Indicated Resource of 2.6 Million Tonnes At
8.8% Zinc Equivalent plus Inferred Resource of 1.7 Million Tonnes
At 8.2% Zinc Equivalent
VANCOUVER, July 10, 2017 /CNW/ - Hannan Metals
Limited ("Hannan" or the "Company") (TSX.V: HAN) (OTCPK:
HANFF) is pleased to announce a maiden resource estimate for
its 100%-owned Kilbricken zinc-lead-silver-copper deposit in
Ireland.
Highlights include:
- Total indicated mineral resource of 2.7 million
tonnes at 8.8% zinc equivalent ("ZnEq"), including 1.4
millions tonnes at 10.8% Zneq;
- Total inferred mineral resource of 1.7 million tonnes
at 8.2% ZnEq, including 0.6 million tonnes at 10.4% Zneq;
- This resource estimate is the first for the Kilbricken deposit,
and immediately ranks it as one of the top ten base metal
deposits discovered in Ireland
by tonnes and grade (data sourced from the Irish Exploration,
Mining Division website);
- Two styles of mineralization are evident at Kilbricken. The
upper Chimney Zone demonstrates the classic high-grade (>10%
Zneq) Irish stratabound mineralization targeted by Hannan. This
body has been drilled within an area of 750 metres by 200 metres
and averages 12 metres thickness. The lower Fort Zone was found
later than the Chimney zone and has been tested with fewer drill
holes. It is structurally hosted, lower grade, but thicker,
averaging 40 metres, and drilled within a 400 metre by 200 metres
area.
- Importantly, the initial resource is expandable at all
scales, from near resource to prospect scale, and Hannan has
already commenced a drill resource expansion program;
Mr. Michael Hudson, CEO and
Chairman, states: "The maiden resource is an important milestone
for Hannan. It demonstrates the high-grade potential of the
deposit and immediately ranks Kilbricken as one of the top ten base
metal deposits discovered to date in Ireland. This is
significant initial achievement in a country that is ranked first
in the world in terms of zinc discovered per square kilometre since
the 1950's.
While this resource is substantial, it is also lies open in
all directions with excellent potential for expansion. We
currently have one drill rig operating a resource expansion program
and we will soon be mobilizing additional drill rigs. We are
able to approach our exploration and expansion programs with the
benefit of extensive technical databases and an increased
understanding of the controls on mineralization, providing an
excellent chance for continued discovery."
Resource Expansion Drilling Update
Importantly, the initial resource is expandable at all scales,
from near resource to prospect scale, and Hannan has already
commenced a drill resource expansion program. The objectives
of the 2017 drill program are three-fold:
- To further delineate the underground potential around the
current resource area as shown in Figure 1. Drilling is now
ongoing within this area and initial drill results are expected
within the next three weeks. To date two holes have been
completed for 1,365 metres.
- To test conceptual and advanced exploration targets within 1-5
kilometres defined by recent structural and stratigraphic
interpretation of re-processed 2D and 3D seismic data,
lithogeochemistry and soil geochemistry as shown in Figure 2.
- Test for first order mineralization within the 40 kilometre
under-tested Waulsortian host horizon that exists within Hannan's
100% owned 32,223 hectares of prospecting licences.
Tables 1, 2 and 3 below outline global indicated and inferred
resources for each mineralized body as well as a breakdown of
resources by location for various lower cut off grades.
Figures 1 and 2 show the mineral resource areas, resource expansion
targets, diamond holes and historic prospects at different
scales.
