Categories: Base Metals / Precious Metals / Mining Stocks
Topics: General Base Metals / General Precious Metals / Gold Stocks / Copper Stocks

Hannan Metals (TSX-V: HAN)(OTC: HANNF) CEO Michael Hudson on Brand New Copper Porphyry Target at Previsto and Upcoming Drill Program at Belen Prospect, Peru

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO — and I know I say this every time, folks, but of my largest personal holding — I am talking, of course, of Mr. Michael Hudson from Hannan Metals (TSX-V: HAN)(OTC: HANNF). 

Mike, it’s great to have you back on. I know you've been busy on the road preparing for what I think is going to be one of the most exciting drill programs of any exploration company in 2025. A lot to get to. First and foremost, how are you today?

Michael Hudson: I'm very well, thanks, Gerardo. Always lovely to be back.

Gerardo Del Real: Well, listen, I couldn't be happier as a shareholder. We've talked about ‘The Monster.’ We've talked about why it has earned that name and why it keeps on delivering. And in the latest release you put out, you’ve identified 69.1 meters of 2.4 grams per tonne (g/t) gold, which included 26 meters of 5.4 g/t gold. 

That really caught a lot of institutional attention and a lot of attention from major mining companies. If all we had in that system, which is huge, is gold, that would be phenomenal; perhaps a once in a generational type of discovery at this earliest stage.

But you also have this zone you're identifying of wide outcropping copper mineralization at Previsto. So I wanted to have you on to provide the context because I can understand how, from an outsider's perspective, the enormity and the scale of Previsto can be maybe a bit confusing to some. And I've received questions from subscribers saying, ‘Well, is it a copper system or is it a gold system, and is there more copper or more gold?’

And we don't know that answer yet. But I figured I'd have you on to provide some context.

Michael Hudson: Well, it's a big system and it's a multi-stage development. This is how these systems form. In the simplest terms, porphyries form at depth in the crust. And above a porphyry, the epithermal systems form much closer to the surface and then sometimes at surface as they're forming. 

These systems are transitional. Generally, you have your copper porphyry at depth and your gold system. There’s a lot more complexity to it than that, and we can use different metals to know where we are in the system. If you have more base metals in an epithermal, you're deeper, etc.

This is just a big system that is developing at different levels. This system is a little different than the traditional porphyry model. This is an alkalic porphyry gold system. What does that mean? It means it's quartz poor and it has lots of potassium. Ultimately, that doesn't matter to anybody. It has more gold than a normal porphyry, and we call normal porphyries alkalic. 

It's a gold-copper alkalic porphyry epithermal system. And the most exciting thing for us as a junior, without a doubt, is the gold because that's where we can make the most leverage in a discovery. It's much more understandable to people and much more testable or targetable so we can build more value with less drilling. 

We're not bound to the misery of drilling large drill holes and lots of drilling to build tons in a porphyry. That will always be tough to develop in our own right so you have to be able to at least have the eventual market cap that you can develop a system or there'll always be a limit on the stock.

So for all of those reasons, gold is wonderful, and this is a gold system with a copper-gold part of the system as well that's developing.

Gerardo Del Real: I ask you this almost every time but we're getting more data every time that you and I have a conversation. So with the new data, with this new outcropping copper zone and knowing what we know thus far about the gold and the scale of this, have you ever seen at this early pre-drilling stage a system with this scale and this size?

Michael Hudson: You always ask that. No, I haven't. This is a 5 x 5 km system of soil samples and anomalous catchments that the soil is above 0.1 g/t Au. And no, it is a very, very large system. A porphyry that's 1 x 1 km would be considered meaningful scale in our business. This is 5 x 5 km, so 25 times that scale in isolation. So it's ‘The Monster.’

Gerardo Del Real: Where are you in the exploration process and where are you in making a decision as a company to approach the permitting phase of this? Because, listen, I couldn't be more excited about the upcoming drilling that we're all hoping we get in April. And we'll chat about that soon. 

