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Hannan Metals Ltd
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Recent Sedar Documents

Hannan completes soil sampling at Valiente target

2022-06-13 14:35 ET - News Release

Mr. Michael Hudson reports

HANNAN IDENTIFIES OUTCROPPING CU-AU PORPHYRY MINERALIZATION OVER 1600M LONG AND 800M WIDE AREA AT THE 100% OWNED VALIENTE PROJECT

Hannan Metals Ltd. has provided an update at the Belen copper-gold porphyry project at the 100-per-cent-owned Valiente in central Peru.

The Valiente project, located 19 kilometres east from the township of Tingo Maria in central Peru, defines a previously unknown Miocene-age porphyry-epithermal copper-gold mineralized belt within a 140-kilometre-by-50-kilometre area in Peru, where Hannan's exploration team has identified at least seven intrusion related porphyry/epithermal/skarn targets, of which Belen is the most advanced and described here in more detail.

Highlights:

  • Detailed fieldwork at the Belen prospect, which represents a small proportion (4 per cent) of Hannan's total landholding at the Valiente project, has consisted of infill soil sampling over a 1,600-metre-by-800-metre area and coincident identification of an outcropping leached copper-gold porphyry with well-developed quartz veining with evidence for an enriched chalcocite blanket at the southern porphyry copper-gold target.
  • A gold-bearing epithermal target area identified by large gold mineralized boulders of quartz-pyrite and iron oxides, as well as strongly gold anomalous soil samples, has been discovered 2.5 kilometres northwest of the southern porphyry target, where a systematic 100-metre-by-100-metre soil sampling program has identified two strong gold anomalous trends that extend for 1,800 metres and 970 metres, respectively.

Michael Hudson, chief executive officer, states: "Hannan has located a new Miocene-age copper-gold mineral camp within a 140-kilometre-by-50-kilometre area at Valiente. At Belen, we see extensive and systematic soil sample anomalies over multiple kilometres. What is most encouraging is the presence of an outcropping leached copper-gold porphyry with well-developed porphyry alteration and quartz veining at upper topographic levels with evidence of an enriched chalcocite blanket within lower-lying creeks. This is the first bona fide bedrock find at the Valiente project. We look forward to more detailed fieldwork, including channel sampling at Belen and working up adjacent porphyry targets. The company is also initiating work to commence drill permitting."

A linked porphyry copper-gold and epithermal gold mineral system has been identified at Belen within a nine-kilometre-by-two-kilometre trend. Detailed fieldwork at the Belen prospect, which represents a small proportion (4 per cent) of Hannan's total landholding at the Valiente project, has infilled soil sampling trends and identified a leached copper-gold porphyry with well-developed quartz veining at upper topographic levels with evidence for an enriched chalcocite blanket sampled over one kilometre within lower-lying creeks at the southern copper-gold porphyry target. A gold-bearing epithermal target area identified by large gold mineralized boulders of quartz-pyrite and iron oxides, as well as strongly gold anomalous soil samples, has been discovered 2.5 kilometres northwest of the southern porphyry target. Work over the last month is described in further detail in this news release.

Southern copper-gold porphyry target

This target consists of a highly anomalous Cu-Au-Mo (copper-gold-molybdenum) soil anomaly over a 1,600-metre-by-800-metre area above a mapped and radiometrically dated Miocene-age porphyry intrusion. Systematic soil sampling has been completed. A total of 494 samples have been taken across the porphyry target, covering an area of approximately 3.3 kilometres by 1.7 kilometres at sample spacing of 100 metres by 100 metres. The results show strong correlation with several elements, including Cu, Au Mo, K (potassium) and V (vanadium). The core of the anomaly extends over 1,600 metres and 800 metres in width and has consistent values of more than 500 parts per million (ppm) Cu, with Cu values up to 1,461 ppm and Mo up to 32 ppm. Gold is locally anomalous within but also occurs peripheral to the main copper anomaly. The main offset gold target is marked by a 1,000-metre-long, up-to-300-metre-wide gold anomaly. Gold assays have been received for 331 samples and values range from less than 0.001 ppm to 0.185 ppm, averaging 0.0162 gram per tonne (g/t), and nine samples have values of more than 0.1 ppm (100 parts per billion (ppb)) in soil.

The host rock is a grey to greenish porphyritic intrusion with hornblende and feldspar phenocrysts that is overprinted by strong weathering. Observations of hydrothermal alteration are emerging from systematic mapping and Terraspec analysis, and so far, areas of propylitic, phyllic, intermediate argillic alteration, silicification and secondary biotite have been observed. Geological and alteration vectors such as pyrite and chalcopyrite ratios from surface rock observations suggest that the mineralization represents the upper part of a porphyry intrusion. Both more intense hypogene copper mineralization can be expected at depth and zones of supergene enrichment. Sampling below the soils has uncovered:

