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Kaizen Discovery Inc
Symbol KZD
Shares Issued 343,554,821
Close 2021-08-06 C$ 0.065
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Kaizen Discovery plans exploration program at Pinaya

2021-08-09 10:54 ET - News Release

Mr. Eric Finlayson reports

KAIZEN DISCOVERY CONFIRMS THE 2021 EXPLORATION PROGRAM AT ITS 100%-OWNED PINAYA COPPER-GOLD PROJECT IN PERU

Kaizen Discovery Inc. has planned its 2021 exploration program at the 100-per-cent-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 $7.5-million rights offering (refer to Kaizen's news release dated Aug. 9, 2021).

Highlights of 2021 exploration program at Pinaya project:

  • Approximately 3,000 metres diamond drill program to test shallow gold targets defined by historic IP anomalies and surface geochemistry;
  • One hundred twenty-nine-square-kilometre three-dimensional induced polarization and resistivity survey using Ivanhoe Electric Inc.'s proprietary Typhoon transmitter system to identify deeper concealed mineralization. This will be the largest Typhoon 3-D 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 10-kilometre-long hydrothermal system, we believe there is great potential for new discoveries on the Pinaya property," said Eric Finlayson, interim president and chief executive officer 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 resampling. 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 (approximately 300 metres each) across six of the seven shallow gold targets. 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.

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 COMPANYEric 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.

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