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Hannan Metals (TSX-V: HAN)(OTC: HANNF) CEO Michael Hudson on Defining New Porphyry Target at Belen Project Area at Valiente Project, Peru
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Hannan Metals, Mr. Michael Hudson. Mike, how are you today, sir?
Michael Hudson: I am on top of the world down under, Gerardo.
Gerardo Del Real: It's great to have you back on. The countdown is on, I've been on record since the very beginning of this year saying that I believe that Hannan Metals will be the story of the year in the second half of this year. I was on record early in January saying that a buddy of ours, Blair Way, his company, Patriot Battery Metals, was going to be the story of the first half of 2022. It would put a smile on my face for both of those things to come true. Patriot of course has gone from 16 cents where I wrote an initial check to $1.75 in very short order. I believe something similar is in the cards for Hannan Metals because of the scale, the potential, the quality field work that you and the team have done. And I think this latest release speaks to that a bit. So I would love for you to provide a bit of context on the Belen project at the hundred percent owned Valiente copper-gold porphyry project in central Peru.
Michael Hudson: Okay, well, thanks Gerardo. It's lovely to see the success that Blair's had and there for the grace of God go ourselves in the second half. So I trust that you are right. I know from a geological perspective that we're absolutely on to something very large here and we're not going to talk about the $35 million US joint venture, 200 kilometers north of Valiente that we have with the Japanese government today. But that is ongoing. And we'll continue to talk about that over the coming weeks ourselves, with you, of course, but this is the 100% owned copper-gold porphyry area. We have over a thousand square kilometers, a huge ground position. We've identified at least seven intrusive centers, porphyry copper gold centers. And we're now starting to do some more detailed work and get the social permissions that are required to do that detail work.
Simply we take the position because we've got such a large area and it is who we are that if our local communities don't want us to be doing any work, we just simply don't go there. So we work where we have full support. And now that work is starting to show the tail of an elephant, I think you could say. This release is a little bit more information. It's the analytical data from the Belen area that shows coherent copper and gold soil anomalies with associated metals in a zoned porphyry copper epithermal zone over 10 kilometers. And then we are starting to see the eyes of certain parts of that system. We've got very high copper in soils, up to 0.15% copper over 1.6 kilometers by 800 meters. So the system clearly is there. We are starting to see the right rocks, the intrusive rocks with the right quartz veining, with the right magnetite veining that are typical for these porphyry coppers.
And then we also know that they're, and this is what we discovered in the last six months, but they are all the right age. So we've dated these through very clever science these days. And we know they're in the sweet spot. We call them myosin intrusives, which is where the window for the big intrusive or mineralized intrusives occurs in the Andes. So certainly we're onto something, we are moving rapidly to going into the next stage, which is systematic soil sampling, mapping and trenching, and looking to start drill permitting, because this needs to be drilled. And our target here is not one but many intrusive bodies with zoned epithermal gold targets around them. And I have been on record saying that I feel that this discovery could be the one of my career also. Early days. So yeah, we are proven wrong often, geologists, but it has that feeling.
Gerardo Del Real: When you talk about the rocks being the right age, and you talk about the tail of an elephant, can you provide the analog that you see in your mind when you give those descriptions? Because again, I think it's lost on a lot of people, because of the scale of the land tenure, top 10 in all of Peru. I think the fact that this is a basin scale project or projects I should say, gets lost on people, because the potential is massive. And I think it's so big that people almost look at the market cap, I think, and go, no way this can't be right. And keep on walking. What are the analogs, Mike?
Michael Hudson: Well, copper gold porphyries are the new frontier for the gold companies. That's number one. And it's not just the base metal companies who desire these targets when they have gold added, that's the way the gold companies see themselves growing. And I think the two best analogs are Sole Gold and Solaris, who are a little north of us in Ecuador. Have a look at their targets, have a look at how they made those discoveries. Have a look at the early stage history of soils, of stream sediment samples, of scale. And you'll see that we are on a very similar path, that those systems were, now they're both billion dollar plus companies today based on copper-gold porphyry discoveries. And they've been drilling them and they're a lot more advanced, but I think if you measure that there's some slides that we put in our deck at other times around other discoveries that, at this early stage of exploration, we shoot it out of the park in terms of the scale and level of anomalism.
So it's hard for people to make those comparisons because it's what we are paid to do as geologists and economic geologists. But I can tell you, everything we see here has great context.
Gerardo Del Real: We know that this market loves discoveries and likes to position ahead of those. We've talked about drilling in the second half of this year. Is that still the plan, Mike?
Michael Hudson: That's still the plan in the JOGMEC JV. This copper-gold porphyry area has not had drill permitting started yet. And I mentioned that we will be starting that. You need to know where to drill, to start the permitting. And we're starting to get on top of that. So over the next months, we'll start that permitting. Now that takes up to a year in Peru. So this won't be drilled until next year, but there's a hell of a lot of work to be done. Remember, really only three or four months into this discovery so it's early days and we'll see drilling in the sediment hosted copper system, copper-silver system to the north of us in the JOGMEC JV, if all goes to plan.
Gerardo Del Real: To say that the Peruvian political landscape is a tricky and curious one to navigate right now would be a severe understatement on my part, but has the recent turmoil in Peru affected exploration activities on the ground in any shape, way or form?
Michael Hudson: Yeah, absolutely. There's nationwide protests at the moment that started with truckers and the cost of living. And it's now spread to where, as we even speak, people are spilling out on the streets, even though there's a curfew in the capital city, Lima, demanding the president resign. It's a very volatile situation. So certainly it's not a time, immediately now, for any sensible personal company to be sending their teams around the country. Stay home, stay safe at the moment. We can get into certain areas where we can fly in and drive to the sites. Otherwise, if we need to get into other areas where we have to drive from Lima, there's roadblocks and the like. We don't know whether that's days or weeks and I hope Peru can come out of this with some sensible decisions and without any violence, and that everyone stays safe basically because it is a very volatile time. And I've been involved in Peru for the last 30 years and certainly it's not absent of occurring before. It goes through these cycles, it would appear.
Gerardo Del Real: As always, safety first. Hannan did an exemplary job during the COVID pandemic, the peak of the COVID pandemic, making sure that was the case. Great to hear that's the case now. As always, the company's been very consistent there. Excited for the second half, excited for all of the field work going on elsewhere. I suspect you'll likely be back on soon because I know there's a lot of work going on in the ground.
Michael Hudson: Yeah. And absolutely. I mean, we have monthly field stints and I know what the teams have been finding over the last few weeks, and I highly anticipate analytical data that we'll talk about on our next discussion around this project.
Gerardo Del Real: Looking forward to it. Mike, thank you so much. Anything else to add?
Michael Hudson: No, that's great. Gerardo, you take care.
Gerardo Del Real: Chat soon.