The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Hana Mining Reports Excellent Drilling Results from Zone 5

Wednesday, November 28, 2012

Hana Mining Reports Excellent Drilling Results from Zone 507:00 EST Wednesday, November 28, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2012) -Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH)(BOTSWANA:HANA)("Hana" or the "Company") is pleased to announce the most recent assay results received from Zone 5 infill drilling activity at the Ghanzi sediment hosted Copper-Silver Project in Botswana (Figure 1).The results at Zone 5 continue to contribute high-grade copper mineralization to support the known inferred mineral resource into the indicated classification. The emerging geological interpretation of Zone 5's mineralization (Figure 2) is presenting a high-quality copper and silver deposit that shows potential of becoming an important source of long term feed for a regional processing complex. While Zone 5 connects to Discovery Metals' NE Mango prospect at depth (see Hana press release November 1, 2012), it is also near to Ghanzi's Banana Zone and part of the Preliminary Economic Assessment ("PEA") supported mine plan released May 2012.In June 2012, Hana published an NI 43-101 compliant Technical Report which described Zone 5 with an inferred category mineral resource estimate of 520 Mlbs copper grading 1.47% and 6.8 Moz of silver grading 13.2 g/t at a 0.40% Cu cutoff, from 71 core and RC holes for 7,786 metres. The resource numbers showed promise, and the drilling program through 2012 has focused on proving the potential through infill drilling as well as exploring open extensions to the depths of 650 metres below surface. Hana has now drilled 179 holes for 32,420 metres at Zone 5.Highlights of Zone 5 drilling exploration results:Estimated true width intercepts: 1.91% CuEq(1) (1.71% Cu and 13.3 g/t Ag) over 17.31 metres within a wider mineralized interval of 1.22% CuEq(1) (1.09% Cu and 8.6 g/t Ag) over 33.43 metres in hole HA-623-D; 2.14% CuEq(1) (2.08% Cu and 4.2 g/t Ag) over 13.41 metres and 0.90 CuEq(1) (0.85% Cu and 3.8 g/t Ag) over 3.00 metres within a wider mineralized interval of 0.82% CuEq(1) (0.79% Cu and 2.3 g/t Ag) over 47.89 metres in hole HA-624-D; 2.89% CuEq(1) (2.52% Cu and 25.4 g/t Ag) over 5.98 metres within a wider mineralized interval of 2.10% CuEq(1) (1.84% Cu and 17.9 g/t Ag) over 8.74 metres in hole HA-625-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, "These and the previously announced deep drill results suggest that Zone 5 could become a standalone mining operation."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 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 before January 7 2013.Table 1: Infill Drill Results from Zone 5, Sections N125150 - N125350, N129350.Hole #SectionMineralized ZoneFrom (m)To (m)Interval (m)Est. True Width (m)CuEq1 (%)Cu (%)Ag (g/t)Zone 5 Diamond DrillingHA-622-DN125150Zone 5113.64131.0017.3616.840.730.655.7includes114.79124.429.639.341.171.039.4136.00140.004.003.880.280.261.1148.00151.943.943.820.400.362.7HA-623-DN125350Zone 5128.54163.0034.4633.431.221.098.6includes133.21151.0617.8517.311.911.7113.3HA-624-DN125150Zone 543.0092.3749.3747.890.820.792.3includes45.5259.3413.8213.412.142.084.2includes89.0092.003.002.910.900.853.8HA-625-DN125850Zone 5162.47171.489.018.742.101.8417.9includes164.80170.976.175.982.892.5225.4HA-626-DN125350Zone 596.71112.5015.7915.320.880.814.6includes97.32104.497.176.951.231.155.4includes108.52111.663. 542.2561.0718.8218.261.601.581.4includes43.2352.509.278.992.832.811.3Copper 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).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.To view Figures 1 and 2 accompanying this press release, please click on the following link: FURTHER INFORMATION PLEASE CONTACT: The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Contact Information: Hana Mining Ltd.Marek KreczmerCEO(604) 676-0824(778) 370-0146 (FAX)