Hannan Increases Granted Mining Concessions by 50% in Peru
Hannan Increases Granted Mining
Concessions by 50% in Peru
VANCOUVER
,
May 28, 2020
/CNW/ -
Hannan Metals Limited
("Hannan" or the "Company")
(TSXV: HAN) (OTCPK: HANNF)
provides an update on its exploration and social programs and on
the status of further granted mining concessions.
Figure 1. Overview of the San Martin sediment-hosted Cu-Ag project, Peru. The four project areas
now cover 66,000 hectares of the prospective host horizon within a 110 kilometre long trend. (CNW
Group/Hannan Metals Ltd.)
Highlights:
A total of 42 granted mining concessions for 320 sq km at San Martin have now been granted
at the San Martin project in
Peru
. This is an increase of 50% from previously reported on
February 10, 2020
. The project consists of a total of 87 mining concessions and applications for
65,600 hectares (656 sq km) that cover multiple trends within 110 kilometres of combined strike
for sedimentary-hosted copper-silver mineralization (Figure 1). Granted concessions provide
secure tenure and allows for more advanced social and exploration work programs to be
executed;
From
December 2019
through to
mid-March 2020
, Hannan completed an active field work
program at its San Martin project in north eastern
Peru
. Numerous new copper and silver
discoveries were made over a 20-kilometre trend within the 60 kilometre long Sacanche claim
area (Figure 1). Geochemical assays are pending for many of these areas and are expected to
be returned in the coming weeks;
Peru
initiated a state of emergency and lock down on
March 16, 2020
, and recently extended
this until the end of June to contain the COVID-19 outbreak. Hannan has implemented safety
and physical distancing procedures, including working from home and ceased all travel. We
have also been keeping in regular contact with all local stakeholders. The Peruvian government
has indicated that certain industries, including mineral exploration, will be permitted to restart,
with strict safety protocols, during
June 2020
.
Michael Hudson
, Hannan's CEO, states,
"Hannan now has large tracts of ground granted, and we
have completed an active and successful start to our 2020 field program. We are excited to
discover further copper and silver mineralized zones in outcrop kilometres along strike from known
mineralization, and eagerly await assay results. We have been working hard to continue to inform
and engage with all stakeholders, especially during these challenging times and look forward to
our field teams returning to our project area when it is safe and permitted to do so."
Hannan's 100% owned San Martin project encompass a new, basin-scale high-grade copper-silver
system situated along the foreland region of the eastern Andes Mountains in
Peru
. Geologically,
Hannan's sedimentary copper-silver deposits analogues include the vast Kupferschiefer deposit in
Eastern Europe
. Sedimentary-hosted stratiform copper-silver deposits are among the two most
important copper sources in the world, the other being copper porphyries. They are also a major
producer of silver. According to the
World Silver Survey 2020
KGHM Polska Miedz's copper-silver
sediment-hosted operations in
Poland
are the leading silver producer in the world with 40.2Moz
produced in 2019. This is almost twice the production of the second largest producing mine. The
Polish mines are also the sixth largest global copper miner.
Field work during Q1 concentrated on a 20 kilometre trend in the Sacanche claim area (Figure 1).
Numerous new copper and silver discoveries have been made over a 20 kilometre trend within the
60-kilometre-long Sacanche claim area. Outcropping copper-silver mineralization at Nueva
Esperanza was identified 5 kilometres south of earlier defined outcrops including
2m
@ 5.9% Cu and 66g/t Ag (TC190536-38)
. Additional multiple outcrops of copper-silver
mineralization have also been discovered within a 500 metre trend, located 2 kilometres south of
earlier defined outcrops that included
3m
@ 2.5% Cu and 22g/t Ag (LD190517-19)
. Geochemical
assays are pending, and are expected to be returned in the coming weeks.
The Company has received notice from the Geological, Mining and Metallurgical Institute of
Peru
("Ingemmet") that 42 mining concessions have been granted at the 100% owned San Martin
Copper-Silver Project in
Peru
(Tabalosos (18), Sacanche (3) and Gera (4)). Hannan now has a total
of 87 mineral concessions which have been either granted or are under application for a total of
65,600 hectares, covering multiple trends within 120 kilometres of combined strike for sedimentary-
hosted copper-silver mineralization. The 35 granted mining concessions now cover 28,300 hectares,
with an additional 52 mining concessions (37,300 hectares) remaining under application. Further
mining concessions at Sacanche, Gera and Tabalosos are expected to be granted over the coming
months in the order in which they were applied. Under Peruvian mining law, a mining concession
provides the holder with exclusive rights to undertake exploration (and mining activities subject to
additional permitting) within a pre-determined area. The concession provides secure tenure and
allows for more advanced social and exploration work programs to be executed including drill
permitting.
Engagement of Swiss Resource Capital
The Company announces that it will engage SRC Swiss Resource Capital AG ("SRC") to provide
investor relations and communication services in
Europe
to increase exposure and awareness to
investors in the German speaking financial community. SRC is led by
Jochen Staiger
, CEO. The
Engagement is for an initial term of twelve months but can be cancelled by both parties with 30 days'
notice. SRC will assist the Company's efforts to grow investor awareness and expanding exposure
to retail and institutional investors, including by providing news dissemination and marketing services
in German. The engagement, including the payment of €13,500 per month and the issuance of
100,000 options to SRC at a price of 0.28 for a period of three years, is subject to TSX Venture
Exchange (TSX-V) approval. SRC does not currently have any interest, direct or indirect in the
Company or its securities.
About Hannan Metals Limited (TSX.V: HAN)
(OTCPK: HANNF)
Hannan Metals Limited
is a natural resources and exploration company developing sustainable and
ethical 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
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
, the
potential impact of epidemics, pandemics or other public health crises, including the current outbreak
of the novel coronavirus known as COVID-19 on the Company's business, 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
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 16:05e 28-MAY-20