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

Hana Mining Ltd.

September 27, 2010 09:00 ET

Hana Mining Ltd.: Assay Results From RC Drilling Confirm Copper-Silver Mineralization Is Continuous Over Entire 64.0 km Strike Length at the Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 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 42 new RC drill holes from the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.

The latest drilling results extend the mineralized strike length of the Banana Zone by 5.3 kilometres and confirm that the entire 64.0 kilometre strike length of the Banana Zone is mineralized.

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 42 drill holes). The mineralization remains open at depth.

Highlights of recent drilling results:

  • Mineralized strike length of the Banana Zone has been increased by 5.3 kilometres for a total strike length of 64.0 kilometres. The Banana Zone (including the adjacent Chalcocite Zone), which contains 2.6 billion pounds of copper and over 48 million ounces of silver, at a 0.75% copper cut-off, now has a confirmed strike length of 64.0 kilometres.
  • These latest results completely closed out two strike length gaps from sections 45100 to 41600 on the North Limb and from sections 67400 to 65600 on the South Limb.
  • Infill drilling has also been completed at New Discovery, Northeast Fold, and the South Limb. The infill drilling results from the Northeast Fold, and South Limb are expected to be released shortly (the infill drilling results from New Discovery were in the press release dated September 8, 2010).
  • Extensional drilling has also been recently completed at the Chalcocite Zone. Results are expected to be released shortly.
  • RC drilling at Zone 3, which is located approximately 5 km northwest of the Banana Zone, has also been completed. Results are pending.
  • Now that the entire 64.0 kilometre strike length of the Banana Zone had been confirmed, drilling is now focusing on testing deeper down-dip extensions of copper-silver mineralization at the New Discovery area which is within the Banana Zone.

Discussion of Results:

The most recent drilling results at the Banana Zone confirm that the entire 64.0 kilometre strike length of the Banana Zone is mineralized (Figure 1). The drilling results are from the North Limb (sections 41600 to 45100, Figure 2) and the South Limb (sections 65600 to 67400, Figure 3). The results from these drill holes are expected to be included in the impending 43-101 NI resource calculation which is to be completed by the end of October 2010. For comparison, the most recent Inferred Mineral Resource calculation estimated that the Banana Zone contains approximately 2.38 billion pounds of copper and over 45 million ounces of silver. The latest resource estimate was based on a confirmed mineralized strike length of 31.0 kilometres. Since the last resource estimate was produced, Hana has drilled an additional 53,000 metres at the Banana Zone and adjacent Chalcocite Zone Therefore, it is expected that the next resource estimate at the Banana Zone could increase considerably.

To view figures 1, 2 and 3, click on the following link: http://media3.marketwire.com/docs/Hana123maps.pdf

Development Update:

The following engineering activities are ongoing to fulfill the goal of completion of a PEA by Q4 2010:

  • Preliminary open pit mine modeling has been carried out using the April 2010 resource as a basis to define parameters to be used in the revised model to be completed after the 2010 drilling has been incorporated;
  • Metallurgical work is ongoing for the Banana Zone at Mintek in Johannesburg, and at Metcon Research in Tucson, Arizona which is carrying out the metallurgical (leaching) work for the Chalcocite Zone;
  • Drilling for water is set to begin;
  • Environmental and socioeconomic baseline work is ongoing. Hana's management recently completed public consultation meetings with local stakeholders at the towns of Ghanzi, Kuke and D'Kar which are located near the Ghanzi property. The consultation meetings form part of the process for the Environmental Impact Assessment. The public's response to the Ghanzi project is positive.

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

"We are very pleased with the drilling results from the Banana Zone which have proven, without a doubt, that the entire mineralized strike length of the Banana Zone exhibits good continuity given that copper-silver mineralization was encountered in every drill hole. Our aggressive drilling program, which included an additional 53,000 m of drilling at the Banana and Chalcocite Zones since the last resource estimate, will give us many mining scenarios which will be based on strip ratios, mineralized widths and mineralized continuity. Given the success of the drilling program we are becoming more confident that the Banana Zone will become an operation with a long mine life. We are still on track to incorporate all of the drilling results from the Banana Zone into the next resource which should increase our resources considerably at the Banana Zone."

