Hana Mining Ltd.: Infill Drilling Continues to Encounter Consistent High-Grade Copper-Silver Mineralization Along the South Limb of the Banana Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/27/12 -- 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 10 infill diamond drill holes in the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.
Infill and down dip drilling was carried out on the South Limb area (between sections 63075 to 63850 at South Limb Definition Area; 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 and to extend current Indicated resources down dip.
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 continue to confirm the continuity of copper-
silver mineralization at the South Limb Definition area of the
Banana Zone.
-- Core lengths intercepts of
-- 3.69% CuEq(1)(2.96% Cu and 50.0 g/t Ag) over 2.5 metres within a
wider mineralized interval of 0.74% CuEq(1)(0.60% Cu and 10.0
g/t Ag) over 16.6 metres in hole HA-422b-D,
-- 3.21 CuEq(1)(2.64% Cu and 39.0 g/t Ag) over 2.4 metres within a
wider mineralized interval of 1.58% CuEq(1)(1.32% Cu and 18.0
g/t Ag) over 5.1 metres in hole HA- 387b-D,
-- 2.75% CuEq(1)(2.26% Cu and 34.0 g/t Ag) over 3.7 metres within a
wider mineralized interval of 2.07% CuEq(1)(1.72% Cu and 24.0
g/t Ag) over 5.2 metres in hole HA-414b-D,
-- 2.61% CuEq(1)(2.10% Cu and 35.0 g/t Ag) over 4.3 metres within a
wider mineralized interval of 1.84% CuEq(1)(1.48% Cu and 25.0
g/t Ag) over 6.2 metres in hole HA-394-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).
The Company also announces that it has granted Incentive Stock Options (the 'Options') to purchase up to an aggregate 2,700,000 common shares of the Company to directors, officers and employees of the Company. The Options are exercisable at $2.13 per share and expire on February 27, 2017. All securities issued upon exercise of the Options are subject to a hold period expiring four (4) months after the date of grant. The subject Options will vest quarterly over 24 months, in 8 equal tranches, with the first tranche vesting May 27, 2011. The Options are subject to the terms and conditions of the Company's Stock Option Plan.
Discussion of Results:
The infill drilling program at the South Limb continues to confirm that copper-silver mineralization is relatively high-grade and continuous along strike at the South Limb (Figure 3). This drilling will allow for the conversion of more mineral resources from the Inferred category into the Indicated category.
To view Figures 1-3, click on the following link: http://media3.marketwire.com/docs/h225m.pdf
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 infill results are continuing to confirm our original interpretation along the South Limb. Copper-silver mineralization in this area is steeply dipping and parallel to the stratigraphy. Complex structures, such as local folding and micro-faulting have shown some thickening of the mineralization much like that seen in the Northeast Fold area.'
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 Laboratory 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 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 South Limb, Banana Zone, Sections 63075 to 63850 - Interval Indicates Down Hole Interval
---------------------------------------------------------------------------
Est.
Interv True
Mineralized From To al Width Cu Eq Cu Ag
Hole # Section Zone (m) (m) (m) (m) (%) (%) (g/t)
---------------------------------------------------------------------------
South Limb Definition Diamond Drilling
---------------------------------------------------------------------------
HA-387b-D SD63275 South Limb 152.00 158.00 6.00 5.10 1.58 1.32 18.0
Def
---------------------------------------------------------------------------
includes 154.30 157.09 2.79 2.37 3.21 2.64 39.0
---------------------------------------------------------------------------
HA-394-D SD63275 South Limb 100.70 108.00 7.30 6.21 1.84 1.48 25.0
Def
---------------------------------------------------------------------------
includes 102.00 107.00 5.00 4.25 2.61 2.10 35.0
---------------------------------------------------------------------------
HA-404b-D SD63275 South Limb 45.68 53.10 7.42 6.31 1.11 0.91 14.0
Def
---------------------------------------------------------------------------
includes 50.08 53.10 3.02 2.57 2.50 2.03 32.0
---------------------------------------------------------------------------
HA-409-D SD63175 South Limb 60.30 63.02 2.72 2.31 0.12 0.10 1.0
Def
---------------------------------------------------------------------------
HA-412-D SD63075 South Limb 162.32 168.00 5.68 4.83 0.59 0.52 5.0
Def
---------------------------------------------------------------------------
includes 163.00 166.76 3.76 3.20 0.86 0.74 8.0
---------------------------------------------------------------------------
HA-412-D 174.00 177.00 3.00 2.55 0.13 0.12 1.0
---------------------------------------------------------------------------
HA-414b-D SD63375 South Limb 193.32 199.47 6.15 5.23 2.07 1.72 24.0
Def
---------------------------------------------------------------------------
includes 194.61 199.00 4.39 3.73 2.75 2.26 34.0
---------------------------------------------------------------------------
HA-415b-D SD63575 South Limb 194.22 199.63 5.41 4.60 0.46 0.38 5.0
Def
---------------------------------------------------------------------------
includes 197.37 198.26 0.89 0.76 1.70 1.38 22.0
---------------------------------------------------------------------------
HA-420b-D SD63675 South Limb 206.03 220.44 14.41 12.25 0.65 0.52 9.0
Def
---------------------------------------------------------------------------
includes 215.00 220.44 5.44 4.62 1.42 1.13 20.0
---------------------------------------------------------------------------
HA-421b-D SD63750 South Limb 160.00 182.27 22.27 18.93 0.50 0.41 6.0
Def
---------------------------------------------------------------------------
includes 172.70 176.77 4.07 3.46 1.19 0.97 15.0
---------------------------------------------------------------------------
HA-422b-D SD63850 South Limb 181.50 201.00 19.50 16.58 0.74 0.60 10.0
Def
---------------------------------------------------------------------------
includes 195.58 198.53 2.95 2.51 3.69 2.96 50.0
---------------------------------------------------------------------------
HA-422b-D 204.60 206.88 2.28 1.94 0.59 0.47 8.0
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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
info@hanamining.com
www.hanamining.com
Hana Mining Ltd.
Patrick Donnelly
VP - Corporate Development
(604) 676-0824
(778) 370-0146 (FAX)
patrick@hanamining.com
www.hanamining.com