Hana Mining Ltd.

Hana Mining Ltd.

June 18, 2010 09:00 ET

Hana Mining Expands Banana Zone at Ghanzi Copper-Silver Project by 7 Kilometres

High Grade Intercepts of 2.68% Cu and 23.7 g/t Ag Over 3.0 Metres; 2.32% Cu and 17.5 g/t Ag Over 4 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2010) - Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) (the "Company") is pleased to announce its most recent drilling results based on the completion of 59 new RC holes drilled in the Banana Zone at its Ghanzi Copper-Silver Project in Botswana. These 59 new RC holes extend the mineralized strike length of the Banana Zone by 7,000 metres. No results from any of the new holes were used in the most recent NI 43-101 compliant inferred resource calculation. The mineralization is open along strike and down dip.

Highlights of recent drilling results:

  • Mineralized strike length for the Banana Zone has been increased by 7 kilometres for a total of 44.3 kilometers. The Banana Zone, which contains 2.38 billion lbs of copper and over 45 million ozs of silver, at 0.75% copper cut-off, has a total strike length of 64 kilometres;
  • Drilling is progressing as scheduled to complete 80,000 metres in 2010;
  • High grade intercepts include 2.68% Cu and 23.70 g/t Ag over 3 metres in hole HA-270-R and 2.32% Cu and 17.50 g/t Ag over 4 metres in hole HA-275-R as well as 1.34% Cu and 29.4 g/t Ag over 6.0 metres in hole HA-278-R; and
  • The mineralization remains open along strike and at depth.

Hana Mining's CEO and Chairman, Marek Kreczmer, commented: "The addition of 7 kilometres to the mineralized strike length significantly expands the Banana Zone and advances Hana towards its milestone of increasing the Banana Zone inferred resource to approximately 100 million tonnes. We are of the opinion that the Banana Zone shows the potential to be a stand-alone operation. With the continued drilling successes, the discovery of the Chalcocite Zone and the significant expansion of the known zones, Hana has been presented with two production options and is able to proceed with the development and engineering side of the Ghanzi Copper-Silver Project. As mine development engineering continues, the Company will provide regular updates on its advancements on the property."

Discussion of results: These results have added an additional 7 kilometers of mineralized strike length to the Banana Zone; to date a total of 44.3 kilometres of the 64 kilometer strike length of the Banana Zone has been reported. High grade intercepts from holes HA-270-R (2.68% Cu and 23.7 g/t Ag over 3.0 metres) and HA-275-R (2.32% Cu and 17.5 g/t Ag over 4.0 metres) in sector 50000 (Figure 5) are consistent with high grade pods discovered in prior drilling. Hana has 9 drills on the Ghanzi Project and is progressing well toward completing the planned program of 80,000+ metres for 2010.

To view the drill hole results and accompanying maps, please click on the following link: http://media3.marketwire.com/docs/hanamaps617.pdf

Ghanzi Copper- Silver Project Development Update:

The following on going activities relate to Hana Mining's progression toward completion of a PEA by Q4 2010:

  • Mine modeling is set to begin;
  • Metallurgical work has begun for the Banana Zone at Mintek in Johannesburg, and a Chalcocite Zone sample has been sent to Metcon Research in Tucson, Arizona for leach testing;
  • A preliminary hydrogeology study for groundwater exploration has been completed by Wellfield Consulting of Gaborone. Next phase is ground geophysics followed by drilling; 
  • Environmental and socioeconomic work to define baselines is being conducted by Loci Environmental of Gaborone;
  • The scope of work for geotechnical engineering of surface facilities (buildings, leach pads, tailings) is being finalized; and
  • The scope of work for assessment of the acid rock drainage (ARD) potential of the Ghanzi ore and waste rock is being finalized.

Qualified Person and Quality Assurance/Quality Control:

Joseph Arengi, M. Sc., P. Geo., Vice President of Exploration for Hana Mining is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.

The Company has implemented an industry-standard QA/QC program. For diamond drill samples, core is logged, split by sawing, and sampled by Company staff at site. For RC drill samples, a 35-40 kilogram sample is collected from the cyclone discharge at 1 metre intervals. RC samples are then split 75/25; 75% of the sample is archived and the other 25% provides material for analysis. All samples (both core and RC) are double bagged, sealed and transported in secured wooden crates. Core samples are shipped to ALS Chemex Laboratory Group in Johannesburg and RC samples to Scientific Services Laboratory in Cape Town, South Africa. Standards, duplicates and blanks are inserted into the sample stream. 

Shareholder Meeting Called:

The Company has scheduled a Shareholders' Meeting to be held on August 12, 2010 at 10:00 a.m. (Vancouver time) at the offices of Salley Bowes Harwardt, Suite 1750, 1185 West Georgia Street, Vancouver, British Columbia, for the purposes of approving the proposed spin-out arrangement with New Hana Mining Copper Ltd. All registered shareholders at the close of business on July 12, 2010 will be entitled to vote at the meeting.

About Hana Mining's Ghanzi Copper-Silver Project in Botswana:

The Ghanzi Project is located in the center of the Kalahari Copper Belt in northwestern Botswana. The Ghanzi property covers 2,169 sq. km., and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 49.2 kilometres. This favourable geology extends over the entire strike length of 600 kilometres. Hana Mining released results of its most recent NI 43-101 compliant resource estimate for the Ghanzi Project on April 21, 2010, announcing an inferred resource of 3.9 billion lbs of copper and 62.1 million oz of silver from 177 million tonnes. This resource estimate consists of 73.5 million tonnes grading 1.5% Cu and 19 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.7% Cu and 12 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 7 g/t Ag in Zone 6; all at a cut-off grade of 0.75% Cu. Also included is 83.6 million tonnes grading 0.46% Cu and 3.6 g/t Ag at a cut-off grade of 0.30% in the Chalcocite Zone. 

The Banana Zone exhibits certain areas of higher grade Cu and Ag mineralization, particularly in the Sectors 5000, 20000 and 65000 (Figure 5) which represent an opportunity to locate starter pits and mine initial tonnages at higher than average grades. These higher grade pockets tend to be well within open pit depth parameters and represent opportunities to improve early cash flow and overall returns in development.

The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study is currently underway (funded by the World Bank and the governments of Botswana and Namibia) to support completion of a rail line link that would connect Botswana with the Namibian port of Walvis Bay, on the Atlantic coast. The closest existing railhead to port is at Gobabis, in Namibia, approximately 550 km from our property. Construction has begun on the 600MW expansion of the government-owned Moropule Power Plant, having secured US$825 million project funding in May 2009. The Ghanzi Copper-Silver Project is currently accessed by the paved Trans-Kalahari highway, which passes within 15 km of the property.

The Ghanzi property is one of Africa's premier future copper-silver resources.

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.  

Neither the TSX Venture Exchange or its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) have reviewed nor do they accept responsibility for the adequacy or accuracy of this release.

Contact Information