Hana Mining Ltd.

Hana Mining Ltd.

November 17, 2011 07:00 ET

Hana Provides Update on Its Activities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2011) - Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to provide an update on the activities at its 70%-owned Ghanzi Copper-Silver Project in northwestern Botswana. The Company is making good progress at the Ghanzi Project.

Specifically the Company is:

  • Close to completing the 40,000 metre infill drilling program at the New Discovery, North Limb, Northeast Fold and South Limb areas of the Banana Zone. So far Hana has completed 291 drill holes comprising just over 37,500 metres at the Banana Zone. With 8 drills on the property, the drilling program is expected to be completed by the middle of December.
  • Continuing work on the Preliminary Economic Assessment ("PEA") for the Banana Zone. The PEA is expected to be completed during the second quarter of 2012 and is expected to investigate open-pit and underground mining operations and conventional milling and flotation recovery methods.
  • Continuing work on the updated resource estimate for the Banana Zone. The Company is making good progress in constructing a new resource model. The results of the new resource estimate will be released in conjunction with the PEA in the second quarter of 2012.
  • Making progress working with the Government of Botswana in addressing the project's power needs. The Company believes that over the few quarters that it will make even more headway in addressing its power requirements.

As of November 15, 2011 the Company has a strong cash balance of approximately Cdn$13 million dollars and no debt.

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

"So far 2012 has been a very active year for Hana Mining and we have made great strides in moving the Ghanzi Project forward. The key highlights so far this year have been:

  • The near completion of the 40,000 infill drilling program at the Banana Zone.
  • The establishment of a technical office in Johannesburg, South Africa, which is only a four-hour drive from Botswana's capital Gabarone and a further 10 hour drive to the Ghanzi Project. The activities of this technical office will be managed by Mr. Robert Dey, and his newly established team, which will manage the activities at the Banana Zone and to lead the work going into the PEA.
  • The completion of all of the preliminary metallurgical work on the oxides, transitional material and the sulphides at the Banana Zone. We were extremely pleased with the results from the metallurgical test work which confirms that the mineralized material from the Banana Zone is amenable to conventional flotation recovery methods and will produce a very high quality copper-silver concentrate.
  • The successful delineation of water resources near the Banana Zone. The work carried out so far demonstrates that there is more than enough water to meet the needs of conventional milling and processing activities at the Banana Zone.
  • The Completion of the Baseline Environmental and Social Studies for the Banana Zone and the approval of the environmental Terms of Reference for the Environmental and Social Impact Assessment by the Botswana Department of Environmental Affairs.
  • The recommencement of regional exploration activities at the Ghanzi Property which will be led by Mr. Sas Burgers who was recently appointed Chief Geologist for the Ghanzi Project.
  • The appointments of Messrs. Alexander Davidson, Kenneth Gillis and Michael Houston to the Company's board of directors. All three gentlemen have considerable experience in the global mining industry and have so far been instrumental in guiding the Company over the last few months.

Going forward I am excited that we are getting close to the completion of the 40,000 metre infill drilling program and that we are making great progress on the PEA which I believe will demonstrate that the Banana Zone will be a robust project."

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.

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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