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

Hana Mining Ltd.

October 06, 2010 09:00 ET

Hana Mining Ltd.: Infill Drilling Results Identify Second Potential Pit at the Northeast Fold Area of the Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2010) - 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 from 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 69000 to 70500 on the North Limb; Figure 1) to assist Hana's technical team in the design and modeling of a second potential pit 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 initial potential starter pit is to be located at the New Discovery area, see press release dated September 8, 2010).

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 65,000 metres.
  • These latest results confirm a strike length of approximately 2 km between section lines 69000 to 70500 on the North Limb at the Northeast Fold area (Figure 2). This area is shaping up to be the second potential site for open-pit mining operations at the Banana Zone.
  • High grade intercepts of 5.69% Cu and 14.0 g/t Ag over 2.47 metres in hole HA-179-D, 3.89% Cu and 69.0 g/t Ag over 4.00 metres in hole HA-183-D, 2.26% Cu and 10.0 g/t Ag over 8.25 metres in hole HA-178-D, and 2.72% Cu and 44.0 g/t Ag over 5.75 metres in hole HA-184-D.
  • Wide intercepts of 1.07% Cu and 16.0 g/t Ag over 41.00 metres (including 2.50% Cu and 47.0 g/t Ag over 13.00 metres) in hole HA-173-D, 0.98% Cu and 13.0 g/t Ag over 28.00 metres (including 1.28% Cu and 17.0 g/t Ag over 19.00 metres) in hole HA-172-D, 0.93% Cu and 13.0 g/t Ag over 22.00 metres (including 1.85% Cu and 24.0 g/t Ag over 9.00 metres) in hole HA-190-D, and 0.56% Cu and 8.0 g/t Ag over 25.00 metres (including 3.31% Cu and 77.0 g/t Ag over 0.80 metres) in hole HA-187-D.

Discussion of Results:

The recently completed infill drilling program at Northeast Fold has confirmed the previous drilling results between section lines 69000 to 70500 on the North Limb (Figure 1) and is expected to allow the conversion of resources to M&I from Inferred. Given the encouraging grades and widths encountered, this area will become the location for a second potential pit for open pit mining operations at the Banana Zone (Figures 2 and 3). Engineering and modeling have already commenced and the results are expected to be incorporated into the Preliminary Economic Assessment (PEA) which is expected to be completed by the end of calendar year 2010.

To view Figures 1, 2 and 3 please click on the following link: http://media3.marketwire.com/docs/HMG1006.pdf

Development Update:

The following engineering and consultation activities are ongoing to fulfill the goal of completion of a PEA by Q4 2010:

  • Preliminary mine open pit modeling has been carried out using the April 2010 resource as a basis to define parameters to be used in the revised model to be completed after the 2010 drilling has been incorporated;
  • Preliminary metallurgical results on the Banana Zone sulphide drill-core composites have been received from Mintek in Johannesburg, South Africa. Preliminary results are encouraging. Final metallurgical results on the Banana Zone sulphides are expected to be received in October;
  • Metallurgical (leaching) work, which is being carried out by Metcon Research in Tuscon, Arizona, on the Chalcocite Zone is ongoing. Results are expected to be available by the end of November 2010;
  • Field work for water exploration is ongoing;
  • Initial public consultation meetings, which are part of the ongoing Environmental and Social Impact studies, were recently held in the villages of Ghanzi, D'Kar and Kuke. The consultation meetings with the stakeholders were well attended and support for the project is positive.

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

"We are pleased that our aggressive drilling program has identified a second area for potential open-pit operations at the Banana Zone. Like the New Discovery area, the Northeast Fold area has good mineralized widths, high-grades and consistent copper-silver mineralization which should provide feedstock material to the grinding mill for a number of years. We continue to be confident that there will be other areas within the Banana Zone that could also be sites for open pit mining operations providing many working faces."

