The San Martin Project is located about 30 kilometres northwest of Tarapoto.  Mining concessions cover 120 kilometres of combined strike of the prospective host horizon.  Project access is excellent via a proximal paved highway, while the altitude ranges from 400 metres to 1,600 metres in a region of high rainfall and predominantly forest cover.

San Martin encompass a newly identified, basin-scale high-grade copper-silver system situated along the foreland region of the eastern Andes Mountains in Peru and neighboring countries.  Geologically, these share similarities with sedimentary copper-silver deposits including the vast Kupferschiefer deposit in Eastern Europe and deposits of the African Copper Belt situated in sub-Saharan Africa, two of the largest copper districts on earth.  Hannan recognized the exceptional potential for large copper-silver deposits in this part of Peru and has aggressively staked a commanding land position.

The Hannan Team During Reconnaissance Prospecting


Hannan signed a binding letter agreement for a significant Option and Joint Venture Agreement (the “Agreement”) with Japan Oil, Gas and Metals National Corporation ("JOGMEC"), announced on 30 November 2020. Under the Agreement, JOGMEC has the option to earn up to a 75% beneficial interest in the San Martin Project by spending up to US$35,000,000 to deliver to the joint venture (“JV”) a feasibility study. The San Martin Project covers 656 square kilometres of Hannan’s 940 square kilometre Peruvian holdings (Figure 1). Hannan will continue to progress exploration on its remaining Peruvian projects.


  • The Agreement grants JOGMEC the option to earn an initial 51% ownership interest by funding US$8,000,000 in project expenditures at San Martin over a 4-year period, subject to acceleration at JOGMEC's discretion.  JOGMEC’s minimum commitment is to fund US$1,000,000 from 01 April 2020 to 31 March 2021 and JOGMEC has agreed to reimburse Hannan for all project related costs from 01 April 2020;
  • JOGMEC, at its election, can then earn:
    • an additional 16% interest for a total 67% ownership interest by achieving either a prefeasibility study or funding a further US$12,000,000in project expenditures in amounts of at least US$1,000,000 per annum(for a US$20,000,000 total expenditure); and,
    • subject to owning a 67% interest, a further 8% interest for a total75% ownership interest by achieving either a feasibility study or funding a further US$15,000,000 in project expenditures in amounts of at least US$1,000,000 per annum(for a US$35,000,000 total expenditure);
  • Should JOGMEC not proceed to a prefeasibility study or spend US$20,000,000 in total, Hannan shall have the right to purchase from JOGMEC for the sum of US$1.00, a two percent (2%) Participating Interest, whereby Hannan Metals’ Participating Interest will be increased to fifty-one percent (51%) and JOGMEC’s Participating Interest will be reduced to forty-nine percent (49%);
  • At the completion of a feasibility study, JOGMEC has the right to either:
    • Purchase up to an additional ten percent (10%) Participating Interest from Hannan Metals (for a total 85% maximum capped Participating Interest) at fair value as determined in accordance with internationally recognized professional standards by an agreed upon independent third-party valuator; or
    • Receive up to an additional ten percent (10%) Participating Interest from Hannan (for a total 85% maximum capped Participating Interest) in consideration of JOGMEC’s agreement to fund development of the project, by loan carrying Hannan until the San Martin Project generates positive cash flow;
  • After US$35,000,000 has been spent by JOGMEC and before a feasibility study has been achieved, both parties will fund expenditures pro rata or dilute via a standard industry dilution formula;
  • If the Participating Interest in the Joint Venture of any party is diluted to less than 5% then that party’s Participating Interest will be automatically converted to a 2.0% net smelter royalty (“NSR”), and the other party may at any time purchase 1.0% of the 2.0% NSR for a cash payment of US$1,000,000;
  • Hannan will manage exploration at least until JOGMEC earns a 51 per cent interest, after which the majority participant interest holder will be entitled to act as the operator of the joint venture; and
  • Initial exploration activities will focus on the collection of the geological, geophysical, and geochemical datasets in the JV project areas. The first phase of exploration is expected to conclude March 2021.

