Hana Hits More High-Grade In Botswana

VANCOUVER — Hana Mining (HMG-V, HNNGF-O) is keeping busy in Botswana — in the last few months, the junior has defined a significant initial resource at its Ghanzi copper-silver project, concluded a two-year-long negotiation on its earn-in rights for that project, and located potential water sources to support a mine in the dry Kalahari. Now drills at Ghanzi are again hitting good mineralization in a northern extension of the project’s main zone.

The most recent drill results from Ghanzi confirm the presence of high-grade mineralization along the western section of the north limb of the Banana zone. The Banana zone hosts two-thirds of the project’s defined resources.

Two of four recent holes produced high-grade sections and the results from all four holes are consistent with the deposit’s modelled thickness.

Hole 54 cut 17 metres grading 2.53% copper and 32 grams silver per tonne from 56 metres depth, followed closely by 5 metres of 0.87% copper and 10.3 grams silver and then 5 metres of 0.75% copper and 8.3 grams silver.

Nearby, hole 53 hit 15 metres grading 1.36% copper and 5.1 grams silver from 29 metres depth, followed by 3 metres of 0.81% copper and 7.5 grams silver.

The two other west-Banana zone holes returned lower-grade intercepts. Hole 52 returned 37 metres averaging 0.32% copper and 6.1 grams silver from 97 metres down-hole and hole 51 cut 21 metres of 0.29% copper and 4.8 grams silver from 109 metres.

The dominant copper mineral is bornite, which is accompanied by minor chalcocite. True thickness is estimated at better than 80% of intersection length.

Of significance, the new reverse-circulation (RC) drill holes returned better grades than had the percussion drill holes they twinned. Those percussion holes informed the recent resource estimate, so if the grade-difference trend continues it would mean the resource grade is too low.

And the higher grades mean the area holds potential as another starter pit option at Ghanzi. Hana has already delineated some high-grade areas within the Banana zone, particularly in the fold nose at the zone’s northern end. These pockets, which grade better than 2% copper, are generally at openpittable depths.

Ghanzi is in the centre of the Kalahari copper belt in northwestern Botswana. The 2,200-sq.- km property contains sediment-hosted copper-silver deposits aligned on a northwest-striking trend. Hana has thus far explored some 13 km of the trend but favourable geology continues for 600 km yet to be probed.

In June, Hana pegged inferred resources at Ghanzi at 60.4 million tonnes grading 1.51% copper and 17.98 grams silver, for 2 billion contained pounds copper and 34.9 million oz. silver. Of that resource, the Banana zone hosts 40.7 million tonnes, including an 11-million-tonne high-grade zone that averages 2.08% copper.

The paved trans-Kalahari high- way passes within 15 km of the Ghanzi project. In addition, the governments of Botswana and Namibia and the World Bank are funding a feasibility study, already under way, on a rail line that would connect Botswana with the Namibian port of Walvis Bay. And a 600-megawatt expansion of the government-owned Moropule power plant is also under way; developers have secured US$825 million in project financing and awarded key supply contracts.

Hana is not only drilling at Ghanzi but is also advancing other necessary aspects of project development.

In mid-September, the company announced the results of a desktop hydrogeology study, which determined that there are numerous active, water-producing aquifers in the vicinity of the Ghanzi property. More specifically, the study identified two likely project water sources: the Karoo supergroup and Ghanzi group aquifers. Work in this area continues, driven by a goal of securing a sustainable, 10,000- cubic-metre-per-day water source.

And after two years of negotiations, Hana has finally solidified the terms of its Ghanzi earn-in agreement. The company acquired the right to earn a 70% interest in the property from privately held Stellent for US$200,000, 166,666 shares, and 666,666 warrants exercisable at 32¢.

To increase its ownership stake to 90%, Hana will have to pay Stellent another US$9 million, due upon the announcement of a positive feasibility study. And to acquire the last 10%, Hana will have to hand over another 4 million warrants exercisable at $2.

On news of the latest drill results, Hana shares gained 5.5¢ to close at 38¢. The company has a 52-week trading range of 5.5-50¢ and 37 million shares outstanding.