Qualified Person and Quality Assurance/Quality Control

The drilling program and results are reviewed and approved by Vivian Park, P.Geo., Senior Geologist/Database Manager for Hana. She 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 2,169 sq Km, 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 April 21, 2010, announcing an inferred mineral resource of 3.9 billion pounds of copper and 62.1 million ounces of silver from 177 million tonnes. This mineral resource estimate consists of 73.5 million tonnes grading 1.5% Cu and 19 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.7% Cu and 12 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 7 g/t Ag in Zone 6; all at a cut-off grade of 0.75% Cu. Also included is 83.6 million tonnes grading 0.46% Cu and 3.6 g/t Ag at a cut-off grade of 0.30% in the Chalcocite Zone.

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 (Figure 1), 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 69000 to 70500 – Interval indicates down hole interval

      Mineralized  From  To Interval  Cu  Ag
Hole # Section   Zone (m) (m) (m) (%) (g/t)
North East Fold Diamond Drilling          
HA-163-D 70100   Northeast 48.00 58.00 10.00 1.14 5.0
  includes     Fold 49.00 58.00 9.00 1.24 5.0
  includes       52.00 57.00 5.00 1.76 9.0
HA-164-D 69825   Northeast 140.00 159.38 19.38 0.98 14.0
  includes     Fold  140.00 158.00 18.00 1.04 15.0
  includes       142.34 145.00 2.66 1.90 9.0
  includes       155.00 158.00 3.00 2.36 44.0
HA-165-D 69200   Northeast 34.22 44.00 9.78 0.36 3.0
      Fold          
HA-166-D 69225   Northeast 71.50 99.57 28.07 0.47 5.0
  includes     Fold  76.39 84.00 7.61 1.16 9.0
  includes       76.39 79.39 3.00 1.93 6.0
  includes       93.00 97.80 4.80 0.51 7.0
HA-167-D 70300   Northeast 81.00 92.00 11.00 0.56 6.0
  includes     Fold  84.00 91.00 7.00 0.72 9.0
  includes       85.00 86.00 1.00 1.81 27.0
HA-168-D 69375   Northeast 36.00 45.50 9.50 0.48 2.0
  includes     Fold  37.50 40.50 3.00 1.05 5.0
HA-169-D 70300   Northeast 90.00 100.00 10.00 0.95 9.0
  includes     Fold  91.00 100.00 9.00 1.04 10.0
  includes       94.00 95.00 1.00 6.14 54.0
HA-170-D 69350   Northeast 78.00 102.00 24.00 0.44 4.0
  includes     Fold  80.00 88.00 8.00 0.73 5.0
  includes       80.50 81.50 1.00 1.05 2.0
  includes       97.27 100.00 2.73 0.55 5.0
HA-171-D 70400   Northeast 111.00 119.58 8.58 0.13 2.0
      Fold  122.59 125.00 2.41 0.50 3.0
  includes       122.59 123.49 0.90 1.12 6.0
        134.40 141.00 6.60 1.10 10.0
HA-172-D 69500   Northeast 93.00 121.00 28.00 0.98 13.0
  includes     Fold  93.00 112.00 19.00 1.28 17.0
  includes       93.00 102.00 9.00 1.57 14.0
  includes       108.00 109.00 1.00 4.02 95.0
HA-173-D 70425   Northeast 89.00 130.00 41.00 1.07 16.0
  includes     Fold  95.00 105.00 10.00 0.67 2.0
  includes       101.00 102.00 1.00 1.75 7.0
  includes       110.00 112.00 2.00 0.73 7.0
  includes       117.00 130.00 13.00 2.50 47.0