Table 1: Kilbricken
Deposit Indicated Mineral Resources Base Case 5% ZnEq Lower Cut Off
Grade
|
|
Zone
|
Category
|
Cutoff
|
Tonnes
|
Zn%
|
Pb%
|
Ag
g/t
|
Cu%
|
ZnEq%
|
SG
|
|
|
ZnEq%
|
|
|
|
|
|
|
|
Chimney
|
Indicated
|
5
|
1,369,000
|
5.6
|
4.2
|
66
|
0.1
|
10.8
|
3.5
|
Fort
|
Indicated
|
5
|
1,287,000
|
3.7
|
1.4
|
34
|
0.5
|
6.7
|
3.0
|
Total
|
Indicated
|
5
|
2,656,000
|
4.7
|
2.9
|
50
|
0.3
|
8.8
|
3.2
|
|
Table 2: Kilbricken
Deposit Inferred Mineral Resources Base Case 5% ZnEq Lower Cut Off
Grade
|
|
Zone
|
Category
|
Cutoff
|
Tonnes
|
Zn%
|
Pb%
|
Ag
g/t
|
Cu%
|
ZnEq%
|
SG
|
|
|
ZnEq%
|
|
|
|
|
|
|
|
Chimney
|
Inferred
|
5
|
635,000
|
5.9
|
3.6
|
61
|
0.1
|
10.4
|
3.4
|
Fort
|
Inferred
|
5
|
1,046,000
|
3.4
|
2.5
|
30
|
0.3
|
6.8
|
3.0
|
Total
|
Inferred
|
5
|
1,681,000
|
4.4
|
2.9
|
41
|
0.2
|
8.2
|
3.1
|
Table 3: Kilbricken
Deposit Indicated and Inferred Mineral Resources for the Chimney
and Fort Zones at Various ZnEq Lower Cut Off
Grades. The 5% ZnEq base case is highlighted.
|
|
Zone
|
Category
|
Cutoff
|
Tonnes
|
Zn%
|
Pb%
|
Ag
g/t
|
Cu%
|
ZnEq
%
|
SG
|
Chimney
|
Indicated
|
4
|
1,444,000
|
5.4
|
4.1
|
64
|
0.1
|
10.4
|
3.4
|
Fort
|
Indicated
|
4
|
1,452,000
|
3.6
|
1.4
|
33
|
0.5
|
6.5
|
2.9
|
Chimney
|
Inferred
|
4
|
682,000
|
5.7
|
3.5
|
58
|
0.1
|
10.0
|
3.3
|
Fort
|
Inferred
|
4
|
1,194,000
|
3.2
|
2.4
|
30
|
0.3
|
6.5
|
3.0
|
Chimney
|
Indicated
|
5
|
1,369,000
|
5.6
|
4.2
|
66
|
0.1
|
10.8
|
3.5
|
Fort
|
Indicated
|
5
|
1,287,000
|
3.7
|
1.4
|
34
|
0.5
|
6.7
|
3.0
|
Chimney
|
Inferred
|
5
|
635,000
|
5.9
|
3.6
|
61
|
0.1
|
10.4
|
3.4
|
Fort
|
Inferred
|
5
|
1,046,000
|
3.4
|
2.5
|
30
|
0.3
|
6.8
|
3.0
|
Chimney
|
Indicated
|
6
|
1,291,000
|
5.8
|
4.4
|
67
|
0.1
|
11.1
|
3.5
|
Fort
|
Indicated
|
6
|
790,000
|
4.4
|
1.5
|
34
|
0.5
|
7.5
|
3.0
|
Chimney
|
Inferred
|
6
|
586,000
|
6.1
|
3.8
|
63
|
0.1
|
10.8
|
3.4
|
Fort
|
Inferred
|
6
|
876,000
|
3.5
|
2.7
|
31
|
0.3
|
7.0
|
3.0
|
Chimney
|
Indicated
|
7
|
1,173,000
|
6.0
|
4.5
|
70
|
0.1
|
11.5
|
3.5
|
Fort
|
Indicated
|
7
|
407,000
|
4.8
|
1.3
|
43
|
0.8
|
8.5
|
3.0
|
Chimney
|
Inferred
|
7
|
536,000
|
6.3
|
3.9
|
66
|
0.1
|
11.2
|
3.4
|
Fort
|
Inferred
|
7
|
267,000
|
4.2
|
2.6
|
44
|
0.5
|
8.3
|
3.0
|
Note:The zinc
equivalent (ZnEq) value was calculated using the following formula:
ZnEq% = Zn % + (Cu% * 2.102) + Pb% * 0.815) + (Ag g/t * 0.023) with
assumed prices of Zn $2587/t; Cu $5437/t; Pb $2108/t and Ag
$18.44/oz.
