Hannan Announces Copper-GOLD Porphyry Discovery at Ucayali IN PERU Samples up to 25.6% Copper
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE JANUARY 27, 2021
HANNAN ANNOUNCES COPPER-GOLD PORPHYRY DISCOVERY AT UCAYALI IN PERU
SAMPLES UP TO 25.6% COPPER
Vancouver, Canada – Hannan Metals Limited (“Hannan” or the “Company”) (TSXV: HAN) (OTCPK:
HANNF) is pleased to announce initial field results from its 100% owned, 906 square kilometre, Ucayali project
in Central Peru. Initial exploration has focused on two areas: Previsto and Belen, about 20 kilometres apart, with
both stream sediment and float sampling and subsequent TerraSpec® spectral analysis being undertaken.
Key points:
At Previsto, initial reconnaissance field work has identified a la rge-scale hydrothermal system
within a 6 kilometre x 3 kilometre area, that has the potential to host a porphyry copper-
gold mineral system with an associated skarn (Figure 1).
o Multiple copper and gold mineralized float samp les were identified within a 6 kilometre x 3
kilometre area defined by copper and gold anomalous stream sediment sampling. The best float
sample assayed 25.6% copper and 28 g/t silver , sample 3703 (Figure 2-5) from an
interpreted supergene enrichment zone;
o Exploration focused on a range that extends 10 k ilometres in a north-south direction. The trend
remains open to the north, west and south.
o Copper and gold mineralized porphyritic intrusiv e rocks were identified within float samples in
creeks with propylitic, phyllic, intermediate arg illic and potassium alteration, together with iron
oxides, copper oxides, pyrite, chalcopyrite, chalcocite and neotocite;
At Belen, a second copper and gold anomalous targ et was identified 20 kilome tres south of Previsto.
(Figures 2, 6 and 7). The zone is defined by alte red outcrops and copper and gold anomalous stream
sediment samples.
Michael Hudson, CEO states, “The back-arc basins of Peru have been sporadically explored over the last 30
years. The area represents a true last frontier within the metal-rich Andes mountain chain. In a similar way to
our vast sediment-hosted copper-silver project in San Martin, we have once again opened a new search space
in Ucayali, this time for copper-gold porphyry systems. Big systems have big footprints, and in a rare event,
field teams were able to sample up to 25.6% copper in creeks within the first day or so of visiting the Ucayali
project. Hannan is extremely well poised for a strong 2021 with a top 10 ground position in Peru, two extremely
prospective and large copper projects, and a great joint venture partner JOGMEC earning up to 75% of the at
San Martin project by spending US$35,000,000 to deliver a feasibility study.”
Technical background
Within the Ucayali project, initial work has identified two target areas (Previsto and Belen) prospective for copper-
gold mineralization.
At the Previsto Cu-Au target (Figure 2-5) field observations suggests that the samples represent different
parts of a mineralized copper-gold porphyry intrusion with an exposed zone of supergene enrichment, leach cap
and phyllic, intermediate argillic and potassium alteration. To date, the source area of boulders and stream
sediments anomalies is approximately 6 kilometres by 3 kilometres.
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Eleven float (grab samples from river drainages) samples from Previsto ranged from 2.7 ppm copper to 25.6%
copper, with an average gr ade of 23.7% copper and a median of 166.5 ppm copper, 1 ppb gold to 114 ppb
gold, with an average grade of 20.1 ppb gold and 0.005 ppm silver to 28 ppm silver, with an average grade of
3.1 ppm silver. Float samples are selective by nature and are unlikely to represent average grades on the
property.
Within the grab samples, the best copper results assayed 25.6% copper and 28 g/t silver (sample 3703) from
semi-massive chalcocite float which is interpreted to be sourced from a zone of supergene enrichment. Minerals
identified within grab samples by TerraSpec ® spectral analysis clearly demonstrate hydrothermal alteration
typical of a porphyry copper system, including: phyllic alteration with muscovite-paragonite-quartz, relict argillic
alteration with a chlorite-muscovite assemblage. Macroscopically, relicts of secondary biotite were also observed.
At this early stage, the paragenetic sequence of alteration appears to be potassic alteration (secondary biotite>
potassium feldspar-magnetite), destroyed by the intermediate argillic alteration and later by phyllic alteration.
Mineralization consists of iron oxides , copper oxides, pyrite, chalcopyrite, chalcocite and neotocite. Gold and
copper rich samples are asso ciated with samples rich in potassium, interpreted to be related to white potassic
feldspar and biotite. Potassium varies between 3-10% in copper-gold mineralized samples. Sodium varies
between 0.2-4.2% and calcium between 0.06-5.2%.
Fourteen stream sediment samples fr om Previsto ranged from 9.0 ppm copper to 136 ppm copper, with an
average grade of 29.1 ppm copper and 0 ppb gold to 404 ppb gold, with an average grade of 38.2 ppb gold.
Stream sediment sampling is an early-stage exploration to ol to cover large areas relatively quickly to identify
smaller areas of interest to be followed up. The technique relies on sampling fine material in stream and creek
beds that has been eroded from rocks in surroundin g catchments, which represents a mixture of all the
weathered material occurring upstream from the stream sediment sampling point. Copper and gold anomalism
within stream sediment samples observed at Previsto is considered high.
At the Belen Cu-Au target, very early-stage field work has identified a second target 20 kilometres south of
Previsto (Figures 2, 6 and 7). Reconnaissance field work by Hannan at Belen has identified an outcrop of dioritic
intrusive, with argillic alteration overprinting an earlier propylitic alteration (chlorite>epidote), with 10 centimetre
wide hydrothermal magnetite veins. Two grab samples from the ou tcrop were taken and anomalous copper
was observed in one sample (209 ppm copper, sample 3713).
