VANCOUVER, March 27, 2018 /CNW/ - Hannan Metals
Limited ("Hannan" or the "Company") (TSX.V: HAN)
(OTCPK: HANNF) is pleased to present an update on exploration
completed for the last year and announce plans are underway for a
major drilling program to test geological, seismic and soil targets
on its Kilbricken zinc-lead-silver prospect near Ennis and on other
prospects in the group's extensive prospecting licence area in
Co. Clare, Ireland.
Key points:
- Following a successful exploration program completed by Hannan
over the last year, the Company is now planning a 20,000 metre
drill program to test geological, seismic and soil targets
generated both at Kilbricken and across Hannan's large Clare
prospecting licence. Immediate priorities on the regional
basin-scale are structural trends evident in seismic data that
coincide with seven significant geochemical targets within a 12
kilometre untested trend.
- Hannan's first year diamond drill program comprised 12 holes
for 6,492 metres and focused on expanding the Kilbricken resource.
Many drill holes intersected significant mineralization which
extended both the Fort and Chimney Zones (Tables 1-2, Figures 1-2).
Drill highlights include DH 17-3679-217 ("DH217") at the Fort Zone,
that was one of the most mineralized ever drilled at the
property:
-
- 8.0 metres @ 4.1% Zn, 33.7% Pb and 174 g/t Ag (37.9%
Zn+Pb) from 528 metres;
- 3.4 metres @ 5.2% Zn, 4.3% Pb and 33 g/t Ag (9.5%
Zn+Pb) from 570 metres;
- 26.6 metres @ 7.5% Zn, 0.9% Pb and 14 g/t Ag (8.4%
Zn+Pb) from 588 metres;
- A maiden resource1 was established
comprising 2.7 million tonnes at 8.8% zinc
equivalent ("ZnEq"), including 1.4 million tonnes at 10.8%
ZnEq indicatedAND inferred resources of 1.7 million tonnes at 8.2%
ZnEq, including 0.6 million tonnes at 10.4% ZnEq. for Kilbricken,
which immediately ranked it as one of the top ten base metal
deposits in Ireland by tonnes and grade (data sourced from the
Irish Exploration, Mining Division website);
- Close to 1,000 surface geochemical samples were collected which
defined seven new anomalous areas within a 12km by 2km long
north-west trending multi-element geochemical anomaly;
- A 40.6 line kilometre 2D seismic survey that delivered a
critical new set of subsurface data across much of the Clare
prospecting licence;
- Locked cycle metallurgical testwork on massive sulphide
mineralization from Kilbricken is now underway with Wardell Armstrong with results available Q2
2018;
- Hannan has now made all cash payments totaling US$1,000,000 (€810,000) to Lundin Mining Ltd to
complete its purchase of the project. Lundin will retain a 2% net
smelter return royalty on all sales of mineral products extracted
from the project area, subject to certain buy back
provisions.
Mr Michael Hudson, Chairman
& CEO states, "We are delighted with the progress we have made
over the last year since listing. After completing our purchase
from Lundin Mining we now own one of the few high-grade zinc-rich
sulphide discoveries made over the last decade in Ireland within a strategically important,
regional-scale land package. We have established a maiden resource
estimate which our drilling has already expanded, while our seismic
and geochemical work has unlocked the potential which will form the
basis for current and future drilling targets."
After raising a total of C$4.8M in
February and August 2017, Hannan has quickly progressed to become
one of Ireland's leading exploration companies. The Irish midlands
are a high pedigree zinc district, long favoured by major mining
companies due to the presence of large high-grade deposits often
with simple process flowsheets and high value low impurity
concentrates. Hannan's work to date at the Clare project has
focused on the capture of new data, including extensive drilling,
geological, seismic and geochemical work programs within its large
prospecting licence package. The exploration team has completed all
work safely, to plan, and to budget with full community
cooperation, and is now planning for follow-up work on a range of
resource expansion to regional scale targets with 20,000 metres of
drilling, which remains subject to further financings during
2018/19.
