Hana Mining Ltd.: Drilling Continues to Encounter Down-Dip Mineralization and Confirms Thick Intervals of High-Grade Copper-Silver Mineralization at the Northeast Fold of the Banana Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/01/12 -- 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 six infill and down-dip extensional diamond-drill holes at the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.
Infill and extensional drilling was carried out on Northeast Fold area ("NEF") (between sections 70200 to 70700; 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 six drill holes). The mineralization remains open at depth and along strike.
Highlights of recent drilling results:
The latest results demonstrate that the Banana Zone (NEF) contains areas which host high-grade copper-silver mineralization.
-- Core length intercepts of:
-- 3.63% CuEq(1) (3.12% Cu and 35.0 g/t Ag) over 5.8 metres within
a wider mineralized interval of 1.81% CuEq(1) (1.58% Cu and 16.0
g/t Ag) over 14.3. metres in hole HA-526-D,
-- 1.50% CuEq(1) (1.31% Cu and 13.0 g/t Ag) over 15.2 metres within
a wider mineralized interval of 1.10% CuEq(1) (0.97% Cu and 9.0
g/t Ag) over 24.2 metres in hole HA-529-D,
-- 3.21% CuEq(1) (2.44% Cu and 53.0 g/t Ag) over 5.4 metres within
a wider mineralized interval of 1.77% CuEq(1) (1.39% Cu and 26.0
g/t Ag) over 11.6 metres in hole HA-527-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 NEF area consists of a plunging anticline where up to four intervals of high-grade copper mineralization within a broader low grade mineralized envelope were encountered within the hanging siltstones and mudstones and footwall sandstones (Figure 3). The latest drilling results from the NEF infill drilling program continue to add significant high-grade copper over thick intervals within the NEF area and cover additional extensions along the fold plunge axis. This zone is still open along strike and at depth.
The latest drilling results (holes HA-526-D, HA-527-D, and HA-528-D) confirm and extend mineralization along the northwest limb at the NEF where copper and silver grades increase with depth. In this particular area of the Northeast fold, mineralization is hosted within two high-grade zones hosted within a lower grade envelope. Drilling is continuing at NEF.
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
"The latest drilling results from NEF compare favorably to previous drilling results in this area and to the grades in our latest resource estimate which was released on May 14, 2012. We now have drills at the Banana Zone (NEF), Zone 5 and Zone 6 which I expect will continue to add more high-grade material to our resource base."
For further information please visit the Company's new website at www.hanamining.com.
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 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.
On May 14, 2012 Hana Mining released results of its most recent NI 43-101 compliant Preliminary Economic Assessment ("PEA") for the Ghanzi Project. The PEA details a 10,000 tonne per day open-pit mining and milling operation at the Banana Zone and Zone 5 at an initial capital expenditure of US$285.5 million. This operation is expected to produce approximately 66.4 million pounds of copper and 878,000 ounces of silver annually over a minimum 13-year mine life.
The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study was carried out (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 is well advanced 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 40 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 70200 - 70700 - Interval indicates down hole interval
Est.
Mineral- Inter- True Cu
ized From To val Width Eq Cu Ag
Hole # Section Zone (m) (m) (m) (m) (%) (%) (g/t)
----------------------------------------------------------------------------
Northeast Fold Diamond Drilling
----------------------------------------------------------------------------
HA-525-D NF70200 Northeast 39.00 46.29 7.29 6.90 0.79 0.76 2.0
Fold
----------------------------------------------------------------------------
HA-526-D NF70275 Northeast 132.46 147.84 15.38 14.30 1.81 1.58 16.0
Fold
includes 135.77 139.00 3.23 3.00 1.06 0.95 7.0
includes 140.51 146.72 6.21 5.78 3.63 3.12 35.0
----------------------------------------------------------------------------
HA-527-D NF70275 Northeast 115.57 128.02 12.45 11.58 1.77 1.39 26.0
Fold
includes 116.39 118.04 1.65 1.53 1.11 1.00 7.0
includes 121.54 127.31 5.77 5.37 3.21 2.44 53.0
----------------------------------------------------------------------------
HA-528-D NF70275 Northeast 90.40 106.60 16.20 15.07 0.67 0.63 3.0
Fold
includes 99.74 102.80 3.06 2.85 2.93 2.79 10.0
includes 105.00 106.25 1.25 1.16 0.49 0.42 5.0
----------------------------------------------------------------------------
HA-529-D NF70425 Northeast 143.63 167.85 24.22 24.22 1.10 0.97 9.0
Fold
includes 145.47 149.87 4.40 4.40 0.60 0.56 3.0
includes 152.65 167.85 15.20 15.20 1.50 1.31 13.0
----------------------------------------------------------------------------
HA-551-D NF70700 Northeast 132.40 142.67 10.27 9.55 0.39 0.33 4.0
Fold
HA-551-D 187.00 191.00 4.00 3.72 0.18 0.15 2.0
HA-551-D 198.00 211.30 13.30 12.37 0.38 0.32 4.0
includes 207.41 209.44 2.03 1.89 1.60 1.37 16.0
HA-551-D 220.52 224.00 3.48 3.24 1.02 0.81 14.0
includes 221.70 223.45 1.75 1.63 1.77 1.42 24.0
----------------------------------------------------------------------------
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).
To view the maps accompanying this release please click on the following link: http://media3.marketwire.com/docs/0801hmg.pdf
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