Four stream sediment sample s were taken from Belen and further work is required to cover to sample all the
streams of the area. The most significant results are from the two southernmost catchments (Figures 6 and 7).
These two catchments contain 10-17 ppm Cu and 1.5-11.4 ppb Au. The four samples from the Belen area ranged
from 10.45 ppm copper to 17.3 ppm copper, with an average grade of 12.8 ppm copper and 0 ppb gold to 11.4
ppb gold, with an average grade of 3.4 ppb gold.
Further reconnaissance exploration at both Previsto and Belen will be undertaken over the coming months, with
work focused on infilling stream sediment catchments at smaller scales, geological mapping and prospecting.
About the Ucayali Project
The Ucayali Project comprises of 906 square kilometres of mining concession applications, and demonstrates
the Hannan’s strategy to open new search spaces an d apply disruptive exploration models to previously
unexplored terrain (Figure 1). During the last year Hannan has completed interpretations over the area with
modern medium resolution satellite derived topographic (ALOS PALSAR, ~15m), high resolution optical imagery
from Sentinel-2 satellites (~10m) and satellite imagery from the Landsat program (~30m). A Landsat image of
the project is shown in Figure 2 including the two new target areas discussed in this news release.
Hannan has also reprocessed airborne magnetic and gravimetric data obtained from PeruPetro and utilized in-
house geological datasets. This work has led the company to develop a robust regional exploration model for
the area. The combined geological observations, such as host regional setting, rock composition, metal content
and alteration suggest that the copper gold mineralized boulders discovered at Previsto relates to a back-arc
alkalic porphyry copper-gold system.
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To the best of Hannan’s knowledge, the exploration history of the area is limited. Between 1999 and 2013
regional airborne surveys, both magnetic and gravimetric have been flown by the petroleum industry due to the
proximity to productive hydrocarbon basins. Limited government funded geological mapping was carried out in
the late 1990s. In combin ation with remote-sensed data, available at the time of mapping, the government
funded geological data has formed the basis for the public geological maps for the area
The Ucayali Project is in the sub-Andean zone, at an altitude between 700-2,000m above sea level. To the west
the project borders the Andean Cordillera and to the east the Pachitea Basin. The infrastructure within the
project is well developed, with National Road “5” traver sing the central parts of the project, connecting the
towns of Pucallpa and Tingo Maria.
Geologically the project is dominated by uplifted and de formed Cretaceous to Early Paleogene sediments. The
sediments are dominated by arenites, shales, some micritic limestones an d dolomites which are generally flat
lying to openly folded that steepen to sub-vertical dips proximal to faults. The western part of the area is
intruded by small monzonitic stocks composed of potassic feldspar and hornblende, sodium pyroxene, biotite
and chlorite. The intrusions were dated 1979 by “Misio n Japonesa” using K-Ar. The results suggest intrusive
ages of 27 m.a according to INGEMMET Boletin No 80.
With reconnaissance field crews active on the Ucayali Project, further information on this and other new areas
will be made as it becomes available. The time to grant mining concession applications in Peru takes up to one
year. One hundred percent ownership of the Ucayali Projec t is held through Hannan subsidiaries or in trust via
other private companies.
Technical Background
All samples were collected by Hannan geologists during two weeks of recognizance work in the region. Rock and sediment
samples were transported to ALS in Lima via third party services using traceable parcels. At the laboratory rock samples
were prepared and analyzed by standard methods. The sample preparation involved crushing 70% to less than 2mm, riffle
split off 250g, pulverize split to better than 85% passing 75 microns. The crushers and pulverizes were cleaned with barren
material after every sample. Samples were analyzed by method ME-MS61, a four acid digest preformed on 0.25g of the
sample to quantitatively dissolve most geological material s. Analysis is via ICP-MS. Gold was analyzed using method Au-
ICP22 on a 50g sample charge. The method uses fire assay and ICP-AES.
All crushed rejects if the rock samples were scanned usin g TerraSpec® 4HR scanning and aiSIRSITM expert spectral
interpretation.
Sediment samples collected at multiple points of active sedimentation in creeks. They were pre-screened in the field using
a steel sieve and subsequently bagged. At the lab, the samples were first dried at <60o C, sieved to -180 microns. Samples
were analyzed by method AuMe-ST43, a super trace gold an d multielement method. An aqua regia digest was performed
on 25g of the sample with ICP-MS analysis.
About Hannan Metals Limited (TSXV:HAN) (OTCPK: HANNF)
Hannan Metals Limited is a natural resources and exploratio n company developing sustainable resources of metal needed
to meet the transition to a low carbon economy. Over the last decade, the team behind Hannan has forged a long and
successful record of discovering, financing, and advancing mineral projects in Europe and Peru.
Mr. Michael Hudson FAusIMM, Hannan’s Chairman and CEO, a Qualified Person as defined in National Instrument 43-101,
has reviewed and approved the technical disclosure contained in this news release.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, Chairman & CEO
Further Information
www.hannanmetals.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez, Corporate Secretary,
+1 (604) 685 9316, [email protected]
Forward Looking Statements
Certain disclosure contained in this news release, including the Company’s expectations regarding the Agreement and the payments and earn-in upon the
successful completion of certain milestones, may constitute forward-looking information or forward-looking statements, within t he meaning of Canadian
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made by and information currently available to the Company. These statements address fu ture events and condit ions and, as such, involve known and
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