Twelve holes have been completed by Hannan at Kilbricken for a
total of 6,492 metres over the last year. Since discovery of the
Kilbricken resource ten years ago, total drilling on the project
comprises 163,017 metres with an estimated US$30,000,000 spent on exploration.
Hannan's drilling initially focused on expanding the resource at
Kilbricken with the many holes intersecting significant
mineralization and extending both the Fort and Chimney Zones
(Figures 1-2). The true thickness of mineralized intervals at
Kilbricken is interpreted to be greater than 95% of the sampled
thickness. Drill highlights include:
DH 17-3679-217 ("DH217") at the Fort Zone, one of the most
mineralized ever drilled at the property:
- 8.0 metres @ 4.1% Zn, 33.7% Pb and 174 g/t Ag (37.9%
Zn+Pb) from 528 metres, including 3.2 metres @ 8.4% Zn, 72.8%
Pb and 388 g/t Ag (81.2% Zn+Pb) from 528 metres;
- 3.4 metres @ 5.2% Zn, 4.3% Pb and 33 g/t Ag (9.5%
Zn+Pb) from 570 metres;
- 26.6 metres @ 7.5% Zn, 0.9% Pb and 14 g/t Ag (8.4%
Zn+Pb) from 588 metres, including18.8 metres @ 8.8% Zn, 1.1%
Pb, 19 g/t Ag (9.9% Zn+Pb) from 588 metres;
DH 17-3679-218 ("DH218"), drilled at Fort Zone intersected
massive sulphides within a down-hole thickness of 55 metres:
- 4.0 metres @ 0.7% Zn, 8.9% Pb and 31 g/t Ag (8.6%
ZnEQ) from 526 metres, including 1.4 metres @ 1.6% Zn, 15.2%
Pb and 53 g/t Ag from 526 metres and 1.0 metres @ 0.4% Zn, 13.8% Pb
and 46 g/t Ag from 529 metres;
- 6.0 metres @ 2.5% Zn, 1.8% Pb and 13 g/t Ag (4.4%
ZnEQ) from 544 metres, including 2.1 metres @ 5.0% Zn, 3.7% Pb
and 25 g/t Ag from 548 metres; 6.4 metres @ 4.8% Zn, 1.3% Pb
and 15 g/t Ag (6.3% ZnEQ) from 558 metres, including 1.1
metres @ 13.3% Zn, 3.1% Pb, 34 g/t Ag from 558 metres;
- 10.0 metres @ 3.4% Zn, 1.0%Pb and 13 g/t Ag (4.7%
ZnEQ) from 571 metres;
DH 17-3679-219 ("DH219"), a 50 metre step out hole from the Fort
Zone intersected massive sulphide mineralization within a total
down-hole thickness of 92.9 metres:
- 8.4m @ 8.0% ZnEQ (6.2% Zn,
0.9% Pb, 15 g/t Ag and 0.35% Cu) from 599.0m, including 1.4m @ 20.8%
ZnEQ (16.8% Zn, 3.5% Pb, 30 g/t Ag, 0.2% Cu) from 604.0m
- 12.8m @ 5.1% ZnEQ (3.2% Zn,
1.8% Pb, 13g/t Ag and 0.05% Cu) from 631.5m, including 0.9m @ 17.8%
ZnEQ (15.3% Zn, 2.1% Pb, 25 g/t Ag, 0.1% Cu) from 643.4m
DH 17-3679-220 ("DH220") first drill hole to test along strike
from the Chimney Zone, was a 75 metre step out:
- 3.3m @ 10.4% ZnEQ (3.6% Zn,
6.5% Pb, 58 g/t Ag and 0.1% Cu) from 477.0m, including 1.0m @ 18.6%
ZnEQ (3.7% Zn, 14.5% Pb, 121 g/t Ag, 0.2% Cu) from
478.6m
The remaining eight drill holes of the 2017 program (DH
17-3679-221 through to DH 17-3679-229; DH 17-3679-225 was abandoned
at 72 metres) (see Tables 1 and 2 and Figure 1) were drilled
outside the Kilbricken resource area, based primarily on soil
anomalies. Hole 17-3679-221 intersected anomalous copper
mineralization 300 metres along strike from the Fort Zone. Hole
17-3679-226, drilled up dip from the resource area, intersected
hematite alteration which is considered a good indicator of
proximity to mineralization. Drill hole 17-3679-228 contained both
pyrite at the base of reef with intense dolomitization and a fault
in the stratigraphic footwall, which indicates a drill target at
shallower levels up-dip of from the resource area. The remaining
five holes did not intersect significant mineralization or
alteration (Figure 1).
