Hana Mining Ltd.

Hana Mining Ltd.

April 19, 2011 09:00 ET

Hana Mining Ltd.: Infill Drilling Extends Copper-Silver Mineralization by 300 m Along Dip at the Northeast Fold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 19, 2011) - Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) ("Hana" or the "Company") is pleased to announce its most recent drilling results from the completion of five infill diamond drill holes in the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.

Infill drilling was carried out within the Northeast Fold area (between sections 69850 to 70525 on the North Limb; Figures 1 and 2) to assist Hana's technical team in the design and modeling of potential pits at the Banana Zone and to convert a substantial amount of the NI 43-101 compliant resources within this area into the Measured and Indicated (M&I) category from the Inferred category. The drilling was also carried out to assess the underground mining potential at the Northeast Fold.

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 five drill holes). The mineralization remains open at depth.

Highlights of recent drilling results:

  • Drilling is progressing as scheduled. Total drilling to date is approximately 8,875 metres (core and reverse circulation).
  • These latest results extend the copper-silver mineralization by approximately 300 metres down dip within the Northeast Fold area.
  • Intercepts of 0.61% Cu and 8.0 g/t Ag over 13.3 metres (including 2.38% Cu and 43.0 g/t Ag over 2.20 metres) in hole HA-255-D, 1.00% Cu and 21.0 g/t Ag over 5.13 metres (including 1.21% Cu and 25.0 g/t Ag over 3.9 metres) in hole HA-254-D and 0.44% Cu and 2.0 g/t Ag over 9.0 metres (including 1.51% Cu and 6.0 g/t Ag over 2.1 metres) in hole HA-252-D.

Discussion of Results:

The infill drilling program at Northeast Fold has extended the known copper-silver mineralization by approximately 300 metres down dip (Figure 3) and is expected to increase the mineralized resources within this area. Also, this drilling is likely to allow for the conversion more mineral resources from the Inferred category into the Measured and Indicated category. Engineering and modeling of both open pit and underground mining operations are well advanced and the results are expected to be incorporated into the Preliminary Economic Assessment (PEA) which is expected to be completed in May 2011.

To view Figures 1, 2 and 3 accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/hmg419i.pdf

Development Update

The following engineering and consultation activities are ongoing to fulfill the goal of completion of a PEA in May 2011:

  • The design and cost estimations of the grinding mill/processing plant has essentially been completed.
  • The modeling of open pit and underground mining operations continues and is close to being completed.
  • Drilling is continuing at the Banana Zone (three core drills) and Zone 5 (one RC drill). More drills are expected to be mobilized within the coming weeks.
  • The Terms of Reference ("ToR") meeting was held last week 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 above drilling results continue to prove that copper-silver mineralization at the Banana Zone remains open at depth. Based on these results, we believe that that entire Banana Zone is open at depth and therefore, with deeper drilling, the resource base could increase considerably. The most recent drilling results also demonstrate that there could be enough deep copper-silver mineralization to support underground mining operations at the Northeast Fold and possibly within the rest of the Banana Zone."

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 Northeast Fold, Sections 69850 to 70525 – Interval indicates down hole interval

Hole #SectionMineralized ZoneFrom (m)To (m)Interval (m)Cu (%)Ag (g/t)
Northeast Fold Deep Diamond Drilling
HA-252-DNL70525Northeast Fold392.07401.109.030.442.0
HA-253-DNL70325Northeast Fold433.00439.226.220.577.0
HA-254-DNL70125Northeast Fold388.60392.003.400.173.0
HA-255-DNL69975Northeast Fold396.44398.902.460.292.0
HA-256-DNL69850Northeast Fold396.30403.487.180.575.0

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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