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

Hana Mining Ltd.

August 29, 2011 07:30 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 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 11 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 area (between sections 59075 to 60075 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 Inferred mineral resource calculation (see Table 1 at the end of this press release for the results from all 11 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
    • 2.26% Cu and 27.0 g/t Ag over 4.4 metres within a wider mineralized interval of 0.72% Cu and 8.0 g/t Ag over 16.5 metres in hole HA-321b-D,
    • 1.15% Cu and 14.0 g/t Ag over 6.9 metres within a wider mineralized interval of 0.82% Cu and 9.3 g/t Ag over 10.6 metres in hole HA-322-D,
    • 1.71% Cu and 25.0 g/t Ag over 5.9 metres within a wider mineralized interval of 0.75% Cu and 11.0 g/t Ag over 18.3 metres in hole HA-323b-D, and
    • 1.60% Cu and 23.0 g/t Ag over 4.4 metres within a wider mineralized interval of 0.76% Cu and 10.0 g/t Ag over 11.2 metres in hole HA-335-D.

Discussion of Results:

The infill drilling program at the South Limb continues to confirm that copper-silver mineralization is relatively high-grade and continuous along strike at the South Limb (Figure 3). This drilling will allow for the conversion of more mineral resources from the Inferred category into the Indicated category.

To view Figure 1, 2 and 3, please click on the following link: http://media3.marketwire.com/docs/h826m2.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.

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

"Again the drilling at the South Limb South area continues to demonstrate that high-grade copper-silver mineralization is continuous along strike. I also note that the drilling was carried out to shallow depths, so there is still considerable exploration upside at depth (down dip) within this area."

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 South Limb, Banana Zone, Sections 59075 to 60075 – Interval indicates down hole interval

Mineralized From To Interval Cu Ag
Hole # Section Zone (m) (m) (m) (%) (g/t)
South Limb South Diamond Drilling
HA-321b-D SL59675 South Limb South 178.85 195.33 16.48 0.72 8.0
includes 188.62 193.03 4.41 2.26 27.0
HA-322-D SL60075 South Limb South 56.38 67.00 10.62 0.82 9.3
includes 59.40 66.30 6.90 1.15 14.0
includes 60.05 62.7 2.65 1.19 16.0
includes 65.42 66.3 0.88 3.60 48.0
HA-323b-D SL59475 South Limb South 111.00 129.28 18.28 0.75 11.0
includes 123.00 128.92 5.92 1.71 25.0
HA-324-D SL59875 South Limb South 79.20 88.39 9.19 1.09 13.7
includes 81.76 87.00 5.24 1.72 22.7
includes 82.07 83 0.93 2.82 37.0
includes 85.14 86 0.86 4.77 60.0
HA-328-D SL59475 South Limb South 44.90 57.49 12.59 0.61 7.0
includes 55.14 57.19 2.05 2.15 27.0
HA-329-D SL59375 South Limb South 56.00 76.30 20.30 0.51 7.0
includes 65.94 69.79 3.85 0.79 10.0
includes 72.64 76.13 3.49 1.32 20.0
HA-331-D SL59075 South Limb South 176.44 192.85 16.41 0.58 8.0
includes 188.24 192.85 4.61 1.30 19.0
HA-332b-D SL59275 South Limb South 204.10 220.87 16.77 0.43 6.0
includes 217.37 220.37 3.00 1.15 19.0
HA-334-D SL59275 South Limb South 138.00 155.74 17.74 0.45 7.0
includes 143.76 145.01 1.25 0.66 12.0
includes 147.68 155.74 8.06 0.71 11.0
HA-335-D SL59675 South Limb South 122.37 133.57 11.20 0.76 10.0
includes 126.83 131.20 4.37 1.60 23.0
HA-338-D SL59075 South Limb South 115.47 135.00 19.53 0.58 8.0
includes 122.72 125.73 3.01 0.81 13.0
includes 127.70 135.00 7.30 1.00 13.0

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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