  • A strongly leached copper-gold porphyry with an extensive zone of enrichment has been discovered beneath anomalous soil sampling that cover an area of 1,600 metres by 800 metres:
    • In the leached zone, secondary copper is evident within manganese oxides (neotocite) and red iron oxides (hematite) in outcrops and boulders with values exceeding 0.1 per cent Cu.
    • Assay results from 19 panel samples have been received to date, with an average of 333 ppm Cu and 0.024 g/t Au over an average surface area of 1.9 square metres. The size of the panels ranges from 0.24 to four square metres, with Cu ranging between 104 to 1,070 ppm and gold from less than 0.01 to 0.313 g/t.
  • M (magnetite bearing), B (quartz/biotite) and A veins (saccharoidal quartz/K-feldspar) have been observed in outcrop, and quartz veins have been mapped with encouraging densities of approximately six veins per metre (assays pending) with associated stockworking.
  • Supergene enrichment has been observed in the lowest topographic levels in creeks where chalcocite is seen to replace chalcopyrite within samples separated by one kilometre. Assays from these zones are pending.

Central epithermal gold target

A gold-bearing epithermal target identified by large gold mineralized boulders of quartz-pyrite and iron oxides, as well as strongly gold anomalous soil samples, has been discovered 2.5 kilometres northwest of the southern porphyry target. Work over the last month has included:

  • Systematic 100-metre-by-100-metre soil sampling program: Two strong gold anomalous trends that extend for 1,800 metres and 970 metres, respectively, have been identified. Assays have been received to date from 376 samples covering an area of two kilometres by 1.7 kilometres. Values range from less than 0.001 ppm to 0.094 ppm, averaging 0.0056 g/t in soil. The gold anomaly correlates very well with several elements, including arsenic.
  • Spatially, the gold anomalies correlate with a mapped Andean-age thrust fault and remains open in both to the north and south.
  • Soil anomalies are coincident with gold found in quartz-iron oxide boulders. To date, 19 boulders of more than 0.1 ppm Au have been sampled over a trend of 1.6 kilometres that is parallel to the main gold anomaly. A total 43 rock samples from boulders average 0.48 g/t Au and six g/t Te (tellurium), and range from below detection limit to 2.69 g/t Au.
  • Two gold mineralized outcrops have also been located 270 metres apart. The mineralization is hosted by five-centimetre-wide to 30-centimetre-wide quartz veins in an intrusive host rock with magnetite and iron oxides. The mineralization is correlated with high values of copper and molybdenum. The outcrops assayed:
    • Grab sample: 1.17 g/t Au, 0.67 per cent Cu and 33.4 ppm Mo;
    • Channel sample: 30 centimetres at 3.21 g/t Ag, 0.57 per cent Cu and 22 ppm Mo.

At Belen, Hannan plans to continue systematic soil sampling to cover the entire 10-kilometre intrusive trend and detailed trench sampling. Hannan also plans to survey an extensive airborne magnetic survey over the Valiente project area. Field and social teams are actively engaged in the area, with Hannan's policy to undertake exploration activities only within areas where full support from local stakeholders exists.

The Valiente project is located farther east than most of the conventional Andean porphyry settings and shows regional similarities to deposits, such as the large Bajo de Alumbrera copper-gold porphyry in Argentina. It is interpreted that Valiente was formed in a tectonically favourable area associated with an arc-oblique wrench fault system that may have aided the ascent of oceanic arc-related magmas into the transfer zone so far inboard from the magmatic arc.

Technical background

All samples were collected by Hannan geologists. Samples were transported to ALS in Lima via third party services using traceable parcels. At the laboratory, rock samples were prepared and analyzed by standard methods. The sample preparation involved crushing 70 per cent to less than two millimetres, riffle split off 250 grams, pulverize split to better than 85 per cent passing 75 microns. The crushers and pulverizes were cleaned with barren material after every sample. Samples were analyzed by method ME-MS61, a four-acid digest preformed on 0.25 gram of the sample to quantitatively dissolve most geological materials. Analysis is via ICP-MS. Channel samples are considered representative of the in situ mineralization samples and sample widths quoted approximate the true width of mineralization, while grab samples are selective by nature and are unlikely to represent average grades on the property.

All soil samples were collected by Hannan geologists using an in-house protocol for soil sampling in jungle areas. The samples were subsequently analyzed with a portable XRF (pXRF) deploying a protocol developed by Hannan for the San Martin project. The method is designed to minimize the risk of contamination and ground disturbance. In most cases, the sample media is the B-horizon of the soil profile. Only 100 grams of sample material is collected from each site. From the soil sample, a pellet is produced, which is dried and analyzed by a pXRF. Certified reference material, blanks and field duplicates are routinely added to monitor the quality of the pXRF data and 10 per cent of all samples are submitted to ALS in Lima to validate the pXRF data. Gold was analyzed by ALS in Lima using a standard sample preparation and 50-gram fire assay sample charge.

About Hannan Metals Limited Ltd.

Hannan is a natural resources and exploration company developing sustainable 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. Hannan is a top-10 in-country explorer by area in Peru.

Michael Hudson, FAusIMM, Hannan's chairman and chief executive officer, a qualified person as defined in National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

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