Hana Mining Ltd.

Hana Mining Ltd.

August 13, 2012 07:00 ET

Hana Mining Continues to Hit High-Grade Copper-Silver Mineralization at the South Limb Definition Area

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2012) - Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE:HMG)(FRANKFURT:4LH)(BOTSWANA:HANA) is pleased to announce drilling results from the completion of eight infill diamond drill holes in the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.

Infill and down dip drilling was carried out in late 2011 on the South Limb Definition area (between sections S62875 - S65625; Figures 1 and 2: http://media3.marketwire.com/docs/hmg-0813-fig1-2.pdf) to convert a substantial amount of the December 2010 NI 43-101 compliant resources within this area into the Indicated category from the Inferred category and to extend current Indicated resources down dip.

These results are from holes not previously released but were included in the most recent May 2012 NI 43-101 compliant mineral resource calculation (see Table 1 at the end of this press release for the results from all eight drill holes). The South Limb Definition drill results have been revisited due to the area showing underground potential. The mineralization still remains open at depth.

Highlights of drilling results:

  • These results continue to confirm the continuity of copper-silver mineralization at the South Limb Definition area of the Banana Zone.
  • Core lengths intercepts of
    • 1.99% CuEq(1) (1.69% Cu and 20.0 g/t Ag) over 4.4 metres within a wider mineralized interval of 1.62% CuEq(1) (1.39% Cu and 16.0 g/t Ag) over 5.58 metres in hole HA-464-D,
    • 1.35% CuEq(1) (1.12% Cu and 16.0 g/t Ag) over 5.77 metres within a wider mineralized interval of 0.83% CuEq(1) (0.69% Cu and 9.0 g/t Ag) over 11.40 metres in hole HA-475-D,
    • 1.45% CuEq(1) (1.26% Cu and 13.0 g/t Ag) over 2.47 metres within a wider mineralized interval of 0.47% CuEq(1) (0.41% Cu and 4.0 g/t Ag) over 12.51 metres in hole HA-477-D,

(1) Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not adjusted for metallurgical recoveries. The formula used is as follows: CuEq = Cu% + (Ag g/t x 0.01458).

Discussion of Results:

The infill drilling program within the South Limb Definition area of the Banana Zone has confirmed that copper-silver mineralization is high-grade and continuous at depth while maintaining width (Figure 3: http://media3.marketwire.com/docs/hmg-0813-fig3.pdf).

Drilling has reached a maximum vertical depth of 220 metres from surface and shows a continuous, high-grade true thickness averaging 5 metres. The mineralization in this area has been found to be predominately in the D'Kar Formation within the lower Marl Unit and mainly consists of Bornite and Chalcocite. Although the mineralization is generally thin in this subzone (2 to 7 metres), it is shown to be of high-grade material.

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

"Our mining engineers are evaluating the underground potential at Ghanzi and focusing on not previously reported holes which can potentially add to the value of the Ghanzi Project. Some of these reported holes have intersected mineralization at a vertical depth of greater than 200 metres including true widths of 5 metres. Current pits were originally designed to the depths of 150 metres. Drilling along the South Limb Definition area shows consistent high-grade copper-silver mineralization at depth. I continue to believe that the South Limb area could contribute significantly to our overall resource base at the Banana Zone."

Qualified Person and Quality Assurance/Quality Control

The drilling program and results are reviewed and approved by Marek Kreczmer, Chief Executive Officer for Hana. He 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 Scientific Services Laboratory in Cape Town, 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 2,149 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.

On May 14, 2012 Hana Mining released results of its most recent NI 43-101 compliant Preliminary Economic Assessment ("PEA") for the Ghanzi Project. The PEA details a 10,000 tonne per day open-pit mining and milling operation at the Banana Zone and Zone 5 at an initial capital expenditure of US$285.5 million. This operation is expected to produce approximately 66.4 million pounds of copper and 878,000 ounces of silver annually over a minimum 13-year mine life.

The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study was carried out (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 is well advanced 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 40 km of the property.

The Ghanzi property is one of Africa's premier future copper-silver resources.

Table 1: Drill Results from South Limb Definition, Banana Zone, Sections S62875 - S65625 - Interval indicates down hole interval
Hole # Section Mineralized
Cu Eq
HA-463-D SD62875 South Limb Def 120.00 124.81 4.81 4.09 0.70 0.58 8.0
HA-464-D SD65225 South Limb Def 111.42 117.00 5.58 4.74 1.62 1.39 16.0
includes 112.60 117.00 4.40 3.74 1.99 1.69 20.0
HA-468-D SD65625 South Limb Def 191.70 195.83 4.13 3.51 0.18 0.17 1.0
HA-468-D 198.82 205.43 6.61 5.62 0.16 0.14 1.0
HA-469c-D SD65425 South Limb Def 221.67 226.20 4.53 3.85 1.19 1.02 11.0
HA-470-D SD65325 South Limb Def 131.49 134.33 2.84 2.41 0.87 0.75 8.0
HA-474-D SD65625 South Limb Def 118.32 135.00 16.68 14.18 0.19 0.16 2.0
HA-475-D SD65225 South Limb Def 64.92 76.32 11.40 9.69 0.83 0.69 9.0
includes 70.15 75.92 5.77 4.90 1.35 1.12 16.0
HA-477-D SD65625 South Limb Def 57.49 70.00 12.51 10.63 0.47 0.41 4.0
includes 64.98 67.45 2.47 2.10 1.45 1.26 13.0
Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not adjusted for metallurgical recoveries. The formula used is as follows: CuEq = Cu% + (Ag g/t x 0.01458).

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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