Hana Mining Comments on Share Price-Drilling Continues
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/13/11 -- Hana Mining Ltd. (TSX VENTURE: HMG)(FRANKFURT: 4LH) (the 'Company') announces that its recent share price performance is a result of fluctuations in the global capital markets and that it is not aware of any material undisclosed information or corporate developments that would account for the price volatility. The Company is well funded with approximately Cdn$20 million in cash. The Company is continuing with its 50,000 metre in-fill drilling program on the Banana Zone at its Ghanzi Copper-Silver Project in Botswana. The results from this drilling campaign will be incorporated into a 43-101-compliant resource estimate. Assay samples are currently undergoing analytical analysis and results will be made public upon completion.
On May 26, 2011 the Company announced that it had suspended the completion of the Preliminary Economic Assessment ('PEA') at the Banana Zone. The PEA was suspended due to management's belief that the 43-101-compliant resource estimate, which was released on December 20, 2010 and forms the basis of the PEA, may underestimate copper and silver grades at the Banana Zone.
Management has engaged a third-party consultant to complete a new resource estimate for the Banana Zone. Once a new resource estimate is completed, the Company will resume with the completion of the PEA. Hana will, at a later date, provide guidance on the timing of the completion of the resource estimate and the PEA.
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.
Neither the TSX Venture Exchange or its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) have reviewed nor do they accept responsibility for the adequacy or accuracy of this release.
Contacts:
Hana Mining Ltd.
Marek Kreczmer
Chief Executive Officer
(604) 676-0824
info@hanamining.com
Hana Mining Ltd.
Patrick Donnelly
VP Corporate Development
(604) 676-0824
patrick@hanamining.com
www.hanamining.com