Microsoft Word - FINAL 1st Qtr Activties Report_AVS__DPH_MK_151030
Fast Facts
ASX Code: HNR
Capital Structure
Shares on issue: 721.9m Market cap: $2.8 (at 0.4c)
Management Managing Director: Damian Hicks
Exploration Manager: Amanda Scott
Finance & Compliance Manager: Mindy Ku
Non-Executive Directors
Olof Forslund Markus Bachmann Jonathan Murray
Key Projects
Sole Funded
Lapland (Nickel-Copper-PGE) Lannavaara & Rakkuri (Iron) Free-Carried Interest Pahtohavare (Copper-Gold) (JV) Lake Johnston (Nickel) (JV)
QVR (Nickel) (JV)
WA Exploration Database (JV)
1st Quarter Activities Report 2015/2016
During the 1st Quarter (Jul - Sept 2015) Hannans:
Exploration & Business Development
Lapland Nickel-Copper PGE Project - Completed first-pass reconnaissance field trip collecting outcrop and boulder samples for assay and petrographical analysis.
Pahtohavare Copper-Gold Project - JV partner completed diamond drilling campaign at the Central deposit. High-grade Cu-Au-Ag mineralisation intercepted. Stage 2 Metallurgical testwork completed.
QVR Nickel Sulphide Project - JV partner completed one diamond drill hole which returned no significant assays
Sale of Exploration Database - sold exploration database to Neometals Ltd (ASX:NMT) in consideration for a 20% interest in new tenement applied for by Neometals, free-carried through to a Decision to Mine.
Corporate
New opportunities - Continued the search for corporate, project and joint venture partners with the potential to create value for shareholders.
Mine Builder Pty Ltd - Secured general security deed and personal guarantee covering debts owed to Hannans.
During the 2nd Quarter (Oct - Dec 2015) Hannans aims to:
Exploration & Business Development
Lapland Nickel-Copper PGE Project - complete shallow bedrock drilling workplan for submission to the Swedish Mining Inspectorate.
Pahtohavare Copper-Gold Project - subject to funding, complete additional metallurgical testwork on oxide ore and continue geological interpretation.
Corporate
New opportunities - continue search for corporate, project and joint venture partners with the potential to create value for shareholders.
Lovisagruvan AB (AktieTorget:LOVI) - receive notification whether LOVI will proceed to Stage 2 of the Pahtohavare JV.
Avalon Minerals (AS:AVI) - analyse facts associated with termination of the Discovery Zone Heads of Agreement and subsequent decision by the Mining Inspectorate of Sweden to discontinue processing the exploitation concession application.
AGM - hold annual general meeting of shareholders at 2pm on 24 November 2015 at 45 Ventnor Avenue, West Perth
Managing Director 30 October 2015
HANNANS 1st QUARTER ACTIVITIES REPORT 2015/2016 2
EXPLORATION &
BUSINESS DEVELOPMENT
LAPLAND NICKEL-COPPER-PGE PROJECT
The Lapland Project is a major new greenfields exploration project located in north-eastern Sweden (approximately 100km north-east of Kiruna) with the potential to host nickel-copper-platinum group elements and gold mineralisation.
EXPLORATION
During the quarter Hannans completed a first-pass reconnaissance mapping and sampling programme across multiple prospect areas within the Lapland Project (refer Figure 3 below). The field trip was completed by Amanda Scott, Exploration Manager, and Damian Hicks, Managing Director. The main objectives for the field trip were:
Key stakeholder introductions;
Site familiarisation; and
Identification, mapping and sampling of mafic-ultramafic bedrock and boulders.
All three of the objectives were met with important introductions having been made to key local stakeholders. Site familiarisation was completed on the majority of the prospect areas and importantly access tracks into the various prospects were identified which will enable future work to be completed with the least amount of disturbance. Most importantly mafic and ultramafic rocks were identified at a number of the prospects (refer Table 1 in the Appendix).
Figure 1: Hannans' Exploration Manager Amanda Scott inspecting outcropping gabbro from the Merasjoki Prospect.
The outcome of the work completed to date was that the Jalokoski and Kaalamakoski prospects will become the primary focus for future exploration at the Lapland Project. Unfortunately it was not possible to access the interesting Suorkivaara prospects during the field trip.
The next key milestone will be to confirm the presence of magmatic sulphides. We will aim to achieve this through additional mapping of the ultramafic rocks and shallow bedrock drilling.
The Jalokoski prospect contained the only ultramafic sample (SR15005) collected during the field trip. It showed evidence of differentiation which typically indicates dynamic magma emplacement which is generally required for nickel sulphide mineralisation. Nearby sample SR15004 (refer Figure 2 below), whilst undifferentiated, was the only sample to contain olivine suggesting that it may have formed from a more primitive magma. Sample SR15004 also contained trace amounts of pentlandite. This may be however the result of secondary alteration rather than evidence for primary magmatic sulphides.
The remaining samples, with the exception of sample SR15012, while gabbroic are undifferentiated and represent the typical product of a slow-cooled, mafic magma. These undifferentiated gabbros are associated alkaline gabbro complexes and the generally high phosphorus values support this conclusion. There is no chemical or petrographic evidence of magmatic sulphides in the samples collected to date.
At the conclusion of this first round of exploration a decision was made to relinquish a number of permits within the Lapland Project area that were deemed to be less prospective and a pro rata refund of the permit application fees has been received from the Swedish Mining Inspectorate.
Figure 2: Outcrop samples from the Jalokoski Prospect. Note the sample numbers are the petrographic sample number and not the chemical analysis number reported in Table 1. SRTS15010 refers to SR15005 and SRTS15011 refers to SR15004.
WORK PLAN
The exploration plan for the next twelve months includes additional stakeholder meetings, preliminary environmental baseline investigations, detailed reconnaissance mapping of ultramafic lithologies at Jalokoski and Kaalamakoski, top-of-bedrock drilling and possibly in-fill airborne gravity and electromagnetic surveys. This work will improve our understanding of the social, environmental and geotechnical (geological, geochemical and geophysical) characteristics of the Lapland Project.
JOINT VENTURE PARTNER
Hannans will continue the search for a partner with the technical expertise and financial strength to drive the project forward.
Continued…
Figure 3: Location Map showing the location of the Lapland Cu-Ni-PGE Project, northern Sweden on airborne magnetic imagery.
PAHTOHAVARE PROJECT
The Pahtohavare Copper-Gold Project is located approximately 8km south-west of Kiruna, northern
Sweden. Joint venture partner Lovisagruvan AB is funding the costs of exploration.
DIAMOND DRILLING - CENTRAL DEPOSIT
At the end of the last Quarter, diamond drilling commenced at the Pahtohavare Copper-Gold Project (refer Figure 8 below) through Hannans' joint venture partner, Swedish mining company Lovisagruvan AB who funded all the costs of the program pursuant to the joint venture announced to ASX on 27 March 2015.
The primary aim of the diamond drilling programme was to test the continuity of mineralisation (refer Figure 5 below) between existing drill profiles of the northern part of the Central oxide deposit. A total of 8 new diamond holes and 1 diamond tail were completed for a total of 760.3m (including overburden) (Refer Table 2 in the Appendix for all drillhole information).