Hannan's mineral claim applications cover 76 kilometres of combined strike (36,800 hectares) of previously unexplored sediment-hosted high-grade copper-silver mineralization within a 110 kilometre long basin identified in the San Martin Province of north-central Peru. The new San Martin project area application is 100% owned by Hannan, and is located about 30 kilometres northwest of Tarapoto, in the Cordillera Ayu Mayo (Figure 1). Project access is excellent via a proximal paved highway, while the altitude varies between 800 metres to 1,600 metres in a region of high rainfall and predominantly forest cover.
- Previously unexplored sediment-hosted high-grade copper-silver district identified in north-central Peru;
- Initial sampling in one of the 3 claim areas, Tabalosos, has outlined 4 areas of high-grade copper and silver over 15 kilometres of strike within at least 2 structural corridors. Nineteen mineralized boulders (>0.1% copper) range in grade from 0.1% to 8.3% copper and 0.2 g/t silver to 109 g/t silver with an average grade of 2.8% copper and 27.2 g/t silver. Claim applications at Tabalosos total 19,500ha,
- The Gera claim application covers 10,000ha and is located immediately NW of Tabalosos along an anticline that exposes the prospective Saraquillo Formation for an additional 25km of strike.
- The Sacanche claims are an extension of the sediment-hosted copper-silver mineralized position discovered in Gera and Tabalosos claim applications. A total of 5,900 hectares of claim applications have been lodged for the Sacanche area, located 44 kilometres south of the central and initial Tabalosos claim application. Early stage historic exploration at Sacanche identified both sediment-hosted copper and lead-zinc-copper gossans. Multiple gossans up 80 metres in thickness have been recorded over multiple kilometres of strike. Scant historic sampling records grab samples from river float assaying significant copper and silver discovered intermittently along the 25 kilometre strike of the Sancache claim application area.
- Copper-silver mineralization consists of disseminated chalcocite, covellite, bornite and digenite developed at the contact of oxidized and reduced strata. The host rocks are Jurassic to Lower Cretaceous, deposited within an intra-continental basin. Hannan is attracted by the geological setting of this mineralization, as the presence of a closed basin, extensive evaporites/diapirs and inversion structures corresponding with a classic sediment-hosted stratabound copper-silver deposit model (see Figure 4).
- Peru is the world’s second largest copper producer. Sediment-hosted deposits are the second most important source of copper globally, accounting for approximately 20% world production.
Hannan conducted initial field work at the San Martin project during late 2018 when riverbeds and creeks were prospected. Only a small proportion of the claims were accessible owing to seasonal rains, however four separate areas of high-grade mineralized copper-silver boulders were discovered over a 15 kilometre strike, across multiple structures. Grab samples taken from boulders within creeks which drain outcrop returned values ranging from 0.1 to 8.3% copper and 0.2 to 109 g/t silver with an average grade of 2.8% copper and 27.2 g/t Ag over 15 kilometres of strike across two structural corridors, highlighting the potential for discovery of a strike extensive near-surface, sediment-hosted copper deposit. Grab samples are selected samples and not necessarily representative of the mineralization hosted on the property.
Hannan has commenced the 2019 dry-season exploration program with field reconnaissance and plans to have a multi-team exploration program commence from mid to late April 2019. The areas under claim are sparsely populated. No indigenous land designation is recorded within Gera and Sacanche claim areas and only a small area (13%) of the Tabalosos application is defined as indigenous lands, which the Company views as a positive for future drill permitting. The Company has begun to identify and involve local stakeholder groups, and will continue to engage with communities and authorities during the 2019 field programs.
The San Martin project lies in the Sub-Andean zone of Andean Cordillera. Since the 1970's the area has principally been explored for petroleum, delivering large seismic datasets similar to those being used by Hannan for targeting of zinc in Ireland. Seismically-defined basin structures and stratigraphy are now being interpreted in the context of sediment-hosted copper mineralization.
The Sub-Andean zone is underlain by a series of retro-arc foreland basins that were inverted during the Mid-Eocene and the Miocene. The inversion exposed a rift sequence initiated in the late Permian, composed of red beds and thick basin-wide evaporites. These rocks are contemporary to the Pucara and Mitu Groups in western Peru. The geological history shows a strong similarity to sedimentary basins which host giant sediment hosted copper deposits with respect to the stratigraphy, basin architecture, presence of thick evaporites and long periods of quiescence.
Copper and silver mineralization is hosted by the 150 Ma Saraquillo Formation, which was deposited in an intra-continental basin during the Jurassic-Early Cretaceous period. The Saraquillo Formation is 1.2-1.8 kilometres thick and extends for over 1,000 kilometres of strike. The Saraquillo Formation is spatially associated with salt domes which supports the seismic observations of widespread evaporitic strata, with several small artisanal salt and copper mines present in the area. Copper mineralization discovered to date is associated with the contact of fine-grained reduced carbonaceous sandstones with highly oxidized red beds of the Saraquillo Formation. Chalcocite is the dominant copper sulphide and it is always found together with carbonaceous material. Chalcocite occurs as fine disseminations, fracture filling and centimetre-sized massive aggregates. Secondary copper minerals are common on exposed surfaces. Albitization and silicification is associated with the mineralization, where the former dominates in more strongly mineralized samples.
Management of Hannan have had significant prior experience in Peru, which is the world's second largest copper producer, with steady growth predicted over the coming years. The country's copper output is forecast to increase from 2.5 million tonnes ("Mt") in 2018 to 3.8Mt by 2027, averaging 4.7% annual growth. Sediment-hosted deposits are the world's second-most important source of copper accounting for approximately 20% of world production.