There are three potential company-making projects there that we'll finally get to test, and you've de-risked those very well. Those, in their own right, deserve their merit and their shine and their praise.

But this is different. Everyone I've shown — whether it's videos from the site visit or news releases or conversations I've had — people way smarter than me look at this and their eyes open up. These are 30 to 40 year tenured geologists that have seen everything. And they all tell me that this is one of those that could have tens of millions of ounces of gold. 

Where are you in the exploration process? What do you understand thus far and what comes next for de-risking and potentially permitting?

Michael Hudson: We're at the very early stages of Previsto, so it's clear, and you just stated it, but we have two areas in our 100%-owned area at Valiente; two areas that we're advancing now. We have the Belen area you referred to that has two porphyries and an epithermal. That is permitted for drilling, and we've stated publicly that we'll be drilling in Q2 2025, so we're only a month or so away from starting drilling there. And any one of those three projects, individually, is a potential company-maker. 

But they're the second prize. And you don't often hear a CEO talk about a second prize. But the first prize is Previsto, which we've been talking about for the last five minutes. And your question related to Previsto on when you’re going to drill it, basically, I think, was where you're going, and it's early days. 

We have one channel there that, obviously, got the imagination of people because it showed the potential of this very large system. But it's within a sea of gold that we've already defined from soils and rock chips over the larger area. But there’s a lot more prospecting and mapping and channeling to be done, and in fact, the team is out there. 

There's a team of six geologists and support staff who are going out there for two weeks at a time camping out there. They come back for one week and compile the results and then have a very well-earned one week off. One of those stints occurred since the release of our results. We have more results coming in and around that alkalic gold system as the assays will be received, etc.

We have to do a lot more geophysical work, and we'll definitely be putting more geophysical work in to understand the structural part of the system. We're already starting the permitting for the area and talking to the authorities on how to best permit it and get our best targets drilled in the shortest possible timeframe, basically, and that process has started.

We’re giving guidance that Previsto won't be ready to be drilled until later next year. But I'm the optimist in the room, and we're getting a lot of support from the authorities because they see the significance of this discovery. Ideally, we'll be there earlier than that but we're working to do that internally. 

We like to under-promise and over-deliver because Peru traditionally has been quite a long time to permit things. But what once took three years has now taken us, in the last permit at Belen, 11 months. And I'm challenging the Peruvian system to do it in a much faster timeframe because they can and they should because there's a lot of value to be created here not sitting on paperwork.

Gerardo Del Real: I couldn't agree with you more. I have to believe that the authorities are watching what's happening in Argentina and the permitting process there and how much capital Argentina is attracting right now, particularly in resource exploration. I think everyone is aligned and incentivized to do it responsibly and do it correctly but also to do it in a way that's respectful of shareholders and respectful of the work that you're doing. 

What comes next, Mike? I want to ask you about drilling. You already mentioned that you think we're a month or so out for that. I couldn't be more excited. I have to believe you're getting lots of phone calls from lots of majors and mid-tiers that are watching now.

Michael Hudson: You always love throwing that in at the end. It wouldn't be the job of the industry majors if they weren't watching what was happening around the world with new discoveries and significant ones that this clearly is… so I think I'll leave it at that answer.

Gerardo Del Real: That's a great answer, Mike. I can't wait to get more results from the gold part of the system. It’s champagne problems having gold, having copper, having the kind of scale we have. And we're a month or so away from seeing what Mother Nature left behind or starting to see what Mother Nature left behind. I suspect we'll be getting more information on that front. Anything else to add, sir?

Michael Hudson: No, just that we are very, very excited about both Belen and the drill program that's imminent and the massive discovery that is building at Previsto.

Gerardo Del Real: Well said, great work. We'll chat again soon. Thank you, Mike.

Michael Hudson: Thanks, Gerardo.

Click here to see more from Hannan Metals Ltd.