Hana Mining Ltd.

Hana Mining Ltd.

March 04, 2010 09:00 ET

Hana Mining RC Drilling in Banana Zone Intersects 1.90% Cu and 17.4 g/t Ag Over 7 Meters

Including 3.23% Cu and 29.4 g/t Ag Over 3 Meters, and Separately Intersects 2.55% Cu and 31.8 g/t Ag Over 4 Meters, in South Limb

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2010) - Hana Mining Ltd., ("HMG" or the "Company") - (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to announce completion of 9 new RC drill holes at its Ghanzi sediment-host copper-silver project in Botswana. Results on 8 of these holes are shown below. The 9 new holes extend total mineralization by 1,400 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 9 new RC holes, 8 holes returned significant mineralization, increasing mineralized strike length in the Banana Zone by 1,400 metres. Current total tested strike length for the Banana Zone is now 28.5 km, representing 44.5% of the total estimated 64.0 km strike length in this zone.
    • South Limb results (5 holes) extend mineralized strike by 800 metres, and
    • North Limb results (4 holes) extend mineralized strike length by 600 metres.
  • These latest South Limb results extend strike length and generate a total continuous tested and mineralized strike length of 7,400 metres.
    • Drilling continues to progress to the north east, still in sector 60,000 to close a remaining 800 metre strike length gap, and remains open down dip, and
    • Assay results on 5 completed holes are pending.
  • The latest North Limb results test both strike length and dip continuity to the south west in this sector.
    • We continue drilling to close what is now a 1,000 metre gap in this sector, with assay results on 4 completed holes pending, and
    • Mineralization remains open along strike to the south west, and down dip.

The results of five 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-155-R South Limb Step out 121 132 11 1.36 12.5
  60,000 including 123 130 7 1.90 17.4
    including 124 125 1 1.77 18.3
    including 126 129 3 3.23 29.4
HA-163-R South Limb Step-Out 137 145 8 1.20 13.3
  60,000 including 141 145 4 2.55 31.8
HA-165-R South Limb Step-Out 139 144 5 0.97 13.8
  60,000 including 140 144 4 1.09 15.1
    including 142 144 2 1.26 17.7
HA-154-R South Limb Step-Out 122 130 8 0.66 7.3
  60,000 including 125 129 4 1.05 11.3
    including 127 129 2 1.30 13.0
HA-151-R South Limb Sectional 144 147 3 0.90 9.6
  60,000 including 144 145 1 1.03 9.4
    including 146 147 1 1.04 11.9

 The results on three 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-152-R North Limb Sectional 181 188 7 0.54 13.0
  10,000 including 183 186 3 1.04 27.0
    including 185 186 1 1.68 43.0
HA-164-R North Limb Step-Out 132 135 3 0.65 15.9
  10,000   144 146 2 0.98 34.6
    including 144 145 1 1.69 62.1
HA-161-R North Limb Step out 130 136 6 0.39 9.6
  10,000 including 132 136 4 0.51 13.6

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

To view Figure 1: Location of New Drill Hole Assays In Banana Zone, please visit the following link: http://media3.marketwire.com/docs/hmg0304_fig_1.pdf

To view Figure 2:  Drill Hole Locations, South Limb (sector 60,000), please visit the following link: http://media3.marketwire.com/docs/hmg0304_fig_2.pdf

To view Figure 3:  Drill Hole Locations, North Limb (sector 10,000), please visit the following link: http://media3.marketwire.com/docs/hmg0304_fig_3.pdf 

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

Our continued progress on this drill campaign is very encouraging. The Ghanzi project mineral deposition remains highly predictable, which certainly aids in the process, and we continue on track to complete our 85,000 metre drill program objective by year end. In February, we hosted seven independent analyst groups at the project site and presented the HMG story at the Livingstone Mineral Conference in Zambia, with positive reaction. Also in February, HMG senior management attended the Mining Indaba in Cape Town, South Africa, where we met with a number of banks and metal trading groups. I found the sentiment at this important regional mining industry gathering to be decidedly upbeat, based on strong metals price forecasts and China's continued favourable impact on global metals consumption. Analyst coverage of the Company is growing. Our message is clearly getting out to the investor community, and I remain very pleased with the response."

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 tested strike length of 33.4 kilometres. This favourable geology extends over the entire strike length of 600 kilometres Hana Mining released results of it's 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 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 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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