A maiden resource1 estimate was calculated for the
Kilbricken project by Hannan using drill hole data acquired prior
to Hannan's involvement in the project. A
total indicated mineral resource of 2.7 million
tonnes at 8.8% zinc equivalent ("ZnEq"), including 1.4
million tonnes at 10.8% ZnEq and a total inferred mineral
resource of 1.7 million tonnes at 8.2% ZnEq, including 0.6
million tonnes at 10.4% ZnEq was calculated. This resource estimate
immediately ranks Kilbricken 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);
Geochemical sampling grids at Hannan's Clare County project now
cover >200 km2 with a soil sample spacing of
500m x 250m (Figure 2). Over the Kilbricken prospect, a
30 km2 area was covered with a denser grid with
250m x 250m spaced samples. Recent sampling by Hannan
now comprises a total of 961 samples and has defined seven new
anomalous areas, including a 12km by 2km long north-west trending
multi-element geochemical anomaly. Within this trend there are four
Kilbricken-sized multi-point anomalies which have never been drill
tested, including a southerly extension to the Ballyhickey historic
mine (Figure 2).
Late in 2017 a 40.6 line kilometre 2D seismic survey was carried
out on the Company's 100%-owned County
Clare zinc project, which hosts the Kilbricken
zinc-lead-silver deposit in Ireland. The regional seismic
survey is a first for the area and has delivered a critical new set
of subsurface data across Hannan's 35,444 hectare prospecting
licence (Figure 1), which will form the basis for current and
future drill targeting and prioritization. Combined with earlier
surveys Hannan now owns 68 kilometres of 2D seismic and a 1.5
square kilometre 3D seismic survey. Hannan has also invested
considerable time processing historic seismic data acquired in 2011
and 2012 by earlier operators, to further refine the structural
architecture on the project.
Hannan commenced locked cycle metallurgical testwork utilizing
the services of Wardell Armstrong
late in 2017 and results will be available during Q2 2018. During
2017 the Company announced the results of a gap analysis on
mineralogical investigations on the Kilbricken project, Ireland by
Dr. Kurt Forrester of Arn
Perspective Ltd. Based on this study and the available information,
it is likely a conventional lead-zinc flotation circuit at
Kilbricken should produce a saleable mineral concentrate.
The Company also commenced a formal technical collaboration and
agreement with iCRAG at the University College Dublin during 2017.
iCRAG is an EU and industry funded research centre with experts in
Irish mineral deposits which will aid in geological understanding
and targeting of additional mineralization on Hannan's Clare
licences.
