Hannan Metals' First Mining Concession Granted at San Martin, Peru
Hannan Metals' First Mining Concession
Granted at San Martin, Peru
VANCOUVER
,
Oct. 30, 2019
/CNW/
-
Hannan Metals Limited
("Hannan" or the "Company")
(TSXV: HAN) (OTCPK: HANNF)
announces it has received notice from the Geological, Mining and
Metallurgical Institute of
Peru
("Ingemmet") that the first mining concession at the San Martin
Copper-Silver Project in
Peru
has been granted.
Figure 1. Overview of the San Martin sediment-hosted Cu-Ag project, Peru. Hannan’s mineral claim
applications now cover 76 kilometres strike (38,400 hectares) of the prospective host horizon within
a 110 kilometre long trend. (CNW Group/Hannan Metals Ltd.)
Highlights:
First mining concession granted at the San Martin Project in
Peru
, titled Tabalosos 1002
(Ingemmet Code 01-03685-18) dated
October 15, 2019
;
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;
Further mining concessions are expected to be granted in the short term.
Michael Hudson
, Hannan's CEO, states,
"The sediment-hosted copper-silver San Martin project
presents a new basin-scale copper-silver district in
Peru
. Granting of the first mining concession is
a key advancement and provides secure tenure which will allow for more advanced social and
work programs to be executed, including drill permitting. We look forward to further developing
trusted relationships with local communities during our upcoming exploration programs over this
large project. The next technical steps include further geological and prospecting with an aim to
achieving drill permitting in early 2020."
The San Martin Project is located about 30 kilometres northwest of Tarapoto, in the Cordillera Ayu
Mayo. Hannan's mineral concession applications cover 76 kilometres of combined strike of a
prospective sedimentary host horizon within a 110 kilometre long basin (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. To date the company has
submitted 50 mineral concession applications for a total of 38,600 hectares in three different project
areas named Tabalosos, Gera and Sacanche over a 76 kilometre trend. The first granted claim,
Tabalosos 1002, covers 1,000 hectares.
Hannan considers the sediment-hosted copper-silver San Martin project to be a new basin-scale
copper (chalcocite) district. Initial prospecting over the last year identified high grade mineralization
in outcrop and float with associated alteration across a 100km x 50km area. Best results from
outcrop within a 20km trend include 3m @ 2.5% Cu and 22g/t Ag (LD190517-19) and 2m @ 5.9%
Cu and 66g/t Ag (TC190536-38). Similar style of outcrop/boulders have been discovered over
100km of strike with mineralization observed at multiple stratigraphic levels spatially linked to salt
structures.
Since the 1970's the area has principally been explored for petroleum, delivering large seismic
datasets similar to those being used by Hannan for targeting of zinc in Ireland. Seismically-defined
basin structures and stratigraphy are now being interpreted in the context of sediment-hosted
copper mineralization.
Hannan's geological interpretation for the formation of the sediment-hosted copper and silver at San
Martin is mineralization was deposited from low temperature oxidised saline brines formed from the
several hundred metre thick Pareni Salt Formation. The brines scavenged metals (principally copper
± silver and associated lead and zinc) from the deeper Mitu Group red beds and volcaniclastics
within in a failed Traissic rift. Circulation of saline fluids across the redox boundary was induced and
focused by halokinesis (salt tectonics). Geological relationships suggest halokinesis was initiated
during Jurassic rifting and was active until the early to mid-Cretaceous which coincides with the
formation of an Andean foreland basin.
Under the Peruvian General Mining Law, the State retains the ownership of all mineral resources.
However, the ownership of minerals is vested in the holder of a mining concession. Mining
concession rights are independent from the surface and real estate rights. A mining concession
provides the holder with exclusive right to undertake mining activities subject to additional permitting
within a determined area. All holders of a mining concession are required to move into production
and comply with the applicable minimum annual production thresholds within 10 years from granting.
Other permits required to start mining activities in Peru include surface and access rights,
environmental certification and permitting, construction, explosive, water resource permits and
disposal of waste materials, amongst others.
Management of Hannan have significant prior experience in
Peru, which is the world's second largest copper producer. 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.
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 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.
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 06:30e 30-OCT-19