m step-out platform. Both holes intersected long sections of mineralised breccia in a body that extends east and north of the known breccia pipe.

Drilling highlights included 144m grading 0.88 grams per tonne gold, 0.88% copper, and 13.6g/t silver.

"While previous drill results on Bx5 were favorable, this new zone has higher grades and has mineralised margin zones, something we have not seen since drilling at Bx1. It may indicate this new zone is a separate blind breccia pipe that intersects the breccia pipe that crops out at surface. Alternatively, we could be seeing zoning to higher grade copper with depth," said president and CEO David Kelley in a statement.

The phase 3 drill programme is planned for 20,000m to test a variety of targets and to complete additional definition drilling. About 4,300m of drilling has been completed to date.

Shares in Chakana Copper (TSXV:PERU) are trading at C22c, valuing the company at $21 million.