Kaizen Discovery Confirms the 2021 Exploration Program at Its 100%-Owned Pinaya Copper-Gold Project in Peru
~3,000 metres of diamond drilling to test shallow gold targets
Ivanhoe Electric's proprietary Typhoon™ transmitter system to complete its largest-ever 3D IP survey
Vancouver, August 9, 2021 - Eric Finlayson, Interim President and Chief Executive Officer of Kaizen Discovery Inc. (TSXV: KZD) (otherwise "Kaizen" or "the Company") is pleased to announce the 2021 exploration program at the 100%-owned Pinaya Copper-Gold Project. The Pinaya Project is located in the prolific Andahuaylas-Yauri Porphyry-Skarn Belt in southeastern Peru, which contains some of the world's largest recent copper mine developments.
In connection with this announcement, the Company has also announced a corporate reorganization and C$7.5 million rights offering (refer to Kaizen's news release dated August 9, 2021).
Highlights of 2021 Exploration Program at Pinaya Project:
- ~3,000 metres diamond drill program to test shallow gold targets defined by historic IP anomalies and surface geochemistry.
- 129 km2 3D Induced Polarization and Resistivity ("IP-resistivity") survey using Ivanhoe Electric Inc.'s proprietary Typhoon™ transmitter system to identify deeper concealed mineralization. This will be the largest Typhoon™ 3D IP-resistivity survey conducted to date.
"With the existing Pinaya Mineral Resource open to depth, and clear geological evidence that it is only part of a 10km-long hydrothermal system, we believe there is great potential for new discoveries on the Pinaya property," said Eric Finlayson, Interim President and CEO of Kaizen.
Planned 2021 Drilling Program
Multiple untested shallow gold targets have been identified by Kaizen after reviewing historical geophysical and geochemical data, combined with Kaizen's more recent geologic mapping and soil re-sampling. Of the seven large chargeable features identified, only three have been partially drill tested in the past with encouraging results. The focus of exploration by previous operators was to define the current Pinaya Mineral Resource and much less on drill-testing regional exploration targets.
The 2021 diamond drill program comprises up to 3,000 metres of diamond drilling over up to 10 holes (~300 metres each) across six of the seven shallow gold targets (see Figure 1 below). These targets have high potential for skarn and vein-related gold mineralization and are mostly untested by past drilling. Strike extensions of mineralized cross structures in the area of the Pinaya Mineral Resource are also planned for drilling (refer to Kaizen's news release dated March 24, 2021).
Permitting of the drill holes is underway, and the drilling program could commence as early as October.
2021 Typhoon™ Deep-Penetration IP-Resistivity Survey
The Company will conduct a large-scale IP-resistivity survey using Ivanhoe Electric's proprietary deep-penetration Typhoon™ high-power transmitter system to trace the Pinaya Mineral Resource and shallow chargeability anomalies to depth. The survey will cover 129 km2 and is designed to provide a definitive view on the deep porphyry potential of the property in advance of follow-up drilling in 2022. The survey will test the entire 10 km-long Pinaya hydrothermal system and explore beneath Miocene post-mineral cover rocks to the west of the Pinaya Mineral Resource (see Figure 2).
The Typhoon™ unit is currently being shipped to Peru, and the survey is scheduled to commence in September.
The Pinaya Mineral Resource
The Pinaya deposit is located within a 10 km-long zone marked by deep surface oxidation (irregularly extending up to 300 m below the surface) and reflecting disseminated sulphides in the Puno Group host rocks. Kaizen interprets this to be the overall footprint of the Pinaya hydrothermal system within which numerous copper and gold deposits could potentially occur.
Drilling to date has identified a shallow Mineral Resource comprising Measured and Indicated Resources totalling 41.7 million tonnes grading 0.63% CuEq[1],[2] (0.32% copper and 0.49 g/t gold) and containing 135,000 tonnes of copper and 656,000 ounces of gold, plus 40.2 Mt of Inferred Resources grading 0.55% CuEq (0.36% copper and 0.30 g/t gold) and containing 145,000 tonnes of copper and 388,000 ounces of gold. Mineral Resources are reported at cut‐off grades of 0.25 g/t Au for the GOSZ (Gold Oxide Skarn Zone) and 0.3% Cu Equivalent for the WPZ (Western Porphyry Zone) and NWPZ (Northwestern Porphyry Zone) zones. Note that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Mineralization remains open to depth and is of both porphyry and skarn styles, with the porphyry mineralization developed within and around sill-type porphyry intrusions. The skarn mineralization, which is the target of illegal miners on the property, is developed within calcareous members of the Puno Group host sequence.
