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

Hana Mining Ltd.

November 23, 2010 09:00 ET

Hana Announces High Grade Drilling Results From the South Limb at the Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 23, 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 44 infill diamond drill holes from the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.

Infill drilling was carried out within the South Limb area (between sections 63300 to 65100 on the South Limb (Figure 1) to assist Hana's technical team in converting a substantial amount of the NI 43-101 compliant resources within this area into the Measured and Indicated (M&I) category from the Inferred category.

To view figures 1 through 3, please visit the following link: http://media3.marketwire.com/docs/hmg-figs.pdf.

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 at the end of this press release for the results from all 44 drill holes). The mineralization remains open at depth.

Highlights of recent drilling results:

  • Drilling is progressing as scheduled. Total drilling to date is approximately 68,100 metres.

  • These latest results confirm a strike length of approximately 2 km between section lines 63300 to 65100 on the South Limb (Figure 2).

  • High grade intercepts of 1.45% Cu and 29.0 g/t Ag over 15.0 metres (including 2.75% Cu and 56.0 g/t Ag over 7.0 metres) in hole HA-207-D, 2.55% Cu and 21.0 g/t Ag over 7.0 metres (including 3.16% Cu and 28.0 g/t Ag over 5.3 metres) in hole HA-223-D, 1.50% Cu and 22.0 g/t Ag over 10.0 metres (including 1.62% Cu and 24.0 g/t Ag over 9.1 metres) in hole HA-225-D, and 1.89% Cu and 29.0 g/t Ag over 8.3 metres (including 2.77% Cu and 43.0 g/t Ag over 5.0 metres) in hole HA-226-D.

Discussion of Results:

The recently completed infill drilling program at the South Limb has confirmed the previous drilling results between section lines 63300 to 65100 on the South Limb (Figure 1) and is expected to allow the conversion of resources to M&I from Inferred (Figures 2 and 3). Engineering and modeling have already commenced and the results are expected to be incorporated into the Preliminary Economic Assessment (PEA) which is expected to be completed by the end of calendar year 2010. Drilling was also carried out so as to evaluate the potential for open pit mining operations within the South Limb area.

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;

  • 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:

"We are pleased with the latest drilling results, which contain some very impressive copper and silver grades, from the South Limb area. Like the New Discovery and Northeast Fold areas, the South Limb area also exhibits very good mineralized continuity. We expect that with more infill drilling at the South Limb that a significant amount of mineralized material could be upgraded into the Measured and Indicated category. Based on the above results, we are optimistic that the South Limb Area could host open pit mining activities."

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 limbs, 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.

Table 1: Drill Results from South Limb, Sections 63300 to 65100 – Interval indicates down hole interval
 
Hole #
 
Section 
 
Mineralized
Zone
 
From
(m)
 
To
(m)
 
Interval
(m)
Cu (%) Ag (g/t)
South Limb Infill Diamond Drilling     
HA-191b-D 63375 South Limb 45.00 56.00 11.00 0.99 17.0
  includes     46.00 51.22 5.22 1.90 35.0
  includes     46.83 51.22 4.39 2.14 39.0
HA-192-D 63350 South Limb 115.00 125.00 10.00 1.45 25.0
  includes     117.70 123.70 6.00 2.33 41.0
  includes     118.43 123.70 5.27 2.59 47.0
HA-193b-D 63475 South Limb 57.00 65.00 8.00 0.37 5.0
  includes     61.00 62.00 1.00 1.40 26.0
HA-194b-D 63475 South Limb 98.00 108.00 10.00 0.46 6.0
  includes     104.20 106.00 1.80 1.73 27.0
  includes     104.20 105.00 0.80 3.17 51.0
HA-195-D 63475 South Limb 132.87 140.73 7.86 0.82 12.0
  includes     136.00 138.00 2.00 2.25 36.0
  includes     136.00 140.00 4.00 1.40 21.0
HA-196-D 63550 South Limb 42.00 52.00 10.00 0.75 6.0
  includes     44.00 49.00 5.00 1.20 10.0
  includes     46.08 49.00 2.92 1.66 17.0
HA-197-D 63650 South Limb 40.15 55.42 15.27 0.47 5.0
  includes     51.00 54.60 3.60 1.44 21.0
  includes     51.45 54.60 3.15 1.53 24.0
HA-198-D 63650 South Limb 116.00 130.00 14.00 0.62 10.0
  includes     125.00 130.00 5.00 1.51 26.0
  includes     126.66 130.00 3.34 1.96 34.0
HA-199-D 63650 South Limb 139.00 152.64 13.64 0.68 10.0
  includes     148.75 152.64 3.89 1.96 32.0
HA-200-D 63750 South Limb 43.32 54.00 10.68 0.63 14.0
  includes     50.00 53.00 3.00 1.67 44.0
 
Hole # 
Section  
Mineralized
Zone
 
From
(m)
 
To
(m)
 
