Hannan Claims Unexplored Sediment-Hosted Copper-Silver District in Peru
Hannan Claims Unexplored Sediment-Hosted
Copper-Silver District in Peru
VANCOUVER
,
Jan. 17, 2019
/CNW/ -
Hannan Metals Limited
("Hannan" or the "Company")
(TSXV: HAN) (OTCPK: HANNF) is pleased to announce it has submitted mineral claim applications
covering 14,800 hectares in north-central
Peru
to secure an unexplored and widespread district
covering 15 kilometres strike of copper-silver occurrences. The new San Martin project area
application is 100% owned by Hannan, and is located about 30 kilometres northwest of Tarapoto, in
the Cordillera Ayu Mayo (Figure 1). Project access is excellent via a proximal paved highway, while
the altitude varies between 800 metres to 1,600 metres in a region of high rainfall and predominantly
forest cover.
Figure 1 - The San Martin sediment-hosted copper-silver project located in the San Martin region,
northeast Peru. (CNW Group/Hannan Metals Ltd.)
Key Points:
Previously unexplored sediment-hosted high-grade copper-silver district identified in north-
central
Peru
;
Initial sampling has outlined 4 areas of high-grade copper and silver over 15 kilometres of strike
within at least 2 structural corridors. Nineteen mineralized boulders (>0.1% copper) range in
grade from
0.1% to 8.3% copper and 0.2 g/t silver to 109 g/t silver with an average grade
of 2.8% copper and 27.2 g/t silver
(See Table 1 and Figure 1-3);
Hannan's mineral claim applications cover 23 kilometres of potential host-rock strike by up to
6.5 kilometres width. The area contains multiple structures within low angle strata that presents
an exploration target of considerable scale, with early indications that the mineralization maybe
developed over the entire 23 kilometres of strike;
Copper-silver mineralization consists of disseminated chalcocite, covellite, bornite and digenite
developed at the contact of oxidized and reduced strata. The host rocks are Jurassic to Lower
Cretaceous, deposited within an intra-continental basin. Hannan is attracted by the geological
setting of this mineralization, as the presence of a closed basin, extensive evaporites/diapirs
and inversion structures corresponding with a classic sediment-hosted stratabound copper-silver
deposit model (see Figure 4).
Peru
is the world's second largest copper producer
. Sediment-hosted deposits are the
second most
important source of copper globally, accounting for approximately 20% world
production.
Michael Hudson
, Chairman and CEO states,
"The San Martin copper-silver project is an early stage
project, but already demonstrates many of the features needed to consider it a tremendous
discovery opportunity for Hannan. The eastern margin of the Peruvian Cordillera has seen very
little previous exploration, and to collect undocumented high-grade copper-silver samples over a
15 kilometres strike is a rare and exciting experience. The project has the hallmarks of forming a
significant new sediment-hosted copper-silver district, with high-grades of up to 8.3% copper and
109 g/t silver from an intra-continental salt bearing sandstone sequence. We look forward to
commencing the first systematic exploration ever completed in the area over the coming months".
As was announced on
24 December, 2018
, Hannan conducted initial field work at the San Martin
project during late 2018 when riverbeds and creeks were prospected. Only a small proportion of the
claims were accessible owing to seasonal rains, however four separate areas of high-grade
mineralized copper-silver boulders were discovered over a 15 kilometre strike, across multiple
structures. Grab samples taken from boulders within creeks which drain outcrop returned values
ranging from 0.1 to 8.3% copper and 0.2 to 109 g/t silver with an average grade of 2.8% copper
and 27.2 g/t Ag (Table 1 and Figure 1-3) over 15 kilometres of strike across two structural
corridors, highlighting the potential for discovery of a strike extensive near-surface, sediment-hosted
copper deposit. Grab samples are selected samples and not necessarily representative of the
mineralization hosted on the property.
Mineral claim applications have been filed for a 14,800-hectare area. At this time the claim
applications are in process and have not been granted. Hannan had a community liaison team on the
ground before sampling took place and looks forward to working closely with all the communities in
the area. Field work will recommence during Q1 2019, with the aim to extend the mineralized trend.
Mineralized widths remain unknown and will be the focus of upcoming work programs.
Copper and silver mineralization is hosted by the 150 Ma Saraquillo Formation, which was deposited
in an intra-continental basin during the Jurassic-Early Cretaceous period. The Saraquillo Formation is
1.2-1.8 kilometres thick and extends for over 1000 kilometres of strike. The Saraquillo is associated
with salt domes which suggest widespread evaporitic strata, with several small artisanal salt mines
present in the area. The Cordillera Ayu Mayo is comprised of two parallel anticlines striking north-
northeast and flanked by east and west dipping thrusts. Dips vary from 0 to 35 degrees and steepen
immediately adjacent to thrust faults. Mineralization is associated with the contact of fine-grained
reduced carbonaceous sandstones with highly oxidized red beds of the Saraquillo Formation.
Mineralization consists of disseminated chalcocite, covellite, bornite and digenite with minor fine
pyrite. Chalcocite is the dominant copper sulphide and it is always found together with carbonaceous
material. Chalcocite occurs as fine disseminations, fracture filling and centimetre-sized massive
aggregates. Secondary copper minerals are common on exposed surfaces. Albitization and
silicification is associated with the mineralization, where the former dominates in more strongly
mineralized samples. The geological setting of a closed basin, extensive development of evaporites,
and major structures fits well with a sediment-hosted copper-silver deposit model (Figure 4). The
company has collected a wide suite of samples for petrographic studies and the results are awaited.
