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

Hannan Metals (TSX-V:HAN)(OTC: HANNF) Advisor Quinton Hennigh on the World Class Opportunity Hannan Presents

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is internationally renowned economic geologist and a member of Hannan Metals advisory board, Dr. Quinton Hennigh. Quinton, how are you today?

Quinton Hennigh: Very good, Gerardo. How are you?

Gerardo Del Real: I am well, thank you for asking. You and I chatted... God I want to say maybe over a year ago. You had initially accepted a position with Hannan Metals to come on to their advisory board. At that time, you talked about the potential for this massive system with the land package in Peru, which ironically was a much smaller land package than the land package that the team has been able to assemble. It's since evolved into what looks like multiple types of systems, and a base and scale play that has attracted the attention of JOGMEC, right? Which of course is the Japanese government's arm for metals and mining. And so I would love to get your thoughts on what attracted you then, how it's played out since, and where you see this progressing.

Quinton Hennigh: Yeah, certainly. It has evolved. This is a very large scale project. It covers a very large area given the nature of the geology which is basically a bedded copper-silver system. The analog to refresh people's memory is to look for a copper system akin to Kupferschiefer. Kupferschiefer is a system in Eastern Europe. It's actually the single biggest depository of copper metal on planet Earth that we currently know about. It's a huge system that formed in a sedimentary basin a couple of hundred million years ago. It's basically formed through precipitation of metals out of fluids that were derived from percolation through the ground, and as well as perhaps even seawater, which is interesting. But you know, these are the kinds of systems that form really, really big deposits.

If you look at what's starting to emerge in Peru and elsewhere actually in the region, there is a similar basin. Similar, in fact, in age too. It's a little bit younger, but similar basin. It's got all of the right ingredients in terms of the geology, the layers of rock we like to see, it's got a lot of the processes that are involved in a system like this that made it form...are also evident in the system at Peru. So Hannan has been aggressive. They staked additional ground over the past year. I think the last time we spoke was probably pre-pandemic.

Gerardo Del Real: Correct.

Quinton Hennigh: I had just gone down to... Okay, refresh my memory. I think I had just gone down to Peru and visited a site in February 2020. Boy, it's just bizarre this pandemic and trying to recollect things. They've made great progress in spite of the pandemic. It's a big target, big think opportunity, but it has that kind of world-class potential for sure.

Gerardo Del Real: I referenced the partnership with JOGMEC. That is one part of the land package, another completely separate part of the land package Hannan has 100% control over. We've seen just in the past several months this year, a new copper gold porphyry discovery and the first high grade copper-silver outcrops over two and a half kilometers...in separate parts of this basin. What are the differences between those two systems, and what's going to be needed to be successful here, if there is going to be a discovery or discoveries of economic significance?

Quinton Hennigh: Yeah. Look, just to give a little more clarity on the deals and what you just described, JOGMEC is a branch of the Japanese government. It's basically a Japanese oil and gas and minerals ministry, and it's a unique group. Japanese are very smart. What they do is they provide money to JOGMEC to go out and look for new opportunities. These were the opportunities that if they come to fruition like an exploration is successful, a Japanese mining house team come in and buy a part of all of JOGMEC's stake. It's basically a way for Japanese to leverage a bit of we'll call it social...corporate socialism to try to get into this metal, strategic metals of interest in particular. Copper is probably the lead.

They do also invest in things like Zinc, might as well. But in this case, they're focused on this because of the scale. And I've worked with the guys at JOGMEC over probably a 15 year period, so I know many of them quite well. They're very smart guys, extremely good explorers. And I think this is a very good position for Hannan to get in. With a partner like JOGMEC, it's just incredible. And you know, it does pertain to the San Martin project. So if people go to the website, they can see maps and so forth. This is on the San Martin project, which is part, like you said, of the land holdings that Hannan has across the region. They have also staked other areas for this sedimentary copper silver here recently. They've also got a large area for porphyry potential as well.

What's interesting is, just to refresh people's memory, this is on the East side of the Andes, so we're on the East side of Indian arch. A lot of the geology over in this area is somewhat older than the more typical porphyries and so forth that people think about along the Indian arch, like the big porphyries you have down in the South of Peru, the big copper porphyries and so forth. So what we're looking at are actually some of the older, some of the first porphyry systems to form in the arch when the Pacific ocean was very young at that time. It's interesting. It's geology is a bit older but different, but it has very good potential. And given the work that's been done today, I think that they've demonstrated already that the potential for finding a copper-gold porphyry on this new package of ground is very, very good.

Gerardo Del Real: I think the opportunity is massive. Again, context matters. Hannan is now a top 10 concession holder in Peru. Every other company on that top 10 list is a major with market caps in the billions. The land package, as it stands today, is 1,864 square kilometers. And so, again, just impressive what's developed over the past year, year and a half. Quinton, I'm excited for the team to get back in the field, and of course for drilling to start and commence later this year or early next year, once this COVID pandemic is behind us. I know in Peru it's been tough recently. Thoughts with everybody there. Anything to add about the opportunity or what to expect here moving forward?

Quinton Hennigh: They are getting back out in the field. That's critical. Look, it's been a long haul. Peru's open and then closed and open and close. I mean, it's been a similar saga I guess elsewhere around the world. But in Peru, it's been a challenge to get some of the basic work done. Nonetheless, Hannan has made good progress. In addition to staking this ground, they've gotten out and done some regional stream sediment sampling that I helped advise on. I think it will demonstrate very, very clearly, especially well... I would say both with the sedimentary hosted. So this is the San Martin area up in the North central Peru and then this Previsto project where we're seeing these alkaline porphyries, these copper gold porphyries. I think that we'll be able to use this technique to quickly identify highly prospective areas. So it's really an important point for Hannan to get back in the field, get these samples collected, and demonstrate to the market the absolute world-class nature of this opportunity.

Gerardo Del Real: World class nature, a great way to end it. Quinton, thank you so much for your time today, sir. I appreciate it.

Quinton Hennigh: No worries, anytime.

Gerardo Del Real: You stay safe out there. Thank you.

Quinton Hennigh: Take care.

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