Hana Mining Ltd.
TSX VENTURE : HMG
FRANKFURT : 4LH

Hana Mining Ltd.

December 06, 2010 09:00 ET

Hana Announces High-Grade Copper-Silver Results From Down Dip Drilling at the New Discovery Area of the Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) - Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to announce its most recent drilling results from the completion of 12 diamond drill holes from the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.

Diamond drilling was carried out within the New Discovery area (between sections 50125 to 51250 on the North Limb (Figure 1: http://media3.marketwire.com/docs/Figures1to3Hana.pdf) to test the down dip extensions of copper-silver mineralization.

These results are from new holes and are in addition to those used in the most recent NI 43-101 compliant Inferred mineral resource calculation (see Table 1). The mineralization remains open along strike and at depth.

Highlights of recent drilling results:

  • Drilling is progressing as scheduled. Total drilling on the Banana Zone to date is approximately 68,700 metres.
  • These latest results extend the down dip extension of mineralization by approximately 50 metres at the New Discovery area.
  • Wide intercepts of 0.95% Cu and 20.0 g/t Ag over 32.0 metres (including 1.55% Cu and 34.0 g/t Ag over 16.8 metres) in hole HA-238-D, 0.59% Cu and 10.0 g/t Ag over 36.4 metres (including 2.30% Cu and 41.0 g/t Ag over 5.5 metres) in hole HA-237-D, 0.58% Cu and 13.0 g/t Ag over 32.3 metres (including 1.49% Cu and 42.0 g/t Ag over 8.0 metres) in hole HA-241-D, and 0.49% Cu and 6.0 g/t Ag over 39.3 metres (including 1.13% Cu and 11.0 g/t Ag over 8.0 metres) in hole HA-244-D.

Discussion of Results:

Hana is currently working on an exploration drilling program at the New Discovery area of the Banana Zone. The drilling program is being carried out to delineate the down-dip extensions of copper-silver mineralization. The first fence of 12 drill holes is detailed in this press release (Figure 2: http://media3.marketwire.com/docs/Figures1to3Hana.pdf).

At New Discovery, all 12 drill holes intersected significant copper-silver mineralization at depths ranging between 177-254 metres (Figure 3: http://media3.marketwire.com/docs/Figures1to3Hana.pdf). On average copper-silver mineralization was extended along dip by a distance of approximately 50 metres.

The mineralization remains open along strike and at depth.

Development Update:

The following engineering and consultation activities are ongoing to fulfill the goal of completion of a PEA by Q1 2011:

  • Preliminary mine open pit modeling has been carried out using the April 2010 resource as a basis to define the parameters to be used. A revised model will be completed after the 2010 drilling has been incorporated;
  • Resource modeling is progressing as expected;
  • Metallurgical (column leaching) work, which is being carried out by Metcon Research in Tucson, Arizona, on the Chalcocite Zone is ongoing. Results are expected to be available by the end of the year;
  • Field work for water exploration is ongoing;
  • Stefanutti Stocks Mining Services of Johannesburg South Africa have been engaged by Hana to provide the preliminary tailing impoundment designs for the project;
  • Further details on the Ghanzi Project can be found on Hana's updated website (www.hanamining.com).

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

"While we have drilled the entire 64 kilometre strike length of the Banana Zone, we are only now beginning to test the down dip mineralized extensions of this zone which have the potential to add significant amount of copper and silver to our resource base. The first fence of drill holes 50 metres below known mineralization met our expectations. We fully expect that with deeper drilling that we will continue to encounter similarly thick intersects of high-grade copper-silver mineralization."

Qualified Person and Quality Assurance/Quality Control

The drilling program and results are reviewed and approved by Vivian Park, P.Geo., Senior Geologist/Database Manager for Hana. She is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.

Drill core is logged and photographed. Mineralized intervals are split in half by sawing, and sampled at site. The remainder of the core is kept as a permanent record. Samples are placed into labelled bags, closed and packed into sealed bags that are shipped to ALS Chemex Laboratory in Johannesburg , South Africa. Hana has implemented an industry-standard QA/QC program that includes the blind insertion of certified standards, duplicates and blanks into the sample stream.

