Hannan Metals (TSX-V: HAN) CEO Michael Hudson on Insights from Regional Geological Remote Study at the San Martin Copper-Silver Project in Peru
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Chairman and CEO of Hannan Metals (TSX-V: HAN)(OTC: HANNF), Mr. Michael Hudson. Mike, how are you today?
Michael Hudson: G'day, Gerardo. Very well.
Gerardo Del Real: I know you're busy. A large part of that is due to Hannan and the amount of work that you're doing at your basin-scale, what I'm describing as a company-making San Martin copper-silver project. You had some news today that I want to touch on. You completed a 17,500 square kilometer regional geological remote study that yielded some pretty interesting information and validated some information some that you already had.
But before we get to that, COVID has been a hot topic. We know that Peru, much like Texas here in my home state now, is a hot spot. So I just want to ask you, how are things coming along in regards to that? I know that you and the team have been very, very good about community dialogue. Not just the dialogue, but actually getting in there and helping out during these very, very tough times for a lot of people.
Michael Hudson: It hasn't been a great outcome for Peru. There's people much more well-versed on the intricacies, but certainly we know what's happening in the communities in which we're working. Peru went into a very strict lockdown earlier than most. Unfortunately, that hasn't panned out so well. They're starting to loosen that lockdown now for the economic reasons. It's moved from Lima out into the regions. The jungle regions and the high jungle regions are not panning out very well at all from Iquitos down through our areas and down to Pucallpa. Hospital facilities aren't that great.
We've got local people employed who are still talking with locals about what we are doing and what we will be doing, but it's really more of a support exercise at the moment. We've been supporting the communities. Over the last few days, we've delivered food packages. People are really struggling to make ends meet, because they can't work and it's that kind of economy. Hospital facilities are really low, so we've been able to help somewhat in sanitizer and masks and oxygen bottles and those kinds of things, too. Doing our little bit to try and help support, but it really is not a great moment at the moment. I feel very much for the people of San Martin and the region there.
Gerardo Del Real: I hope that in 30 or 45 days time, we're talking about how the community is coming out of it. That aside, Mike, this study, it's a massive 17,500 square kilometers, as I mentioned. What struck me is one, how efficient it is as far as costs go. Me as a shareholder, obviously we want to minimize dilution, we want good stewards of capital leading the companies that we invest and speculate in. I have to say, as a shareholder, I am happy with how efficient this study was and, frankly, all the insights that it provided. Can you provide some context there?
Michael Hudson: It's not rocket science literally, is the line to say. It's something we do regularly in areas, especially in remote areas. We can use satellites that are propelled by rockets initially to get up there in the atmosphere. Then they can cover so many bands, not just the visible bands of course, but lots of the radiation spectrum or the light spectrum. Each different feature on earth has a different response.
Of course, we've got a lot of tree cover in these high jungle areas, but nevertheless, we can see the change in the vegetation. We can see areas that are outcropping. Sometimes where you get different rocks, they'll form different soils of course, and different soils form different plants. So we can start to map everything. That's what we've been able to do over this vast area.
The thing that surprised me, and I've got a few gray hairs in exploration, this is something we've done over many years at many projects, but the quality of the data, of course, satellite technology is improving dramatically. That provides such high resolution data these days. It's free, which is quite incredible for the most part, you just have to make sure you rectify the images and get cloud-free images. We've been able to map the areas that we know that host the copper, and we've been able to extend those over our vast area. It just makes it much more predictable and gives us much more opportunity.
Gerardo Del Real: Excellent. What are the next steps with Hannan? I couldn't help but notice that, once again – and I think it's just a permanent staple now in your news releases – the fact that you've attracted the attention of several major companies. Obviously, these are opportunities that as Chairman and CEO you have to be considerate of and you have to entertain. How are things coming along on that front, and what's next with Hannan?
Michael Hudson: Well...
Gerardo Del Real: Not to put you on the spot or anything, Mike.
Michael Hudson: We've stated it pretty much. We're talking with different groups and we just want everybody to be on the same page. We make those statements to make sure that everybody's on the same page. Nothing to report, other than conversations continue. They may or may not go anywhere as we know, but those discussions are being had. This is a project I can talk about just in general, right? It's not a small project, it's a big project. It's over hundreds of kilometers, literally a new basin-scale discovery.
It has the opportunity to change Peru's outcomes. They're the second largest copper producer on earth today from porphyries, but a new copper district for them would propel them into number one place. That's the play here. That does attract the interest of significant companies, right? Because this is a unique opportunity, no doubt.
Gerardo Del Real: Agreed and well said. As far as the exploration goes, what's next, Mike?
Michael Hudson: Well, we're not on the ground yet. We've just got to look day-by-day, week-by-week as to when it's appropriate to go back. We can go back legally. Exploration companies are starting to work again, but in much more contained programs, where there's drill programs or there's mines that can control the movement of people in basically locked down areas. We're talking about areas over large areas.
We're not making a decision yet, Gerardo, in going back. But there's a hell of a lot more work to be done, I suppose, in compiling all the data that we've got and planning our programs. We've got people, we've got a team of four geologists and support staff ready to go when it's right. We'll be able to start, I think, slowly with one team and then build it up from there. Let's keep talking.
Gerardo Del Real: Excellent. Mike, anything else that you'd like to add?
Michael Hudson: No, it's just building in context and this is just further evidence of that, Gerardo. Thanks for having me again.
Gerardo Del Real: Looking forward to an exciting second half of the year from Hannan, Mike. Thank you for the time.
Michael Hudson: Thanks, Gerardo.