The above result from Paloma East started at 3m and graded 0.34g/t gold, 0.36% copper and 16.9g/t silver.

Chakana is aiming to establish an initial resource for Soledad.

"The long runs of mineralised breccia starting near surface and extending to approximately 200m depth is encouraging, particularly with indications of high-grade zones within the breccia," president and CEO David Kelley said.

"We are excited about the potential of this very large breccia system and look forward to seeing continuing results from the Paloma West drilling."

The company's fully-funded 15,000m phase three programme resumed in August.

Phase three drilling had been suspended in October 2019 to await permits allowing drill testing of targets in the expanded mineral rights and was further delayed by COVID-19 precautions.

Chakana had C$5.7 million cash on hand at the start of this month.

Gold Fields has a 17% stake in the explorer following a strategic financing agreement last year.

Chakana's shares (TSXV: PERU) have ranged from C7.5-80c over the past year.

They closed down 8.9% yesterday to 51c to value the company at $47.5 million (US$36 million).