Hana Mining Ltd.

Hana Mining Ltd.

July 08, 2010 09:00 ET

Hana Mining Comments on Share Price-Drilling Continues

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2010) - Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) (the "Company") announces that its recent share price is a result of market fluctuation only and that it is not aware of any material undisclosed information or corporate developments that would account for the price volatility. The Company is continuing its drilling program on the Banana Zone at its Ghanzi Copper-Silver Project in Botswana and currently has eight drilling rigs in operation. Assay samples are currently undergoing testing and results will be made public upon completion. The Company is well funded and will continue to proceed with its drilling program and the ongoing engineering studies to assess the feasibility of the Ghanzi Project development.

Recent drilling highlights include:

  • Mineralized strike length for the Banana Zone has been increased by 7 kilometres for a total of 44.3 kilometers. The Banana Zone, which contains 2.38 billion lbs of copper and over 45 million ozs of silver, at 0.75% copper cut-off, has a total strike length of 64 kilometres;

  • Drilling is progressing on schedule to complete 80,000 metres in 2010;

  • High grade intercepts include 2.68% Cu and 23.70 g/t Ag over 3 metres in hole HA-270-R and 2.32% Cu and 17.50 g/t Ag over 4 metres in hole HA-275-R as well as 1.34% Cu and 29.4 g/t Ag over 6.0 metres in hole HA-278-R;

  • The mineralization remains open along strike and at depth; and

  • The goal of drill testing the entire Banana Zone will be achieved in 2010.

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 49.2 kilometres. This favourable 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 resource of 3.9 billion lbs of copper and 62.1 million oz of silver from 177 million tonnes. This 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 in the Sectors 5000, 20000 and 65000 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.

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.

Neither the TSX Venture Exchange or its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) have reviewed nor do they accept responsibility for the adequacy or accuracy of this release.

Contact Information