Hana Mining Ltd.

Hana Mining Ltd.

September 13, 2011 07:30 ET

Hana Mining Ltd.: Infill Drilling Again Encounters Consistent High-Grade Copper-Silver Mineralization Along the North Limb of the Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2011) - 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 14 infill diamond drill holes in the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.

Infill drilling was carried out on the North Limb area (between sections 65835 to 68325 at North Limb North; Figures 1 and 2) to convert a substantial amount of the NI 43-101 compliant resources within this area into the Indicated category from the Inferred category.

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

Highlights of recent drilling results:

  • The latest results continue to confirm the continuity of copper-silver mineralization at the North Limb North area of the Banana Zone.
  • Core lengths intercepts of:
    • 2.16% Cu and 12.0 g/t Ag over 7.3 metres within a wider mineralized interval of 0.85% Cu and 5.0 g/t Ag over 25.8 metres in hole HA-285-D,
    • 2.25% Cu and 47.0 g/t Ag over 3.8 metres within a wider mineralized interval of 0.72% Cu and 12.0 g/t Ag over 17.0 metres in hole HA-283b-D,
    • 1.60% Cu and 25.0 g/t Ag over 3.6 metres within a wider mineralized interval of 0.41% Cu and 5.0 g/t Ag over 34.8 metres in hole HA-339-D, and
    • 2.13% Cu and 23.0 g/t Ag over 5.0 metres within a wider mineralized interval of 0.61% Cu and 6.0 g/t Ag over 24.0 metres in hole HA-380-D.

Discussion of Results:

The infill drilling program at the North Limb continues to confirm that wide intervals, with multiple zones of high-grade copper-silver mineralization, are continuous along strike along the North Limb (Figure 3). This drilling will allow for the conversion of more mineral resources from the Inferred category into the Indicated category.

To view the figures associated with this Press Release, please visit: http://media3.marketwire.com/docs/hmg0913-figs.pdf.

Development Update

The following engineering and consultation activities are ongoing:

  • Work on the revised resource estimate for the Banana Zone is continuing as expected and the Company expects to provide a timetable for the completion of the resource estimate within the next few weeks.
  • Work has also re-commenced on the Preliminary Economic Assessment ("PEA"). The company will soon provide guidance on the timing of the completion of the PEA.
  • Metallurgical work has essentially been completed on the oxide material at the Banana Zone. Results from this work are expected to be released shortly.

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

"So far we have released five batches of drilling results comprising 69 diamond drill holes from the North Limb North area of the Banana Zone. Nearly all of these drill holes intersected significant widths of copper-silver mineralization over a strike length of just over four kilometers. Therefore, we expect this area is likely to contribute significantly to the next resource estimate."

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 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 2,149 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. 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. There are also Inferred resources of 5.6 billion pounds of copper and 85.4 million ounces of silver from 423.9 million 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 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 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.

Table 1: Drill Results from North Limb, Banana Zone, Sections 65835 to 68325 – Interval indicates down hole interval
From To Interval Cu Ag
Hole # Section Mineralized Zone (m) (m) (m) (%) (g/t)
North Limb North Diamond Drilling
HA-283b-D NL65835 North Limb North 44.00 61.00 17.00 0.72 12.0
includes 47.00 50.50 3.50 0.62 2.0
includes 55.00 58.75 3.75 2.25 47.0
HA-285-D NL65920 North Limb North 22.00 47.75 25.75 0.85 5.0
includes 34.00 41.28 7.28 2.16 12.0
includes 46.10 47.75 1.65 1.57 16.0
HA-288-D NL66000 North Limb North 57.84 79.53 21.69 0.71 12.0
includes 60.40 63.00 2.60 1.02 1.0
includes 71.97 73.94 1.97 3.23 85.0
includes 76.00 79.53 3.53 0.71 15.0
HA-326-D NL67025 North Limb North 93.50 123.70 30.20 0.26 4.0
includes 94.30 96.00 1.70 0.57 5.0
includes 109.50 111.33 1.83 0.55 11.0
HA-336-D NL67125 North Limb North 77.40 107.87 30.47 0.30 4.0
includes 91.32 94.96 3.64 0.66 12.0
includes 97.85 99.34 1.49 1.26 25.0
HA-339-D NL67125 North Limb North 22.87 57.65 34.78 0.41 5.0
includes 44.24 46.38 2.14 0.62 7.0
includes 46.47 50.11 3.64 1.60 25.0
includes 55.30 57.65 2.35 1.24 6.0
HA-341-D NL67325 North Limb North 93.46 120.33 26.87 0.33 6.0
includes 95.00 97.32 2.32 0.57 5.0
includes 103.21 106.57 3.36 0.89 16.0
HA-350-D NL67525 North Limb North 23.50 41.50 18.00 0.17 1.0
HA-352-D NL67825 North Limb North 67.09 76.00 8.91 0.09 1.0
HA-353-D NL67725 North Limb North 29.70 49.00 19.30 0.36 6.0
includes 38.95 42.50 3.55 1.13 20.0
HA-357-D NL67725 North Limb North 94.47 102.31 7.84 0.70 7.0
includes 95.00 102.31 7.31 0.74 8.0
HA-358-D NL68125 North Limb North 86.80 89.00 2.20 0.14 4.0
HA-364-D NL67925 North Limb North 63.00 86.00 23.00 0.24 6.0
includes 76.67 79.00 2.33 0.74 15.0
HA-380-D NL68325 North Limb North 47.00 71.00 24.00 0.61 6.0
includes 65.10 70.07 4.97 2.13 23.0

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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