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Hannan Metals (TSX-V: HAN)(OTC: HANNF) CEO Michael Hudson on Upcoming Maiden Drill Program at Valiente Cu-Au Project, Peru
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of my largest personal holding. I am, of course, talking about Michael Hudson of Hannan Metals. Mike, I know it's been a busy several weeks, months, years. How are you today, sir?
Michael Hudson: I'm great, thanks, Gerardo. Lovely to be back.
Gerardo Del Real: Let's get right into it. Every time I speak with you, you're discovering more gold or more copper, or more gold AND more copper. You just discovered a 2.4-km-long geophysical IP anomaly at the Vista Alegre epithermal prospect — what I call a ‘project’ — at Valiente in Peru. You have multiple anomalies here.
I'll let you provide the context because you are by far the more educated of the two of us!
Michael Hudson: Well, everyone has their own specialty, and I do love discovery! And this is very much in my wheelhouse in terms of what we're doing here. We, of course, are in our porphyry epithermal project called Valiente.
Valiente is a brand new porphyry epithermal belt in the Peruvian back arc — over the top of the Andes in the high jungle area — at about 1,000 meters of elevation. It has 18 porphyries that we've identified within a brand new copper-gold porphyry belt. That's number one.
That's pretty exciting by itself but no good if you don't have all the detail. We've done more detailed work on about five of the porphyries over the last couple of years and have flown all of the data, etc., from aircraft. And we’re now on the ground doing the detailed work. We've done a lot of the soils and the mapping. This result was around the detailed geophysics, which is really the final step before you drill.
This one area is about 4% of our total landholding at Valiente. A small little chunk but it's still about an 8 or 9 km trend with two porphyries. And in between the porphyries is this zone we call Vista Alegre, which is the epithermal part of the system. That's the gold-rich part of the system that formed above the porphyries as they were forming.
You have these porphyries poking through the crust sort of like balloons rising through magma. And then, on top of these porphyries are the gold-rich parts of the system. We've got lots of gold in outcrop, and boulders, over 2.5 km of strike at Vista Alegre alone. We've run this IP, Induced Polarization, which sees disseminated sulphides.
They basically turn the electrical current on and off, and the ground that holds sulphides tends to hold the charge longer. Only in milliseconds… but they can measure the difference between the ground that holds the charge, the sulphides, which are metallic, and the rock that doesn't. And then, we can map the sulphide-bearing parts.
The system and, generally, sulphides like pyrite, are associated with gold in these systems, and that's what we need to prove via the drill-bit. We have great context; the system looks amazing in the IP. And then, there's another within the chargeability and also the resistivity, which is another way to visualize the data collected in these surveys.
We’re seeing 2.5 km of strike and up to 500 meters’ depth in the system in context with all of the surface geochemistry and the mapping. It’s drill-ready, and we have lots of platforms permitted for drilling. We're going through the final stages of that now, and we hope to be on the ground in April 2025 after we finish the permitting process.
Gerardo Del Real: How is that permitting process coming along? I know the heavy lifting was definitely the DIA, and we talked about the other two steps the last time we spoke. How are things coming along there?
Michael Hudson: Everything is as per our last announcement, basically. We've got the DIA — Declaracion de Impacto Ambiental — which is essentially the Environmental Impact Statement that was approved a few weeks ago. And we just have to go through a few more steps.
We need to get a reissued archaeological certificate (CIRA), which we've already had, I think, about five of them because we certainly will be going nowhere near any archaeological areas. And that has already been proven. But we need to get a new one post-DIA. Then, we need to get sign-offs from all of the locals in the area who are the titleholders. And we have great local support there.
Then, we need to apply for the Initiate Activities, which is essentially a 40-day permit. That will be done in the new year post-CIRA, which is the archaeological certificate, along with a few little details around that. We’re giving guidance that we believe that will all be done and approved, ideally, by Q2 of next year.
Gerardo Del Real: Excellent. And I just want to be clear to everyone that, again, because it's a massive, massive land package, when you say the Valiente copper-gold project, folks, we're talking about the entire belt, correct?
Michael Hudson: Correct… the 150-km-long belt; 18 different porphyries.
Gerardo Del Real: Right. And then, when we talk about Belen, that's where we have the DIA. And within Belen, we have Sortilegio, Ricardo Herrera, and Vista Alegre. Now, Vista Alegre is primarily a gold-rich target, correct?
Michael Hudson: That's right. It's the epithermal part of the system that will be the gold-rich part.
Gerardo Del Real: And then, we have Ricardo Herrera, which is copper-gold, and also Sortilegio. What I'm trying to emphasize to the audience and for those reading along or listening, is that, come April, if everything goes as planned, we're going to have drills turning on a potentially company-making gold project and, potentially, two company-making copper-gold projects, correct?
Michael Hudson: Correct.
Gerardo Del Real: Excellent. I mean, I couldn't be happier with copper at US$4.15 per pound and gold at US$2,700 per ounce. It’ll be interesting and fun to see what happens between now and the drill-bit. And it’ll also be really interesting to get some more news regarding Sortilegio and Ricardo Herrera. I suspect that's incoming briefly?
Michael Hudson: Yes, we put the IP results out for this area we're talking about now, which is Vista Alegre. But the two bookends, which are the two porphyries, we’re currently processing all of that data, and you'll see similar-type explanations about how the geophysics are pulling all of these systems together and making them drill-ready. A very exciting technical accumulation of data to, basically, quantify what we will be drilling in only a few months’ time.
Gerardo Del Real: I can't wait to see the drill-bit turning, as you know. I couldn't be more excited. Mike, thank you so much for your time. Looking forward to chatting again soon.
Michael Hudson: Thanks for your time, Gerardo.
Gerardo Del Real: Alright, cheers!
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