|
Details of the Mineral Resource Estimate
The National Instrument 43-101 Mineral Resource estimate was
calculated by Mr. Geoff Reed,
MAUSIMM (CP), of Reed Leyton Consulting Pty Ltd ("Reed Leyton")
from Sydney, Australia. The
resource has an effective date of 10 July, 2017.
Reed Leyton estimated the
Kilbricken Mineral Resource using a drill database of 222 drill
holes for 118,000 metres produced by Lundin Mining Ltd, drilled
from 2010 to 2012. The resource was calculated using
mineralized intercepts from 76 drillholes and a comprehensive
re-interpretation of the geology by Hannan. The resource does
not include any 2017 drilling by Hannan.
A set of cross-sections and level plans were used to construct
three-dimensional wireframe models at approximate cut-offs of 1%
and 3% ZnEq for both the Chimney and Fort zones. All assays
were composited, with a majority composited to two metre lengths,
with a minimum half metre length. No upper cut-off was
applied to zinc but an upper cut off was used for lead and copper
mineralization at the Chimney zone and to lead, copper and silver
at the Fort zone.
Block model grades within the wireframe models were interpolated
in Vulcan by Ordinary Kriging with
secondary check models by inverse distance squared. Classic
density measurements (specific gravity of "SG") were performed on
all samples. Indicated Mineral Resources were defined by at
least 2 holes falling within a 30 metres sample distance, with the
remainder of mineralization greater than 30 metres sample distance
categorized as Inferred Mineral Resources.
The base case mineral resources reported above use a lower
cut-off grade of 5% ZnEq or approximately US$60 per tonne net smelter return value based on
potential underground mining scenarios.
The zinc equivalent (ZnEq) value was calculated using the
following formula: ZnEq% = Zn % + (Cu% * 2.102) + Pb% * 0.815) +
(Ag g/t * 0.023) with assumed prices of Zn $2587/t; Cu $5437/t; Pb $2108/t
and Ag $18.44/oz. Equivalent
recovery for all metals is assumed.
CIM definitions were followed for Mineral Resources. Mineral
Resources are not Mineral Reserves and do not have demonstrated
economic viability. There is no certainty that all or any
part of the Mineral Resources will be converted into Mineral
Reserves.
A metallurgical gap analysis was performed for Hannan and
reported on 30 March 2017, by Dr.
Kurt Forrester of ARN Perspective
Ltd, based on a report by SGS Mineral Services, Lakefield Facility,
dated September 2010 and titled:
"An Investigation by High Definition Mineralogy into the
mineralogical characteristics of Fourteen Rock Samples from A
Carbonate Hosted Base Metal Deposit, Ireland, prepared for Lundin Mining
Exploration". The key finding, based on available
information, is that it is likely a conventional lead-zinc
flotation circuit at Kilbricken would achieve saleable mineral
concentrates. Therefore, it is assumed that lead and silver
will be recovered in a lead concentrate, and a separate copper
circuit may be required.
About the Kilbricken Project
The Kilbricken project lies within the Clare
zinc-silver-lead-copper property which consists of 9 prospecting
licences ("PLs") for a total of 32,223 hectares. The project
is in County Clare, Ireland, the
western edge of which lies 1.5 km east of the town of Ennis.
