Permit applications now cover 29,800 hectares and provide Hannan with control of an area exceeding “51 kilometers of strike and up to 7 kilometers width over two anticlinal trends,” said the Vancouver-based company.
Field work on the new areas is scheduled to start in mid-March.
"San Martin is a high-grade copper and silver discovery in north-central Peru where Hannan has secured over 50 kilometers of prospective mineralized horizon,” said Hannan Metals CEO Michael Hudson in a statement.
Hudson added that Hannan's “first mover position” had allowed claiming of a “district-scale target, strengthened by the advantage of basin-scale seismic data in a new sediment-hosted copper terrane with a geological record similar to basins that host giant sediment-hosted copper deposits."
The San Martin project in South America lies in the sub-Andean zone of Andean Cordillera. Since the 1970s the area has principally been explored for petroleum, delivering large seismic datasets similar to those being used by Hannan for targeting of zinc in Ireland. Seismically-defined basin structures and stratigraphy are now being interpreted in the context of sediment-hosted copper mineralization, said the company.
The Sub-Andean zone east of the Andes mountains has an underlying series of “retro-arc foreland basins” that were inverted during the Mid-Eocene and Miocene geological epochs. The geological history shows a “strong similarity” to sedimentary basins which host giant copper deposits with respect to the “stratigraphy, basin architecture, presence of thick evaporites,” said the company.
Copper and silver mineralization is hosted by the Saraquillo Formation, which was “deposited in an intra-continental basin during the Jurassic-early Cretaceous period,” the company said.
Hannan's management has significant experience in Peru, which is the world's second largest copper producer and has steady growth predicted over the coming years.
Its copper output is forecast to increase to 3.8 million tonnes by 2027 from 2.5 million tonnes, averaging 4.7% annual growth.
Sediment-hosted deposits are the world's second most important source of copper accounting for around 20% of world production.
Contact Uttara Choudhury at [email protected]