Huakan International Mining Inc.
TSX VENTURE : HK

Huakan International Mining Inc.

June 04, 2012 08:30 ET

Huakan Intersects 8.48m Grading 9.41 g/t Au, 101 g/t Ag, 2.17% Pb and 4.31% Zn in Main Zone Drilling at J&L

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2012) - Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") announces drill results of the Main Zone from the first 10 holes of its 2012 planned 40 hole, 8,000 metre underground diamond drill program that is in progress at its J&L precious and polymetallic (gold-silver-lead-zinc) project, located near Revelstoke, British Columbia. The aim of the drill program is to increase the indicated resource category for the Main Zone deposit. There are six areas that are targeted to achieve 60 metre centres in this drill program, all outside the limits of the current Main Zone resource.

The first seven holes (DDH12-01 through DDH12-07) were drilled in an area of wide spaced historic drilling lying outside, but only 100 metres northwest and along strike of the Main Zone current resource. This target area is referred to as the Northwest Extension. The highlights of the new holes in the Northwest Extension area are tabled below. The results from the historic wide spaced drilling in the Northwest Extension area are tabled separately. The two sets of drillholes now provide 60 metre centres in this area and demonstrate continuity of the Main Zone in the Northwest Extension.

Table 1: Drilling Highlights from Northwest Extension

Hole ID From
(m)
To
(m)
Length
(m)
Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
DDH12-01 149.58 151.22 1.64 2.94 28.3 1.46 1.94
DDH12-02 182.57 183.95 1.38 2.69 41.7 1.84 1.82
DDH12-03 75.56 76.89 1.30 6.17 23.6 1.20 3.08
DDH12-04 139.90 146.55 6.65 5.23 34.6 0.90 2.18
DDH12-05 187.49 189.62 2.13 11.73 85.6 2.87 2.92
DDH12-06 198.68 199.61 0.93 5.28 62.1 3.08 2.77
DDH12-07 246.25 247.95 1.70 3.90 23.4 1.23 3.27

Table 2: Historic Drilling Highlights from Northwest Extension

Hole ID From
(m)
To
(m)
Length
(m)
Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
91-13 124.90 126.50 1.60 6.02 72.7 3.19 3.11
91-34 124.40 129.00 4.60 5.64 36.6 1.16 1.49
91-56 256.30 257.50 1.20 2.06 64.9 1.83 2.47
91-57 220.90 225.00 4.10 4.57 81.9 3.48 4.63
91-59 258.20 260.40 2.20 7.30 59.8 3.44 2.91
91-62 247.80 249.60 1.80 5.68 11.8 0.64 1.47
07SJ-05 143.25 145.00 1.75 7.60 81.9 2.77 2.21

Three holes were also completed in a second target area (Area A), which attempts to extend the downdip limits of the Main Zone. Highlights of this drilling are tabled below and also demonstrate continuity of the Main Zone, which remains open downdip. Additional drilling is planned in this Area A to further extend Area A downdip.

Table 3: Drilling Highlights from Area A

Hole ID From
(m)
To
(m)
Length
(m)
Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
DDH12-08 171.75 174.74 2.99 2.88 73.29 3.63 9.35
DDH12-09 192.38 193.61 1.23 4.13 71.88 3.03 2.68
and 206.55 208.11 1.56 1.94 20.94 0.21 0.06
DDH12-10 207.70 216.18 8.48 9.41 101.39 2.17 4.31

The 2012 diamond drill program is under the supervision of Paul Cowley, P.Geo., the Company's Qualified Person and VP Exploration. BQTW-sized core samples have been cut in half and sent to ALS Laboratory Group in Kamloops, BC. Samples are assayed for gold by fire assay (50 gram charge) as well as assayed for silver, lead and zinc. The Company inserted standards, blanks and duplicate samples throughout the sample sequence as quality control checks.

Paul Cowley, P.Geo. and VP Exploration, states "We are pleased with Main Zone continuity demonstrated thus far beyond the limits of Main Zone current resource. The deposit is open both up and down dip and along strike with excellent potential to expand the current resource."

To date 30 holes have been completed in four of the target areas. Assays are pending for holes DDH12-11 to DDH12-30. Drilling continues.

The first seven holes of the program also encountered Yellowjacket mineralization, which will be reported separately.

CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION

Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to statements concerning the J&L underground drill program. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

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