The Property is underlain by an Upper Devonian to Lower
Carboniferous sequence of sandstone and limestones. The
stratigraphy appears simple, where units are upright and typically
of consistent in thickness across the property. Syn-rift
and/or later structures appear to complicate the geological
framework, particularly in mineralized areas. The Lower
Carboniferous sequence includes the Waulsortian Limestone, which
hosts most of Ireland's important
zinc-lead sulphide deposits, such as the Lisheen (pre-mining
resource 18.9 Mt @ 15.0% Zn+Pb) and Galmoy (pre-mining resource of
6.2 Mt @ 12.4% Zn+Pb) deposits. This data has been sourced
from the Irish Exploration, Mining Division website
http://www.mineralsireland.ie/.
Two mineralized bodies are present at Kilbricken, the upper
Chimney Zone and the lower Fort Zone. Both show an association
with NW-SE striking extensional faults. The Chimney Zone,
being the initial discovery area, has been most intensively drilled
within an area of 750 metres by 200 metres, between 440-530 metres
below surface and averages 12 metres thickness. Mineralization is
controlled by a failed relay ramp between two extensional fault
segments. It is stratabound at the base of the Waulsortian
limestone. The Fort Zone was found later in the Lundin
program and is drilled over an area of 400 metres by 200 metres,
between 480-720 metres below surface with an average thickness of
40 metres. The mineralized body is wedge shaped and transgressive
to the host rock. It follows an area of extensive dissolution of
the host limestone and structurally it is located adjacent to the
zone of maximum displacement of a south dipping extensional fault.
Qualified Person – Mineral Resources: The Mineral
Resources disclosed in this press release have been estimated by
Mr. Geoff Reed, MAUSIMM (CP), owner
of Reed Leyton Consulting Pty Ltd and independent of Hannan Metals
Ltd and have an effective date of 10 July
2017. By virtue of his education and relevant
experience, Mr. Reed is a "Qualified Person" for the purpose of
National Instrument 43-101. The Mineral Resources have been
classified in accordance with CIM Definition Standards for Mineral
Resources and Mineral Reserves adopted by the CIM council on
May 10, 2014. Mr. Reed, MAUSIMM (CP),
has read and approved the contents of this press release as it
pertains to the disclosed Mineral Resource estimates.
A National Instrument 43-101 Technical Report will be filed on
SEDAR within 45 days.
About Hannan Metals Limited (TSX.V:HAN)
Hannan Metals
Limited has 100% ownership of the County Clare Zn-Pb-Ag-Cu
project in Ireland, which consists
of 9 prospecting licences for 32,223 hectares. Zinc remains
in tight supply amidst rising demand and stagnant supply.
Ireland is a leading global
jurisdiction for zinc mining and exploration. It has been stated
that Irish base metal ore field is ranked first in the world in
terms of zinc discovered per square kilometre, and second in the
world with respect to lead. In 2015, Ireland was the world's 10th largest zinc
producing nation with 230,000 tonnes produced.
Over the last decade, the team behind Hannan has forged a long
and successful record of financing and discovering mineral projects
in Europe. Additionally, the team holds extensive zinc
experience, gained from the world's largest integrated zinc
producer of the time, Pasminco Ltd.
Mr. Michael Hudson FAusIMM, Hannan's CEO and Chairman, is a
Qualified Person as defined in National Instrument 43-101 and has
reviewed and approved the technical disclosure contained in this
news release.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, CEO & Chairman
Forward Looking Statements
Certain information set forth in this news release contains
"forward-looking statements", and "forward- looking information"
under applicable securities laws. Except for statements of
historical fact, certain information contained herein constitutes
forward-looking statements, which include the Company's
expectations regarding future performance based on current results,
expected cash costs based on the Company's current internal
expectations, estimates, projections, assumptions and beliefs,
which may prove to be incorrect. These statements are not
guarantees of future performance and undue reliance should not be
placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause the
Company's actual performance and financial results in future
periods to differ materially from any projects of future
performance or results expressed or implied by such forward-looking
statement. These risks and uncertainties include, but are not
limited to: liabilities inherent in mine development and
production, geological risks, the financial markets generally, and
the ability of the Company to raise additional capital to fund
future operations. There can be no assurance that forward-looking
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update
forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Hannan Metals Ltd.