Management of Hannan have had significant prior experience in
Peru
, which is the world's second largest copper producer
, with steady growth predicted over the
coming years. The country's copper output is forecast to increase from 2.5 million tonnes ("Mt") in
2018 to 3.8Mt by 2027, averaging 4.7% annual growth. Sediment-hosted deposits are the world's
second most
important source of copper accounting for approximately 20% of world production.
Sampling and analytical procedures
All samples were collected and bagged by Hannan staff. The samples were transported by bus to
ALS facility in
Lima
where the samples were prepared by crushing the sample to 70% < 2mm,
followed by riffle split and then pulverizing the split to 85% <75um. The samples were analyzed using
the ME-MS61 technique which involves four acid digestion followed by ICP-MS. Over range samples
for Ag and Cu were analyzed with method OG62. Hannan did not insert any certified standard into
the batch, instead relied upon certified standards inserted by ALS.
About Hannan Metals Limited (TSX.V:HAN)
(OTCPK: HANNF)
Hannan Metals Limited
is a base metal project generation company. It has 100% ownership of the
County Clare Zn-Pb-Ag project in
Ireland
, which consists of 9 prospecting licenses for 35,444
hectares and has recently filed mineral claim applications for 14,800 hectares within the San Martin
Province in
Peru
searching for copper and silver.
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
Forward Looking Statements
Certain information set forth in this news release contains "forward-looking statements", and
"forward- looking information" under applicable securities laws. Except for statements of historical
fact, certain information contained herein constitutes forward-looking statements, which include the
Company's expectations regarding future performance based on current results, expected cash
costs based on the Company's current internal expectations, estimates, projections, assumptions
and beliefs, which may prove to be incorrect. These statements are not guarantees of future
performance and undue reliance should not be placed on them. Such forward-looking statements
necessarily involve known and unknown risks and uncertainties, which may cause the Company's
actual performance and financial results in future periods to differ materially from any projects of
future performance or results expressed or implied by such forward-looking statement. These risks
and uncertainties include, but are not limited to: The Company's expectations regarding timing to
complete field work and outcome of results, the granting of the claim applications in
Peru
, community
relations, liabilities inherent in mine development and production, geological risks, the financial
markets generally, and the ability of the Company to raise additional capital to fund future
operations. 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.
The Company undertakes no obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required by applicable securities
laws. The reader is cautioned not to place undue reliance on forward-looking statements.
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 news release.
Table 1 – List of samples collected by Hannan during the field work 2018 (PSAD56/UTM zone
18S).
SampleID
East_18S
North_18S
SampleType
Weight_kg
Cu %
Ag ppm
LD1904
314356
9292335
boulder
0.88
8.26
109
LD2605
315445
9281393
boulder
0.58
6.91
7.27
LD1606
313845
9295286
boulder
1.04
6.31
93
LD1705
313885
9294173
boulder
1.02
6.09
97.6
LD1702
313830
9294354
boulder
0.79
4.82
46.2
LD1605
313828
9295316
boulder
0.67
3.66
18.5
LD1602
313795
9295402
boulder
0.38
3.22
16.35
LD1708
313829
9294265
boulder
0.38
3.22
1.39
LD2604
315097
9281077
boulder
1.1
2.83
27.4
LD1601
313918
9295489
boulder
0.72
2.15
26.2
LD1709
313709
9294383
boulder
0.57
1.18
14.5
LD1905
314491
9292341
boulder
0.83
1.06
24.6
LD1901
314249
9292330
boulder
0.57
0.913
5.37
LD1906
314412
9292339
boulder
0.68
0.743
13.95
LD1903
314296
9292337
boulder
0.77
0.589
4.39
LD1604
313786
9295378
boulder
0.45
0.38
4.68
LD1706
313885
9294173
boulder
0.91
0.301
3.03
LD2602
314825
9281012
boulder
0.44
0.176
2.23
LD1703
313831
9294317
boulder
0.4
0.101
0.23
LD1704
313866
9294211
boulder
0.95
0.0675
0.18
LD1902
314255
9292330
boulder
0.53
0.0659
0.43
LD1801
311750
9300921
boulder
0.71
0.0624
0.7
LD2601
314826
9281010
boulder
0.68
0.0337
0.41
LD1701
313795
9294584
boulder
0.88
0.0259
0.12
LD1603
313779
9295360
outcrop
0.68
0.01145
0.05
LD1707
313885
9294173
boulder
0.42
0.01125
0.03
LD2401
312519
9283545
boulder
0.59
0.00205
0.06
LD2603
315068
9281073
boulder
0.41
0.0016
0.02
LD1502
314172
9296545
boulder
1.24
0.00097
0.22
LD1503
314213
9296519
boulder
1.17
0.00063
0.23
LD1506
315212
9296325
outcrop
2.07
0.00051
0.06
LD1504
314242
9296507
boulder
1.41
0.00047
0.18
LD1501
314620
9296314
boulder
1.23
0.00043
0.14
LD1505
314382
9296364
boulder
1.01
0.00031
0.08
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Figure 2 - Hannan's mining claim application in black. Geological overview and sampled areas during
reconnaissance fieldwork. (CNW Group/Hannan Metals Ltd.)
Figure 3 - San Martin cross section showing conceptual continuation of mineralization and
representative photos of mineralization. (CNW Group/Hannan Metals Ltd.)
Figure 4 - Deposit model for the San Martin project. Figure modified after Hitzman, 2010. (CNW
Group/Hannan Metals Ltd.)
SOURCE
Hannan Metals Ltd.
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For further information:
www.hannanmetals.com, 1305 - 1090 West Georgia St., Vancouver, BC,
V6E 3V7, Mariana Bermudez, Corporate Secretary, +1 (604) 685 9316, [email protected]
CO: Hannan Metals Ltd.
CNW 08:00e 17-JAN-19