San Martin Project Key Points

The San Martin JV Project covers a new, basin-scale high-grade sediment-hosted copper-silver system situated along the foreland region of the eastern Andes Mountains.  Geologically, analogues include the Spar Lake sediment hosted copper-silver deposit in Montana and the vast Kupferschiefer deposits in Eastern Europe where KGHM Polska Miedź (“KGHM”) operates the largest silver producing mine in the world, more than twice the production of any other operation, and also the sixth biggest copper miner on earth.  Sediment-hosted stratiform copper-silver deposits are among the two most important copper sources in the world, the other being copper porphyries.

Hannan recognized the significant potential for large copper-silver deposits in this part of Peru and has aggressively staked a commanding position of prospective where mineralized outcrops and boulders have been discovered in context with a consistent mineralized horizon geology over 120 kilometres of combined strike.  

In 2021 Hannan has focussed its efforts at the Tabalosos project where high-grade copper and silver mineralization has been discovered over 15 kilometres of strike within at least 2 structural corridors.  At Tabalosos highlights have included 2.0 metres @ 4.9% copper and 62 g/t silver and 1.2 metres @ 5.4%. Earlier results from outcrop channel sampling at the Sacanche project, located 20 kilometres apart, have also identified high-grade copper-silver mineralization. Sacanche is located 80 kilometres south of Tabalosos. The company has no active work programs at Sacanche.

Detailed mapping of outcrops with correlating stratigraphic columns demonstrates that copper mineralization in the new zone mentioned above is hosted by an organic rich shale facies within an approximately 10m thick bleached/ altered and copper anomalous package of shaly siltstones.  This sequence represents a different depositional environment of lower energy that has facilitated the deposition of a consistent organic-rich, reduced shale facies.  The impact on the exploration model is fundamental, as it supports the assumption of a widespread reduced facies across the Huallaga basin.

Additionally, a total of 90% of the 64,500 hectares or 2,782-line kms of LiDAR have been acquired at the San Martin JV Project.

Hannan initiated baseline studies and permitting to undertake advanced exploration work, including diamond drilling, at Tabalosos during the period.  Hannan has received approval from two local hamlets at Tabalosos to initiate work for an Environmental Impact Statement (Declaración de Impacto Ambiental, or “DIA”) study.  The DIA is the primary environmental certification required to allow low impact mineral exploration programs, that includes drilling programs, to proceed in Peru.  Work for the DIA will include professional archaeological investigations, community workshops and liaison activities to collect appropriate information necessary to make submittals for approval to the General Directorate of Mining Environmental Affairs of the Ministry of Energy and Mines, Peru.  Final DIA and other approvals are anticipated during early 2022.  Hannan continues to explore, derisk and develop drill targets within the large area at Tabalosos.  Eight geologists and additional team members are on site performing Bulk Leach Extractable Gold (“BLEG”) stream sediment sampling, prospecting, mapping, rock chip sampling, trenching and detailed soil sampling.  The area for the DIA allows for 40 drill platforms and covers an area approximately 9 kilometres long and 3 kilometres wide (2,700 hectares), including the main target areas across both hamlets of Cunchiyacu and Pucayoc at Tabalosos East.

Channel samples are considered representative of the in-situ mineralization samples and sample widths quoted approximate the true width of mineralization, while grab samples are selective by nature and are unlikely to represent average grades on the property.


© 2023 Hannan Metals Limited
All rights reserved.

Subscribe to our Email List

 Marketing permission: I give my consent to Hannan Metals Ltd. to be in touch with me via email using the information I have provided in this form for the purpose of news, updates and marketing.

What to expect:
If you wish to withdraw your consent and stop hearing from us, simply click the unsubscribe link at the bottom of every email we send or contact us at info@hannanmetals.com. We value and respect your personal data and privacy. To view our privacy policy, please click here. By submitting this form, you agree that we may process your information in accordance with these terms.