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.
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.