Hana Mining Ltd.

Hana Mining Ltd.

September 25, 2009 08:30 ET

Hana Mining RC Drilling Intersects 2.53% Cu and 32 g/t Ag Over 17 Metres in North Limb of Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 25, 2009) - Hana Mining Ltd., ("HMG" or the "Company") - (TSX VENTURE:HMG) (FRANKFURT:4LH) is pleased to report drill results for 4 new RC drill holes at it's sediment-hosted Ghanzi Copper-Silver Project in Botswana. These most recent drill results confirm mineralization along the western section (section 25,000 on map, figure 1 below) of the North Limb of the Banana Zone---an area we also refer to as 'New Discovery'.

Highlights of recent drilling results:

  • This RC drill hole data assayed at significantly improved grade over the percussion hole assays (RC locations twinned existing percussion holes) that were included in the current 43-101 resource estimate (see press release dated June 1, 2009),

  • Two of the four holes produced significant high grade sections, with 5-17 metre core sections showing Cu grades of 1.36% to 2.53% and Ag grades of 5.1 g/t to 32 g/t. One section also showed a 4 metre intercept grading 4.49% Cu and 42.5 g/t Ag,

  • The assay results on these latest holes are consistent with regard to average resource mineralization thickness, and show mineralization at open pit depth, and

  • Assays indicate bornite is the dominant copper mineral, with minor chalcocite.

The results of the new holes are as follows:

 Project ZoneHole
(meter depth)
(meter depth)
Core Length
 Cu Grade
Ag Grade
BananaHA-54-R 56 73 17 2.53 32.0
  including57 73 16 2.64 33.8
  including59 61 2 3.52 64.6
  including66 70 4 4.49 42.5
    86 91 5 0.87 10.3
  including88 89 1 2.71 36.2
    93 98 5 0.75 8.3
  including96 98 2 1.11 11.6
BananaHA-53-R 29 44 15 1.36 5.1
  including29 38 9 1.71 7.8
  including33 38 5 2.39 13.3
    46 49 3 0.81 7.5
BananaHA-52-R 97 134 37 0.32 6.1
  including97 99 2 0.56 12.3
  including97 98 1 0.82 17.1
  including107 110 3 0.57 12.0
  including107 108 1 0.63 15.3
  including109 110 1 0.93 18.7
  including114 115 1 1.01 20.2
  including117 119 2 1.00 20.3
  including117 118 1 1.10 23.4
  including124 125 1 0.46 7.1
  including129 132 3 0.46 7.8
  including131 132 1 0.77 14.2
BananaHA-51-R 109 130 21 0.29 4.8
  including111 112 1 0.57 8.4
  including123 126 3 0.59 9.0
  including128 129 1 0.51 6.4

All intercepts reported are intersection length and are estimated to represent better than 80% of true thickness.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/HM1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/HM2.pdf

Qualified Person and Quality Assurance/Quality Control

Joseph Arengi, M. Sc., P. Geo., Vice President of Exploration for Hana Mining is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.

The Company has implemented an industry-standard QA/QC program. Drill core is logged, split by sawing and sampled at site. Samples are bagged, labeled, sealed and packed in sealed containers and shipped to Scientific Services Laboratory in Cape Town, South Africa. Standards and blanks are inserted into the sample stream. The analytical method for the Cu, Ag, Pb, and Zn assays is acid digestion and Atomic Absorption Spectroscopy ("AAS"). The analytical method for Mo assays is XRF (full matrix correction).

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

"While these RC holes don't represent new resource for the project, they do improve significantly on the grades we assumed for this area and they contain some very strong copper and silver assays that encourage us to seek another high grade starter pit opportunity, as we have seen occur elsewhere in Banana Zone. These grades continue to demonstrate the attractiveness of the Ghanzi resource, and they are similar to Cu grades on other sediment-hosted deposits in Zambia."

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 country of Botswana is considered by the Fraser Institute Annual Survey of Mining Companies 2009 country ranking study to offer the most attractive mineral exploration and investment climate in Africa. The Ghanzi property covers 2,200 sq. km., and contains sediment-hosted copper-silver deposits with a demonstrated cumulative mineralized strike length of over 13 kilometres. This favourable geology extends over the entire strike length of 600 kilometres Hana Mining recently released results of it's first NI 43-101 resource estimate for the Ghanzi Project (see press release dated June 1, 2009), announcing an inferred resource of 2.0 Billion lb. of copper and 34.9 Million oz. of silver from 60.4 million tonnes. This resource estimate is based on a 0.75% Cu cutoff grade, and averages 1.51% Cu and 17.98 g/t Ag. The Banana Zone represents 40.7 million tonnes of this total resource (67%), and is the current focus of the Company's drilling efforts and development focus for 2009 and 2010.

The Banana Zone exhibits certain areas of high grade Cu and Ag mineralization, particularly in the fold nose at the northern end of the zone, which represent an opportunity to locate starter pits and mine initial tonnages at higher than average grades. These +2% Cu 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 contemplated rail/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 planned 600MW expansion of the government-owned Moropule Power Plant continues to advance, with US$825 million project funding secured in May 2009, and key supply contracts awarded. Currently, our project is served by the paved trans-Kalahari highway, which passes within 15 km of the property.

Hana Mining is focused on demonstrating that the Ghanzi property represents one of Africa's premier future copper-silver resources.

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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