Sampling Defines Porphyry Target At Belen In Peru

VANCOUVER - Hannan Metals Limited reported on exploration programs at the Belen project area at the Valiente copper-gold porphyry project in central Peru. Follow-up reconnaissance ridge-top soil sampling program at Belen has identified two large coherent copper and gold soil anomalies that extend along a 10-km trend that remains open in multiple directions. Soil geochemistry shows a transition from a larger copper-gold-molybdenum porphyry-style signature associated with Miocene-age intrusions to a peripheral gold+antimony+tellurium epithermal signature typically found in a shallow level epithermal system above a porphyry intrusion. All copper and gold soil anomalies remain open to multiple directions and further sampling is ongoing to delineate the anomalies. Hannan will expand the current ridge-top soil program to cover the entire 10-km trend. Further results are expected shortly.

Michael Hudson, CEO, said, "The Belen copper-gold porphyry target is developing strongly with analytical results continuing to demonstrate robust soil geochemistry over large areas, suggesting association with a zoned porphyry and epithermal mineral system. Due to the dense jungle vegetation and thin soil veneer, outcrops are rare. The low impact surface exploration by the Company has proven very successful in outlining prospective mineralized areas in a highly leached environment. Field and social teams are actively engaged in the area with the target shaping up rapidly to allow drill permitting to commence shortly."

A total of 149 soil samples taken to date show a transition from a copper-gold-molybdenum porphyry-style geochemical signature. The anomaly up to 1,461 ppm copper extends over 1.6 km by 0.8 km and is associated with a Miocene-age cluster of monzonitic to dioritic intrusions. One outcrop channel sample assayed 1m @ 0.31 g/t gold and 380 ppm copper, hosted within a hornblende bearing feldspar porphyry with milky quartz-iron oxide veinlets. An outcropping intrusion in the vicinity was dated at 15.4Ma. Sub-crops in soil sample pits are strongly oxidized and leached with associated silver, zinc, potassium and vanadium.

A peripheral gold-antimony-tellurium soil anomaly up to 85 ppb gold extends 2 km by 0.4 km (around the porphyry-style geochemical signature. This gold-antimony-tellurium association could be representative of a shallow level epithermal system above a porphyry intrusion. There are also indications of gold-copper-zinc anomalous areas that may reflect skarn-style mineralization also common in porphyry environments. Artisanal gold workings have been located downstream from the anomalous soil sampling area and Hannan geologists have panned gold from stream sediment samples.

Hannan will expand the current ridge-top soil program to cover the entire 10-km intrusive trend with a systematic grid sampling program followed by trench sampling. Stream sediment samples will also be collected from creeks to rapidly determine the prospectivity of different areas. Hannan also plans to survey an extensive airborne magnetic survey over the Valiente project area. Field and social teams are actively engaged in the area, with Hannan's policy to undertake exploration activities only within areas where full support from local stakeholders exists.