Interval
(m)
Cu (%) Ag (g/t)
South Limb Infill Diamond Drilling     
               
HA-201-D 63750 South Limb 109.59 121.90 12.31 0.48 7.0
  includes     120.10 121.90 1.80 2.21 33.0
HA-202-D 63850 South Limb 46.00 59.00 13.00 0.96 14.0
  includes     56.00 59.00 3.00 3.39 59.0
HA-203-D 63850 South Limb 81.00 87.87 6.87 1.34 24.0
  includes     86.00 87.87 1.87 3.43 62.0
HA-204-D 63850 South Limb 125.43 137.00 11.57 0.69 12.0
  includes     134.00 136.00 2.00 2.73 48.0
HA-205-D 63950 South Limb 54.00 69.00 15.00 0.73 11.0
  includes     63.00 68.25 5.25 1.74 30.0
  includes     64.90 68.25 3.35 2.44 43.0
HA-206-D 64050 South Limb 39.00 47.00 8.00 0.75 3.0
  includes     41.00 46.00 5.00 1.05 4.0
  includes     44.62 46.00 1.38 2.23 2.0
HA-207-D 64050 South Limb 91.00 106.00 15.00 1.45 29.0
  includes     93.00 106.00 13.00 1.66 33.0
  includes     99.00 106.00 7.00 2.75 56.0
HA-208-D 64050 South Limb 130.00 139.00 9.00 1.29 20.0
  includes     134.00 138.00 4.00 2.62 40.0
HA-209-D 64125 South Limb 19.38 30.00 10.62 0.20 4.0
  includes     26.00 27.00 1.00 1.05 8.0
HA-210b-D 64125 South Limb 78.00 98.00 20.00 0.70 11.0
  includes     92.00 96.00 4.00 2.94 48.0
 
Hole # 
 
Section 
 
Mineralized
Zone
 
From
(m)
 
To
(m)
 
Interval
(m)
Cu (%) Ag (g/t)
South Limb Infill Diamond Drilling     
HA-211a-D 64225 South Limb 41.00 45.32 4.32 0.73 3.0
  includes     43.00 45.32 2.32 1.11 4.0
  includes     44.00 45.32 1.32 1.52 7.0
HA-211b-D 64225 South Limb 41.00 47.00 6.00 0.69 3.0
  includes     42.32 46.00 3.68 0.96 4.0
  includes     44.57 45.32 0.75 2.15 17.0
HA-212b-D 64225 South Limb 70.00 76.70 6.70 1.35 20.0
  includes     73.00 75.52 2.52 3.20 50.0
HA-213-D 64225 South Limb 115.00 120.00 5.00 1.85 26.0
  includes     117.00 120.00 3.00 3.01 41.0
HA-214-D 64325 South Limb 54.12 57.00 2.88 1.81 25.0
HA-215-D 64450 South Limb 41.00 49.00 8.00 1.02 4.0
  includes     42.95 48.25 5.30 1.41 5.0
HA-216-D 64450 South Limb 87.00 94.00 7.00 0.49 6.0
  includes     88.00 93.00 5.00 0.58 7.0
  includes     92.15 93.00 0.85 1.11 12.0
HA-217-D 64450 South Limb 145.00 150.00 5.00 0.95 13.0
  includes     145.00 149.10 4.10 1.12 15.0
  includes     148.21 149.10 0.89 2.96 37.0
HA-218-D 64550 South Limb 26.13 32.00 5.87 1.59 2.0
  includes     28.00 32.00 4.00 2.19 2.0
  includes     29.70 31.00 1.30 5.31 3.0
      50.00 51.46 1.46 0.16 1.0
HA-219-D 64550 South Limb 135.00 144.00 9.00 0.69 7.0
  includes     135.00 143.00 8.00 0.76 8.0
  includes     141.00 143.00 2.00 1.54 17.0
HA-220-D 64650 South Limb 30.00 36.00 6.00 0.50 3.0
  includes     32.00 34.28 2.28 1.01 4.0
  includes     32.00 33.25 1.25 1.28 5.0
Hole # Section Mineralized
Zone
From (m) To (m) Interval (m) Cu (%) Ag (g/t)
South Limb Infill Diamond Drilling
HA-221-D 64650 South Limb 70.00 77.55 7.55 0.94 16.0
  includes     73.00 77.00 4.00 1.62 28.0
  includes     73.70 75.90 2.20 2.34 36.0
HA-222-D 64650 South Limb 112.00 119.00 7.00 1.10 13.0
  includes     114.00 118.00 4.00 1.74 21.0
HA-223-D 64725 South Limb 39.00 46.00 7.00 2.55 21.0
  includes     39.00 45.54 6.54 2.71 23.0
  includes     40.22 45.54 5.32 3.16 28.0
HA-224-D 64825 South Limb 39.00 44.00 5.00 1.54 15.0
  includes     40.40 44.00 3.60 2.03 20.0
  includes     41.00 44.00 3.00 2.25 24.0
HA-225-D 64825 South Limb 80.24 90.27 10.03 1.50 22.0
  includes     80.24 89.31 9.07 1.62 24.0
HA-226-D 64825 South Limb 118.67 127.00 8.33 1.89 29.0
  includes     120.00 127.00 7.00 2.21 34.0
  includes     122.00 127.00 5.00 2.77 43.0
HA-227-D 64925 South Limb 58.00 62.78 4.78 1.71 26.0
  includes     59.60 62.78 3.18 2.49 39.0
HA-228-D 64925 South Limb 122.13 129.60 7.47 0.87 8.0
  includes     123.00 128.60 5.60 1.06 10.0
  includes     124.00 128.60 4.60 1.14 12.0
HA-229-D 65025 South Limb 34.42 45.00 10.58 0.96 2.0
  includes     36.00 42.00 6.00 1.48 2.0
HA-230-D 65025 South Limb 66.00 71.35 5.35 0.86 10.0
  includes     67.00 70.47 3.47 1.26 16.0
  includes     68.68 70.47 1.79 1.80 25.0
HA-231-D 65025 South Limb 93.30 98.20 4.90 1.67 20.0
  includes     94.19 98.20 4.01 1.94 24.0
  includes     95.00 97.65 2.65 2.58 31.0
HA-232-D 65125 South Limb 64.22 72.72 8.50 1.11 17.0
  includes     64.22 80.00 15.78 0.69 12.0
  includes     68.79 72.72 3.93 2.03 36.0
  includes     79.00 80.00 1.00 1.06 23.0
HA-233-D 65125 South Limb 110.00 118.00 8.00 1.30 18.0
  includes     113.48 117.00 3.52 2.78 39.0

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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