Hannan Receives Additional 24 Granted Mining Concessions in Peru
Hannan Receives Additional 24 Granted Mining
Concessions in Peru
VANCOUVER
,
Jan. 9, 2020
/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 24 new mining concessions have been granted at
the 100%-owned San Martin Sedimentary Copper-Silver Project in
Peru
.
San Martin encompass a newly identified, basin-scale high-grade copper-silver system situated
along the foreland region of the eastern Andes Mountains in
Peru
and neighboring countries.
Geologically, these shares similarities with sedimentary copper-silver deposits including the vast
Kupferschiefer deposit in
Eastern Europe
and deposits of the African Copper Belt situated in sub-
Saharan Africa, two of the largest copper districts on earth. Hannan recognized the exceptional
potential for large copper-silver deposits in this part of
Peru
and has aggressively staked a
commanding position over 521 square kilometres ("sq km") of prospective geology.
Highlights:
A further 24 mining concessions (for a total of 25) have now been granted at the Tabalosos (18
concessions), Sacanche (3) and Gera (4) areas at the San Martin project in
Peru
. This follows
the
first granting of a mining concession at the San Martin Project in
Peru
in
October 2019
;
Hannan has staked a total of 66 mining concessions (25 granted) for 52,100 hectares (521 sq
km) at San Martin, covering multiple trends within 100 kilometres of combined strike for
sedimentary-hosted copper-silver mineralization;
The 25 granted mining concessions now cover 20,400 hectares (204 sq km), with an additional
41 mining concessions (31,700 hectares, 317 sq km) 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.
Michael Hudson
, Hannan's CEO, states,
"The sediment-hosted copper-silver San Martin project
presents a new basin-scale high-grade copper-silver district in
Peru
. Further granting of the mining
concessions 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 which are due to
recommence this month."
The San Martin Project is located about 30 kilometres northwest of Tarapoto, in the Cordillera Ayu
Mayo. Hannan's mining concession applications cover 100 kilometres of combined strike of a
prospective sedimentary host horizon (Figure 1). Project access is excellent via a proximal paved
highway, while the altitude ranges from 800 metres to 1,600 metres in a region of high rainfall and
predominantly forest cover. To date the Company has submitted 66 mining concession applications
for a total of 52,100 hectares (521 sq km) in four different project areas named Tabalosos, Gera,
Sacanche and
Santa Elena
. The 24 granted mining concessions now cover 20,400 hectares (204 sq
km), with an additional 42 mining concessions (31,700 hectares, 317 sq km) remaining under
application.
Hannan considers the sediment-hosted copper-silver San Martin project to be a new basin-scale
high-grade copper (chalcocite) district. Initial prospecting over the last year identified high grade
mineralization in outcrop and float with associated alteration across a 100 kilometre by 50 kilometre
area. Best results from outcrop within a 20 kilometre 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 100 kilometres of strike with mineralization observed at multiple
stratigraphic levels spatially linked to salt structures that have intruded the sedimentary strata and
potentially fed metal-rich fluids responsible for mineralization in the region.
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 timing to
start and complete field work and outcome of results, the timing and 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.
Figure 1: Overview of Hannan's application status at the San Martin Project. (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 06:30e 09-JAN-20