Hannan Metals Ltd (CVE:HAN) (OTCPK:HANNF) reported more positive sampling results from the San Martin project in Peru Tuesday, where a new zone of high-grade copper-silver mineralization has been unearthed.
It comes after earlier this month, the Vancouver-based company revealed that high-grade copper has been discovered in multiple positions at the Sacanche claim area, over a 27 km strike.
The new zone called Tabalosos lies 80 km north of the Sacanche claim area.
At Tabalosos North West, grab samples from six mineralized boulders ranged in grade from 0.8% to 11.5% copper and 8 grams per ton (g/t) silver to 28 g/t silver, with an average grade of 4.2% copper and 17 g/t silver over a 5km strike, the firm said.
Meanwhile, Tabalosos North West lies 3.5 km immediately west of Tabalosos North East, where grab samples from 16 mineralized boulders ranged in grade from 0.1% to 8.3% copper and 0.2 g/t silver to 109 g/t silver, with an average grade of 2.7% copper and 29 g/t silver over a strike length of 9km.
In addition, a grab sample from a boulder located 8.5km south of Tabalosos South West assayed 12.3% copper and 70 g/t silver in an adjacent anticlinal fold limb.
"Initial reconnaissance exploration at Tabalosos suggests that copper-silver mineralization is laterally extensive, with similar style high-grade boulders discovered along a strike length of 16 kilometres, across 4 kilometres of multiple antiformal structures," said Michael Hudson, Hannan's CEO.
Significant new mineral camp
"A significant new copper-silver mineral camp is developing at San Martin with the Tabalosos discoveries similar in geological style to mineralization found 80 kilometres south at Hannan's Sacanche claim application area, where high-grade samples been recently been defined i.e. 3 metres at 4.1 % copper and 45 g/t silver in outcrop. Further results from the 2019 field program over the large project area remain to be released."
Peru is the world's second-largest copper producer and output is forecast to increase from 2.5 million tonnes (Mt) in 2018 to 3.8Mt by 2027, 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.
Hannan shares gained over 9% Tuesday to stand at C$0.060 each.
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