Defining Large Mineralizing Systems in Peru’s New Frontier Areas
Hannan Metals Limited is an exploration company opening up search spaces in Peru’s new geological frontiers to find the next generation of large-scale global copper-silver and copper-gold deposits. With 2,154 sq km of mineral tenure, we are a top 10 concession holder in a country that is dominated by some of the world’s largest exploration and mining companies. Hannan is one of the few juniors to acquire such a significant land position.
In 2019 at San Martin, Hannan recognized the significant potential for large copper-silver deposits in this part of Peru and aggressively staked a commanding tenure position. In 2020 the company signed a US$35M earn-in and Joint Venture on one third of our ground holding at San Martin with a significant industry partner. We also continue to explore 1,300 sq km in our own right for copper-gold and copper-silver mineralization.
The Company considers working alongside local stakeholders as mission critical. Our social work has laid credible foundations that have allowed us to explore prospective areas which have not previously experienced systematic exploration.
Hannan is currently focusing on two new frontier areas in Peru. Both are located in the sub-Andean zone, which is characterized by highland jungle in the transition between the Cordillera and Amazon Basin.
The San Martin Project covers a new, basin-scale high-grade sediment-hosted copper-silver system that extends over 200 km x 100 km along the foreland region of the eastern Andes Mountains in the Huallaga Basin. Mineralization is geologically similar to the vast Kupferschiefer deposits in Eastern Europe. Sediment-hosted stratiform copper-silver deposits are among the two most important copper sources in the world, the other being copper porphyries.
Most work is currently focused in a 9 km x 3 km area where we have received approval to commence an Environmental Impact Statement (Declaración de Impacto Ambiental or “DIA”) to allow the Company to construct up to 40 drill platforms during 2022. High-grade copper-silver is hosted in an organic-rich shale hosted by the Upper Sarayaquillo Formation. The shale signifies a previously unrecognized facies and has been mapped in outcrop and by soils for many tens of kilometres. Key outcrop channel results include:
- 2.0 metres @ 4.9% copper and 62 g/t silver
- 1.8 metres @ 3.7% copper and 42 g/t silver including 1.2 metres @ 5.4% copper and 62 g/t silver
- 2.2 metres @ 2.4% copper and 29 g/t silver including 0.7 metres @ 5.9% copper and 70 g/t silver
Hannan is combining traditional “boots on the ground” exploration with new technologies such as high-resolution LiDAR survey to map surface geology under the dense jungle cover and portable XRF machines for systematic real-time soil sampling.
Hannan’s second major project is Valiente, located 300 km south of the San Martin project. Here the Company is targeting Miocene age porphyry copper-gold in a back-arc setting in Central Eastern Peru. We consider the belt to be a potential new metallogenic province of Peru. Located far inboard of the conventional porphyry settings the project shows regional similarities to deposits such as the large Bajo de Alumbera copper-gold porphyry in Argentina. Hannan has recently completed a regional BLEG survey covering 140 km x 50 km and is currently defining 7 porphyry/skarn targets. The best grab samples come from river float that individually assay 0.9 g/t gold and 25% copper. Outcrops are rare due to the extensive jungle cover. High-grade float discoveries coincide with highly anomalous Au-Cu-Mo stream sediments samples, as well as positive airborne magnetic anomalies. The Company was a first mover in this district and controls over 1000 km2 of tenure. The first permits were granted in September 2021.
Hannan’s exploration programs are fully funded in 2021 with a Peru-wide exploration project budget of US$2.7M. At San Martin the focus is to continue to build a basin-scale project and complete the DIA in early 2022. At Valiente, the Company is permitting more detailed work including soil sampling, mapping and trenching as well as preparing for a high resolution airborne magnetic survey in 2022.
We believe Hannan is uniquely leveraged to make significant grassroots discoveries in two prospective, yet unexplored terrains in Peru. If successful, these will be compelling targets for the major gold and copper mining houses in the years to come.