Hana Mining Reports More Strong Results From Zone 5 Including 4.54% CuEq Over 8.56 Meters
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/27/12 -- Hana Mining Ltd. ("Hana" or the "Company") - (TSX VENTURE: HMG)(FRANKFURT: 4LH)(BOTSWANA: HANA) is pleased to announce that the results from infill and down dip drilling of seven holes in Zone 5 at the Ghanzi sediment hosted Copper-Silver Project in Botswana continue to demonstrate consistent, strong mineralization, displaying the potential for new high grade resources.
As well, today's report includes four infill drill results at the Northeast Fold and eight infill drill results from the Chalcocite deposit located at the Banana Zone. The results will be used to strengthen the confidence in these deposits which were considered in the PEA reported 14 May 2012.
Highlights of drilling results from Zone 5:
-- 4.54% CuEq(1) (3.95% Cu and 40.0 g/t Ag) over 8.56 metres within a wider
mineralized interval of 2.34% CuEq(1) (2.04% Cu and 21.0 g/t Ag) over
17.10 metres in hole HA-568-D,
-- 2.54% CuEq(1) (2.22% Cu and 22.0 g/t Ag) over 11.56 metres within a
wider mineralized interval of 1.64% CuEq(1) (1.43% Cu and 14.0 g/t Ag)
over 19.24 metres in hole HA-565-D,
-- 1.93% CuEq(1) (1.68% Cu and 17.0 g/t Ag) over 12.17 metres within a
wider mineralized interval of 1.29% CuEq(1) (1.13% Cu and 11.0 g/t Ag)
over 19.25 metres in hole HA-569-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).
(2)These and other assay results from Zone 5, and the results from Northeast
Fold and Chalcocite are listed in Table 1 at the end of this news release.
Discussion:
Results for seven holes from Zone 5 continue to define high-grade at mineable widths and support the investigation for additional strong mineralization continuing at depth below the current modeled pit. The goal of the current drill program is to outline a pit that is amenable to both open pit and underground mining.
Drilling at Northeast fold intersected mineralization along the outer limits of the current pit towards the northeast and near surface at the southwest start of the plunge axis. The lower high-grade mineralized zone was found within the footwall sandstones (Ngwako Pan Formation) and intersected 3.24% CuEq (3.21% Cu and 2.0 g/t Ag) over a 2.00m width (hole HA-555-D).
The drill plan for the Chalcocite Zone was to investigate the potential to increase existing inferred resources at Banana Zone. The results indicate wide intervals of mineralization which could be useful for mill feed. The economic viability of this will be considered in the Pre Feasibility Study.
The new drill results announced today are not included and are in addition to the mineral resource estimate released on 14 May 2012.
To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/Figures1-2-3.pdf.
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
"Today's results from Zone 5 show promise of world class mineralization that is predicted for the Kalahari Copper belt which extends from central Namibia through the north of Botswana and is believed to be the new premier copper region. We are also very pleased with the results from the Northeast Fold and Chalcocite deposits which are showing large mineralized intervals which will contribute to the next resource estimate and we look forward to determining whether these large mineralized areas can improve the resource estimate numbers."
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 labeled 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 Zone 5, Sections N124850 - N126250; Northeast Fold Sections N70625 - N70125; and Chalcocite Sections CC39600 - CC40850. Interval indicates down hole interval lengths
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Est.
