Hannan Metals Limited (CVE:HAN) (OTCPINK:HANNF) (FRA:C8MQ) has unveiled high-grade channel sample results from the Tabalosos project in Peru, which lies within the huge package of land under its San Martin joint venture with Japan Oil, Gas and Metals National Corporation (JOGMEC).
High-grade copper-silver outcrops have been delineated in two areas called Zona Este and Zona Sur, which have a combined 2.5 kilometre (km) strike length, noted the company.
Highlight assays from Zona Sur include 6.2 metres at a grade of 0.8% copper and 19 grams per ton (g/t) silver, including 1.3m at 3.5% copper and 86 g/t silver.
READ: Hannan Metals enjoys early success in one of the last true frontiers in the Andes
At Zona Este, which consists of four channel-sampled outcrops within an area 80m by 120m, the best channel results included 1.8 metres at a grade of 3.7% copper and 42 g/t silver, including 1.2 metres at 5.4% copper and 62 g/t silver.
At both zones, further systematic sampling is needed to determine the full width of mineralization, said Hannan.
"San Martin continues to deliver high-grade copper and silver at scale," Mike Hudson, the company's CEO told investors in a statement.
"These are the first high outcrop discoveries found by our team at Tabalosos, by undertaking good prospecting and geological work. Given the challenges in making surface discoveries with the predominant soil and colluvial cover, teams are now in the field collecting detailed and systematic soil samples to map and infill the mineralized horizon between outcrops over multiple kilometres."
As reported in November, Hannan struck a milestone deal with JOGMEC, which sees the latter able to earn up to a 75% stake in San Martin, which spans over 656 square kilometres (sq km) by spending up to US$35 million.
JOGMEC has an initial option to earn 51% by spending US$8 million on exploration over four years. The minimum commitment is to fund US$8 million between April 2020 and March 31, 2021. It can then earn 67% by achieving a pre-feasibility study or incurring US$12 million of project costs.
The Japanese state-owned group can then earn a further 8% interest for 75% by generating either a feasibility study or funding a further US$15 million in project expenditures.
Hannan currently holds a massive 1,864 sq km of granted mineral concessions and applications in Peru making it a top ten in-country explorer by area.
The Tabalosos project lies 80km north of Sacanche where earlier work by Hannan at San Martin has identified a 20km strike trend which includes channel samples such as 2m at 5.9% copper and 66 g/t silver.
Shares in Toronto surged over 30% on the day to C$0.58 each.
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Contact the author at giles@proactiveinvestors.com