Hannan has now made all cash payments totaling US$1,000,000 to Lundin Mining Ltd to complete its
outright purchase of the project. The project was assigned to
Hannan, and was acquired, effective September 21, 2016, pursuant to an Assignment
Agreement between the Irish Minister for Communications, Climate
Action and Environment, Hannan and Lundin Mining Exploration
Limited ("Lundin"), a subsidiary of Lundin Mining Corporation
(TSX:LUN). Under a separate Asset Purchase Agreement, dated
June 3, 2016, Hannan purchased all
exploration data associated with the project from Lundin for a cash
payment of US$150,000. Hannan has now
made two additional cash payments to Lundin of US$425,000 each in September 2017 and March
2018. Lundin will retain a 2% net smelter return royalty on
all sales of mineral products extracted from the project area,
subject to a 0.5% buy back right of Hannan for US$5,000,000, which must be exercised within one
year from the date of commercial production. Hannan is required to
pay Lundin a one-time bonus payment of US$5,000,000 within the earlier of (i)
Hannan Ireland's decision to proceed
with mine construction or (ii) within 90 days of the establishment
of a commercial financing to finance capital costs for mine
construction.
About Hannan Metals Limited (TSX.V:HAN) (OTCPK: HANNF)
Hannan Metals Limited has 100% ownership of the County
Clare Zn-Pb-Ag-Cu project in Ireland, which consists of 9 prospecting
licences for 35,444 hectares. Zinc remains in tight supply
amidst rising demand and stagnant supply. Ireland is a leading
global jurisdiction for zinc mining and exploration. In 2015,
Ireland was the world's 10th largest zinc producing nation with
230,000 tonnes produced.
The maiden mineral resource1, dated July 10, 2017, immediately ranked Kilbricken as
one of the top ten base metal deposits discovered in Ireland by tonnes and grade. Total indicated
mineral resources were calculated as 2.7 million tonnes at 8.8%
zinc equivalent ("ZnEq"), including 1.4 million tonnes at 10.8%
ZnEq and total inferred mineral resources of 1.7 million tonnes at
8.2% ZnEq, including 0.6 million tonnes at 10.4% ZnEq.
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 Chairman and CEO, a
Qualified Person as defined in National Instrument 43-101, has
reviewed and approved the technical disclosure contained in this
news release.
NI 43-101 Technical Report:
On August 22, 2017, Hannan filed an independent
National Instrument 43-101 Technical Report (the "NI 43-101
Technical Report") on The Mineral Resource Estimate for the
Kilbricken Zinc-Silver-Lead-Copper Project Co. Clare, Ireland For Hannan Metals Ltd in
support of the Company's news release dated July 10, 2017. The NI 43-101 Technical Report was
authored by Mr. Geoff Reed of Reed
Leyton Consultants and Dr. John
Colthurst who are independent "qualified persons" as defined
by National Instrument 43-101. The NI 43-101 Technical Report may
be found under the Company's profile on SEDAR
at www.sedar.com and on the Company's website
at www.hannanmetals.com.
On behalf of the Board,
"Michael
Hudson"
Michael Hudson, Chairman &
CEO
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: The Company's expectations regarding the current drill
program, 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.
Table 1: Highlight intersections Hannan first
year of drilling at the Kilbricken Project, Clare,
Ireland.
Lower cut-off 3% ZnEq.
HOLE
|
|
From
|
To
|
Width
(m)
|
Zn%
|
Pb%
|
Ag
ppm
|
Cu%
|
ZnEq%
|
Date
Reported
|
DH217
|
|
528.0
|
536.0
|
8.0
|
4.1
|
33.7
|
174
|
0.1
|
35.8
|
July 20,
2017
|
|
incl.
|
528.0
|
531.2
|
3.2
|
8.4
|
72.8
|
388
|
0.1
|
76.9
|
July 20,
2017
|
|
|
570.0
|
573.4
|
3.4
|
5.2
|
4.3
|
33
|
0.1
|
9.6
|
July 20,
2017
|
|
|
588.0
|
614.6
|
26.6
|
7.5
|
0.9
|
14
|
0.1
|
8.7
|
July 20,
2017
|
|
incl.
