Dec 20 2012
Hana Mining Ltd. ("Hana" or the "Company") is pleased to announce positive drilling results from the completion of the 2012 drill programme at the Ghanzi sediment hosted Copper-Silver Project in Botswana. Through the year, a total of 201 holes were drilled over 40,692.66 metres at Zones 2, 4, 5, 6 and Banana Zone.
Of the 201 holes, 119 holes totaling 23,599.49 metres were drilled to improve the confidence of known mineralization and the remainder for exploration. Both exploration and definition infill drilling have exceeded Hana's expectations for continuous high-grade mineralization over wide intersections.
Today's announcement reports results from infill drilling at Northeast Fold ("NEF"), a subzone of Hana's primary Banana Zone deposit and Zone 5 where strong copper and silver mineralization from both deposits will likely lead to an increase in the resource estimate (Figure 1).
The infill drilling at NEF included 29 holes over 5,987.80 metres and focused on confirming historical assay results, Quality Assurance and Quality Control of the holes inherited by Hana. These new results have confirmed that the historical drill holes are comparable and similar to current data. As well, Hana has defined the upper end of the plunging fold nose with more detail to delineate the style and increase the confidence levels on the lower, high-grade mineralized zone within the Ngwako Pan Footwall Sandstones.
Highlights of North East Fold infill drilling exploration results:
- Estimated true width intercepts:
- 3.67% CuEq1 (2.95% Cu and 49.5 g/t Ag) over 12.10 metres and
1.40% CuEq1 (1.19% Cu and 14.2 g/t Ag) over 14.2 metres within a wider mineralized interval of
1.55% CuEq1 (1.26% Cu and 19.8 g/t Ag) over 37.26 metres in hole HA-612b-D,
- 1.12% CuEq1 (1.02% Cu and 6.8 g/t Ag) over 13.90 metres and
1.81% CuEq1 (1.47% Cu and 23.7 g/t Ag) over 4.15 metres and
5.18% CuEq1 (4.17% Cu and 68.8 g/t Ag) over 2.35 metres and
3.56% CuEq1 (2.74% Cu and 56.1 g/t Ag) over 3.77 metres and
0.72% CuEq1 (0.57% Cu and 10.0 g/t Ag) over 7.32 metres and within a wider mineralized interval of
1.00% CuEq1 (0.83% Cu and 11.9 g/t Ag) over 60.00 metres in hole HA-614-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).
Zone 5 has returned outstanding results from 63 drill holes over 15,555.21 metres of drilling and mapping a strike length of 2 kilometres. The programme not only has provided solid results towards increasing the confidence of the mineral estimate class to indicated, but has also discovered a consistent trend of high grade copper-silver mineralization at depth. Results from four drill holes completed at depth are pending.
Highlights of Zone 5 infill drilling exploration results:
- Estimated true width intercepts:
- 2.44% CuEq1(2.18% Cu and 18.0 g/t Ag) over 7.91 metres within a wider mineralized interval of
1.19% CuEq1 (1.06% Cu and 8.7 g/t Ag) over 18.64 metres in hole HA-631-D
- 1.83% CuEq1 (1.64% Cu and 13.0 g/t Ag) over 9.41 metres and
0.13% CuEq1 (0.12% Cu and 1.0 g/t Ag) over 6.79 metres within a wider mineralized interval of
1.14% CuEq1 (1.03% Cu and 7.9 g/t Ag) over 18.17 metres in hole HA-634-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).
Hana Mining President and CEO, Marek Kreczmer, comments, "The drill program this year has been very successful. We satisfied our primary infill drilling objectives for advancing the quality and confidence of the known mineralized areas. As well, we were very pleased to also discover high grades from the infill drilling and a brand new area of consistent high-grade copper-silver mineralization at Zone 5, which will increase the resource size and positions Zone 5 as a valuable source of high-grade mineralization to a mining operation.
Zone 5, and the results received so far from Zone 6 have shifted our vision for a mine plan at the Ghanzi project. While our PEA demonstrated an economically viable mine plan rooted at the Banana Zone, the quality of the mineralization emerging at these zones suggest that the economics would improve with shifting the mine plan to commence production at these deposits. As well, the proximity of Zone 5 and Zone 6 to the operations at the Boseto processing facility, contribute to the concept of a long and lucrative mine operation as predicted for the Kalahari Copper Belt."
To view Figures 1 through 5 accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/hmg1219i.pdf
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 labeled 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.
On October 24, 2012 Hana Mining announced a definitive agreement with Cupric Canyon Capital LP for an all cash acquisition of all outstanding shares of Hana Mining Ltd.; pursuant to this agreement, shareholders of Hana will receive C$0.82 in cash for each common share. The offer values Hana's equity at approximately C$82 million. Shareholders will be asked to approve the Arrangement at a meeting to be held on December 27, 2012.