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

Hana Mining Ltd.

January 17, 2011 09:00 ET

Hana Extends High-Grade Copper-Silver Mineralization by 450 Metres Along Dip at Its Ghanzi Copper-Silver Project in Botswana

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2011) - Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to announce the latest drilling results from the completion of four deep 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 50250 to 50850) on the North Limb (Figure 1) to test the down dip extensions of copper-silver mineralization. 

These results are from new deep holes and are in addition to those used in the most recent NI 43-101 compliant Indicated and Inferred mineral resource calculation which was released in December 2010 (see Table 1). The 43-101-compliant resource estimate had a cut-off depth of 200-225 metres below surface. The copper-silver mineralization remains open at depth.

Highlights of recent drilling results:

  • These latest results extend the down dip extension of mineralization by approximately 450 metres at the New Discovery area.
  • Intercepts of 1.46% Cu and 6.0 g/t Ag over 3.7 metres in hole HA-251-D, 1.14% Cu and 44.0 g/t Ag over 3.2 metres in hole HA-248-D, 1.24% Cu and 11.0 g/t Ag over 5.0 metres in hole HA-249b-D, and 0.72% Cu and 14.0 g/t Ag over 6.1 metres in hole HA-250-D.
  • Hana will resume infill drilling at the Banana Zone in Q1 2011.
  • Exploration drilling will also re-commence at Zones 5 and 6 and at other zones at the Ghanzi Project during Q2 2011.
Table 1: Drill Results from North Limb, Sections 50250 to 50850 – Interval indicates down hole interval
                             
New Discovery Very Deep Diamond Drilling                    
                        Cu (%)   Ag (g/t)
        Mineralized   From   To   Interval  
Hole #   Section    Zone   (m)   (m)   (m)  
HA-248-D   50250   New Discovery   406.68   417.07   10.39   0.45   15.0
includes           407.76   411.00   3.24   1.14   44.0
            426.00   434.29   8.29   0.30   2.0
HA-249b-D   50525   New Discovery   433.60   439.60   6.00   1.11   9.0
includes           434.60   439.60   5.00   1.24   11.0
            445.60   458.18   12.58   0.14   1.0
HA-250-D   50525   New Discovery   649.00   655.12   6.12   0.72   14.0
includes           651.00   655.12   4.12   0.89   20.0
includes           653.00   654.00   1.00   0.07   49.0
            672.00   676.64   4.64   0.25   4.0
HA-251-D   50850   New Discovery   657.80   662.74   4.94   1.20   5.0
includes           659.00   662.74   3.74   1.46   6.0
            677.47   685.00   7.53   0.24   4.0

Discussion of Results:

Hana recently completed its 2010 exploration drilling program at the New Discovery area of the Banana Zone. The drilling program was carried out to expand the resources, convert Inferred resources into the Indicated category and to delineate the down-dip extensions of copper-silver mineralization. The last four drill holes from this drilling program tested down-dip extensions of copper-silver mineralization and are detailed in this press release (Figure 2).

At New Discovery, all four drill holes intersected significant copper-silver mineralization at down hole depths ranging between 407 to 685 metres (Figure 3). The deepest corresponding intercept extended down dip mineralization by 450 metres.

The mineralization remains open at depth and along strike.

To view Figures 1, 2 and 3, please click on the following link: http://media3.marketwire.com/docs/h116.pdf

Development Update:

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

  • Preliminary mine open pit modeling is being carried out using the December 2010 resource. A revised model will be completed and incorporated into the upcoming Preliminary Economic Assessment which is expected to be completed in Q1 2011;
  • Metallurgical work (column leaching) has been completed by Metcon Research in Tucson, Arizona, on the Chalcocite Zone and the oxide portion of the Banana Zone. Results are expected to be available soon;
  • Floatation results for Chalcocite Zone sulphides have been completed and will be announced shortly;
  • New personnel appointments will be announced shortly;
  • Stefanutti Stocks Mining Services of Johannesburg, South Africa have provided a preliminary tailing impoundment design for the project; which will be incorporated into the PEA;

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

"The deep drilling program at the Banana Zone was carried out to demonstrate that copper-silver mineralization continues down dip for significant distances. The latest drilling results proves this. Given that we have intersected copper-silver mineralization at depths of up to 695 metres, and that the December 2010 resource estimate was based only on a maximum depth of 200-225 metres, we now know that with deeper drilling the resources at the Banana Zone will become significantly larger."

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 December 20, 2010, announcing an Indicated mineral resource of 762 million pounds of copper and 16 million ounces of silver from 37.4 million tonnes at a grade of 0.93% copper and 13.4 g/t silver. All of the Indicated resources are from the Banana Zone. The resource estimate also includes 5.6 billion pounds of copper and 85.4 million ounces of silver from 423.9 tonnes. This Inferred mineral resource estimate consists of 225.4 million tonnes grading 0.64% Cu and 8.1 g/t Ag in the Banana Zone, 20.7 million tonnes grading 1.23% Cu and 8.7 g/t Ag in Zone 5, 16.7 million tonnes grading 0.86% Cu and 4.0 g/t Ag in Zone 6, and 161.1 million tonnes grading 0.45% Cu and 3.6 g/t Ag in the Chalcocite Zone; all at a cut-off grade of 0.30% Cu.

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.

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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