Hana Mining Ltd.: Infill Drilling Encounters Consistent High-Grade Copper-Silver Mineralization Along the Northeast Fold of the Banana Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/09/12 -- 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 14 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 Northeast Fold area (between sections 69125 to 70425 at the Northeast Fold; 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 Indicated and Inferred mineral resource calculation (see Table 1 at the end of this press release for the results from all 14 drill holes). The mineralization remains open at depth.
To view Figures 1-3, please visit the following link: http://media3.marketwire.com/docs/hmg106i.pdf.
Highlights of recent drilling results:
-- The latest results continue to confirm the continuity of copper-silver
mineralization at the Northeast Fold area of the Banana Zone.
-- Core lengths intercepts of
-- 2.17% CuEq(1), (1.82% Cu and 24.0 g/t Ag) over 8.0 metres within a
wider mineralized interval of 0.96% CuEq (0.79% Cu and 12.0 g/t Ag)
over 24.7 metres in hole HA-434-D,
-- 2.59% CuEq(1), (1.98% Cu and 42.0 g/t Ag) over 4.5 metres within a
wider mineralized interval of 1.34% CuEq (1.05% Cu and 20.0 g/t Ag)
over 10.0 metres in hole HA-407-D,
-- 1.21% CuEq(1), (1.17% Cu and 3.0 g/t Ag) over 1.5 metres within a
wider mineralized interval of 0.22% CuEq (0.19% Cu and 2.0 g/t Ag)
over 15.7 metres in hole HA-441-D,
-- 0.94% CuEq(1), (0.85% Cu and 6.0 g/t Ag) over 7.9 metres within a
wider mineralized interval of 0.52% CuEq (0.45% Cu and 5.0 g/t Ag)
over 27.7 metres in hole HA-439-D.
(1) Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not adjusted for metallurgical recoveries. The formula used is as follows: CuEq = Cu% + (Ag g/t x 0.01458).
Discussion of Results:
These are the first set of results from the 2011 infill drilling program for the Northeast Fold area which is located at the most northeast part of the Banana Zone. This area consists of a plunging anticline where thick intervals of copper mineralization were encountered. Like many parts of the North Limb North area, high-grade copper silver mineralization at the Northeast Fold bifurcates and is contained within a broader low grade mineralized envelope. Mineralization at the Northeast Fold is open along plunge and along dip of this anticlinal structure. Further infill drilling results from the Northeast Fold are expected soon.
Development Update
The following engineering and consultation activities are ongoing:
-- Work on the revised resource estimate for the Banana Zone is continuing
as expected and the Company expects to release the results of this
resource estimate in the second quarter of 2012.
-- Work continues on the Preliminary Economic Assessment ('PEA') which is
also expected to be completed in the second quarter of 2012.
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
'The Northeast Fold is another key area where we are investigating the potential of open pit and underground mining operations. Not only is mineralization open along dip along the limbs of the folds in this area, but also along plunge of the top of the fold. This area is also attractive given that relatively high-grade mineralization is found over thick intersections.'
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 or Scientific Services Laboratories in Cape Town, 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 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 585 million pounds of copper and 12 million ounces of silver from 19.7 million tonnes at a grade of 1.35% copper and 19.7 g/t silver. All of the Indicated resources are from the Banana Zone. There are also Inferred resources of 2.4 billion pounds of copper and 40.6 million ounces of silver from 91.2 million tonnes. This Inferred mineral resource estimate consists of 69.9 million tonnes grading 1.10% Cu and 14.98 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.66% Cu and 12.11 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 6.7 g/t Ag in Zone 6, and 1.6 million tonnes grading 0.85% Cu and 6.4 g/t Ag in the Chalcocite Zone; all at a cut-off grade of 0.75% 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 Northeast Fold, Banana Zone, Sections 69125 to
70425 - Interval indicates down hole interval
----------------------------------------------------------------------------
Est.
