Hana Mining Ltd.

Hana Mining Ltd.

August 20, 2012 07:00 ET

Hana Mining Expands Zone 5 at Depth with Strong Drill Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2012) - Hana Mining Ltd. ("Hana" or the "Company") - (TSX VENTURE:HMG)(FRANKFURT:4LH)(BOTSWANA:HANA) is pleased to announce seven drill hole results from Zone 5 at the Ghanzi sediment hosted Copper-Silver Project in Botswana. The positive results confirm continuity of high-grade copper mineralization and include one hole that has intersected wide, high-grade mineralization another 55 metres below the current pit limits.

The current drill programme at Zone 5 is focused on infill drilling and includes exploratory down dip extensional drilling. The results from these holes were not included in the most recent resource estimate used to produce the PEA released 14 May 2012. The current modeled pit at Zone 5 extends to a depth of 250 metres below surface; the result from Hole HA-561-D, reported in this release has intersected mineralization at 305 metres vertically below surface and 55 m below current pit limits.

Highlights of drilling results:

  • Core length intercepts; this includes the hole that intersected high-grade mineralization at 55 metres below current pit limits
    • 2.21% CuEq(1) (1.92% Cu and 20.0 g/t Ag) over 18.06 metres within a wider mineralized interval of 1.67% CuEq(1) (1.45% Cu and 15.0 g/t Ag) over 24.40 metres in hole HA-548-D,
    • 1.72% CuEq(1) (1.53% Cu and 13.0 g/t Ag) over 13.95 metres within a wider mineralized interval of 1.07% CuEq(1) (0.95% Cu and 8.0 g/t Ag) over 24.50 metres in hole HA-561-D,
    • 2.81% CuEq(1) (2.52% Cu and 20.0 g/t Ag) over 11.40 metres within a wider mineralized interval of 1.41% CuEq(1) (1.25% Cu and 11.0 g/t Ag) over 28.00 metres in hole HA-562-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 at the Zone 5 area continues to produce successful results supporting high-grade copper-silver mineralization at mineable widths. Results from mineralization intersected 55 metres below current pit limits supports ongoing investigations that Zone 5 has potential for underground mining. (Figure 3)

Drilling has now reached mineralization at a maximum vertical depth of 305 metres from surface and shows a continuous, high-grade true thickness averaging 10 metres. The results from the infill drilling will be used to increase confidence in the resource estimate from Inferred to Indicated.

To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/Figures0820.pdf.

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

"The drill success continues to support confidence in the continuity and mineability of high grade copper mineralization at Zone 5. As well, we are pleased that the exploration drilling below the current modeled view of the deposit has intercepted what could be a continuation of this same strong mineralization. The results support our view that the deposit could be suitable for underground mining. With further successful results like these, the overall resource size and head grade could increase, which would improve the economics of the PEA Study."

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 labeled 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 Zone 5, Sections N124850 - N125450. Interval indicates down hole interval lengths

Est. True
Hole # Section Mineralized From To Interval Width Cu Ag
Zone (m) (m) (m) (m) (%) (g/t)
Zone 5 Diamond Drilling
HA-546-D N124850 Zone 5 214.30 252.82 38.52 35.82 0.48 2.00
includes 225.52 247.37 21.85 20.32 0.62 2.00
HA-548-D N125050 Zone 5 151.00 177.24 26.24 24.40 1.45 15.00
includes 151.00 170.42 19.42 18.06 1.92 20.00
HA-549-D N124850 Zone 5 173.00 205.12 32.12 29.87 0.63 2.00
includes 185.00 201.00 16.00 14.88 1.03 2.00
HA-550-D N125250 Zone 5 229.71 246.00 16.29 15.15 1.24 10.00
HA-561-D N125850 Zone 5 334.06 360.43 26.37 24.52 0.95 8.00
includes 340.00 355.00 15.00 13.95 1.53 13.00
HA-562-D N125250 Zone 5 178.82 208.89 30.07 27.97 1.25 11.00
includes 178.82 191.07 12.25 11.39 2.52 20.00
HA-563-D N125450 Zone 5 165.47 215.10 49.63 46.16 1.02 8.00
includes 166.37 206.78 40.41 37.58 1.23 10.00

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.

Contact Information