Hana Mining Ltd.

Hana Mining Ltd.

November 28, 2011 07:00 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 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 seven 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 South Limb (between sections 56925 to 58700 at South Limb South; 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 seven 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 South Limb South area of the Banana Zone.
  • Core lengths intercepts of
    • 2.79% CuEq(1), (2.35% Cu and 30.0 g/t Ag) over 4.0 metres within a wider mineralized interval of 1.13% CuEq (0.96% Cu and 12.0 g/t Ag) over 19.9 metres in hole HA-369-D,
    • 2.03% CuEq(1), (1.65% Cu and 26.0 g/t Ag) over 1.3 metres within a wider mineralized interval of 0.49% CuEq (0.41% Cu and 6.0 g/t Ag) over 13.3 metres in hole HA-366-D,
    • 2.02% CuEq(1), (1.70% Cu and 22.0 g/t Ag) over 2.0 metres within a wider mineralized interval of 0.65% CuEq (0.55% Cu and 7.0 g/t Ag) over 10.1 metres in hole HA-367-D, and
    • 1.90% CuEq(1), (1.74% Cu and 11.0 g/t Ag) over 3.7 metres within a wider mineralized interval of 0.80% CuEq (0.74% Cu and 4.0 g/t Ag) over 11.2 metres in hole HA-368-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 South 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. 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 to 3, visit the following link: http://media3.marketwire.com/docs/BananaZoneMaps1to3.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 release the results of this resource estimate in the second quarter of 2012.
  • Work continues on the Preliminary Economic Assessment ("PEA") which is also expected to be completed in the second quarter of 2012.

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

"Infill drilling at the South Limb continues to demonstrate that relatively high-grade copper-silver mineralization is consistent over kilometers of strike length. Therefore, I continue to expect that the South Limb will contribute significantly to the next resource estimate. I am also pleased with the progress on the Preliminary Economic Assessment for the Banana Zone which I expect will be a robust project."

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 585 million pounds of copper and 12 million ounces of silver from 19.7 million tonnes at a grade of 1.35% copper and 19.7 g/t silver. All of the Indicated resources are from the Banana Zone. There are also Inferred resources of 2.4 billion pounds of copper and 40.6 million ounces of silver from 91.2 million tonnes. This Inferred mineral resource estimate consists of 69.9 million tonnes grading 1.10% Cu and 14.98 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.66% Cu and 12.11 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 6.7 g/t Ag in Zone 6, and 1.6 million tonnes grading 0.85% Cu and 6.4 g/t Ag in the Chalcocite Zone; all at a cut-off grade of 0.75% 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 56925 to 58700 - Interval indicates down hole interval
Est. True
Hole # Section Mineralized From To Interval Width Cu Eq Cu Ag
Zone (m) (m) (m) (m) (%) (%) (g/t)
HA-361-D SL58500 South Limb South 98.93 110.40 11.47 9.75 0.80 0.64 11.0
includes 98.93 102.00 3.07 2.61 1.03 0.82 14.0
HA-361-D 107.00 109.76 2.76 2.35 1.31 1.05 18.0
HA-363-D SL58400 South Limb South 75.00 87.68 12.68 10.79 0.53 0.44 6.0
includes 82.50 86.23 3.73 3.17 1.22 0.99 16.0
HA-365b-D SL57125 South Limb South 186.14 201.60 15.46 13.15 0.80 0.65 10.0
includes 195.40 201.60 6.20 5.28 1.69 1.37 22.0
HA-366-D SL57025 South Limb South 90.00 105.57 15.57 13.25 0.49 0.41 6.0
includes 103.00 104.58 1.58 1.34 2.03 1.65 26.0
HA-367-D SL56925 South Limb South 60.17 72.00 11.83 10.06 0.65 0.55 7.0
includes 69.71 72.00 2.29 1.95 2.02 1.70 22.0
HA-368-D SL57025 South Limb South 30.63 43.82 13.19 11.21 0.80 0.74 4.0
includes 39.50 43.82 4.32 3.67 1.90 1.74 11.0
HA-369-D SL58700 South Limb South 53.00 76.38 23.38 19.87 1.13 0.96 12.0
includes 63.20 67.90 4.70 4.00 2.79 2.35 30.0
includes 71.00 76.38 5.38 4.57 1.83 1.57 18.0
(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).

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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