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
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SOURCE Hannan Metals Ltd.