Vancouver, Canada – Hannan Metals Limited (“Hannan” or the “Company”) (TSX.V: HAN) (OTCPK: HANNF) is pleased to announce very high grade and thickness drill results from the first drill hole completed in its resource expansion program at the 100%-owned Kilbricken zinc-lead-silver-copper deposit in Ireland.
Hannan’s first diamond drill hole at Kilbricken, DH 17-3679-217 (“DH217”), is one of the most mineralized ever drilled at the property. Highlights include:
- 8.0 metres @ 4.1% Zn, 33.7% Pb and 174 g/t Ag (37.9% Zn+Pb) from 528 metres, including3.2 metres @ 8.4% Zn, 72.8% Pb and 388 g/t Ag (81.2% Zn+Pb) from 528 metres;
- 3.4 metres @ 5.2% Zn, 4.3% Pb and 33 g/t Ag (9.5% Zn+Pb) from 570 metres;
- 26.6 metres @ 7.5% Zn, 0.9% Pb and 14 g/t Ag(8.4% Zn+Pb) from 588 metres, including18.8 metres @ 8.8% Zn, 1.1% Pb, 19 g/t Ag(9.9% Zn+Pb) from 588 metres;
- A 2.2 metre interval from 528 metres assayed 86% lead which approximates pure galena (PbS, Photo 1);
- DH217 was completed at 714 metres into the Fort Zone at Kilbricken. Base metal mineralization was intersected over a total downhole length of 128 metres with multiple intervals exceeding the grade and thickness cut-off for the mineral resource area;
- DH217 was a 20 metre step out from drill hole DH167 which intersected a lower zone of mineralization that returned 4.5m @ 0.8% Zn, 2.6% Pb, 18.91% Cu, 867.6g/t Ag from 616.5m;
- The initial drill program by Hannan is focused on expansion of the current mineral resource and extraction of metallurgical samples. To date two holes have been completed for 1,365 metres. Drilling will continue until August 2017. The next hole drilled, DH218 is a 50 metre step out, located 70 metres up dip from DH217 (Figure 1).
Mr. Michael Hudson, CEO and Chairman, states: “Hannan’s first drill hole (DH217) is a clear demonstration of the very high grades that are found at Kilbricken, and the strength of the mineralization process with 3.2 metres @ 81.2% zinc plus lead and 388 g/t silver. The higher-grade mineralization shows good lateral continuity and is contained within a broader mineralized zone totaling 79 metres down hole length. DH217 was not included in the maiden resource calculation announced on July 10, 2017 and this result will add to the existing indicated and inferred mineral resources. This is a great start to our resource expansion drill program.”
A plan and cross section view of the drill results is provided in Figure 1. Table 1 shows highlight intersections and Tables 2 and 3 include all relevant collar and assay information. The true thickness of mineralized intervals at Kilbricken is interpreted to be approximately 95% of the sampled thickness.
One diamond drill rig from Priority Drilling Limited with water recirculation and drill cuttings collection systems was used for the drill results reported here. Core diameter is NQ2 (50.6 mm). Core recoveries were excellent and average close to 95-100% in fresh rock. After photographing and logging, core intervals averaging 1-2 metre for mineralized samples were cut in half at Hannan’s core facilities in Ennis, Co. Clare, Ireland. The remaining half core is retained for verification and reference purposes.
Analytical samples were transported by Hannan personnel from site to the ALS Loughrea located at Dublin Road, Loughrea, Co. Galway, Ireland. At the laboratory samples are dried, crushed to 100% passing 2mm, then 500 grams pulverized for multi-element analysis by method ME-MS6, a four-acid digest performed on 0.25g of sample to quantitatively dissolve most geological materials. Analysis is via ICP-MS + ICP-AES. Samples assaying over range 1% zinc, lead, or copper and 100g/t silver were re-assayed using methods Ag/Pb/Zn-OG62, a precise mineralization grade method to determine lead, zinc and silver by HF-HNO3-HClO4 Digest, HCl leach and ICP-AES. For lead >20% and <80% method Pb-AAORE <80% was applied. This is a high precision analysis of lead mineralization, where lead was released with a strong oxidizing attack and analyzed by AAS. For lead >80%, method ME-CON02 was selected where lead is normally determined in concentrates by a combination of acid digests with spectroscopy finish.
The QA/QC program of Hannan consists of the systematic insertion of certified reference material of known base metal content and blanks at the start of each batch and within interpreted mineralized rock. In addition, ALS inserts blanks and standards into the analytical process.
Table 1: Highlight intersections from DH 217. Lower cut-off 5% ZnEq applied except where * noted.
Note: The zinc equivalent (ZnEq) value was calculated using the following formula: ZnEq% = Zn % + (Cu% * 2.102) + Pb% * 0.815) + (Ag g/t * 0.023) with assumed prices of Zn $2587/t; Cu $5437/t; Pb $2108/t and Ag $18.44/oz.
About Hannan Metals Limited (TSX.V:HAN)
Hannan Metals Limited has 100% ownership of the County Clare Zn-Pb-Ag-Cu project in Ireland, which consists of 9 prospecting licences for 32,223 hectares. Zinc remains in tight supply amidst rising demand and stagnant supply. Ireland is a leading global jurisdiction for zinc mining and exploration. In 2015, Ireland was the world’s 10th largest zinc producing nation with 230,000 tonnes produced.
This maiden mineral resource for was published in July 2017, and immediately ranks Kilbricken as one of the top ten base metal deposits discovered in Ireland by tonnes and grade. Total indicated mineral resource were calculated as 2.7 million tonnes at 8.8% zinc equivalent (“ZnEq”), including 1.4 million tonnes at 10.8% Zneq and total inferred mineral resource of 1.7 million tonnes at 8.2% ZnEq, including 0.6 million tonnes at 10.4% ZnEq. Importantly, the initial resource is expandable at all scales, from near resource to prospect scale.
Over the last decade, the team behind Hannan has forged a long and successful record of financing and discovering mineral projects in Europe. Additionally, the team holds extensive zinc experience, gained from the world’s largest integrated zinc producer of the time, Pasminco Ltd.
Mr. Michael Hudson FAusIMM, Hannan’s CEO and Chairman, is a Qualified Person as defined in National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this news release.
On behalf of the Board,
Michael Hudson, CEO & Chairman
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: 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 release.
Photo 1: Drill hole 217 showing part of the core that assayed 3.2 metres @ 8.4% Zn, 72.8% Pb and 388 g/t Ag (81.2% Zn+Pb).
Table 2: Collar Information for Resource Expansion Program at the Kilbricken Project
Table 3: Individual Assays for DH217 from the Kilbricken Project