Hana Mining Ltd.: Infill Drilling Again Encounters Consistent High-Grade Copper-Silver Mineralization Along the South Limb of the Banana Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/17/11 -- 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 an additional 10 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 South Limb area (between sections 58500 to 59275 at South Limb South; 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 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 South area of the Banana Zone.
-- Core lengths intercepts of
-- 1.93% Cu and 28.0 g/t Ag over 2.7 metres within a wider mineralized
interval of 0.62% Cu and 11.0 g/t Ag over 11.8 metres in hole HA-
360-D,
-- 1.26% Cu and 19.0 g/t Ag over 9.8 metres within a wider mineralized
interval of 0.86% Cu and 13.0 g/t Ag over 15.3 metres in hole HA-
345-D,
-- 1.31% Cu and 18.0 g/t Ag over 2.5 metres within a wider mineralized
interval of 0.69% Cu and 9.0 g/t Ag over 19.3 metres in hole HA-347-
D, and
-- 1.09% Cu and 13.0 g/t Ag over 5.7 metres within a wider mineralized
interval of 0.72% Cu and 9.0 g/t Ag over 11.0 metres in hole HA-343-
D.
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, please click on the following link: http://media3.marketwire.com/docs/h1014.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 provide a timetable for the
completion of the resource estimate within the next few weeks.
-- Work has also re-commenced on the Preliminary Economic Assessment
('PEA'). The company will soon provide guidance on the timing of the
completion of the PEA.
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
'I continue to be impressed with the consistent high grades of copper silver-mineralization as we move along strike at the South Limb of the Banana Zone. I fully expect that as we continue with our infill drilling program that there will be more high-grade copper-silver mineralization in this 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. 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 58500 to 59275
- Interval indicates down hole interval
---------------------------------------------------------------------------
South Limb South Diamond Drilling
---------------------------------------------------------------------------
Est.
Inter- True
From To val Width Cu Ag
Hole # Section Mineralized Zone (m) (m) (m) (m) (%) (g/t)
---------------------------------------------------------------------------
HA-343-D SL58975 South Limb South 83.00 94.00 11.00 9.36 0.72 9.0
includes 88.30 94.00 5.70 4.85 1.09 13.0
---------------------------------------------------------------------------
HA-345-D SL58900 South Limb South 174.70 190.00 15.30 13.02 0.86 13.0
includes 179.48 189.30 9.82 8.36 1.26 19.0
---------------------------------------------------------------------------
HA-347-D SL59075 South Limb South 63.75 83.00 19.25 16.38 0.69 9.0
includes 69.80 72.34 2.54 2.16 1.31 18.0
includes 74.93 83.00 8.07 6.87 1.05 13.0
---------------------------------------------------------------------------
HA-348-D SL59275 South Limb South 74.27 93.00 18.73 15.94 0.49 8.0
includes 80.62 93.00 12.38 10.53 0.66 11.0
---------------------------------------------------------------------------
HA-349-D SL58900 South Limb South 121.13 137.90 16.77 14.27 0.62 8.0
includes 126.83 137.40 10.57 8.99 0.90 12.0
---------------------------------------------------------------------------
HA-351-D SL58800 South Limb South 90.40 102.82 12.42 10.57 0.46 5.0
includes 94.22 102.00 7.78 6.62 0.61 7.0
---------------------------------------------------------------------------
HA-354-D SL58700 South Limb South 166.75 176.12 9.37 7.97 0.59 9.0
includes 168.22 173.56 5.34 4.54 0.85 14.0
---------------------------------------------------------------------------
HA-355-D SL58500 South Limb South 152.94 167.67 14.73 12.53 0.64 12.0
includes 155.00 166.95 11.95 10.17 0.75 14.0
---------------------------------------------------------------------------
HA-356-D SL58900 South Limb South 68.56 84.51 15.95 13.57 0.44 7.0
includes 75.87 83.91 8.04 6.84 0.70 10.0
---------------------------------------------------------------------------
HA-360-D SL58700 South Limb South 106.10 117.93 11.83 10.07 0.62 11.0
includes 115.82 117.93 2.11 1.80 1.57 25.0
HA-360-D 123.00 125.68 2.68 2.28 1.93 28.0
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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
Hana Mining Ltd.
Patrick Donnelly
VP - Corporate Development
(604) 676-0824
(778) 370-0146 (FAX)
patrick@hanamining.com
www.hanamining.com
