News Releases

Kaizen Discovery to commence exploration drilling at its Pinaya Copper-Gold Project in Peru

January 13, 2020

Drill program to target three new porphyry/skarn prospects

VANCOUVER, CANADA — Kaizen Discovery Inc. (TSXV: KZD; otherwise “Kaizen ” or “the Company “) is pleased to announce the commencement of a 1,500-metre exploration drilling program at its 100%-owned Pinaya Copper-Gold Project, located in the prolific Andahuaylas-Yauri Porphyry-Skarn Belt in southeastern Peru.

Highlights:

  • The Pinaya Project is accessible from the city of Arequipa via the paved all-weather Highway 30B, and then via the Tintaya Mine gravel access road;
  • Drilling will test new priority targets at Pedro Dos Mil; and at Cerro Antaña and Viscachani, located adjacent to the existing Pinaya Mineral Resource;
  • The Pinaya Mineral Resource1 comprises Measured and Indicated Resources totalling 41.7 million tonnes grading 0.63% CuEq2 (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. Resources consist of skarn and porphyry-style mineralization.

“Following the successful completion of all permitting requirements, and new land access and community agreements, we are at last beginning our long-awaited diamond drilling program at Pinaya. We believe there is significant potential to identify new zones of mineralization to complement the existing Pinaya Mineral Resource, ” commented Eric Finlayson, Kaizen’s interim Chief Executive Officer.

Pinaya is located in a prolific copper-gold belt and is 100% owned by Kaizen

The Pinaya Project covers 192 km2, including more than 25 km of underexplored strike length, within the Andahuaylas-Yauri Porphyry-Skarn Belt in southeastern Peru (Figure 1). This Eocene-Oligocene aged belt hosts numerous productive copper-gold porphyry and skarn systems, including Las Bambas, Tintaya, Constancia, Haquira, and Antapaccay.

The approximately 46,500 metres drilled to date at Pinaya have largely been limited to delineating Mineral Resources over just 1.7 km of strike in the central part of the property, and the last major drilling program was completed in 2008. Since purchasing the property in 2015, Kaizen has conducted new surface mapping, reviewed existing geochemical and geophysical surveys and identified multiple untested targets outside the currently defined Mineral Resources, while securing the community and government permits required for the next round of drilling.

Figure 1. The Pinaya concessions include over 25 km of underexplored strike length in the heart of the world-class Andahuaylas-Yauri Porphyry-Skarn Belt

Diamond Drilling to Test Three Priority Targets

The first 500 metres of the 2020 diamond drill program will target the previously-untested Pedro Dos Mil prospect, located just over 2 km due east of the current Mineral Resource (Figure 2).

Pedro Dos Mil is defined by an outcropping suite of granodiorite to quartz-diorite porphyries and associated breccias with potassic alteration; mineralized “A ” - type porphyry veins with copper oxides after chalcopyrite; prominent soil copper and gold anomalies; as well as a ground-magnetic high and a chargeability anomaly.

The next 1,000 metres of diamond drilling will focus on the Cerro Antaña and Viscachani targets, identified following detailed surface mapping and re-logging of core drilled by previous operators.

The Cerro Antaña target is a conceptual unroofed porphyry below an outcropping advanced argillic lithocap. The partially-covered Viscachani target is defined by chargeability and magnetic anomalies potentially associated with a potassic-altered intrusive centre.

Based on the results received, Kaizen may look to expand the drilling program.

Figure 2. The 2020 Pinaya drill program will target three priority areas identified by Kaizen’s technical team, including Pedro Dos Mil, Cerro Antaña and Viscachani

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

Qualified Person, Quality Control and Assurance

Kaizen’s Chief Operating Officer, Mark Gibson, PrNatSci, 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.

For detailed information about assay methods and data verification measures used to support the scientific and technical information, and the Pinaya Mineral Resource estimate, please refer to the NI 43-101 technical report for the Pinaya Project titled “Pinaya Gold-Copper Project Technical Report” that was prepared jointly by Brian Cole, P.Geo and Ronald G. Simpson, GeoSim Services Inc., with an effective date of April 26, 2016. The technical report is available on Kaizen’s SEDAR profile at www.sedar.com and at www.kaizendiscovery.com.

Information Contact

Evan Young +1-416-545-5371

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

All statements in this release, other than statements of historical fact, constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including, without limitation, statements with respect to the 2020 diamond drilling program; estimation of Mineral Resources; magnitude and quality of mineral deposits; anticipated advancement of mineral properties or programs; future operations; and future exploration prospects. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, and other similar terminology, or state that certain actions, events, or results “may”, “could”, “would”, “might”, or “will” be taken, occur, or be achieved. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Kaizen, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information, including, among others, the ability of the company to obtain required approvals; the speculative nature of the company’s business; the company’s formative stage of development; the company’s financial position; possible variations in mineralization; conclusions of future economic evaluations; business integration risks; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; fluctuations in the securities market; fluctuations in currency markets; change in national and local government, legislation, taxation, controls, regulation and political or economic development; inability to obtain adequate insurance to cover risks and hazards; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the company; the timing of future economic studies; labour and employee disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or the completion of exploration; relationships with and claims by local communities and Indigenous groups; and title to properties as well as those factors discussed in management’s discussion and analysis for the year ended December 31, 2018 dated as at March 12, 2019 in the section entitled “Risk Factors “, under the company’s SEDAR profile at www.sedar.com.

Forward-looking information is not a guarantee of future performance and the forward-looking statements herein are based upon a number of estimates and assumptions of management as of the date of this news release, including, among others, future prices of gold and copper and other metal process; currency exchange rates and interest rates; favourable operating conditions; political stability; obtaining governmental approvals and financing on time; obtaining renewals of existing licences and permits and obtaining required licences and permits; labour stability; stability in market conditions; availability of equipment; accuracy of mineral resources; successful resolution of disputes and anticipated costs and expenditures. Management believes these estimates and assumptions are reasonable. In addition, many assumptions are based on factors and events that are not within the control of the company and there is no assurance they will prove to be correct.

There can be no assurances that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the company, the company undertakes no obligation to update these forward-looking statements if the company’s expectations regarding future events, performance, or results change. Accordingly, readers should not place undue reliance on forward-looking information.

1 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 http://www.kaizendiscovery.com.

2 Copper equivalent ( “CuEq “) grade estimate based on $2.84/lb copper and $1,236/oz gold.


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