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

Hana Mining Ltd.

November 07, 2011 07:00 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 - Nov. 7, 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 16 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 67025 to 68925 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 Indicated and Inferred mineral resource calculation (see Table 1 at the end of this press release for the results from all 16 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
    • 1.76% Cu and 46.0 g/t Ag over 6.6 metres within a wider mineralized interval of 0.86% Cu and 19.0 g/t Ag over 16.5 metres in hole HA-372-D,
    • 1.49% Cu and 25.0 g/t Ag over 4.1 metres within a wider mineralized interval of 0.55% Cu and 9.0 g/t Ag over 15.8 metres in hole HA-374-D,
    • 1.55% Cu and 27.0 g/t Ag over 2.7 metres within a wider mineralized interval of 0.90% Cu and 15.0 g/t Ag over 4.9 metres in hole HA-397-D, and
    • 1.46% Cu and 15.0 g/t Ag over 2.1 metres within a wider mineralized interval of 0.41% Cu and 3.0 g/t Ag over 15.0 metres in hole HA-402-D.

Discussion of Results:

The infill drilling program at the North Limb again confirms that high-grade copper-silver mineralization is 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. Hana has now completed the infill drilling at North Limb North and all assay results from this area have been received and are being incorporated into a resource model for this area. During 2011, 94 holes were drilled at North Limb North comprising approximately 9,000 metres of core. More drilling results from the South Limb and Northeast Fold areas are still pending and are expected to be made available soon.

To view Figures 1-3, please click on the following link: http://media3.marketwire.com/docs/HANAfigures1to3.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 continues on the Preliminary Economic Assessment ("PEA"). The company will soon provide guidance on the timing of the completion of the PEA.
  • Baseline Environmental and Social Studies for the Banana Zone have been completed and the scoping and environmental Terms of Reference for the Environmental and Social Impact Assessment were recently approved by the Botswana Department of Environmental Affairs. The Company expects that the Environmental Impact Assessment will be completed before the end of 2012.
  • The Company has also begun the process of securing water rights to its potential well- field operations.

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

"At North Limb North we drilled a total of 94 drill holes in which almost every drill hole intersected significant concentrations of copper-silver mineralization. This drilling not only confirmed the consistent high-grade mineralization of this area, but also identified areas within North Limb North that had multiple zones of high-grade copper-silver mineralization."

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 or Scientific Services Laboratories 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. 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 67025 to 68925 – Interval indicates down hole interval
Est. True
Hole # Section Mineralized From To Interval Width Cu Ag
Zone (m) (m) (m) (m) (%) (g/t)
North Limb North Diamond Drilling
HA-330b-D NL67025 North Limb North 40.00 74.00 34.00 34.00 0.35 7.0
includes 54.45 62.00 7.55 7.55 0.87 20.0
includes 71.00 74.00 3.00 3.00 0.54 8.0
HA-342b-D NL67325 North Limb North 49.00 67.09 18.09 18.09 0.35 5.0
includes 52.00 54.16 2.16 2.16 0.68 1.0
includes 60.75 64.23 3.48 3.48 0.87 21.0
HA-342b-D 73.00 77.00 4.00 4.00 0.12 3.0
HA-371-D NL68225 North Limb North 119.00 136.70 17.70 17.70 0.22 4.0
HA-372-D NL68125 North Limb North 46.00 62.45 16.45 16.45 0.86 19.0
includes 55.90 62.45 6.55 6.55 1.76 46.0
HA-374-D NL68625 North Limb North 102.00 117.78 15.78 15.78 0.55 9.0
includes 110.45 114.54 4.09 4.09 1.49 25.0
HA-378c-D NL68225 North Limb North 52.00 73.55 21.55 21.55 0.43 6.0
includes 69.75 73.55 3.80 3.80 1.42 25.0
HA-381b-D NL68425 North Limb North 94.22 104.86 10.64 10.64 0.45 8.0
includes 101.86 104.86 3.00 3.00 1.26 23.0
HA-395-D NL68625 North Limb North 76.23 83.46 7.23 7.23 0.60 10.0
includes 76.23 80.09 3.86 3.86 0.91 15.0
HA-397-D NL68425 North Limb North 59.00 63.87 4.87 4.87 0.90 15.0
includes 60.35 63.00 2.65 2.65 1.55 27.0
HA-398-D NL68225 North Limb North 33.94 38.60 4.66 4.66 1.26 3.0
includes 34.86 38.60 3.74 3.74 1.54 4.0
HA-400-D NL68725 North Limb North 58.00 74.86 16.86 16.86 0.42 6.0
includes 67.60 71.08 3.48 3.48 1.27 21.0
HA-401-D NL68625 North Limb North 46.00 54.54 8.54 8.54 0.46 5.0
includes 48.00 51.03 3.03 3.03 0.75 7.0
HA-402-D NL68925 North Limb North 42.00 57.00 15.00 15.00 0.41 3.0
includes 54.89 57.00 2.11 2.11 1.46 15.0
HA-406-D NL68825 North Limb North 111.85 124.30 12.45 12.45 0.36 5.0
includes 120.28 122.25 1.97 1.97 1.19 16.0
HA-408-D NL68825 North Limb North 77.83 92.82 14.99 14.99 0.38 3.0
includes 77.83 80.41 2.58 2.58 0.67 1.0
includes 88.21 90.40 2.19 2.19 0.56 4.0
HA-413-D NL68825 North Limb North 44.12 62.66 18.54 18.54 0.28 2.0

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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