(Vancouver, British
Columbia). Hana Mining Ltd., ("Hana" or the "Company") - (TSX-V:
HMG) (Frankfurt: 4LH) is pleased to announce that it has received an updated 43-101
compliant, independent resource estimate that has significantly
increased the size of the Banana Zone and the adjacent Chalcocite Zone, located within the Ghanzi Copper-Silver project in northwestern
Botswana, Africa.
At a 0.75% copper cut-off, the estimated mineral resources at the Ghanzi Project are:
- Indicated Mineral Resources:
19.7 million tonnes grading 1.35% copper
and 19.7 g/t silver, containing 585 million pounds of copper and
12.5 million ounces of silver.
- Inferred Mineral Resources:
91.2 million tonnes grading 1.20% copper
and 13.83 g/t silver, containing 2.4 billion pounds of copper and
40.6 million ounces of silver.
At a 0.30%
copper cut-off, the estimated mineral resources at the Ghanzi Project are:
- Indicated Mineral Resources:
37.4 million tonnes grading 0.93% copper
and 13.4 g/t silver, containing 762 million pounds of copper and
16.1 million ounces of silver.
- Inferred Mineral Resources:
423.9 million tonnes grading 0.60%
copper and 6.3 g/t silver, containing 5.6 billion pounds of copper
and 85.4 million ounces of silver.
The mineral resource estimate for the different zones at the Ghanzi Project is summarized in the tables below
(Tables 1 and 2).
Table 1. Indicated Mineral Resources at the Ghanzi
Project (cut-off of 0.75% copper)
Table 2. Inferred Mineral Resources at the Ghanzi
Project (cut-off of 0.75% copper)
The resources at the Ghanzi Project at a
cut-off grade of 0.30% copper are shown below (Tables 3 and 4).
Table 3. Indicated Mineral Resources at the Ghanzi
Project (cut-off of 0.30% copper)
Table 4. Inferred Mineral Resources at the Ghanzi
Project (cut-off of 0.30% copper)
The previous global mineral resource estimates for the Ghanzi Project are also summarized in the tables
below (Tables 5 and 6; Note there were no Indicated Resources at the Ghanzi Project in the previous resource estimate).
Table 5. Previous Global Inferred Mineral Resources for the Ghanzi Project (0.75% copper cut-off).
Table 6. Previous Global Inferred Mineral Resources for the Ghanzi Project (0.30% copper cut-off)
Discussion of Results:
The most recent resource estimate was prepared by Sphynx
Consulting CC of Noordbrug, South Africa.
This estimate updates the previous resource estimate (Hana news release April 21, 2010) by GeoLogix Mineral Resource Consultants (Pty) Ltd. of
Potchefstroom, South Africa, reflecting six months of drilling
exclusively in the Banana and Chalcocite
Zones (Figure 1). The last resource estimate was completed and filed on
SEDAR in May 2010. Resource drilling was not carried out at Zones 5 and
6 and therefore the resource estimates for these two zones remain
unchanged.
Figure 1. Banana Zone with areas identified -- Indicated and Inferred
Resources
Click to enlarge
The company has focused on expanding and upgrading the resources at the
Banana and Chalcocite Zones since the last
resource estimate was completed and filed on SEDAR in May 2010. The
goal of the drilling program was to delineate the entire Banana and Chalcocite Zones and convert the Inferred mineral
resources at portions of the New Discovery, Northeast Fold and South
Limb areas to the Indicated category and aid in the preliminary pit
design within these areas, which will be incorporated into the upcoming
Preliminary Economic Assessment. Based on our internal modeling, a
cut-off grade of 0.3% copper was found to be a more appropriate when
stating the mineral resources at the Ghanzi
Project.
Since the initial resource estimate, which was released in June 2009,
the amount of contained copper at the Ghanzi
Project has increased by 115% and the contained silver by 97% (Figures
2 and 3).
Figure 2. Changes in Contained Copper at the Ghanzi
Project
Click to enlarge
Figure 3. Changes in Contained Silver at the Ghanzi
Project
Click to enlarge
Additional infill drilling will be carried out in 2011 to convert
mineralized material to the Indicated category and support a bankable
feasibility study. The new resource estimate is based on drilling (both
reverse circulation and diamond drilling) the entire 64 kilometre strike length of the Banana and Chalcocite Zones. While the entire strike length
has been confirmed to host copper-silver resources, mineralization is
still open at depth (see press release dated December 6, 2010).
Approximately two-thirds of the drilling has been reverse circulation
with the remainder being diamond drilling.
The new resource estimate will be used as the basis for the ongoing
Preliminary Economic Assessment which is expected to be made public in
early 2011.
Portions of resources at the Banana Zone have been classified in the
Indicated category totaling 762 million pounds of copper and 16 million
ounces of silver based on the Zone based on a copper cut-off grade of
0.30%.
Also, the updated National Instrument 43-101 compliant Inferred
Resource estimate now totals 5.6 billion pounds of copper and 85
million ounces of silver based on the additional mineralized material
from the Banana Zone, Chalcocite Zone, Zone 5
and Zone 6 at a copper cut-off grade of 0.30%.
Total contained copper within the Banana and Chalcocite
Zones has increased by approximately 43% and contained silver by 48%
since the previous Inferred Resource estimate which was released in
April 2010.
