Hana hits more copper at Ghanzi (November 17, 2008)

Vancouver — Hana Mining has (HMG-v) quadrupled the strike length of Zone 2 at its Ghanzi copper project, in northwestern Botswana, to 2 km. The zone is one of six Hana has targeted on the 4,370-sq.-km property, about 100 km southwest of Maun.

Six of seven holes drilled hit copper grades ranging from 0.2-2.4%. Hole 8 returned 27 metres grading 1.12% copper and 25.4 grams silver per tonne starting 57 metres downhole. Collared 500 metres to the northeast, hole 10 hit 42 metres grading 0.3% copper and 4.4 grams silver starting 114 metres downhole and hole 11 intercepted 63 metres grading 0.63% copper and 3.8 grams silver.

Another 1 km northeast of those, hole 12 hit 33 metres grading 0.33% copper and 4.5 grams silver starting 57 metres down-hole.

Hana discovered the new zone earlier this summer, drilling grades ranging between 0.34% and 2.6% copper in six holes. Hole 3 hit one of the longer intercepts, 42 metres of 0.76% copper and 14.6 grams silver starting at 93 metres depth.

So far, the zone is open along strike and downdip.

About 60 km northeast of Zone 2, Hana recently reported a 1.2-kmlong mineralized area in Zone 5. Drilling returned as much as 30 metres grading 2.06% copper and 16.9 grams silver starting at 60 metres in hole 25.

Hana acquired Ghanzi in mid-2007 by taking a 70% stake in Stellent, the holder of the Ghanzi prospecting licences. The agreement stipulates that Hana must pay Stellent US$400,000 and issue 2.5 million common shares over three years. Hana must also put US$1.2 million towards exploration and other work over three years.

The agreement also says that if Hana completes a feasibility study for the project, it must deliver 2 million warrants to Stellent, each giving its holder the right to buy an additional common share within a year at a cost of $1 per share.

On news of the drill results, Hana’s share price dropped 2.5 to close at 13.5. The company has about 41 million shares issued and a 52-week trading range of 14-78.