Qualified Person and Quality Assurance/Quality Control

The drilling program and results are reviewed and approved by Vivian Park, PGeo., 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.

For RC drilling, a 35-40 kilogram bulk sample is collected from the cyclone discharge at one meter intervals. Bulk samples that have been designated as mineralized are split 75/25; 25% of the bulk sample is retained as a replica archive. Samples for assay of approximately 1.5 kilograms are extracted from the replica sample. The remainder of the bulk sample is reclaimed at the drill site.

All samples are bagged, stapled, and assembled into labelled and sealed bulk bags. They are transported to in secured wooden crates and shipped to Scientific Services Laboratory in Cape Town, South Africa. The analytical method for total Cu, Pb, and Zn is acid digestion read by Atomic Absorption Spectroscopy ("AAS"); a separate digestion is performed for Ag. The analytical method for acid soluble Cu is 5% sulphuric acid cold leach followed by AAS. Mo is read by XRF on a pressed powder pellet.

The Company has implemented an industry-standard QA/QC program that includes the blind insertion of 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 64.0 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 kilometres 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 kilometres of the property.

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

Table 1: Drill Results from the North (sections 41600 to 45100) and South (sections 65600 to 67400) Limbs – Interval indicates down hole interval
Hole # Section Mineralized From To Interval Ag (g/t) Cu (%)
    Zone (m) (m) (m)
North Limb RC Drilling           
HA-421-R 40925 North Limb 90.00 94.00 4.00 0.19 3.0
HA-423-R 44950 North Limb 116.00 123.00 7.00 0.33 4.0
includes     119.00 123.00 4.00 0.45 6.0
HA-424-R 44950 North Limb 133.00 143.00 10.00 0.22 3.0
includes     139.00 143.00 4.00 0.32 4.0
HA-427-R 41325 North Limb       NSV NSV
HA-428-R 44750 North Limb 116.00 130.00 14.00 0.38 5.0
includes     121.00 129.00 8.00 0.59 7.0
HA-429-R 44550 North Limb 117.00 131.00 14.00 0.37 4.0
includes     126.00 131.00 5.00 0.86 10.0
includes     129.00 130.00 1.00 2.03 23.0
HA-430-R 41325 North Limb 90.00 105.00 15.00 0.30 3.0
includes     101.00 105.00 4.00 0.68 7.0
HA-433-R 41550 North Limb 82.00 98.00 16.00 0.25 2.0
HA-434-R 44550 North Limb 99.00 103.00 4.00 0.12 1.0
      108.00 114.00 6.00 0.68 8.0
includes     110.00 114.00 4.00 0.94 12.0
includes     112.00 114.00 2.00 1.43 19.0
HA-435-R 44350 North Limb 75.00 81.00 6.00 0.12 1.0
      85.00 93.00 8.00 0.43 4.0
includes     91.00 93.00 2.00 1.05 12.0
includes     91.00 92.00 1.00 1.33 12.0
HA-436-R 41750 North Limb 76.00 88.00 12.00 0.31 2.0
includes     85.00 87.00 2.00 0.73 5.0
               