|
588.0
|
606.8
|
18.8
|
8.8
|
1.1
|
19
|
0.1
|
10.3
|
July 20,
2017
|
|
|
622.6
|
656.4
|
33.8
|
0.0
|
0.1
|
11
|
0.3
|
0.9
|
July 20,
2017
|
DH218
|
|
526.0
|
530.0
|
4.0
|
0.7
|
8.9
|
31
|
0.0
|
8.6
|
Sept 18,
2017
|
|
incl.
|
526.0
|
527.4
|
1.4
|
1.6
|
15.2
|
53
|
0.0
|
15.2
|
Sept 18,
2017
|
|
incl.
|
529.0
|
530.0
|
1.0
|
0.4
|
13.8
|
46
|
0.0
|
12.8
|
Sept 18,
2017
|
|
|
544.0
|
550.0
|
6.0
|
2.5
|
1.8
|
13
|
0.0
|
4.4
|
Sept 18,
2017
|
|
incl.
|
547.9
|
550.0
|
2.1
|
5.0
|
3.7
|
25
|
0.1
|
8.7
|
Sept 18,
2017
|
|
|
557.6
|
564.0
|
6.4
|
4.8
|
1.3
|
15
|
0.1
|
6.3
|
Sept 18,
2017
|
|
incl.
|
557.6
|
558.7
|
1.1
|
13.3
|
3.1
|
34
|
0.1
|
16.9
|
Sept 18,
2017
|
|
|
571.2
|
581.2
|
10.0
|
3.4
|
1.0
|
13
|
0.1
|
4.7
|
Sept 18,
2017
|
DH219
|
|
599.0
|
607.4
|
8.4
|
6.2
|
0.9
|
15
|
0.4
|
8.0
|
Nov 27,
2017
|
|
incl.
|
604.0
|
605.4
|
1.4
|
16.8
|
3.5
|
30
|
0.2
|
20.8
|
Nov 27,
2017
|
|
|
631.5
|
644.3
|
12.8
|
3.2
|
1.8
|
13
|
0.1
|
5.1
|
Nov 27,
2017
|
|
incl.
|
643.4
|
644.3
|
0.9
|
15.3
|
2.1
|
25
|
0.1
|
17.8
|
Nov 27,
2017
|
DH220
|
|
477.0
|
480.3
|
3.3
|
3.6
|
6.5
|
58
|
0.1
|
10.4
|
Nov 27,
2017
|
|
incl.
|
478.6
|
479.5
|
1.0
|
3.7
|
14.5
|
121
|
0.2
|
18.6
|
Nov 27,
2017
|
Note 1: 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.
|
Table 2: Collar Information for Resource
Expansion Program at the Kilbricken Project (Irish National
Grid)
HoleID
|
East
|
North
|
Azimuth
|
Dip
|
RL
|
Depth (m)
|
DH217
|
139133
|
176006
|
020
|
-82
|
22.433
|
714
|
DH218
|
139165
|
176035
|
010
|
-81
|
22.735
|
651
|
DH219
|
139168
|
175979
|
0
|
-90
|
22.443
|
762.4
|
DH220
|
140340
|
176010
|
182
|
-85
|
24.245
|
530
|
DH221
|
139303
|
175861
|
075
|
-80
|
20.34
|
763.4
|
DH222
|
139843
|
175739
|
054
|
-71
|
26.83
|
550
|
DH223
|
139534
|
176698
|
020
|
-55
|
24.373
|
190
|
DH224
|
139863
|
176457
|
25
|
-65
|
23.417
|
379.5
|
DH225
|
139520
|
176659
|
200
|
-75
|
22
|
72
Abandoned
|
DH226
|
139520
|
176659
|
30
|
-75
|
22
|
417
|
DH227
|
139400
|
176540
|
0
|
-80
|
20.277
|
393
|
DH228
|
140421
|
176300
|
45
|
-65
|
25.804
|
375
|
DH229
|
140938
|
176857
|
270
|
-55
|
38.93
|
360
|
SOURCE Hannan Metals Ltd.