Nov 2 2010
Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) has announced its most recent drilling results from the completion of 11 RC drill holes from the Chalcocite Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.
The latest RC drilling results extend the strike length at the Chalcocite Zone by 700 metres.
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. The mineralization remains open at depth.
Highlights of recent drilling results:
- The strike length increases by approximately 700 metres between section lines 38250 to 38950 at the Chalcocite Zone.
- Wide intercepts of 0.36% Cu and 3.0 g/t Ag over 38.0 metres in hole HA-490-R, 0.37% Cu and 3.0 g/t Ag over 39.0 metres (including 1.38% Cu and 10.0 g/t Ag over 2.0 metres) in hole HA-502-R, 0.30% Cu and 3.0 g/t Ag over 36.0 metres in hole HA-480-R, 0.24% Cu and 3.0 g/t Ag over 33.0 metres in hole HA-481-R, and 0.29% Cu and 3.0 g/t Ag over 30.0 metres in hole HA-482-R.
- A total 6.75 kilometre strike length of the Chalcocite Zone has now been drilled. Mineralization at the Chalcocite Zone is still open at depth to the southwest.
- Total drilling for the Ghanzi Project in 2010 is approximately 66,700 metres.
Discussion of Results:
The most recent completed RC drilling results extend the strike length at the Chalcocite Zone by approximately 700 metres to 6.75 km. The Chalcocite Zone is mineralogically defined between section N40200 on the north limb, counter-clockwise to section S42800 on the south limb. Copper-silver mineralization is still open at depth to the southwest. The drilling results are from sections 38250 to 38950. The results from these holes are expected to be included in the impending 43-101 NI resource calculation. For comparison, the most recent Inferred Mineral Resource calculation estimated that the Chalcocite Zone contains approximately 850 million pounds of copper and almost 10 million ounces of silver (at a cut-off grade of 0.30% Cu). The latest resource estimate was based on a confirmed strike length of 3.83 kilometers. Since the latest resource estimate was produced, Hana has drilled an additional 4,023 metres at the Chalcocite Zone. Therefore, it is expected that the next resource estimate at the Chalcocite Zone could increase considerably.
Development Update:
The following engineering and consultation activities are ongoing to fulfill the goal of completion of a PEA by Q4 2010:
- Preliminary mine open pit modeling has been carried out using the April 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;
- Resource modeling is progressing as expected and a NI 43-101 compliant resource estimate for the Banana and Chalcocite Zones is expected to be released in early November 2010.
- Preliminary metallurgical results on the Banana Zone sulphide drill-core composites have been received from Mintek in Johannesburg , South Africa. Preliminary results are in line with our expectations. Final metallurgical results on the Banana Zone sulphides are expected to be received by the end of November;
- Metallurgical (leaching) work, which is being carried out by Metcon Research in Tuscon, Arizona, on the Chalcocite Zone is ongoing. Results are expected to be available by the end of November 2010;
- Field work for water exploration is ongoing;
Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:
"The Chalcocite Zone continues to intrigue us given that it has the potential to be a stand-alone bulk tonnage copper operation with potentially good strip ratios. Assuming positive metallurgical leaching and flotation results, the Chalcocite Zone could give us two processing options (heap leaching with SX/EW vs. conventional milling and floatation). Given this, I believe that the optionality of the Chalcocite Zone adds value to the Ghanzi Project and Hana's shareholders."
Qualified Person and Quality Assurance/Quality Control
The drilling program and results are reviewed and approved by Vivian Park, PGeo., Senior Geologist/Database Manager for Hana. She is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.
For RC drilling, a 35-40 kilogram bulk sample is collected from the cyclone discharge at one meter intervals. Bulk samples that have been designated as mineralized are split 75/25; 25% of the bulk sample is retained as a replica archive. Samples for assay of approximately 1.5 kilograms are extracted from the replica sample. The remainder of the bulk sample is reclaimed at the drill site.
All samples are bagged, stapled, and assembled into labelled and sealed bulk bags. They are transported to in secured wooden crates and shipped to Scientific Services Laboratory in Cape Town, South Africa. The analytical method for total Cu, Pb, and Zn is acid digestion read by Atomic Absorption Spectroscopy ("AAS"); a separate digestion is performed for Ag. The analytical method for acid soluble Cu is 5% sulphuric acid cold leach followed by AAS. Mo is read by XRF on a pressed powder pellet.
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 sq Km, 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 April 21, 2010, announcing an inferred mineral resource of 3.9 billion pounds of copper and 62.1 million ounces of silver from 177 million tonnes. This mineral resource estimate consists of 73.5 million tonnes grading 1.5% Cu and 19 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.7% Cu and 12 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 7 g/t Ag in Zone 6; all at a cut-off grade of 0.75% Cu. Also included is 83.6 million tonnes grading 0.46% Cu and 3.6 g/t Ag at a cut-off grade of 0.30% in the Chalcocite Zone.
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.
Source: Hana Mining Ltd.