               
HA-437-R 44100 North Limb 84.00 101.00 17.00 0.47 6.0
includes     94.00 101.00 7.00 0.81 10.0
includes     100.00 101.00 1.00 2.50 28.0
HA-438-R 44150 North Limb 102.00 117.00 15.00 0.48 5.0
includes     113.00 117.00 4.00 1.03 12.0
includes     115.00 117.00 2.00 1.24 14.0
HA-439-R 41750 North Limb 92.00 104.00 12.00 0.32 3.0
HA-440-R 41950 North Limb 79.00 86.00 7.00 0.26 2.0
includes     83.00 85.00 2.00 0.57 4.0
HA-441-R 42150 North Limb 76.00 93.00 17.00 0.14 2.0
HA-446-R 42150 North Limb 103.00 114.00 11.00 0.16 2.0
HA-449-R 42350 North Limb 71.00 83.00 12.00 0.26 2.0
includes     80.00 81.00 1.00 1.24 11.0
HA-451-R 42550 North Limb 61.00 70.00 9.00 0.27 4.0
includes     67.00 70.00 3.00 0.55 9.0
HA-452-R 42550 North Limb 130.00 138.00 8.00 0.28 3.0
HA-457-R 42750 North Limb 84.00 96.00 12.00 0.30 3.0
includes     93.00 96.00 3.00 0.65 9.0
HA-458-R 42950 North Limb 95.00 111.00 16.00 0.22 2.0
includes     110.00 111.00 1.00 1.09 14.0
HA-464-R 42950 North Limb 120.00 136.00 16.00 0.22 2.0
includes     134.00 136.00 2.00 0.55 7.0
HA-465-R 43150 North Limb 96.00 108.00 12.00 0.25 3.0
HA-468-R 43325 North Limb 80.00 81.00 1.00 2.13 23.0
      94.00 106.00 12.00 0.48 6.0
includes     102.00 106.00 4.00 0.96 12.0
includes     105.00 106.00 1.00 1.86 24.0
HA-469-R 43350 North Limb 120.00 131.00 11.00 0.30 3.0
includes     129.00 131.00 2.00 0.79 9.0
HA-470-R 43550 North Limb 82.00 93.00 11.00 0.27 3.0
HA-474-R 43750 North Limb 77.00 90.00 13.00 0.24 3.0
HA-475-R 43750 North Limb 101.00 113.00 12.00 0.25 3.0
HA-478-R 43950 North Limb 82.00 95.00 13.00 0.26 3.0
South Limb RC Drilling           
HA-422-R 65550 South Limb 29.00 36.00 7.00 0.84 2.0
includes     30.00 35.00 5.00 1.12 2.0
includes     32.00 35.00 3.00 1.38 3.0
HA-425-R 64725 South Limb 64.00 80.00 16.00 0.40 4.0
includes     70.00 79.00 9.00 0.53 6.0
includes     74.00 75.00 1.00 1.05 11.0
HA-431-R 64725 South Limb 61.00 68.00 7.00 0.50 6.0
includes     62.00 66.00 4.00 0.82 9.0
includes     65.00 66.00 1.00 1.71 21.0
HA-432-R 64900 South Limb 145.00 154.00 9.00 0.41 5.0
HA-447-R 65150 South Limb 58.00 68.00 10.00 0.58 10.0
includes     61.00 63.00 2.00 2.05 39.0
      74.00 77.00 3.00 0.10 1.0
HA-448-R 65325 South Limb 97.00 103.00 6.00 0.74 13.0
includes     97.00 101.00 4.00 0.98 17.0
includes     99.00 101.00 2.00 1.45 30.0
      111.00 116.00 5.00 0.17 3.0
HA-450-R 65525 South Limb 54.00 63.00 9.00 0.53 10.0
includes     58.00 62.00 4.00 0.89 19.0
includes     61.00 62.00 1.00 1.17 24.0
HA-453-R 65525 South Limb 51.00 55.00 4.00 0.16 1.0
      71.00 73.00 2.00 0.12 2.0
HA-454-R 66700 South Limb 86.00 88.00 2.00 0.27 3.0
HA-459-R 66900 South Limb 80.00 89.00 9.00 0.35 3.0
HA-461-R 67175 South Limb 109.00 119.00 10.00 0.16 2.0
HA-471-R 67425 South Limb 170.00 175.00 5.00 1.25 18.0
includes     172.00 174.00 2.00 2.62 40.0
includes     173.00 174.00 1.00 4.46 67.0

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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