Hannan Secures an Additional 25 Kilometres of Mineralized Trend at the San Martin Sediment-Hosted Copper Project IN PERU
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE MARCH 21, 2019
HANNAN SECURES AN ADDITIONAL 25 KILOMETRES OF MINERALIZED TREND AT THE
SAN MARTIN SEDIMENT-HOSTED COPPER PROJECT IN PERU
Vancouver, Canada – Hannan Metals Limited (“Hannan” or the “Company”) (TSXV: HAN) (OTCPK:
HANNF) is pleased to announce it has further expanded the area under mineral clai m application at the San
Martin sediment-hosted copper-silver project in north- central Peru. A district-scale sediment-hosted copper
terrane is now secured, with applicat ions covering more than 76 kilometr es strike of the prospective host
horizon.
Key Points:
5,900 hectares of claim applications have been lodged for the Sacanche area, located 44 kilometres
south of the central and initial Tabalosos claim application;
Hannan’s mineral claim applications now cover 76 kilometres of combin ed strike (35,400 hectares) of
the prospective host horizon within a 110 kilometre long basin (Figure 1);
Sacanche delivers an additional 25 kilometres of host horizon strike under application, and is
interpreted to be an extension of the mi neralized position discovered in Hannan’s Tabalosos claim
applications where initial sampling by Hannan outlined four areas of high-grade copper and silver over
15 kilometres of strike within at least two structural corridors. Nineteen grab samples from mineralized
float in river beds (>0.1% copper) ranged in grade from 0.1% to 8.3% copper and 0.2 g/t silver to 109
g/t silver with an average grade of 2.8% copper and 27.2 g/t silver.
Historic prospecting at Sacanche identified both sediment-hosted copper an d lead-zinc showings with
multiple gossans up 80 metres in thickness with anomalous zinc, lead and copper and grab samples
from creeks assaying significant copper and silver within the 25 kilometre strike of the claim application
area (Figure 2).
Michael Hudson, Chairman and CEO states, “San Martin demonstrates the initial makings of a high-grade
sediment-hosted copper and silver discovery in north-central Peru. Hannan’s first mover position has allowed
claiming of a district-scale sedimentary copper-silver ta rget over 76 strike kilometr es in length and we look
forward to a multi-team exploration program during 2019 to target areas of grade and thickness.”
Hannan’s claim applications extend over a combined 76 kilometres of strike within a 110 kilometre basin scale
trend. Early stage historic exploration at Sacanche identified both sediment-hosted copper and lead-zinc
showings. Multiple gossans up 80 metres in thickne ss with anomalous zinc, lead and copper have been
recorded over multiple kilometre strike (Figure 2). The thick lead-zinc gossans are interpreted to be developed
at different stratigraphic positions than the interpreted location of the stratabound sedimentary-hosted copper-
silver mineralized target zone. Scant historic samp ling records grab samples from river float assaying
significant copper and silver discovered intermittently along the 25 kilometre strike of the Sancache claim
application area (Figure 2). Hannan interprets the separate copper and lead-zinc mineralized zones as products
of an evolving basinal system, rela ted to processes observed in other sedimentary-hosted copper districts
where lead and zinc can be locally elevated.
The Sacanche claims are an extension of the sediment hosted copper- silver mineralized position discovered in
Gera and Tabalosos claim applications where initial sampling by Hannan outlined four areas of high-grade
copper and silver over 15 kilometres of strike within at least two structural corridors within the Tabalosos claim
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application area. Nineteen grab sample s from mineralized float in river beds (>0.1% copper) ranged in grade
from 0.1% to 8.3% copper and 0.2 g/t silver to 109 g/t silver with an average grade of 2.8% copper and 27.2
g/t silver.
Hannan has commenced the 2019 dry-season exploration program with field reconnaissance and plans to have
a multi-team exploration program commence from mid to late April 2019. The areas under claim are sparsely
populated. No indigenous land designation is recorded within Gera and Sacanche claim areas and only a small
area (13%) of the Tabalosos application is defined as indigenous lands, which the Company views as a
positive for future drill permitting. The Company has be gun to identify and involve local stakeholder groups,
and will continue to engage with communities and authorities during the 2019 field programs.
The San Martin project lies in the Sub-Andean zone of Andean Cordillera. Since the 1970’s the area has
principally been explored for petroleum, delivering la rge seismic datasets simila r to those being used by
Hannan for targeting of zinc in Ireland. Seismically-d efined basin structures and stratigraphy are now being
interpreted in the context of sediment-hosted copper mineralization.
The Sub-Andean zone is underlain by a series of retro-ar c foreland basins that were inverted during the Mid-
Eocene and the Miocene. The inversion exposed a rift sequ ence initiated in the late Permian, composed of red
beds and thick basin-wide evaporites. These rocks are contemporary to the Pucara and Mitu Groups in western
Peru. The geological history shows a strong similarity to sedimentary basins which ho st giant sediment hosted
copper deposits with respect to the stratigraphy, basin architecture, presence of thick evaporites and long
periods of quiescence.
Copper and silver mineralization is hosted by the 150 Ma Saraquillo Formation, which was deposited in an
intra-continental basin during the Jurassic-Early Cret aceous period. The Saraqu illo Formation is 1.2-1.8
kilometres thick and extends for over 1,000 kilometr es of strike. The Saraquillo Formation is spatially
associated with salt domes which supports the seismic observations of widespread evaporitic strata, with
several small artisanal salt and copper mines present in the area. Copper mineralization discovered to date is
associated with the contact of fine-grained reduced carbonaceous sandstones with highly oxidized red beds of
the Saraquillo Formation. Chalcocite is the dominant co pper sulphide and it is always found together with
carbonaceous material. Chalcocite occurs as fine disse minations, fracture filling and centimetre-sized massive
aggregates. Secondary copper minerals are common on exposed surfaces. Albitization and silicification is
associated with the mineralization, where the former dominates in more strongly mineralized samples.
Management of Hannan have had significant prior experience in Peru, which is the world’s second largest
copper producer, with steady growth predicted over the coming years. 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 base metal project generation company. It has 100% ownership of the County Clare Zn-Pb-Ag project in
Ireland, which consists of 9 prospecting licenses for 35,444 he ctares and has recently filed mineral claim applications for 35, 400
hectares within the San Martin Province in Peru searching for copper and silver.
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]
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Forward Looking Statements
Certain information set forth in this news release contains “for ward-looking statements”, and “forward- looking information” under applicable securities
laws. Except for statements of historical fact, certain inform ation contained herein constitutes forward-looking statements, wh ich include the Company’s
expectations regarding future performance based on current result s, 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 th em. Such forward-looking statements necessarily involve known and unknown risks and un certainties, which
may cause the Company’s actual performance and financial results in future periods to differ materially from any projects of fu ture performance or
results expressed or implied by such forward-looking statement. These risks and uncertainties in clude, but are not limited to: The Company’s
expectations regarding timing to complete field work and outcome of results, the granting of th e claim applications in Peru, co mmunity relations,
liabilities inherent in mine development an d 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 s h o u l d c h a n g e e x c e p t a s r e q u i r e d by applicable securities law s. The reader is
cautioned not to place undue reliance on forward-looking statements.
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