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

Hana Mining Ltd.

January 24, 2012 07:00 ET

Hana Mining Ltd.: Infill Drilling Encounters Some of the Best Intercepts of Copper-Silver Mineralization at the Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2012) - 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 13 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 Northeast Fold area (between sections 69725 to 70425 at the Northeast Fold; 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 13 drill holes). The mineralization remains open at depth.

Highlights of recent drilling results:

    • The latest results demonstrate that Banana Zone contains areas which host high-grade copper-silver mineralization.
    • Core lengths intercepts of
      • 7.62% CuEq(1) (5.11% Cu and 172.0 g/t Ag) over 5.3 metres within a wider mineralized interval of 3.77% CuEq(1) (2.71% Cu and 73.0 g/t Ag) over 14.6 metres in hole HA-465-D,
      • 5.26% CuEq(1) (4.02% Cu and 85.0 g/t Ag) over 2.3 metres within a wider mineralized interval of 1.40% CuEq(1) (1.14% Cu and 18.0 g/t Ag) over 16.0 metres in hole HA-443-D,
      • 4.93% CuEq(1) (4.86% Cu and 5.0 g/t Ag) over 2.5 metres in the footwall sandstones and 4.00% CuEq(1) (3.55% Cu and 31.0 g/t Ag) over 2.6 metres within a wider mineralized interval of 1.71% CuEq(1) (1.52% Cu and 13.0 g/t Ag) over 6.6 metres in the hanging wall in hole HA-457-D
      • 4.00% CuEq(1) (3.53% Cu and 32.0 g/t Ag) over 2.8 metres in the footwall sandstones and 2.08% CuEq(1) (1.79% Cu and 20.0 g/t Ag) over 11.5 metres within a wider mineralized interval of 1.88% CuEq(1) (1.62% Cu and 18.0 g/t Ag) over 12.9 metres in the hanging wall in hole HA-447-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:

This is the second set of results from the 2011 infill drilling program for the Northeast Fold area which is located at the most northeast part of the Banana Zone. This area consists of a plunging anticline where thick intervals of high-grade copper mineralization were encountered within the hanging siltstones and mudstones. Also, very high-grade copper-silver mineralization was found well within the footwall sandstones. These isolated high-grade veins of footwall mineralization represent new exploration targets. Deeper exploration drilling will continue at the Northeast Fold to identify and expand these high-grade mineralized zones. Like many parts of the North Limb North area, high-grade copper silver mineralization at the Northeast Fold also bifurcates and is contained within a broader low grade mineralized envelope at and above the footwall-hanging wall contact. High-grade mineralization at the Northeast Fold remains open along plunge and along dip of this anticlinal structure. Further infill drilling results from the Northeast Fold are expected soon.

To view Figures 1-3, visit: http://media3.marketwire.com/docs/hmg124_F1-3.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:

"The discovery of high-grade shoots of mineralization in the footwall sandstones is the result of our geologists having a good understanding on the structural controls on mineralization at the Banana Zone which will result in further discoveries within the Banana Zone."

"The above results represent probably some the best intersections of copper-silver mineralization yet at the Banana Zone. Not only are we hitting exceptionally high-grades, but we are also getting significant widths of mineralization. I was also pleasantly surprised with the discovery of high-grade copper-silver mineralization at depth as this represents a new mineralized setting which we will continue to investigate."

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 Northeast Fold, Banana Zone, Sections 69725 - 70425 Interval indicates down hole interval


Hole #


Section

Mineralized
Zone

From
(m)

To
(m)

Interval
(m)
Est.
True
Width
(m)

Cu
Eq
(%)

Cu
(%)

Ag
(g/t)
Northeast Fold Diamond Drilling
HA-442-D NF70325 Northeast Fold 82.00 84.15 2.15 2.15 0.36 0.31 3.0
HA-442-D 95.00 122.00 27.00 27.00 0.39 0.29 7.0
includes 112.00 117.57 5.57 5.57 0.34 0.31 2.0
includes 119.02 121.30 2.28 2.28 2.20 1.28 63.0
HA-443-D NF69725 Northeast Fold 159.42 175.37 15.95 15.95 1.40 1.14 18.0
includes 162.41 168.15 5.74 5.74 1.09 1.00 6.0
includes 172.72 175.37 2.65 2.25 5.26 4.02 85.0
HA-445-D NF70200 Northeast Fold 55.54 62.00 6.46 6.46 0.68 0.64 3.0
includes 57.15 58.00 0.90 0.90 2.92 2.76 11.0
includes 59.72 61.00 1.30 1.30 0.77 0.73 3.0
HA-445-D 96.00 103.08 7.08 7.08 3.01 2.45 38.0
HA-446-D NF69825 Northeast Fold 176.08 199.15 23.07 23.07 1.07 0.86 14.0
includes 176.08 188.23 12.15 12.15 0.83 0.79 3.0
includes 191.58 199.15 7.57 7.57 1.78 1.27 35.0
HA-447-D NF70200 Northeast Fold 61.62 74.50 12.88 12.88 1.88 1.62 18.0
includes 62.10 73.60 11.50 11.50 2.08 1.79 20.0
HA-447-D 105.50 108.25 2.75 2.75 4.00 3.53 32.0
HA-455-D NF69925 Northeast Fold 123.34 137.45 14.11 14.11 0.94 0.73 15.0
includes 124.00 125.50 1.50 1.50 1.17 1.05 8.0
includes 129.00 136.85 7.85 7.85 1.30 0.97 23.0
HA-457-D NF70200 Northeast Fold 90.00 96.55 6.55 6.55 1.71 1.52 13.0
includes 92.70 95.28 2.58 2.58 4.00 3.55 31.0
HA-457-D 111.00 113.48 2.48 2.48 4.93 4.86 5.0
HA-458-D NF70025 Northeast Fold 85.00 99.11 14.11 14.11 1.27 0.93 23.0
includes 87.82 89.00 1.18 1.18 0.47 0.46 1.0
includes 90.94 98.69 7.75 7.75 2.07 1.49 40.0
HA-460-D NF70200 Northeast Fold 100.47 116.20 15.70 15.70 1.71 1.21 34.0
106.35 116.20 9.85 9.85 2.68 1.90 54.0
HA-465-D NF70125 Northeast Fold 97.00 111.60 14.60 14.60 3.77 2.71 73.0
includes 98.00 104.90 6.09 6.09 2.17 1.88 20.0
includes 105.86 111.20 5.34 5.34 7.62 5.11 172.0
HA-466b-D NF69925 Northeast Fold 177.20 196.02 18.82 18.82 0.63 0.48 10.0
includes 183.21 187.01 3.80 3.80 0.38 0.35 2.0
includes 189.18 196.02 6.84 6.84 1.27 0.92 24.0
HA-467-D NF70200 Northeast Fold 121.00 144.75 23.75 23.75 0.61 0.52 6.0
includes 130.34 132.92 2.58 2.58 1.11 1.08 2.0
includes 135.00 144.75 9.75 9.75 0.88 0.70 12.0
HA-471-D NF70425 Northeast Fold 173.00 198.00 25.00 25.00 0.76 0.69 5.0
includes 176.25 191.43 15.18 15.18 0.89 0.85 3.0
includes 196.00 198.00 2.00 2.00 1.69 1.23 31.0

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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