Hana Mining Ltd.: Infill Drilling Again Encounters Thick Intersections of Copper-Silver Mineralization Along the North Limb of the Banana Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/26/11 -- Hana Mining Ltd. ('Hana' or the 'Company') (TSX VENTURE: HMG)(FRANKFURT: 4LH) is pleased to announce its most recent drilling results from the completion of eight infill diamond drill holes in the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.
Infill drilling was carried out on the North Limb area (between sections 66725 to 67625 at North Limb North; Figures 1 and 2) to convert a substantial amount of the NI 43-101 compliant resources within this area into the Indicated category from the Inferred category.
These results are from new holes and are in addition to those used in the most recent NI 43-101 compliant Inferred mineral resource calculation (see Table 1 at the end of this press release for the results from all 10 drill holes). The mineralization remains open at depth.
Highlights of recent drilling results:
-- The latest results confirm the continuity of copper-silver
mineralization at the North Limb North area of the Banana Zone.
-- Intercepts of
-- 1.46% Cu and 33.0 g/t Ag over 9.0 metres within a wider mineralized
interval of 0.87% Cu and 18.0 g/t Ag over 18.2 metres in hole HA-
337-D,
-- 1.26% Cu and 9.0 g/t Ag over 3.5 metres within a wider mineralized
interval of 0.57% Cu and 4.0 g/t Ag over 20.4 metres in hole HA-340-
D, and
-- 0.93% Cu and 20.0 g/t Ag over 2.3 metres within a wider mineralized
interval of 0.51% Cu and 9.0 g/t Ag over 23.3 metres in hole HA-325-
D.
Discussion of Results:
The infill drilling program at the North Limb North continues to confirm that copper-silver mineralization is continuous and has consistent widths and, again, in some sections it bifurcates into two high-grade zones within a very wide, lower grade, mineralized envelope (Figure 3). This drilling will allow for the conversion of more mineral resources from the Inferred category into the Indicated category.
To view Figures 1, 2, and 3 associated with this release, please click the following link: http://media3.marketwire.com/docs/HMGmaps.pdf.
Development Update
The following engineering and consultation activities are ongoing:
-- The Terms of Reference ('ToR') meeting was held recently with the
Botswana Department of Environmental Affairs. The ToR will dictate the
parameters of the Environmental Impact Assessment.
-- Work is also continuing on the metallurgy of the oxide material at the
Banana Zone.
-- Regional soil geochemistry is ongoing at the Baby Banana and Peeled
Banana Zones.
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
'This is the fourth batch of assay results from the North Limb North area and, again, we continue to intersect good concentrations of copper and silver mineralization over considerable widths. As we continue to carry out infill drilling on the Northeast Fold and South Limb areas of the Banana Zone we expect that we will continue to intersect good widths of robust copper-silver mineralization.'
Qualified Person and Quality Assurance/Quality Control
The drilling program and results are reviewed and approved by Marek Kreczmer, Chief Executive Officer for Hana. He is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.
Drill core is logged and photographed. Mineralized intervals are split in half by sawing and sampled at site. The remainder of the core is kept as a permanent record. Samples are placed into labelled bags, closed and packed into sealed bags that are shipped to ALS Chemex Laboratory in Johannesburg, South Africa. Hana has implemented an industry-standard QA/QC program that includes the blind insertion of certified standards, duplicates and blanks into the sample stream.
About Hana'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.
Table 1: Drill Results from North Limb, Banana Zone, Sections 66725 to
67625 - Interval indicates down hole interval
From To Interval Cu Ag
Hole # Section Mineralized Zone (m) (m) (m) (%) (g/t)
---------------------------------------------------------------------------
North Limb North Diamond Drilling
---------------------------------------------------------------------------
HA-308-D NL66725 North Limb North 80.50 103.64 23.14 0.24 4.0
includes 80.50 82.32 1.82 0.42 8.0
includes 98.74 100.79 2.05 0.72 14.0
---------------------------------------------------------------------------
HA-325-D NL66925 North Limb North 109.00 132.27 23.27 0.51 9.0
includes 110.63 112.44 1.81 1.03 6.0
includes 118.54 127.90 9.36 0.66 13.0
includes 130.00 132.27 2.27 0.93 20.0
---------------------------------------------------------------------------
HA-327-D NL66925 North Limb North 69.00 95.80 26.80 0.35 3.0
includes 69.75 72.80 3.05 0.95 1.0
includes 86.66 91.15 4.49 0.54 6.0
---------------------------------------------------------------------------
HA-333-D NL67225 North Limb North 44.00 74.85 30.85 0.25 6.0
includes 59.35 61.68 2.33 1.12 24.0
includes 67.10 69.18 2.08 0.68 15.0
---------------------------------------------------------------------------
HA-337-D NL67425 North Limb North 68.00 86.17 18.17 0.87 18.0
includes 75.96 85.00 9.04 1.46 33.0
HA-337-D 90.30 92.85 2.55 0.19 5.0
HA-337-D 99.00 101.19 2.19 0.21 3.0
---------------------------------------------------------------------------
HA-340-D NL67425 North Limb North 27.92 48.33 20.41 0.57 4.0
includes 30.60 33.10 2.50 0.92 1.0
includes 35.66 39.19 3.53 1.26 9.0
includes 41.26 46.72 5.46 0.61 7.0
HA-340-D 51.55 54.96 3.41 0.25 3.0
HA-340-D 58.39 59.00 0.61 0.26 6.0
HA-340-D 62.00 64.00 2.00 0.18 2.0
---------------------------------------------------------------------------
HA-344-D NL67525 North Limb North 63.60 73.85 10.25 0.79 16.0
includes 64.70 73.85 9.15 0.86 18.0
---------------------------------------------------------------------------
HA-346-D NL67625 North Limb North 134.63 143.26 8.63 0.56 8.0
includes 135.31 137.30 1.99 0.79 5.0
includes 141.23 143.26 2.03 1.26 24.0
---------------------------------------------------------------------------
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.
Contacts:
Hana Mining Ltd.
Marek Kreczmer
CEO
(604) 676-0824
(778) 370-0146 (FAX)
info@hanamining.com
Hana Mining Ltd.
Patrick Donnelly
VP Corporate Development
(604) 676-0824
(778) 370-0146 (FAX)
patrick@hanamining.com
www.hanamining.com