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 square kilometres, and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 70 kilometres. This favorable geology extends over an estimated 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 mineral resource of 3.9 billion pounds of copper and 62.1 million ounces of silver from 177 million tonnes. This mineral 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 between sections 49700 to 52000 on the North limb and sections 63000 to 71000 on both the North and South limb, 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 2010. 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.

Table 1: Drill Results from North Limb, Sections 50125 to 51250 – Interval indicates down hole interval
Hole # Section Mineralized Zone From (m) To (m) Interval (m) Cu (%) Ag (g/t)
New Discovery Deep Drilling          
HA-236-D 50125 New Discovery 210.00 221.00 11.00 0.58 2.0
  includes     211.00 214.15 3.15 1.53 5.0
  includes     211.00 212.00 1.00 3.45 10.0
      235.00 244.18 9.18 0.39 6.0
  includes     239.00 243.00 4.00 0.52 9.0
HA-237-D 50250 New Discovery 221.00 257.43 36.43 0.59 10.0
  includes     224.46 238.32 13.86 1.20 21.0
  includes     224.46 230.00 5.54 2.30 41.0
  includes     253.00 257.43 4.43 0.38 7.0
HA-238-D 50425 New Discovery 156.00 188.00 32.00 0.95 20.0
  includes     161.20 178.00 16.80 1.55 34.0
  includes     186.00 188.00 2.00 0.87 12.0
HA-239-D 50525 New Discovery 208.33 236.12 27.79 0.61 11.0
  includes     208.33 220.26 11.93 1.14 21.0
  includes     209.50 216.38 6.88 1.63 32.0
  includes     233.00 235.30 2.30 0.79 11.0
HA-240b-D 50625 New Discovery 226.00 236.00 10.00 0.56 12.0
  includes     227.00 229.00 2.00 1.21 28.0
  includes     227.00 235.00 8.00 0.66 14.0
HA-240b-D     242.00 253.68 11.68 0.30 4.0
  includes     250.00 253.68 3.68 0.53 6.0
HA-241-D 50725 New Discovery 214.00 246.30 32.30 0.58 13.0
  includes     218.83 228.00 9.17 1.41 38.0
  includes     220.00 228.00 8.00 1.49 42.0
  includes     240.00 246.30 6.30 0.60 8.0
HA-242-D 50850 New Discovery 254.00 282.00 28.00 0.37 4.0
  includes     254.00 264.00 10.00 0.44 4.0
  includes     277.00 281.40 4.40 0.68 7.0
Hole # Section Mineralized Zone From (m) To (m) Interval (m) Cu (%) Ag (g/t)
New Discovery Deep Drilling          
HA-243-D 50950 New Discovery 192.22 223.20 30.98 0.53 7.0
  includes     193.00 209.00 16.00 0.68 9.0
  includes     195.00 199.70 4.70 1.20 7.0
  includes     208.00 209.00 1.00 1.63 29.0
  includes     218.79 223.20 4.41 0.58 7.0
HA-244-D 51050 New Discovery 189.72 229.00 39.28 0.49 6.0
  includes     196.00 206.00 10.00 1.05 11.0
  includes     197.00 205.00 8.00 1.13 11.0
  includes     212.00 214.00 2.00 0.57 13.0
  includes     226.00 228.00 2.00 1.12 13.0
  includes     227.40 228.00 0.60 2.55 30.0
HA-245-D 51125 New Discovery 177.00 189.62 12.62 0.15 2.0
HA-245-D     196.34 230.81 34.47 0.40 6.0
  includes     198.00 200.66 2.66 0.81 6.0
  includes     199.00 200.00 1.00 1.12 8.0
HA-245-D     211.00 215.00 4.00 0.65 14.0
  includes     211.00 212.00 1.00 1.13 22.0
HA-245-D     227.00 229.97 2.97 1.40 17.0
HA-246-D 51225 New Discovery 185.80 187.00 1.20 0.26 4.0
HA-246-D     209.38 211.60 2.22 0.74 4.0
HA-246-D     219.00 240.55 21.55 0.40 5.0
  includes     231.00 240.55 9.55 0.75 10.0
  includes     238.00 240.55 2.55 1.61 19.0
HA-247-D 51250 New Discovery 227.00 242.00 15.00 0.36 6.0
  includes     239.00 242.00 3.00 0.93 13.0
  includes     241.22 242.00 0.78 1.41 20.0

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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