Shares of Hana Mining (HMG-V) closed 7.2% higher at $1.49 per share after the company reported some of the best intercepts yet of copper-silver mineralization in the Banana Zone at the company’s Ghanzi project in Botswana.
Highlights from thirteen infill drill holes in the Northeast Fold area of the sediment-hosted copper-silver deposit’s Banana Zone include 5.3 metres of 5.11% copper and 172 grams silver per tonne within a wider mineralized interval of 14.6 metres grading 2.71% copper and 73 grams silver in hole 465-D. Hole 443-D returned 2.3 metres of 4.02% copper and 85 grams silver within a wider mineralized interval of 16 metres grading 1.14% copper and 18 grams silver.
This is the second set of results from the company’s 2011 infill drilling program for the Northeast Fold area in the most northeastern part of the Banana Zone.
In a note describing the grades as “eye-catching” Scotia Capital’s Tom Meyer wrote that HMG shares are trading at a price to net asset value of 0.20 times versus the adjusted peer group of copper developers of 0.33 times. Meyer has a one-year target price on the stock of $4 per share.
The Northeast Fold area consists of a plunging anticline where thick intervals of high-grade copper mineralization were encountered within the hanging siltstones and mudstones and very high-grade copper-silver mineralization was found within the footwall sandstones.
Hole 457-D returned over 2.5 metres of 4.86% copper and 5 grams silver in the footwall sandstones and over 2.6 metres grading 3.55% copper and 31 grams silver within a wider mineralized interval of over 6.6 metres of 1.52% copper and 13 grams silver in the hanging wall. Hole 447-D cut over 2.8 metres of 3.53% copper and 32 grams silver in the footwall sandstones and over 11.5 metres of 1.79% copper and 20 grams silver within a wider mineralized interval of over 12.9 metres of 1.62% copper and 18 grams silver in the hanging wall.
The company says the isolated high-grade veins of footwall mineralization will be new exploration targets. “Like many parts of the North Limb North area, high-grade copper silver mineralization at the Northeast Fold also bifurcates and is contained within a broader low grade mineralized envelope at and above the footwall-hanging wall contact,” the company noted in a press release. The Northeast Fold remains open along plunge and along dip of the anticlinal structure.
Looking ahead, Hana Mining expects to complete a revised resource estimate for the Banana Zone and a preliminary economic assessment in the second quarter of this year.
The Ghanzi project in northwestern Botswana sits in the center of the country’s Kalahari Copper Belt.
Be the first to comment on "Infill results drive Hana higher"