New Hana Copper Mining Ltd.
TSX VENTURE : HML

New Hana Copper Mining Ltd.

September 12, 2011 07:30 ET

New Hana Provides Exploration Update for the Kuke Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2011) - New Hana Copper Mining Ltd. ("HML" or the "Company") (TSX VENTURE:HML) is pleased to provide an update on the exploration activities at its 100%-owned Kuke copper-silver project, located in northwestern Botswana.

The following exploration activities are ongoing to fulfill the goal of the discovery of copper-silver mineralization at the Kuke Project:

  • A total of 15,583 soil samples from the Kuke Project, representing approximately 363 line kilometres have been submitted to the laboratory for geochemical analysis.
  • Of the 15,583 soil samples submitted, results for 13,224 samples, representing 305 line kilometres have been received and are currently being reviewed. Results are still outstanding for 2,359 samples, representing 58 line kilometres.
  • A number of large broad copper-silver anomalies have been identified on the property and the Company has carried out 11.5 line kilometres of auger sampling to ascertain the sources of these anomalies. Once the Company has received all of the geochemical results from the auger sampling, it intends to commence drilling at Kuke.
  • The Company is also carrying out ground horizontal loop electromagnetic surveys to follow up and further constrain the source of these broad geochemical anomalies. The results of these surveys will assist the Company's geologists in identifying drilling targets.
  • The Company remains well financed with Cdn$4.4 million in cash on hand.
  • Please visit the Company's website at www.newhanamining.com for additional details on the Company and the Kuke Project.

New Hana Copper Mining's President and CEO, Mr. Marek Kreczmer, commented as follows:

"The plan for the Kuke Project is to take a thorough and methodical approach to understanding the geology and mineralization at the Kuke property and having every piece of possible information in front us before we commence drilling, which is the most expensive part of any exploration program. While we have found numerous indications of copper-silver mineralization at the property, we want to fully assess the entire 10,654 square kilometre property in order to property prioritize our drilling targets. That being said, we are very optimistic that the Kuke Property will host significant copper-silver resources."

About New Hana Copper's Kuke Copper-Silver Project in Botswana:

The exploration-stage Kuke Project is located in the center of the Kalahari Copper Belt in northwestern Botswana. The Kuke property covers 10,654 square kilometres and is adjacent and along strike to Hana Mining Ltd.'s ("Hana") Ghanzi Copper Silver Project. On December 20, 2011 Hana released results of its most recent NI 43-101 compliant resource estimate for the Ghanzi Project 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 Kuke project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study was recently completed (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 2010. The Kuke Copper- Silver Project is currently accessed by the paved Trans-Kalahari highway, which passes within 5 km of the property.

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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