Hana Mining Continues to Hit High-Grade Copper-Silver Mineralization at the South Limb Area
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/17/12 -- 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 nine 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 Definition Area (between sections 64650 to 65525; 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 12 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
-- 2.13% CuEq(1) (1.81% Cu and 22.0 g/t Ag) over 2.6 metres within
a wider mineralized interval of 1.10% CuEq(1) (0.95% Cu and 11.0
g/t Ag) over 6.2 metres in hole HA-451-D;
-- 1.48% CuEq(1) (1.27% Cu and 14.0 g/t Ag) over 5.6 metres within
a wider mineralized interval of 1.34% CuEq(1) (1.15% Cu and 13.0
g/t Ag) over 6.5 metres in hole HA-454-D;
-- 1.98% CuEq(1) (1.65% Cu and 23.0 g/t Ag) over 4.5 metres in hole
HA-449-D;
-- 1.66% CuEq(1) (1.38% Cu and 19.0 g/t Ag) over 5.7 metres in hole
HA-450-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:
The infill drilling program at the South Limb continues to confirm that copper-silver mineralization is relatively high-grade and continuous along strike and at depth at the South Limb (Figure 3). This drilling will add to the current down dip indicated resource and allow for the conversion of more mineral resources from the Inferred category into the Indicated category.
To view Figures 1 - 3 included with this news release, please click the following link: http://media3.marketwire.com/docs/HMG_Fig1-3.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:
"Infill drilling along the South Limb area shows consistent high-grade copper-silver mineralization at depth. I continue to believe that the South Limb area could contribute significantly to our overall resource base at the Banana Zone."
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 64650 to 65525 - Interval indicates down hole interval
----------------------------------------------------------------------------
Est.
True Cu
Mineralized From To Interval Width Eq Cu Ag
Hole # Section Zone (m) (m) (m) (m) (%) (%) (g/t)
----------------------------------------------------------------------------
HA-448-D SD64650 South Limb 185.00 194.00 9.00 7.65 0.69 0.60 6.0
Def
includes 187.61 194.00 6.39 5.43 0.90 0.77 9.0
----------------------------------------------------------------------------
HA-449-D SD64825 South Limb 168.82 174.15 5.33 4.53 1.98 1.65 23.0
Def
----------------------------------------------------------------------------
HA-450-D SD64750 South Limb 205.32 212.00 6.68 5.68 1.66 1.38 19.0
Def
----------------------------------------------------------------------------
HA-451-D SD64925 South Limb 175.67 182.93 7.26 6.17 1.11 0.95 11.0
Def
includes 178.91 181.98 3.07 2.61 2.13 1.81 22.0
----------------------------------------------------------------------------
HA-452-D SD65025 South Limb 147.56 155.62 8.06 6.85 0.74 0.65 6.0
Def
includes 149.81 153.13 3.32 2.82 1.48 1.29 13.0
----------------------------------------------------------------------------
HA-453-D SD65125 South Limb 211.48 219.96 8.48 7.21 0.97 0.84 9.0
Def
includes 213.40 219.96 6.56 5.58 1.20 1.02 12.0
----------------------------------------------------------------------------
HA-454-D SD65225 South Limb 188.39 196.00 7.61 6.47 1.34 1.15 13.0
Def
includes 188.67 195.20 6.53 5.55 1.48 1.27 14.0
----------------------------------------------------------------------------
HA-456-D SD65325 South Limb 204.24 213.00 8.76 7.45 0.71 0.61 7.0
Def
includes 207.41 212.50 5.09 4.33 1.02 0.88 10.0
----------------------------------------------------------------------------
HA-459-D SD65525 South Limb 160.96 171.51 10.55 8.97 0.55 0.46 6.0
Def
includes 166.00 169.61 3.61 3.07 1.03 0.88 10.0
----------------------------------------------------------------------------
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
info@hanamining.com
Hana Mining Ltd.
Patrick Donnelly
VP - Corporate Development
(604) 676-0824
patrick@hanamining.com
www.hanamining.com