The tables below shows the new global resources at the Ghanzi Project at various cut-offs.
Table 7. Indicated Resources at the Ghanzi
Project (Banana Zone) at various cut-off copper grades
Table 8. Inferred Resources at the Ghanzi
Project at various cut-off copper grades
Preparation of the Updated Mineral Resource Estimate:
This updated Ghanzi Project resource estimate
is based on a total of 767 drill holes (96,930.7 metres),
drilled on 50-200 metres spacing between
holes. Out of the 96,931 metres drilled,
78,109 metres was resource development
drilling and 18,822 metres was infill
drilling.
Resource modeling was carried out using a three-dimensional solid
geological model for each copper/silver bearing prospect, and grade
estimation for blocks within a prospect using assay sample composites
within the same prospect. Geological solids were created by wireframe
models delineating the various lithological
and grade contacts of each prospect in the drillholes.
The Kalahari sand has been wireframed as a
discrete layer. The model did not go below the 800 m elevation,
maximizing depth below surface to 200-225 m. All geological modeling
work was done by Sphynx Consulting with Datamine software.
Based on the geological confidence, the integrity of the data, the
spatial continuity of the mineralization as demonstrated by the variography, and the quality of the estimation, the
mineral resources have been classified as Indicated and Inferred. An
updated NI 43-101 mineral resource estimate on the Ghanzi
Project will be available within 45 days on SEDAR at www.sedar.com.
Conference Call Monday, December 20th at 5:45 am Pacific Time (8:45
am Eastern Time; 1:45 pm United Kingdom Time)
A conference call for parties interested in learning more about the Ghanzi property has been set up for Monday,
December 20th at 5:45 a.m. Pacific Standard Time (8:45 a.m. Eastern
Standard Time and 1:45 p.m. in the United Kingdom). The moderators for
the conference call are Marek Kreczmer (CEO), Jim Sullivan (President) and
Patrick Donnelly (VP Corporate Development).
The conference call may be accessed by dialing toll-free 1-877-696-5910
in Canada and the United States, 1-416-340-2217 in the Toronto area and
1-800-8989-6336 internationally and entering participant passcode 6023268. The conference call can also be
heard in real time at www.hanamining.com. The conference call will be archived for later playback and
may be accessed by dialing 1-905-694-9451 or 1-800-408-3053 and
entering the pass code 4870488, or via www.hanamining.com. The archived playback will be available until January 3, 2011,
11:59 p.m.
Development Update:
The following engineering and consultation activities are ongoing to
fulfill the goal of completion of a PEA in Q1 2011:
- Preliminary mine open pit modeling has
been carried out using the December 2010 resource as a basis to
define the parameters to be used. A revised model will be
completed after the 2010 drilling has been incorporated;
- Metallurgical (column leaching) work,
which is being carried out by Metcon
Research in Tucson, Arizona, on the Chalcocite
Zone is ongoing. Results are expected to be available by the end
of the year;
- Field work for water exploration is
ongoing;
- Stefanutti
Stocks Mining Services of Johannesburg South Africa have been
engaged by Hana to provide the
preliminary tailing impoundment designs for the project;
- Further details on the Ghanzi Project can be found on Hana's updated website (www.hanamining.com).
Hana Mining's CEO and Chairman, Marek Kreczmer, commented
as follows:
"The release of this report containing resources in the Indicated
category is a key milestone for Hana. We are
also pleased that we have once again been able to considerably expand
the resources at the Banana and Chalcocite
Zones which have increased the contained copper by approximately 43%
and contained silver by 48% since the previous resource estimate was
completed in April 2010. This new resource estimate for the Ghanzi Project further confirms that the Banana and
Chalcocite Zones will become a long-term
mining operation. I also note that while we have fully delineated the
near surface resources at the Banana and Chalcocite
Zones, we have only just commenced verifying the deeper down dip
copper-silver mineralization which could again significantly increase
the mineral resources at these two zones. We are also happy that we have
been able to convert our resources to the Indicated category. We fully
expect that with more drilling in 2011, we will substantially increase
the Indicated Resources at the Banana and Chalcocite
Zones to provide the basis for a bankable feasibility study. Based on
our own internal modeling we now believe that a more appropriate
cut-off grade for the mineral resources at Ghanzi
should be 0.30% copper. Therefore, going forward, we will be stating
our mineral resources at a cut-off grade of 0.30% copper."
Qualified Person and Quality Assurance/Quality Control:
Ms. Vivian Park, P.Geo., Senior
Geologist/Database Manager for Hana, is the
qualified person as defined in NI 43-101 and has reviewed the technical
information in this press release.
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 2,169 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. The
resource estimate also includes 5.6 billion pounds of copper and 85.4
million ounces of silver from 423.9 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
limb, 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 2010.
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.
For Further Information, contact:
Marek Kreczmer
CEO
Hana Mining Ltd.
Tel: (604) 676-0824
Email: info@hanamining.com
Website: www.hanamining.com
Patrick Donnelly
VP -- Corporate Development
Hana Mining Ltd.
Tel: (604) 676-0824
Email: patrick@hanamining.com
Website: www.hanamining.com
The TSX Venture
Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release. 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.