Categories: Precious Metals / Mining Stocks
Topics: Gold Stocks / Copper Stocks

Hannan Metals (TSX-V: HAN)(OTC: HANNF) CEO Michael Hudson on Expanding Previsto Gold Footprint & Advancing Drill Permitting, Peru

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the chairman & CEO of Hannan Metals (TSX-V: HAN)(OTC: HANNF) — Mr. Michael Hudson. Mike, it’s great to have you back on. How are you today, sir?

Michael Hudson: Very well, thanks, Gerardo.

Gerardo Del Real: Well, listen, we had a bit of an overreaction to the last piece of news. Essentially, you drilled into a system but it wasn’t the host rock for the gold. It was a technical success in the sense that we learned what not to drill into but definitely not the ideal outcome everyone would want — including you and me — which is a discovery on hole one. We know that’s the exception, not the rule.

That was followed up by some strong buying in the market with people swooping up those cheap shares, and they’ve already been rewarded with today’s news. You’ve just expanded the Previsto gold prospect footprint by 2.1 kilometers. Not only that, but you did it in sedimentary-hosted rocks — similar to a Carlin-type deposit. 

The stock was up about 10% on solid volume. I’d love some context on this because it was a pleasant surprise.

Michael Hudson: Previsto will continue to give us pleasant surprises, I think, Gerardo. It’s a big, multi-phase system that’s now showing itself in many different ways.

Just to step back: we’ve had this very large soil anomaly, five by five kilometers, and as we’ve prospected, we’ve realized the discovery is only about a year old. Before that, just a few boulders found in creeks a few years ago. 

Earlier this year, we announced the first high-grade outcrops, which were in intrusive rocks — potassium-rich, low-silica rocks. That pointed to an alkaline gold system, and that still appears to be where the best part of the system is at the moment.

But it’s a vast area we’re only starting to peel back. We knew the system was larger, and it’s only going to keep growing. We stepped out 1.3 to 2.1 kilometers southwest from our high-grade areas and found what I call another ‘sea of gold.’ Grades were lower — up to about 0.9 grams per tonne — but the important part is that the system continues into new host rocks: siltstones and limestones. Gold is still present in those rocks and it’s extensive.

The new work covered a two-kilometer by 0.8-kilometer area, and that’s the basis of this press release. It shows the system is big, pumping gold into multiple rock types. Now our focus is on understanding the controls on where higher grades may exist — and I have no doubt they will.

Gerardo Del Real: You mentioned in the news release that you’re gathering as much data as possible on this new part of the system to integrate with the upcoming Previsto drill permit application. Can you speak to how you prioritize that? Because, look, having a ‘sea of gold’ is a good problem to have but it’s a vast area. How are you and the team approaching it?

Michael Hudson: It’s a challenge, but simply put, we’re looking for grade. We know we’re in the system, and the risk is losing the forest for the trees… so we have to step back and figure out what the controls on the high grades are.

We’ve trenched hundreds of meters of plus-gram material, including one trench of 25 meters averaging more than five grams. We’ve extended those high grades over hundreds of meters from that initial trench.

The challenge is that this is steep, jungle-covered terrain. It’s not as simple as walking up to outcrops. We have to peel back vegetation to find rock at surface. It’s layer upon layer of masking. But we’re getting to the point where we can become predictive about the controls. Then it’s about testing those predictions along strike and putting drill pads in the right spots.

We don’t need to define the entire system on day one. Cripple Creek has been mined since 1890 — that’s 130 years of work. Our job is to find the better parts of the system as early as possible, and that comes through good science, rigor, and hard work.

Gerardo Del Real: Frontier exploration at its finest. I know permitting is advancing at Previsto, and you’re doing a lot of behind-the-scenes work. I’m looking forward to having you back on for an update, and of course catching up at the Beaver Creek Precious Metals Summit.

Gold just touched a brand-new record high and looks like it wants to go higher. Yields are rising almost daily, debt levels are unprecedented. Exciting… volatile… but exciting times, Mike. Looking forward to having you back on. Anything to add?

Michael Hudson: It’s a great time to have a massive early-stage gold discovery.

Gerardo Del Real: I couldn’t agree more. Cheers, Mike. We’ll chat soon.

Michael Hudson: Thanks, Gerardo.

Click here to see more from Hannan Metals Ltd.
 

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