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Hannan Metals (TSX-V: HAN)(OTC: HANNF) CEO Michael Hudson on Extending High-Grade Gold Mineralization at Previsto Prospect Ahead of Phase-One Drilling at Belen Copper-Gold Prospect, Peru

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the chairman of my largest personal holding. And I know people get sick of hearing it, but hey… it's that way for a reason. I’m speaking with Mr. Michael Hudson from Hannan Metals (TSX-V: HAN)(OTC: HANNF). 

Mike, it feels like, it sounds like, and it looks like it's go-time. First and foremost, how are you, sir?

Michael Hudson: Hi, I'm very well, and always happy to speak to you, Gerardo. And we love big shareholders to share the dream.

Gerardo Del Real: Well, listen, it's time to see if that dream is going to become a reality, at least as it relates to the three projects, right? And I want to talk about those here in a bit. But I have to start by acknowledging the April 7th release where you extended the high-grade gold mineralization at Previsto, which we all now call “Cripple Creek” or “The Monster.” You can pick your name and name your analog but it definitely looks like you're on to a monster. 

You’ve now extended that existing trench, which was 69.1 meters of 2.4 grams per tonne (g/t) gold, and it had some high, high grade in there. It's now 135.2 meters at 1.3 g/t gold. And just for kicks, you found some new outcropping mineralization 35 meters from the gold mineralized channels.

I know you just got back from site. I'd love to get your take on the release as to what you saw there and how you're feeling. And then, we can talk about Sortilegio, Vista Alegre, and Ricardo Herrera.

Michael Hudson: Yes, this was my first post-discovery site visit. We made the discovery in December, and I can say I was more and more excited to see it in the flesh, and I suppose it is everything we hoped for, in my mind at least. 

It is absolutely an alkaline gold system. We saw very high grades. We saw how they matched and lithologically were very similar, and we saw their orientations and that we were sampling them appropriately and how they fit into the larger structural picture.

So “The Monster” is starting to show itself poco a poco — little by little — as we get more work done. There is certainly a sea of gold, this low-grade gold, which is what the actual channel extension, the 60-plus-meters, was only at the lower grade. But it all had context. 

And then, we found some very high grades; a meter or two at half an ounce, 18 to 20 type gram numbers. And they were extensions of the high-grade structures. So this is what Cripple Creek or Porgera were. They were high-grade underground mines that turned into gold heap leach operations later in their life. And that's sort of what we're seeing here at Previsto, which is a high-grade system. And we have a lot more work to pull that apart within this sea of gold.

Gerardo Del Real: Let's look forward to the Belen prospect because I couldn't be more excited to finally get drills turning. It's been many, many years of very hard work. I want to congratulate you and the entire Hannan team for the social license work, and the work in the field derisking the targets. 

You were able to be really opportunistic during COVID and actually got really familiar with prioritizing the best targets. Clearly, Previsto has emerged as what's going to be eventually the flagship. But in the meantime, we have the potential for billions of pounds of copper and millions of ounces of gold.

And I don't believe the market is completely checked in on the potential of these first three targets that you’ll be drilling here soon. Everyone I've spoken with knows what “The Monster” is and knows what Previsto is likely to become. But I don't think that Hannan gets enough credit for these three projects that we're going to start drilling here soon. Can you speak to that a bit?

Michael Hudson: Well, we've been working in Belen for longer than we have Previsto so we have much more derisked targets in those areas. It's a 9-km-long system. There are two porphyries sandwiched in between an epithermal system. We have 40 drill platforms permitted. 

We'll start drilling that system later in April, early May. We had the drillers at site scouting the area while I was there so it's all starting, and we sort of like to underplay a bit because you always like to over-deliver and under-promise. And that's what we can do here with these projects.

But any one of them could be a game-changer for the company if they come through: the Ricardo Herrera porphyry, the Vista Alegre epithermal target, which is where we'll start, and then the Sortilegio alkaline system also. It's another alkaline system there. So it's going to be a really, really interesting moment.

Gerardo Del Real: And this part is important. It sounds like you said that you’re going to be starting the drilling at the 100%-owned Vista Alegre gold target, correct? 

Michael Hudson: Yes, that's correct. That's what we like. We like the gold targets specifically because they can change a junior's life quicker than a porphyry copper can in isolation.

Gerardo Del Real: How are things coming along in regard to advancing the permitting process at Previsto? That is something that was in the news release but was mentioned in passing. Then, further down the release, was the intent to submit a DIA in Q3 of this year, which, again, is music to my ears as a shareholder. Can you speak to the permitting process and how things are coming along there?

Michael Hudson: Yes, absolutely. It's ongoing. We've just engaged environmental consultants. They’ll start on the ground shortly, and we hope to have all of the environmental data collected by mid-year. So it's progressing and we're talking with all of the authorities… so that has advanced a hell of a lot.

Gerardo Del Real: When I visited the project, it was clear to me that the community wanted the economic stimulus that would happen as a result of potentially multiple discoveries over many, many years. How is the social license work coming along in regard to not just the projects at Belen but also at Previsto? 

Michael Hudson: The local people are massively supportive. We've worked there for years to demonstrate our credibility. And everywhere where we have a DIA area, we have sign-offs from the local communities. 

We're working with all of the local authorities, right up through to the Ministry of Mines, to make sure we can do things as we state we will do them, which is totally openly, transparently, and appropriately. And we are the first company really opening up this whole new area.

There's a lot of responsibility on the company's shoulders to make sure we do everything in a world-class manner. And we have the support to do that. And now, it's our challenge to make sure we ensure we do it… and I have no doubt we will.

Gerardo Del Real: With gold at US$3,200/oz — and with all of the geopolitical tension and all of the economic and monetary misappropriations here in the US and around the world — it looks like gold is headed much higher. How much do you think a “Cripple Creek” would be worth in 2025 or 2026?

Michael Hudson: Well, what's tens of millions of ounces in the ground? It's a world-class opportunity that we have… and it's certainly well north of where we are now if we have success, Gerardo.

Gerardo Del Real: Mike, I am excited to get the drills turning at the three projects that you’ll be drilling soon. Hopefully, this will be happening by the end of the month or by the first week of May, which is the target. I can't wait… and I’m looking forward to having you back on. Thank you so much. Anything to add to that, Mike?

Michael Hudson: No, thanks again, Gerardo. We're at that pivot-point we've been awaiting for quite a while. We’re at a very exciting moment for the company. Thanks again for your time.

Gerardo Del Real: Excellent, thank you, Mike. We’ll chat again soon.

Michael Hudson: Thanks, Gerardo. 

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