Hannan Provides Update ON the Tabalosos Copper Silver Project, PERU
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE AUGUST 26, 2020
HANNAN PROVIDES UPDATE ON THE TABALOSOS COPPER SILVER PROJECT, PERU
Vancouver, Canada – Hannan Metals Limited (“Hannan” or the “Company”) (TSXV: HAN) (OTCPK:
HANNF) provides an update on the Tabalosos copper-silver project, located 80 kilometres north of the Sacanche
project at the 100% owned San Martin sediment hosted copper-silver project in Peru (Figure 1).
Highlights:
Hannan has completed a remote geological study at the Tabalosos project which has defined and
constrained the target position of stratabound copper-silver mineralization over a 30 kilometre trend;
Two target styles have been defined:
o A stratabound position in the upper levels of the Sarayaquillo Formation, defined by the presence
of debris organic material that hosts high-grade copper-silver mineralization (Figures 2, 3 and 4).
This zone is correlated over a 30-kilometre-long trend and over 5 kilometres in width across the
Tabalosos project area and is the same mineralized stratigraphic level identified in outcrop at
Sacanche, located 80 kilometres to the south;
o A structurally controlled sandstone hosted copper-silver target has been identified in the southern
part of the project. This area is 7-kilometres-long and up to 5 kilometres wide in Tabalosos. The
target is analogous with the base metal gossans di scovered earlier this year at Sacanche South,
located 80 km to the south.
This new interpretation at Tabalosos is the first in the district to combine seismic data with modern
remote surface observation from high resolution satellite imagery.
Michael Hudson, Hannan’s CEO, states, “While our field work earlier this year focused on the Sacanche area, the
Tabalosos project, located 80 kilometers north is shaping up over a vast scale as another key area for our San
Martin project. Of course, we look forward to getting back in the field when the time is right, to conduct further
reconnaissance exploration, stream sediment sampling and channel sampling of outcropping mineralization. In
the meanwhile, the Company is cons idering and planning airborne ge ophysical surveys to advance drill
targeting.”
Within the 30 kilometre trend four key zones have been defined over a 5 kilometre cross strike width:
Three zones over a 3.5 kilometre strike, where 16 grab samples from boulders (>0.1% copper) averaged
2.7% copper and 29 g/t silver and ranged from 0. 1-8.3% copper and 0.2-109 g/t silver. Reported 17
January 2019.
A zone with 3 grab samples from boulders (>0.1% copper) with two different lithologies, averaged 3.3%
copper and 12 g/t silver and ranged from 0.2-6.9% copper and 2.2-27 g/t silver. Reported 17 January
2019.
Three zones over a 5 kilometre strike, where 6 grab samples from boulders (>0.1% copper) averaged
4.2% copper and 17 g/t silver and ranged from 0.8-11.5% copper and 8-28 g/t silver. Reported 03
September 2019.
One zone where quick reconnaissance sampling identified a small shale-host boulder that assayed 12.3%
copper and 70 g/t silver. Reported 03 September 2019.
Grab samples are selective by nature and are unlikely to represent average grades on the property.
Hannan recently completed a remote st udy at the Tabalosos project, which constrains the target position of
stratabound copper-silver mineraliza tion. The remote sensing study utilized data from the Sentinel-2
constellation of two twin satellites th at systematically acquire optical imag ery at high spatial resolution (10
metres to 60 metres) over land and coastal waters. Sentinel-2 has been developed and is being operated by the
European Space Agency, and the satellites were manufactured by a consortium led by Airbus Defense and Space.
Interpretations from seismic surveying from earlier petroleum exploration shows that the western flank of the
Tabalosos project is cut by an inverted basement fault (Figure 2). High grade copper boulders have been located
along a 15km long trend. In the southern part of the project area, the inverted basement fault truncates an
anticline of the Cushabatay and Sarayaquillo Formations. This area is also prospective for structurally controlled
sandstone hosted copper-silver mineralization where hydrocarbons acts as the main trap for copper bearing
fluids. Copper anomalous boulders of this style have been discovered by Hannan in the area.
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 Ande s Mountains in Peru. Geologically, Hannan's sedimentary
copper-silver deposits analogues include the vast Kupferschiefer deposit in Eastern Europe. Sediment-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 th e 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% copper and 48.6 g/t silver from a mineralized zone that averages 0.4 metres to 5.5
metres thick.
Hannan is closely monitoring the COVID-19 situation in Sa n Martin and is working with local representatives to
support communities with basic medical equipment and food supplies. The situatio n remains problematic and
the district remains in lock down.
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
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 information set forth in this news release contains “for ward-looking statements”, and “forward- looking information” un der applicable securities laws. Except for
statements of historical fact, certain information contained he rein constitutes forward-looking statements, which include the C ompany’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 fu ture 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 outcom e of results, the granting of the claim applications in Peru, th e potential impact of epidemics, pandemics or
other public health crises, including the current outbreak of th e 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 add itional 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 diffe r materially from those anticipated in such
statements. The Company undertakes no obligati on 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 Regu lation Services Provider (as that term is defined in the policies of the TSX Ventu re Exchange) accepts responsibility for the
adequacy or accuracy of this news
4
5