  includes       119.00 130.00 11.00 2.83 55.0
HA-174-D 69725   Northeast 39.00 56.00 17.00 0.70 13.0
  includes     Fold  41.00 53.00 12.00 0.92 18.0
  includes       41.00 45.00 4.00 1.11 15.0
  includes       50.00 52.00 2.00 1.83 47.0
HA-175-D 69725   Northeast 87.00 104.00 17.00 0.76 13.0
  includes     Fold  88.00 103.00 15.00 0.84 14.0
  includes       88.00 92.00 4.00 1.38 17.0
  includes       101.00 103.00 2.00 2.02 34.0
HA-176-D 69825   Northeast 29.63 45.00 15.37 0.98 11.0
  includes     Fold  29.63 31.00 1.37 1.39 4.0
  includes       36.00 45.00 9.00 1.11 17.0
HA-177-D 69925   Northeast 39.00 50.00 11.00 0.85 11.0
  includes     Fold  41.00 49.00 8.00 1.01 13.0
  includes       42.00 43.00 1.00 1.72 41.0
  includes       48.00 49.00 1.00 2.86 32.0
HA-178-D 70025   Northeast 41.00 52.25 11.25 1.84 8.0
  includes     Fold  44.00 52.25 8.25 2.26 10.0
HA-178-D       57.00 62.40 5.40 1.22 7.0
  includes       59.00 60.00 1.00 5.49 30.0
HA-179-D 70200   Northeast 30.00 47.00 17.00 1.10 3.0
  includes     Fold  41.00 45.00 4.00 3.75 9.0
  includes       41.00 43.47 2.47 5.69 14.0
HA-180-D 70500   Northeast 69.00 79.00 10.00 1.13 8.0
  includes     Fold  70.15 79.00 8.85 1.26 9.0
  includes       70.15 72.00 1.85 3.98 30.0
  includes       76.00 79.00 3.00 0.76 3.0
HA-181-D 70325   Northeast 81.00 83.00 2.00 0.21 2.0
      Fold           
HA-182-D 70325   Northeast 136.00 151.00 15.00 1.05 17.0
  includes     Fold  137.00 150.00 13.00 1.16 19.0
  includes       138.00 150.00 12.00 1.18 20.0
HA-183-D 70200   Northeast 158.00 170.00 12.00 1.63 25.0
  includes     Fold  159.00 160.00 1.00 1.23 7.0
  includes       166.00 170.00 4.00 3.89 69.0
HA-184-D 70500   Northeast 129.00 137.00 8.00 0.71 6.0
  includes     Fold  131.00 136.00 5.00 0.97 8.0
  includes       134.00 136.00 2.00 1.71 14.0
HA-184-D       153.00 170.00 17.00 0.35 4.0
  includes       162.00 169.00 7.00 0.66 7.0
  includes       166.00 168.00 2.00 1.27 14.0
HA-184-D       188.00 204.33 16.33 1.05 18.0
  includes       191.25 197.00 5.75 2.72 44.0
HA-185-D 70100   Northeast 174.00 186.50 12.50 0.74 14.0
  includes     Fold  179.00 186.50 7.50 1.15 22.0
  includes       179.00 182.00 3.00 2.06 37.0
  includes       186.20 186.50 0.30 4.40 105.0
HA-186-D 70000   Northeast 166.45 178.77 12.32 0.52 10.0
  includes     Fold  171.26 176.00 4.74 1.13 25.0
HA-187-D 69625   Northeast 54.00 79.00 25.00 0.56 8.0
  includes     Fold  58.36 74.00 15.64 0.63 8.0
  includes       71.30 72.00 0.70 2.68 67.0
  includes       78.20 79.00 0.80 3.31 77.0
HA-188-D 69925   Northeast 142.80 159.00 16.20 0.88 18.0
  includes     Fold  146.00 159.00 13.00 1.05 22.0
  includes       146.00 149.00 3.00 1.40 7.0
  includes       157.00 159.00 2.00 2.93 85.0
HA-190-D 69600   Northeast 115.00 137.00 22.00 0.93 13.0
  includes     Fold  115.00 124.00 9.00 1.85 24.0
  includes       115.00 122.00 7.00 2.19 25.0

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