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

Hana Mining Ltd.

May 30, 2011 09:00 ET

Hana Mining Ltd.: Infill Drilling Continues to Encounter Thick Intersections of Copper-Silver Mineralization Along the North Limb of the Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 30, 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 27 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 63925 to 65750 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 27 drill holes). The mineralization remains open at depth.

Highlights of Recent Drilling Results:

  • Drilling is progressing as scheduled. Total drilling to date is approximately 12,297 metres (core and reverse circulation).
  • These latest results confirm the continuity of copper-silver mineralization along the North Limb of the Banana Zone.
  • Intercepts of 0.56% Cu and 11.0 g/t Ag over 27.9 metres (including 3.49% Cu and 69.0 g/t Ag over 1.5 metres) in hole HA-265-D, 0.47% Cu and 3.0 g/t Ag over 27.6 metres (including 1.24% Cu and 7.0 g/t Ag over 7.9 metres) in hole HA-273-D, 0.61% Cu and 11.0 g/t Ag over 16.8 metres (including 1.02% Cu and 21.0 g/t Ag over 8.6 metres) in hole HA-267-D and 0.54% Cu and 9.0 g/t Ag over 21.4 metres (including 0.89% Cu and 13.0 g/t Ag over 8.5 metres) in hole HA-260-D.

Discussion of Results:

The infill drilling program at North Limb North has confirmed that copper-silver mineralization is continuous and has consistent widths and in some sections it bifurcates into two high-grade zones within a very wide, lower grade, mineralized envelope (Figure 3). This drilling will allow for the conversion more mineral resources from the Inferred category into the Indicated category.

To view the three images associated with this release, please click the following link: http://media3.marketwire.com/docs/530hmgmaps.pdf.

Development Update:

The following engineering and consultation activities are ongoing:

  • Drilling is continuing at the Banana Zone (five core drills) with another drill expected to be mobilized to site within the next couple of weeks.
  • The Terms of Reference ("ToR") meeting was held recently with the Botswana Department of Environmental Affairs. The ToR will dictate the parameters of the Environmental Impact Assessment.

Hana Mining's CEO and Chairman, Marek Kreczmer, Commented as Follows:

"The infill drilling program continues to show that copper-silver mineralization at the Banana Zone is thick and has good continuity. We continue to be pleased with the results from the infill drilling program at the Banana Zone which will allow for the conversion of a substantial amount of Inferred Resources into the Indicated category."

Qualified Person and Quality Assurance/Quality Control:

The drilling program and results are reviewed and approved by Fred Stahlbush, VP Engineering 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 63925 to 65750 – Interval indicates down hole interval
Hole #SectionMineralized ZoneFrom
(m)
To
(m)
Interval
(m)
Cu
(%)
Ag
(g/t)
HA-257-DNL63925North Limb North91.00116.0025.000.4312.0
includes103.00108.005.001.5142.0
includes106.00108.002.002.9781.0
HA-258-DNL63925North Limb North136.47147.8011.330.368.0
includes136.47146.389.910.409.0
HA-258-D154.00157.883.880.5414.0
includes156.00157.001.001.3534.0
HA-259-DNL63925North Limb North53.0070.0017.000.294.0
includes62.0067.005.000.647.0
HA-260-DNL64775North Limb North83.70105.1021.400.549.0
includes84.5093.008.500.8913.0
includes102.00103.001.001.0626.0
HA-261-DNL64675North Limb North25.0044.0019.000.474.0
includes29.0033.004.001.7810.0
includes29.0031.822.822.307.0
HA-262-DN64875North Limb North27.0048.0021.000.313.0
includes35.2438.152.911.4611.0
includes35.2437.282.041.708.0
HA-263-DNL64675North Limb North48.0073.0025.000.457.0
includes51.4056.004.600.814.0
includes53.0054.001.001.185.0
includes69.0272.002.981.1130.0
includes70.5071.100.603.75101.0
HA-264-DNL64875North Limb North65.2590.5025.250.315.0
includes65.6867.451.770.633.0
includes79.6182.002.391.0621.0
includes79.6181.371.761.1122.0
HA-265-DN64675North Limb North100.47128.3627.890.5611.0
includes100.47120.0019.530.7214.0
includes101.00102.501.501.094.0
includes106.50106.750.254.4287.0
includes111.89112.140.251.4532.0
includes116.67118.201.533.4969.0
HA-266-DN65075North Limb North28.0049.0021.000.313.0
includes38.3042.003.700.7911.0
HA-267-DN65075North Limb North63.8480.6516.810.6111.0
includes71.4180.048.631.0221.0
includes71.4172.000.593.8187.0
includes74.2074.460.262.2052.0
includes77.6878.400.722.8654.0
HA-268-DN65175North Limb North34.0059.0025.000.374.0
includes42.8347.274.441.4714.0
includes42.8346.253.421.6613.0
HA-269-DNL65275North Limb North64.0080.7016.700.315.0
includes76.9678.781.821.7635.0
HA-270-DNL65075North Limb North104.65129.2824.630.5211.0
includes110.92111.370.452.8547.0
includes116.92118.471.552.2344.0
includes117.54118.470.933.1362.0
includes127.97129.281.313.7796.0
HA-271-DN64875North Limb North113.23136.0022.770.558.0
includes113.80129.3515.550.7311.0
includes113.80116.002.201.274.0
includes121.38121.630.256.9198.0
includes125.87129.353.481.3026.0
HA-272-DN65275North Limb North111.70136.4724.770.233.0
includes118.24121.853.610.8613.0
includes119.98121.851.871.1519.0
HA-273-DN65475North Limb North23.0050.6027.600.473.0
includes33.2041.127.921.247.0
includes33.8036.722.922.578.0
includes40.8241.120.301.202.0
HA-274-DN65575North Limb North82.00105.0023.000.184.0
includes97.1799.882.710.5312.0
HA-275-DN65275North Limb North151.90153.501.600.402.0
HA-275-D160.41172.0011.590.417.0
includes160.41162.802.391.5126.0
includes161.30162.801.501.9940.0
HA-276-DN65475North Limb North72.0091.0019.000.417.0
includes76.1779.303.131.7637.0
includes77.9179.301.392.9463.0
HA-277-DN65475North Limb North104.48132.0027.520.213.0
includes118.55124.005.450.5711.0
includes118.55118.970.421.6527.0
includes120.15120.720.571.6532.0
HA-278-DNL65750North Limb North72.6090.5017.900.7214.0
includes72.6074.321.721.5710.0
includes80.0080.270.271.0626.0
includes82.4787.505.031.2029.0
HA-279-DNL65275North Limb North38.9063.0024.100.333.0
includes50.2053.913.711.0110.0
includes52.1553.911.761.6719.0
HA-280-DN65675North Limb North20.0043.6223.620.373.0
includes28.7931.502.711.516.0
includes28.7930.741.951.898.0
includes42.7943.200.411.878.0
HA-281-DNL65675North Limb North60.0683.0022.940.366.0
includes70.0082.0012.000.5911.0
includes73.0073.740.742.0443.0
includes73.0075.102.101.1724.0
includes78.7279.100.381.7742.0
includes81.0082.001.001.2225.0
HA-282-DNL65375North Limb North38.5760.0521.480.547.0
includes51.6358.006.371.2420.0
includes52.2855.232.952.2938.0
HA-286-DNL65675North Limb North116.70130.0013.300.284.0
includes116.70121.474.770.5810.0
includes118.92119.320.402.6356.0

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.

Contact Information