July 24, 2012 (Vancouver, British Columbia). Hana Mining Ltd. ("Hana" or the "Company") - (TSX-V: 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 70925; 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 Banana Zone contains areas which host high-grade copper-silver mineralization.
- Core lengths intercepts of:
- 2.69% CuEq(1) (2.22% Cu and 32.0 g/t Ag) over 4.0 metres and 1.69% CuEq(1) (1.28% Cu and 28.0 g/t Ag) over 7.4 metres within a wider mineralized interval of 0.64% CuEq(1) (0.53% Cu and 8.0 g/t Ag) over 49.5. metres in hole HA-511-D,
- 1.90% CuEq(1) (1.77% Cu and 9.0 g/t Ag) over 2.4 metres within a wider mineralized interval of 0.55% CuEq(1) (0.50% Cu and 3.0 g/t Ag) over 12.5 metres in hole HA-519-D,
- 2.01% CuEq(1) (1.40% Cu and 42.0 g/t Ag) over 2.5 metres within a wider mineralized interval of 0.91% CuEq(1) (0.67% Cu and 16.0 g/t Ag) over 8.0 metres in hole HA-513-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.
Drilling at the Northeast Fold will continue, focusing on extending mineralization along plunge and infill drilling so as to convert more resources to the Indicated category. Drilling is also continuing at Zone 5 and Zone 6. In all there are five drills operating at the Ghanzi project. The number of drills is expected to increase by the end of August.
Figure 1: Location of Most Recent Drilling Results at the Banana Zone
*Please note all figures are now showing section grid lines that are referenced in the result tables.Figure 2: Drill Hole Location of Northeast Fold, Sections 70200 - 70925
Figure 3: Cross-section through section 70525 (Northeast Fold)
The Company also announces that Pat Donnelly, Vice President of Corporate Development, will be resigning his position, effective August 1, 2012. Mr. Donnelly has chosen to pursue other opportunities within the mining industry.
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
"Drilling at the Northeast Fold continues to identify thick intersections of copper-silver mineralization. We will continue to drill at this area to convert more material into the Indicated category and we will also carry out more extensional drilling so as to identify more high-grade material down plunge to the northeast.
I also want to thank Pat Donnelly for his commitment to the Company and wish him the best success in his future endeavors."
Qualified Person and Quality Assurance/Quality ControlThe 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.
For Further Information, contact:Marek Kreczmer
CEO
Hana Mining Ltd.
Tel: (604) 676-0824
Email:
info@hanamining.comWebsite:
www.hanamining.com Patrick Donnelly
VP -- Corporate Development
Hana Mining Ltd.
Tel: (604) 676-0824
Email:
patrick@hanamining.comWebsite:
www.hanamining.com Table 1: Drill Results from Northeast Fold, Banana Zone, Sections 70200 -- 70925 -- Interval indicates down hole interval
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).
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.
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