True
Hole # Section Mineralized From To Interval Width CuEq Cu Ag
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Zone (m) (m) (m) (m) (%) (%) (%)
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Zone 5 Diamond Drilling
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HA-564-D N124850 Zone 5 115.00 157.00 42.00 39.06 0.61 0.57 3.0
includes 125.00 150.00 25.00 23.25 0.86 0.82 3.0
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HA-565-D N125450 Zone 5 145.69 166.38 20.69 19.24 1.64 1.43 14.0
includes 145.69 158.12 12.43 11.56 2.54 2.22 22.0
----------------------------------------------------------------------------
HA-566b-D N124850 Zone 5 277.80 298.00 20.20 18.79 1.36 1.21 10.0
includes 280.00 292.00 12.00 11.16 2.16 1.93 16.0
HA-566b-D 305.26 307.00 1.74 1.62 0.31 0.28 2.0
----------------------------------------------------------------------------
HA-567b-D N125450 Zone 5 98.75 115.00 16.25 15.11 2.48 2.17 21.0
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HA-568-D N125650 Zone 5 151.34 169.73 18.39 17.10 2.34 2.04 21.0
includes 151.34 160.54 9.20 8.56 4.54 3.95 40.0
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HA-569-D N125650 Zone 5 110.30 131.00 20.70 19.25 1.29 1.13 11.0
includes 112.09 125.18 13.09 12.17 1.93 1.68 17.0
----------------------------------------------------------------------------
HA-580-D N126250 Zone 5 184.65 207.30 22.65 21.06 0.75 0.67 6.0
includes 189.00 199.09 10.09 9.38 1.49 1.33 11.0
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Northeast Fold Diamond Drilling
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HA-552-D Northeast
N70625 Fold 119.42 120.70 1.28 1.28 7.11 6.17 64.00
HA-552-D 166.90 170.65 3.75 3.75 0.64 0.56 6.00
HA-552-D 188.57 233.63 45.06 45.06 0.40 0.31 6.00
includes 225.96 227.00 1.04 1.04 2.41 1.57 58.00
includes 231.05 232.81 1.76 1.76 2.84 2.23 42.00
----------------------------------------------------------------------------
HA-553-D Northeast
N70800 Fold 170.13 189.00 18.87 18.87 0.34 0.28 4.00
includes 170.13 172.72 2.59 2.59 0.81 0.67 10.00
includes 182.59 187.00 4.41 4.41 0.60 0.53 5.00
HA-553-D 240.00 248.00 8.00 8.00 0.20 0.17 2.00
HA-553-D 268.47 294.42 25.95 25.95 0.27 0.22 3.00
includes 288.84 291.08 2.24 2.24 1.07 0.91 11.00
----------------------------------------------------------------------------
HA-555-D Northeast
N70125 Fold 27.00 34.00 7.00 7.00 0.63 0.60 2.0
includes 28.62 29.26 0.64 0.64 2.96 2.92 3.0
includes 32.00 33.52 1.52 1.52 0.63 0.62 1.0
HA-555-D 49.00 51.00 2.00 2.00 3.24 3.21 2.0
HA-555-D 79.00 86.15 7.15 7.15 0.26 0.25 1.0
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HA-556-D Northeast
N70125 Fold 22.12 30.57 8.45 8.45 0.67 0.65 1.0
includes 26.00 30.57 4.57 4.57 1.04 1.02 1.0
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Chalcocite Diamond Drilling
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HA-515-D CC40850 Chalcocite 135.25 205.00 69.75 68.36 0.41 0.35 4.0
includes 189.60 205.00 15.40 15.16 0.86 0.75 8.0
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HA-516-D CC40525 Chalcocite 106.43 126.00 19.57 19.18 0.74 0.64 7.0
includes 113.00 125.00 12.00 11.76 0.98 0.83 10.0
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HA-517-D CC40525 Chalcocite 149.00 172.00 23.00 22.54 0.57 0.50 5.0
includes 166.39 171.00 4.61 4.52 1.24 1.09 10.0
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HA-518-D CC40850 Chalcocite 82.13 153.50 71.37 69.94 0.32 0.28 3.0
includes 140.00 152.00 12.00 11.76 0.81 0.69 8.0
----------------------------------------------------------------------------
HA-520-D CC39425 Chalcocite 117.00 167.00 50.00 49.00 0.35 0.30 3.0
includes 159.27 165.00 5.73 5.62 0.66 0.60 4.0
----------------------------------------------------------------------------
HA-521c-D CC40175 Chalcocite 25.62 44.00 18.38 18.01 0.36 0.33 2.0
HA-521c-D 36.00 41.60 5.60 5.49 0.59 0.55 3.0
HA-521c-D 69.00 131.50 62.50 61.25 0.31 0.28 2.0
includes 95.00 110.39 15.39 15.08 0.56 0.52 3.0
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HA-523-D CC40575 Chalcocite 207.00 228.17 21.17 20.75 0.25 0.22 2.0
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HA-524-D CC39600 Chalcocite 326.00 346.00 20.00 19.60 0.36 0.30 4.0
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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
info@hanamining.com
www.hanamining.com