Kaizen Discovery Identifies Large New Drill Targets from the Induced Polarization and Resistivity Survey Completed at its 100%-Owned Pinaya Copper-Gold Project in Peru

Drill Permit Applications for the New Targets are Underway

Vancouver, British Columbia--(Newsfile Corp. - October 3, 2022) - Eric Finlayson, Interim President and Chief Executive Officer of Kaizen Discovery Inc. (TSXV: KZD) (otherwise "Kaizen" or the "Company"), is pleased to report positive results from the recently completed 92 km2 Induced Polarization and Resistivity ("IP-resistivity") survey at the 100%-owned Pinaya Copper-Gold Project, located in the Andahuaylas-Yauri Porphyry-Skarn Belt in southeastern Peru. This belt contains some of the world's largest recent copper mine developments.

Highlights:

  • Seven chargeability anomalies potentially indicative of sulphide mineralization identified for drill testing.

  • Four anomalies lying to the west of the fault bounding the current Pinaya Mineral Resource1 may be porphyry sources of the Pinaya mineralization.

  • Three anomalies lying several kilometres to the east may represent a separate copper-gold system.

  • Application for diamond drill permits (Declaración de Impacto Ambiental or "DIA") is underway.

"We are encouraged by the positive results received from this IP-resistivity survey, which confirmed the potential to identify significant new zones of porphyry copper-gold mineralization at Pinaya," said Eric Finlayson, Interim President and Chief Executive Officer of Kaizen.

92 km2 IP-resistivity survey identifies multiple drill targets.

The Pinaya Mineral Resource1 is associated with an intrusive complex of Oligocene-age granodiorite porphyry sills and dikes emplaced into Eocene sedimentary rocks of the Puno Group. A 10 km-long zone of hydrothermal alteration affects the Puno Group rocks.

The IP-resistivity survey tested the entire 10 km-long hydrothermal system, exploring for deep porphyry potential beneath the Puno Group rocks and also beneath Miocene post-mineral cover rocks faulted against the Puno Group to the west (refer to Kaizen's news release dated March 10, 2022).

The survey identified four large chargeability anomalies lying within a northwest-southeast corridor beneath Miocene post-mineral cover (Targets 1 to 4 in Figure 1). These targets, which likely reflect sulphide-bearing rock, are located to the west of the known fault that truncates the Pinaya Mineral Resource[1] on its western side and could represent Oligocene porphyry intrusions that sourced the Pinaya mineralization.

Three chargeability anomalies lying several kilometres east of the Pinaya Mineral Resource1 (Targets 5 to 7 in Figure 1) may be part of a separate mineral system. All seven chargeability targets will be drilled once permits are received.



Figure 1: Horizontal slice of chargeability 900 m below surface

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Kaizen's survey team deployed 67 km of transmitter cable over a 15 km by 7 km survey area to complete a 463 line-km survey at elevations above 4,200 m at the Pinaya Project.

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A team of 25 local staff from the Pinaya community, two geophysicists and five geophysical technicians carried out the 92 km2 IP-resistivity survey.

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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, P.Geo. 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. Mr. Gibson is the Chief Operating Officer of Ivanhoe Electric Inc. ("IE"). IE is the sole shareholder of Kaizen's majority shareholder, Ivanhoe Electric (BVI) Inc. Mr. Gibson verified the data disclosed which includes a review of the sampling, analytical and test data underlying the information and opinions contained therein.

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 results and interpretations related to the IP-resistivity survey; plans for a drill program on the Pinaya Project; and drill permitting. 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: general business and economic conditions; the availability of additional exploration and mineral project financing; the accuracy of the Company's interpretation of the IP-resistivity survey results; 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] See technical report titled "Pinaya Gold-Copper Project Technical Report" with an effective date of April 26, 2016 available at https://kaizendiscovery.com/s/pinaya_project.asp.html and under the Company's SEDAR profile at www.sedar.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/139172