Inter- True Cu
Mineralized From To val Width Eq Cu Ag
Hole # Section Zone (m) (m) (m) (m) (%) (%) (g/t)
----------------------------------------------------------------------------
Northeast Fold Diamond Drilling
----------------------------------------------------------------------------
HA-04-D NF69350 Northeast
Fold 33.00 51.00 18.00 18.00 0.42 0.40 1.0
includes 40.00 47.00 7.00 7.00 0.72 0.70 1.0
----------------------------------------------------------------------------
HA-407-D NF69125 Northeast
Fold 118.60 128.60 10.00 10.00 1.34 1.05 20.0
includes 121.58 126.08 4.50 4.50 2.59 1.98 42.0
HA-407-D 136.28 141.37 5.09 4.33 0.43 0.38 4.0
----------------------------------------------------------------------------
HA-411-D NF69125 Northeast
Fold 54.00 68.00 14.00 14.00 0.53 0.52 1.0
includes 56.00 59.24 3.24 3.24 0.97 0.95 1.0
includes 61.87 64.06 2.19 2.19 0.94 0.92 1.0
HA-411-D 74.00 81.65 7.65 6.50 0.33 0.28 3.0
----------------------------------------------------------------------------
HA-416-D NF69225 Northeast
Fold 164.58 171.87 7.29 7.29 0.76 0.73 2.0
HA-416-D 179.97 184.25 4.28 4.28 0.73 0.63 7.0
----------------------------------------------------------------------------
HA-417-D NF69125 Northeast
Fold 37.00 52.27 15.27 15.27 0.25 0.22 2.0
includes 46.86 48.40 1.54 1.54 0.88 0.80 6.0
----------------------------------------------------------------------------
HA-418-D NF69300 Northeast
Fold 116.61 130.00 13.39 13.39 0.61 0.49 8.0
includes 119.75 126.16 6.41 6.41 0.98 0.79 13.0
HA-418-D 135.66 142.47 6.81 6.81 0.62 0.51 7.0
includes 136.47 141.00 4.53 4.53 0.86 0.71 10.0
----------------------------------------------------------------------------
HA-419-D NF69300 Northeast
Fold 82.00 109.00 27.00 27.00 0.52 0.49 2.0
includes 84.00 94.00 10.00 10.00 0.83 0.80 2.0
includes 104.00 108.18 4.18 4.18 0.75 0.65 7.0
----------------------------------------------------------------------------
HA-431-D NF69425 Northeast
Fold 167.56 186.83 19.27 19.27 0.34 0.30 3.0
includes 168.00 170.00 2.00 2.00 0.72 0.69 2.0
includes 181.19 183.00 1.81 1.81 0.76 0.65 8.0
----------------------------------------------------------------------------
HA-432-D NF69475 Northeast
Fold 133.00 153.94 20.94 20.94 0.58 0.54 3.0
includes 133.67 142.00 8.33 8.33 0.96 0.90 4.0
includes 148.65 153.17 4.52 4.52 0.55 0.49 4.0
----------------------------------------------------------------------------
HA-434-D NF69475 Northeast
Fold 94.15 118.85 24.70 24.70 0.96 0.79 12.0
includes 94.57 102.55 7.98 7.98 2.17 1.82 24.0
includes 105.16 107.93 2.77 2.77 1.03 0.74 20.0
----------------------------------------------------------------------------
HA-436-D NF69525 Northeast
Fold 67.00 84.11 17.11 17.11 0.50 0.45 3.0
includes 69.51 74.21 4.70 4.70 0.75 0.69 4.0
----------------------------------------------------------------------------
HA-438b-D NF69525 Northeast
Fold 178.00 193.50 15.50 15.50 0.49 0.44 4.0
includes 178.57 183.00 4.43 4.43 0.85 0.79 4.0
----------------------------------------------------------------------------
HA-439-D NF69425 Northeast
Fold 98.60 126.30 27.70 27.70 0.52 0.45 5.0
includes 100.23 108.15 7.92 7.92 0.94 0.85 6.0
includes 124.16 126.30 2.14 2.14 0.71 0.60 8.0
----------------------------------------------------------------------------
HA-440-D NF69425 Northeast
Fold 38.00 69.12 31.12 31.12 0.66 0.61 3.0
includes 40.55 58.58 18.03 18.03 0.86 0.81 3.0
----------------------------------------------------------------------------
HA-441-D NF70425 Northeast
Fold 152.50 168.22 15.72 15.72 0.22 0.19 2.0
includes 166.74 168.22 1.48 1.48 1.21 1.17 3.0
----------------------------------------------------------------------------
Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not
adjusted for metallurgical recoveries. The formula used is as follows: CuEq
= Cu% + (Ag g/t x 0.01458).
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