Hannan Metals Limited (CVE:HAN, OTCPINK:HANNF) revealed it has enjoyed some early success in an area of central Peru chief executive Michael Hudson describes as the “true last frontier within the metal-rich Andes mountain chain”.
His comments came alongside field results from the 906-square kilometre, Ucayali project where work focused on two areas: Previsto and Belen, which are around 20 kilometres apart.
Geologists carried out both stream sediment and float sampling. TerraSpec spectral analysis has since been undertaken to assess the distinct and physically significant features of different mineralization.
READ: Hannan Metals increases ground at San Martin by staking further 278 square kilometres
At Previsto, initial reconnaissance fieldwork has identified what Hannan describes as a large-scale hydrothermal system within a six-kilometre by three-kilometre area that has the potential to host a porphyry mineral system.
Within this area, copper and gold float samples yielded assays including an eye-catching 25.6% copper and 28 grams per tonne (g/t) silver.
The company said the trend remains open to the north, west and south.
At Belen, a second copper and gold target was identified. The zone was defined by altered outcrops and copper and gold anomalous stream sediment samples, Hannan said.
"The back-arc basins of Peru have been sporadically explored over the last 30 years. The area represents a true last frontier within the metal-rich Andes mountain chain,” said CEO Hudson in a statement.
“In a similar way to our vast sediment-hosted copper-silver project in San Martin, we have once again opened a new search space in Ucayali, this time for copper-gold porphyry systems. Big systems have big footprints, and in a rare event, field teams were able to sample up to 25.6% copper in creeks within the first day or so of visiting the Ucayali project.”
He added that Hannan is “extremely well-poised” for a strong 2021 with a top-10 ground position in Peru and two “extremely prospective and large copper projects”.
Hudson also said the company had a “great joint venture partner” in JOGMEC, which can earn up to 75% of the San Martin project by spending US$35 million to deliver a feasibility study.
Contact the author at ian.lyall@proactiveinvestors.com