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General mining & base metals

Hannan Metals updates on exploration in Peru, including early stage copper-silver discovery at Ochique prospect

Prospecting at Ochique has identified high-grade mineralization, with one boulder assaying 1.4% copper and 21 grams per ton silver

Hannan Metals Limited (CVE:HAN) (OTCPINK:HANNF) (FRA:C8MQ) has updated on exploration results at its huge land package in Peru, which includes a copper-silver discovery at its San Martin project called the Ochique prospect.

The company said that prospecting ay Ochique has identified high-grade mineralization, with one boulder assaying 1.4% copper and 21 grams per ton (g/t) silver.

In all, Hannan Metals holds 2,172 square kilometres (km) of ground in the South American country, which includes the Previsto project - which lies 250km from San Martin. The company is exploring 62% of its land package itself, while 38% is in a joint venture with Japan Oil, Gas and Metals National Corporation (JOGMEC).

READ: Hannan Metals says sampling shows copper-silver mineralization over large area at Tabalosos East

"Hannan have defined three incredibly prospective and large-scale targets in previously poorly explored areas in Peru," said Mike Hudson, CEO of Hannan in a statement. "The first discovery of sediment-hosted copper-silver mineralization in 100%-controlled Hannan tenure, located 20 kilometres from exciting results flowing from our JOGMEC-Hannan JV project, is a significant discovery, that demonstrates the regional scale and potential across the foreland basins of Peru, where Hannan holds a significant land position."

Hudson noted that the group recently defined seven intrusive porphyry copper-gold targets in a previously unknown mineralized belt within a 140km by 50km area at Previsto.

This includes three so-called "intrusive centres" at the Previsto Norte Target with associated copper-gold-moly mineralization in boulders and outcrops. It is estimated that over 1% of the bedrock outcrops in the area, noted Hannan.

The Ochique prospect lies 20km north west of the Tabalosos JOGMEC joint venture project and a field team is currently active in the area conducting stream sediment sampling, said Hannan.

At Previsto, two field teams have been mobilized to undertake basin-wide stream sediment sampling and geological prospecting and mapping, the company added.

In late 2020, Hannan struck a milestone deal with JOGMEC, which sees the latter able to earn up to a 75% stake in San Martin, by spending up to US$35 million to deliver a feasibility study to the joint venture.

JOGMEC is a Japanese government independent administrative agency which among other things seeks to secure stable resource supply for Japan. JOGMEC has a strong reputation as a long-term, strategic partner in mineral projects globally.

Contact the author at giles@proactiveinvestors.com

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