Hannan Outlines a Zinc-Lead Discovery at the San Martin Project in Peru that Overlies Copper-Silver Mineralization
Hannan Outlines a Zinc-Lead Discovery at the
San Martin Project in Peru that Overlies
Copper-Silver Mineralization
VANCOUVER, BC
,
June 8, 2020
/CNW/ -
Hannan Metals Limited
("Hannan" or the "Company")
(TSXV: HAN) (OTCPK: HANNF)
provides new results from a zoned zinc-lead system that overlies
stratabound copper-silver mineralization from the Sacanche project area. Sacanche is part of
Hannan's 100% owned San Martin basin-scale sediment-hosted copper-silver project that extends
for 120 kilometres along the foreland region of the eastern Andes Mountains in
Peru
(Figure 1).
Highlights:
Mapping and sampling have defined gossanous lead-zinc mineralization within a 3 by 1 kilometre
area. Individual gossanous zones up to 54 metres wide have been mapped in sandstones of the
Cretaceous Cushabatay Formation (Figure 1). The zone remains open in multiple directions
(Figure 2).
Hannan's focus remains on the copper-silver end member of the mineralized system at San
Martin, however lead and zinc mineralization is
well described
in global sediment-hosted copper
mineralized systems;
Forty individual chip, channel and grab samples are reported and range from 4.7% zinc and
1.3% lead (over
0.6m
metres width) to 354 ppm zinc and 353 ppm lead, and average 0.7% zinc
and 0.3% lead (Figure 3).
A 54 metres wide gossanous zone with 9 non-contiguous rock panel chip samples average
1.2% zinc and 0.6% lead;
Individual continuous channels include 10.9 metres @ 0.4% zinc and 0.3% lead;
Highest zinc and lead values are associated with NNE trending extensional shear structures
with individual lengths from 500-
1,000 m
in parallel zones (Figure 3);
The gossanous lead-zinc zones have been leached and therefore primary sulphide
mineralization below the weathered zone is likely to be higher grade;
The sandstone-hosted system shows a local zonation between zinc, lead, iron and managanese
and is interpreted, and in part observed, to grade into a copper-silver rich system (Figure 4):
Copper-silver mineralized quartz sandstones from the Cushabatay Formation have been
previous reported,
2 kilometres south
(one boulder: 3.8% copper, 10 g/t silver) and
15 kilometres north
(two boulders: 2.6% copper, 36 g/t silver and 2.8% copper, 50 g/t
silver) from the same stratigraphic position of the new zone described here, supporting the
copper/silver potential of this sandstone horizon;
The major redox boundary below the zinc-lead gossanous zone (Figure 4), is not exposed
at current erosional level, which suggests that the copper dominant part of the system may
also exist at depth;
Multiple mineralized stratigraphic positions and styles are now been defined across the property
and are described in Figure 4. The zinc-lead gossans overlie the stratabound copper silver
mineralization hosted by reduced siltstone of the Sarayaquillo Formation.
Michael Hudson
, CEO, states:
"Geological mapping at San Martin has revealed extensive,
transgressive stratabound and structurally controlled copper+silver and zinc+lead mineralization
hosted by multiple lithologies in host rocks of Jurassic and Cretaceous age. Although our focus
remains on the copper-silver end member of the mineralized system at San Martin, lead and zinc
mineralization is
well described
in global sediment-hosted copper mineralized systems, often
fringing copper mineralization. Our work continues to define a system of scale and tenor."
Hannan's mapping from the first stage of this field season has revealed a transgressive structurally
controlled copper-silver mineralization hosted by multiple lithologies in host rocks of Jurassic and
Cretaceous age. A revised stratigraphy of this period is presented in Figure 4 together with a
description of the different mineralized host rocks with typical grades. The zinc-lead gossans are
interpreted to overlie the stratabound copper silver mineralization hosted by reduced siltstone of the
Sarayaquillo Formation. Channel samples are considered representative of the in-situ mineralization
samples and sample widths quoted approximate the true width of mineralization, while grab
(boulder) samples are selective by nature and are unlikely to represent average grades on the
property.
Forty individual chip, channel and grab samples are reported and shown in Figure 3. Reported
samples range from 4.7% zinc and 1.3% lead (over
0.6m
metres width) to 354 ppm zinc and 353
ppm lead, and average 0.7% zinc and 0.3% lead. A 54 metres wide gossanous zone with 9 non-
continguous rock panel chip samples average 1.2% zinc and 0.6% lead. Individual continuous
channels include 10.9 metres @ 0.4% zinc and 0.3% lead.
