Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE:HMG)(FRANKFURT: 4LH) is pleased to announce its most recent drillingresults from the completion of 11 infill diamond drill holes in theBanana Zone at its Ghanzi sediment hosted Copper-Silver Project inBotswana.
Infill drilling was carried out on the South Limb area (betweensections 59075 to 60075 at South Limb South; Figures 1 and 2) toconvert a substantial amount of the NI 43-101 compliant resourceswithin this area into the Indicated category from the Inferredcategory.
These results are from new holes and are in addition to those used inthe most recent NI 43-101 compliant Inferred mineral resourcecalculation (see Table 1 at the end of this press release for theresults from all 11 drill holes). The mineralization remains open atdepth.
Highlights of recent drilling results:
Discussion of Results:
The infill drilling program at the South Limb continues to confirmthat copper-silver mineralization is relatively high-grade andcontinuous along strike at the South Limb (Figure 3). This drillingwill allow for the conversion of more mineral resources from theInferred category into the Indicated category.
To view Figure 1, 2 and 3, please click on the following link:https://media3.marketwire.com/docs/h826m2.pdf
Development Update
The following engineering and consultation activities areongoing:
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
"Again the drilling at the South Limb South area continues todemonstrate that high-grade copper-silver mineralization iscontinuous along strike. I also note that the drilling was carriedout to shallow depths, so there is still considerable explorationupside at depth (down dip) within this area."
Qualified Person and Quality Assurance/Quality Control
The drilling program and results are reviewed and approved by MarekKreczmer., Chief Executive Officer for Hana. He is the qualifiedperson as defined in NI 43-101 and has reviewed the technicalinformation in this press release.
Drill core is logged and photographed. Mineralized intervals aresplit in half by sawing and sampled at site. The remainder of thecore is kept as a permanent record. Samples are placed into labelledbags, closed and packed into sealed bags that are shipped to ALSChemex Laboratory in Johannesburg, South Africa. Hana has implementedan industry-standard QA/QC program that includes the blind insertionof 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 CopperBelt in northwestern Botswana. The Ghanzi property covers 2,149square kilometres, and contains sediment-hosted copper-silverdeposits with a demonstrated cumulative tested strike length of 70kilometres. This favorable geology extends over an estimated strikelength of 600 kilometres. Hana Mining released results of its mostrecent NI 43-101 compliant resource estimate for the Ghanzi Projecton December 20, 2010, announcing an Indicated mineral resource of 762million pounds of copper and 16 million ounces of silver from 37.4million tonnes at a grade of 0.93% copper and 13.4 g/t silver. All ofthe Indicated resources are from the Banana Zone. There are alsoInferred resources of 5.6 billion pounds of copper and 85.4 millionounces of silver from 423.9 million tonnes. This Inferred mineralresource estimate consists of 225.4 million tonnes grading 0.64% Cuand 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 and4.0 g/t Ag in Zone 6, and 161.1 million tonnes grading 0.45% Cu and3.6 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 Agmineralization, particularly between sections 49700 to 52000 on theNorth limb and sections 63000 to 71000 on both the North and Southlimbs, which represent an opportunity to locate starter pits and mineinitial tonnages at higher than average grades. These higher gradepockets tend to be well within open pit depth parameters andrepresent opportunities to improve early cashflow and overallreturns in development.
The project will benefit from proposed rail and power infrastructureexpansions, along with proximity to local population centers andworkforce. A feasibility study is currently underway (funded by theWorld Bank and the governments of Botswana and Namibia) to supportcompletion of a rail line link that would connect Botswana with theNamibian port of Walvis Bay, on the Atlantic coast. The closestexisting railhead to port is at Gobabis, in Namibia, approximately550 km from our property. Construction has begun on the 600MWexpansion of the government-owned Moropule Power Plant, havingsecured US$825 million project funding in May 2009. The GhanziCopper-Silver Project is currently accessed by the pavedTrans-Kalahari highway, which passes within 15 km of the property.
The Ghanzi property is one of Africa's premier future copper-silverresources.
Statements in this press release, other than purely historicalinformation, including statements relating to the Company's futureplans and objectives or expected results, may include forward-lookingstatements. Forward-looking statements are based on numerousassumptions and are subject to all of the risks and uncertaintiesinherent in resource exploration and development. As a result, actualresults may vary materially from those described in theforward-looking statements.
The TSX Venture Exchange has not reviewed and does not acceptresponsibility for the adequacy or accuracy of this release.