Categories: Base Metals / Precious Metals
Topics: General Base Metals / General Precious Metals

Hannan Metals (TSX-V: HAN) CEO Michael Hudson Kicks Off Resource Expansion Program at Kilbricken Project with Blockbuster Drill Results

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is CEO and Chairman of Hannan Metals (TSX-V: HAN)(OTC: HANNF), Mr. Michael Hudson. Michael, how are you this early morning?

Michael Hudson: Hi, very good, Gerardo. Nice to be in your time zone.

Gerardo Del Real: I imagine you're doing pretty darn good, you just had a news release earlier today. Blockbuster numbers from the first hole at your project. Hannan drilled 3.2 meters at 8% zinc, 73% lead, and 388 grams per tonne silver. Can you give me the details, Mike? Congratulations.

Michael Hudson: Thanks, Gerardo. It was quite the start, wasn't it? In terms of our resources expansion program. This hole has seen grades that I certainly haven't seen in my career, and I spent the first 11 years of my career with the world's largest zinc producer. I've seen a lot of these rocks, but I haven't seen them at these levels. In fact, we had one of the drillers on the rig tell us that he'd worked in every mine in Ireland and most exploration projects around Ireland. He'd never seen it either. We knew we were onto something, but until you get the assays you're never quite sure. Yeah, quite the numbers.

Gerardo Del Real: The interval that I quoted was actually part of a broader interval. The mineralization is pretty extensive, and I understand that the continuity, because this was a 20 meter step-out if I'm not mistaken, but the continuity is holding up really well. Is that accurate Mike?

Michael Hudson: Absolutely, Gerardo. This was within the resource shell but between two drill holes, so this will add definitely to the resource. We had a very thick intersection, actually. The mineralization was over 126 meters down-hole thickness, about 85% true thickness or greater, so we're hitting at the right angles. We obviously had that 3.2 meters at 81.2% combined, 81% combined lead plus zinc, plus the silver, like you said, that was 388 grams. Even lower in that interval, we saw another nearly 19 meters at close to 10% lead plus zinc, 9.9% lead plus zinc. This had extent over width, and it showed the continuity in a lateral sense also. Yeah, lovely to see all round.

Gerardo Del Real: Excellent. Now, this was from a depth at about 528 meters, is that correct?

Michael Hudson: Correct. There's two parts that are the mineral system at Kilbricken. The lower mineralized body is called Port, and that's what we were testing here with this drill hole. Drilling's continuing, you should know also. We've completed two drill holes, the second is in the lab. We drilled something like 1,300 odd meters, and we continue.

Gerardo Del Real: Excellent. Now that second drill hole, is that a step-out as well?

Michael Hudson: That is outside the resource, and absolutely that's a bigger step-out. 50 meters step-out outside the resource area, so looking for extensions beyond the resource.

Gerardo Del Real: Excellent, now again, for those that aren't familiar with Hannan, there is already a resource in place. You obviously recently announced your maiden resource. Can you go over that a bit for those that are new to the story, because I get the feeling that the news this morning is going to add some eyeballs to this story.

Michael Hudson: Sure. We only put out our resource only a few weeks ago, Gerardo. We had 2.7 million tonnes at 8.8% zinc equivalent in indicated. Drilled with very close spaced drilling. Then we had a further 1.7 million tonnes at 8.2% zinc equivalent in the inferred category, with less dense drilling I suppose. We see that as a great start to the project, and I suppose I can't give specific numbers around any economics because we haven't done any economic studies yet, but one of the last mines to open in Ireland was 6.2 million tonnes at 12.4% lead/zinc. That was at a mine called Galmoy. If your readers do the comparisons, you can see we're a hell of a long way towards a resource around that number. It's a very good start, a fantastic start. Now we're working on expanding that. That was a maiden resource working on the historic data that had gone into the project since 2008. There was $25 million dollars spent by previous operators on the project since that time. Now we're doing our own work, and this is the first drill hole to come out from that resource expansion program, and like I said it's a very good start.

Gerardo Del Real: Excellent, excellent. Now, the other question that I had is I know that we spoke about a month ago and you mentioned that historically the metallurgy was good. Are you taking samples for metallurgical purposes?

Michael Hudson: Yeah, even part of this drill hole that we just put out today will go towards adding to the metallurgical sample that will run over the coming months, with further test work. Further locked cycle test work. That initial work that was completed by previous operators showed no red flags, but we will be working to advance that understanding over the coming months.

Gerardo Del Real: I know a few days back there was a bit of selling by what I call the shortsighted, near-sighted trader that wanted to get out. I get the feeling that people that bought those shares are probably pretty happy this morning. What's the market cap of Hannan right now, Michael?

Michael Hudson: It's around about $7 million, Gerardo. We took a bit of a hit, but we'll build a story and we've got a very good asset. We're very confident in what we have here.

Gerardo Del Real: Well it's always good to see shares going into stronger hands. Mike, I want to thank you for your time and I want to invite you to come back on as soon as you get assays from the next drill hole.

Michael Hudson: Look forward to it, Gerardo. Thanks for your time.

Gerardo Del Real: Thank you, Mike.