The mineralized stratigraphy outcrop in creeks and ridges. To the north and east it disappears under
quaternary alluvial cover. The downdip position to the east remains open. The mineralization is
localized to an anticline which is cut by trending NNE extensional shear zones. The shears are
interpreted to be subordinate to the regional north trending inverted Sapo-Sacanche basement fault
(Figure 2). Distal to the anticline (up to 5 kilometres away) extensive zones of gossanous sandstone
after pyrite (without elevated zinc and lead mineralization) have been mapped. In some area's
boulders and outcrops with Rote Fäule redox style-alteration (spotted hematite) have also been
observed (Figure 4e).
The sandstone-hosted system shows a local zonation between zinc, lead, iron and managanese.
Importantly it is interpreted, and in part observed, to grade into a copper-silver rich system. Copper-
silver mineralized quartz sandstones from the Cushabatay Formation have been previous reported,
2 kilometres south
(one boulder: 3.8% copper, 10 g/t silver) and
15 kilometres north
(two boulders:
2.6% copper, 36g/t silver and 2.8% copper, 50 g/t silver) from the same stratigraphic position of the
new zone described here, supporting the copper/silver potential of this sandstone horizon. The target
is partly concealed by thin quaternary cover and the major redox boundary is not exposed at current
erosional level, which suggests that the copper dominated part of the system may also exist at
depth.
Zonation of anomalous lead and zinc is well documented in all major producing sediment-hosted
stratabound copper basins globally. For example in the
Kupferschiefer of
Poland
it is considered as
distal parts of the reduced facies sediment hosted model. In the
Spar Lake district, US
, the
mineralization grades from distal pyrite (Fe) zone to galena (lead), sphalerite (zinc) to the a copper
rich zone. The
Central African Copperbelt
also contains significant deposits of zinc.
The San Martin project is an early stage exploration project. Previous mineral exploration in the area
is limited. RTZ worked in the southern and northern areas for one year in the late 1990's and
conducted reconnaissance sampling and drilled 3 diamond drillholes in the transitional lead-zinc parts
of the system in the south (Figure 3). A private Canadian company completed soil sampling and
some geophysics during a one year period in the southern project area. These data are not available
to Hannan. Hannan's in-depth regional geological understanding has been derived from the
substantial data gathered during petroleum exploration activities undertaken in the Huallaga Basin
since 1989. This data, which recently has been made publicly available, includes >2,000 kilometres
of 2D seismic, 618 kilometres of geological traverses, 1,600 gravity stations, 13,000 kilometres of
aeromagnetic surveys and >2,000 rock samples for geochemical and petrological studies. This
information has provided Hannan a tremendous amount of data to guide exploration and support
geological models.
At San Martin, we believe we have identified an opportunity which could result in a significant
discovery. As a project generator we continue to review new opportunities, but at same time we
need to consider all options to advance a district scale opportunity at San Martin. The results from
our initial work to date has attracted the interest of a number of major mining companies. While we
are in the early stages of our work programs, it would remiss to not consider partnership
opportunities that we believe are in the best interest of the Company. To date the Company has had
numerous discussions and exchanges of information and at this time is awaiting follow up
documentation from select parties.
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 ("KGHM") three copper-silver
sediment-hosted mines 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 and in
2018, KGHM produced 30.3 Mt of ore at a grade of 1.49% Cu and 48.6 g/t Ag
from a mineralized
zone that averages 0.4 to 5.5 metres thickness.
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
Figure 1. Overview of the San Martin sediment-hosted copper-silver project, Peru. The four project
areas now cover 65,600 hectares of the prospective host horizon within a 110 kilometre long trend.
The location of the zinc-lead gossanous zone is shown in the white box. (CNW Group/Hannan Metals
Ltd.)
Figure 2. South Sacanche Concession area: Overview view and geological interpretation of the
structurally controlled Cu-Ag (Zn-Pb) target and the stratabound Cu-Ag target. (CNW Group/Hannan
Metals Ltd.)
Figure 3. Summary of zinc-lead results from South Sacanche (stratabound reduced facies Cu-Ag
samples in yellow). RTZ drill platforms have been located and GPS measured by Hannan in the field.
(CNW Group/Hannan Metals Ltd.)
Figure 4. Overview of the variety of mineralizing styles from the San Martin project and their
stratigraphic position. (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 16:05e 08-JUN-20