VANCOUVER, May 28, 2020 /CNW/ - Hannan Metals Limited ("Hannan" or the "Company") (TSXV: HAN) (OTCPK: HANNF) provides an update on its exploration and social programs and on the status of further granted mining concessions.

Figure 1. Overview of the San Martin sediment-hosted Cu-Ag project, Peru. The four project areas now cover 66,000 hectares of the prospective host horizon within a 110 kilometre long trend. (CNW Group/Hannan Metals Ltd.)

Highlights:

  • A total of 42 granted mining concessions for 320 sq km at San Martin have now been granted at the San Martin project in Peru. This is an increase of 50% from previously reported on February 10, 2020. The project consists of a total of 87 mining concessions and applications for 65,600 hectares (656 sq km) that cover multiple trends within 110 kilometres of combined strike for sedimentary-hosted copper-silver mineralization (Figure 1). Granted concessions provide secure tenure and allows for more advanced social and exploration work programs to be executed;

  • From December 2019 through to mid-March 2020, Hannan completed an active field work program at its San Martin project in north eastern Peru. Numerous new copper and silver discoveries were made over a 20-kilometre trend within the 60 kilometre long Sacanche claim area (Figure 1). Geochemical assays are pending for many of these areas and are expected to be returned in the coming weeks;

  • Peru initiated a state of emergency and lock down on March 16, 2020, and recently extended this until the end of June to contain the COVID-19 outbreak. Hannan has implemented safety and physical distancing procedures, including working from home and ceased all travel. We have also been keeping in regular contact with all local stakeholders. The Peruvian government has indicated that certain industries, including mineral exploration, will be permitted to restart, with strict safety protocols, during June 2020.

Michael Hudson, Hannan's CEO, states, "Hannan now has large tracts of ground granted, and we have completed an active and successful start to our 2020 field program. We are excited to discover further copper and silver mineralized zones in outcrop kilometres along strike from known mineralization, and eagerly await assay results. We have been working hard to continue to inform and engage with all stakeholders, especially during these challenging times and look forward to our field teams returning to our project area when it is safe and permitted to do so."

Hannan's 100% owned San Martin project encompass a new, basin-scale high-grade copper-silver system situated along the foreland region of the eastern Andes Mountains in Peru. Geologically, Hannan's sedimentary copper-silver deposits analogues include the vast Kupferschiefer deposit in Eastern Europe. Sedimentary-hosted stratiform copper-silver deposits are among the two most important copper sources in the world, the other being copper porphyries. They are also a major producer of silver.  According to the World Silver Survey 2020 KGHM Polska Miedz's copper-silver sediment-hosted operations in Poland are the leading silver producer in the world with 40.2Moz produced in 2019. This is almost twice the production of the second largest producing mine. The Polish mines are also the sixth largest global copper miner.

Field work during Q1 concentrated on a 20 kilometre trend in the Sacanche claim area (Figure 1). Numerous new copper and silver discoveries have been made over a 20 kilometre trend within the 60-kilometre-long Sacanche claim area. Outcropping copper-silver mineralization at Nueva Esperanza was identified 5 kilometres south of earlier defined outcrops including 2m @ 5.9% Cu and 66g/t Ag (TC190536-38). Additional multiple outcrops of copper-silver mineralization have also been discovered within a 500 metre trend, located 2 kilometres south of earlier defined outcrops that included 3m @ 2.5% Cu and 22g/t Ag (LD190517-19). Geochemical assays are pending, and are expected to be returned in the coming weeks.

The Company has received notice from the Geological, Mining and Metallurgical Institute of Peru ("Ingemmet") that 42 mining concessions have been granted at the 100% owned San Martin Copper-Silver Project in Peru (Tabalosos (18), Sacanche (3) and Gera (4)).  Hannan now has a total of 87 mineral concessions which have been either granted or are under application for a total of 65,600 hectares, covering multiple trends within 120 kilometres of combined strike for sedimentary-hosted copper-silver mineralization.  The 35 granted mining concessions now cover 28,300 hectares, with an additional 52 mining concessions (37,300 hectares) remaining under application.  Further mining concessions at Sacanche, Gera and Tabalosos are expected to be granted over the coming months in the order in which they were applied.  Under Peruvian mining law, a mining concession provides the holder with exclusive rights to undertake exploration (and mining activities subject to additional permitting) within a pre-determined area.  The concession provides secure tenure and allows for more advanced social and exploration work programs to be executed including drill permitting.

Engagement of Swiss Resource Capital

The Company announces that it will engage SRC Swiss Resource Capital AG ("SRC") to provide investor relations and communication services in Europe to increase exposure and awareness to investors in the German speaking financial community.  SRC is led by Jochen Staiger, CEO. The Engagement is for an initial term of twelve months but can be cancelled by both parties with 30 days' notice. SRC will assist the Company's efforts to grow investor awareness and expanding exposure to retail and institutional investors, including by providing news dissemination and marketing services in German. The engagement, including the payment of €13,500 per month and the issuance of 100,000 options to SRC at a price of 0.28 for a period of three years, is subject to TSX Venture Exchange (TSX-V) approval.  SRC does not currently have any interest, direct or indirect in the Company or its securities.

About Hannan Metals Limited (TSX.V: HAN) (OTCPK: HANNF)          

Hannan Metals Limited is a natural resources and exploration company developing sustainable and ethical resources of metal needed to meet the transition to a low carbon economy. Over the last decade, the team behind Hannan has forged a long and successful record of discovering, financing and advancing mineral projects in Europe and Peru.

Mr. Michael Hudson FAusIMM, Hannan's Chairman and CEO, a Qualified Person as defined in National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

On behalf of the Board,

"Michael Hudson"                  
Michael Hudson, Chairman & CEO

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: The Company's expectations regarding timing to complete field work and outcome of results, the granting of the claim applications in Peru, the potential impact of epidemics, pandemics or other public health crises, including the current outbreak of the novel coronavirus known as COVID-19 on the Company's business, community relations, 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

SOURCE Hannan Metals Ltd.

Copyright 2020 Canada NewsWire

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