Hana Mining Ltd.

Hana Mining Ltd.

February 16, 2010 09:00 ET

Hana Mining RC Drilling in Banana Zone Intersects 1.76% Cu and 26.5 g/t Ag Over 7 Metres in the North Limb, and 1.15% Cu and 15.1 g/t Ag Over 9 Metres in South Limb

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2010) - Hana Mining Ltd., ("HMG" or the "Company") - (TSX VENTURE:HMG) (FRANKFURT:4LH) is pleased to announce completion of 15 new RC drill holes at its Ghanzi sediment-host copper-silver project in Botswana. Results on 12 of these holes are shown below. The 15 new holes extend total mineralization by 2,300 metres along strike for two areas in the Banana Zone; the North Limb (sector 10,000) and the South Limb (sector 60,000). See figure 1 for locations.

Highlights of recent drilling results:

  • Of these 15 new RC holes, 12 holes returned significant mineralization, increasing mineralized strike length in the Banana Zone by 2,300 metres, to a total 25.3 km, now 63% (9,800 metres) greater than reflected in the current NI 43-101 resource estimate.
    • North Limb results (7 holes) extend mineralized strike by 1,000 metres, to 5.4 km, and
    • South Limb results (8 holes) extend mineralized strike by 1,300 metres, to 8.6 km.
  • These latest North Limb results mark a return to an area of the Banana Zone we haven't tested and reported on since May 2009.
    • Grades for both copper and silver are quite good, and we are seeing assays approaching or exceeding 2% Cu grades with intercept thickness that signals a priority development opportunity,
    • We are drilling to close an 1,800 metre gap in this sector now, with assay results on 5 completed holes pending, and
    • Mineralization remains open along strike to the south west, and down dip.
  • The latest South Limb results now close a strike length gap in this sector and generate a total continuous mineralized strike length of 6,800 metres in sectors 55,000 and 60,000.
    • Drilling is progressing to the north now in sector 60,000 to close another 1,600 metre gap between this sector and sector 65,000, and remains open down dip, and
    • Assay results on 5 completed holes are pending.
The results on five new holes in the North Limb (sector 10,000) are as follows:  
  Area   From To Intercept Total Silver
Hole & Sector Hole (metre (metre Length Cu Grade Grade
Number Reference Type depth) depth) (metres) (%) (g/t)
HA-131-R North Limb Down Dip 131 138 7 1.76 26.5
  10,000 including 131 134 3 2.48 40.3
    including 136 138 2 2.34 31.0
    including 137 138 1 4.02 49.3
HA-142-R North Limb Step-Out 88 93 5 1.29 21.1
HA-145-R North Limb Step out 47 52 5 1.38 13.3
HA-129-R North Limb Step-Out 98 119 21 0.42 7.9
  10,000 including 98 101 3 1.76 34.9
HA-147-R North Limb Down dip 69 94 25 0.45 7.5
  10,000 including 76 77 1 1.23 30.0
    including 79 85 6 0.95 16.9
    including 83 86 3 1.64 29.3
    including 84 85 1 3.31 56.0
The results of seven new holes in the South Limb (sector 60,000) are as follows:  
  Area   From To Intercept Total Silver
Hole & Sector Hole (metre (metre Length Cu Grade Grade
Number Reference Type depth) depth) (metres) (%) (g/t)
HA-134-R South Limb Step out 122 131 9 1.15 15.1
  60,000 including 130 131 1 8.66 109.0
HA-149-R South Limb Step-Out 184 188 4 1.08 14.6
  60,000 including 187 188 1 1.75 22.9
HA-144-R South Limb Step-Out 119 123 4 1.07 12.0
  60,000 including 120 123 3 1.27 15.6
    including 122 123 1 2.06 21.1
HA-143-R South Limb Step-Out 124 127 3 1.12 13.5
  60,000 including 124 125 1 1.74 17.9
    including 126 127 1 1.38 17.9
HA-146-R South Limb Step-Out 149 152 3 1.04 13.7
  60,000 including 149 150 1 1.45 17.5
    including 151 152 1 1.48 20.7
HA-136-R South Limb Step-Out 137 141 4 0.85 12.7
  60,000 including 137 138 1 1.24 17.7
HA-140-R South Limb Step-Out 92 96 4 0.81 8.5
  60,000 including 95 96 1 2.43 12.6

All intercepts reported are intersection length, estimated to represent >80% of true thickness.

To view the Figure 1: Location of New Drill Hole Assays In Banana Zone, please visit the following link: http://media3.marketwire.com/docs/HMGFIG1215.pdf

To view the Figure 3:  Drill Hole Locations, North Limb (sector 10,000), please visit the following link: http://media3.marketwire.com/docs/HMGFIG3215.pdf

To view the Figure 2:  Drill Hole Locations, South Limb (sector 60,000), please visit the following link: http://media3.marketwire.com/docs/HMGFIG2215.pdf

Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:

"Our drill results in this northern end of the North Limb (sector 10,000) are very good, and represent a return to an area where we had excellent results previously. We are working a current strike length gap of 1,800 metres that remains in this sector now.

We continue to close gaps in the South Limb between previously released drill results, with the objective of achieving a continuous tested (and mineralized) strike length that connects results in sector 55,000 through sector 65,000 totaling 10.7 km. We are currently drilling off the final 1,600 metre strike length gap in this sector.

Despite the fact that the summer months do bring rain to the property, our drill rig performance has remained good. We continue to generate approximately one RC hole completion per 36 hour period, per rig, and we currently have 3 RC rigs operating on the property. In addition, we have 1 diamond drill rig conducting metallurgical drilling, and a 5th multipurpose drill rig for delineation drilling that will arrive on site soon. This multipurpose drill will RC drill down to the mineralized zone, and then switch to core drilling through mineralization to give us undisturbed samples."

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 RC drill samples, a 35- 40 kilogram sample is collected from the cyclone discharge at 1 meter intervals. Samples are then split 75/25; 75% of the sample is archived and the other 25% provides material for analysis. All samples are double bagged, sealed and transported in secured wooden crates and shipped to Scientific Services Laboratory in Cape Town, South Africa. Standards, duplicates and blanks are inserted into the sample stream. The analytical method for the total Cu, Ag, Pb, and Zn is acid digestion and Atomic Absorption Spectroscopy ("AAS"). The analytical method for soluble Cu is 5% sulfuric acid cold leach followed by AAS. The analytical method for Mo assays is XRF (full matrix correction).

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 mineralized strike length of 29.8 kilometres. This favourable geology extends over the entire strike length of 600 kilometres Hana Mining released results of its first NI 43-101 resource estimate for the Ghanzi Project in June 2009, announcing an inferred resource of 2.0 billion lb of copper and 34.9 million oz of silver from 60.4 million tonnes. This resource estimate is based on a 0.75% Cu cutoff grade, and averages 1.51% Cu and 17.98 g/t Ag. The Banana Zone represents 40.7 million tonnes of this total resource (67%), has been the focus of the Company's drilling and development efforts for 2009, and will remain the primary focus for 2010.

The Banana Zone exhibits certain areas of high grade Cu and Ag mineralization, particularly in the New Discovery area and the fold nose at the northern end of the zone, which represent an opportunity to locate starter pits and mine initial tonnages at higher than average grades. These +2% Cu 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 contemplated rail/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. A planned 600MW expansion of the government-owned Moropule Power Plant continues to advance, with US$825 million project funding secured in May 2009, and key supply contracts awarded. Currently, our project is served by the paved Trans-Kalahari highway, which passes within 15 km of the property.

Hana Mining is focused on demonstrating that the Ghanzi property represents 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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