Hana explores water in Ghantsi

Brian Benza
Staff Writer | Friday December 3, 2010 00:00

Since September this year, Hana has been exploring for water for use at the proposed processing plant at the Banana Zone. According to a statement from the Toronto Stock Exchange-listed company this week, five of the seven drill holes intersected significant volumes of water.

'Blow yield tests from these drill holes indicate that there is likely to be sufficient water available for the proposed Banana Zone processing plant,' the statement said.

'Pump tests, which determine the sustainability at a certain flow rate, are currently being carried out with the results expected to be incorporated into the impending Preliminary Economic Assessment.'

The statement added that initial testing had also indicated that the water was of sufficient quality to be used in a processing plant with two more water exploration holes expected to be completed by the end of December 2010.

'The water exploration programme for the Ghantsi Project to-date has been very successful,' Hana Mining's CEO and Chairman, Marek Kreczmer, said.

 'It removes one of the more significant risks associated with the project. We have the expectation at this time that we will be successful in locating enough water to support a processing plant.'

The water exploration and testing programme is being managed by Wellfields Consulting Services of Gaborone. The Ghantsi property covers 2, 169-square kilometres and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 70 kilometres.

The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centres and workforce.

A feasibility study is currently underway, funded by the World Bank and the governments of Botswana and Namibia, to support completion of a rail line link that will connect Botswana with the Namibian port of Walvis Bay on the Atlantic coast.

'The closest existing railhead to port is at Gobabis in Namibia, approximately 550km from our property,' said Kreczmer. On the other hand, construction has begun on the 600MW expansion of the government-owned Morupule Power Plant. A Pre-Feasibility Study for the mine is expected to be done by 2011.

Between 2012 and 2013, Hana will focus on Phase Three of the project, which involves a Bankable Feasibility Study, non-recourse financing, attainment of mining licences and water rights and establishment of infrastructure.

The last phase involves the engagement of an engineering, procurement, construction and management contractor, pre-mine development and mine construction.

Commercial production is planned to start in 2015, allowing Hana Mining to join the adjacent Discovery Metals Limited as Botswana's only copper and silver producers.

Hana's march to commercial production was being aided, in 2010, by the spike in the price of copper, which this week reached US$8,432 per tonne.