There are two significant features to note about the porphyry mineralization. First is the presence of several long copper-gold intersections with grades significantly higher than in the rest of the Pinaya Mineral Resource, including 84 metres grading 1.11% Cu and 2.11 g/t Au in PDH-0392 and 103 metres grading 1.21% Cu and 1.28 g/t Au in PDH-0602. Second is the presence of pyrophyllite, dickite, bornite, enargite and hypogene chalcocite and covellite. Taken together, these features suggest that hypogene enrichment has occurred, a hydrothermal process in which copper is upgraded in a deposit through the action of late acidic fluids.
Figure 1: Pinaya shallow chargeable features coincident with anomalous gold in soils and trenches. Also shown are preliminary proposed drill collars relative to historic drilling.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2875/92407_577a591e44ff7b1c_002full.jpg
- Refer to the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") technical report titled: "Pinaya GoldCopper Project Technical Report" with an effective date of April 26, 2016, available under Kaizen's SEDAR profile at www.sedar.com and at www.kaizendiscovery.com.
- Refer to Kaizen's news release dated July 7, 2020.
- Refer to "Qualified Person" section below.
Figure 2. Pinaya project area with planned Typhoon™ survey overlain.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/2875/92407_577a591e44ff7b1c_003full.jpg
About Kaizen
Kaizen is a Canadian mineral exploration and development company with exploration projects in Peru and Canada. More information on Kaizen is available at www.kaizendiscovery.com.
ON BEHALF OF THE COMPANY
Eric Finlayson, Interim President and Chief Executive Officer
Qualified Person
Kaizen's Chief Operating Officer, Mark Gibson, PrSciNat, is a Qualified Person as defined under NI 43-101 who has reviewed, approved and is responsible for the scientific and technical information presented in this news release.
The Mineral Resources disclosed herein for the Pinaya Project are reported in the National Instrument 43-101 Technical Report dated April 26, 2016, "Pinaya Gold-Copper Project Technical Report" prepared jointly by Brian Cole, P.Geo. and Ronald G. Simpson, P.Geo. (Geosim Services Inc.). Both Mr. Cole and Mr. Simpson are the Qualified Persons for the Mineral Resource estimate and are independent of Kaizen.
Information contact
Ran Li +1-604-689-8765
info@kaizendiscovery.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the planned timing and results of the drilling program, the timing and results of the planned TyphoonTM survey, and the rights offering. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect", "potential", "target", "budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof.
Forward-looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: completion of the rights offering will provide sufficient liquidity to support the exploration program; general business and economic conditions; the availability of additional exploration and mineral project financing; the timing and receipt of governmental permits and approvals; the timing and receipt of community and landowner approvals; changes in regulations; political factors; the accuracy of the Company's interpretation of drill results; the geology, grade and continuity of the Company's mineral deposits; the availability of equipment, skilled labour and services needed for the exploration and development of mineral properties; and currency fluctuations. There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include actual exploration results, interpretation of metallurgical characteristics of the mineralization, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, unknown impact related to potential business disruptions stemming from the COVID-19 outbreak, or another infectious illness, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including those described under the heading "Risks and Uncertainties" in the Company's most recently filed MD&A. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.
[1] Copper equivalent ("CuEq") grade estimate based on $2.84/lb copper and $1,236/oz gold.
[2] Measured Resources total 8.2 Mt grading 0.71% CuEq (0.33% copper and 0.60 g/t gold) and containing 26,770 tonnes of copper and 158,000 ounces of gold. Indicated Resources total 33.5 Mt grading 0.62% CuEq (0.32% copper and 0.46 g/t gold) and containing 108,360 tonnes of copper and 497,000 ounces gold.3.. Refer to the National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101") technical report titled: "Pinaya Gold-Copper Project Technical Report" with an effective date of April 26, 2016, available under Kaizen's SEDAR profile at www.sedar.com and at www.kaizendiscovery.com.
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