2010 rosy for Hana Mining

THATO MOSEKI
Correspondent | Friday January 8, 2010 00:00

According to its four-phase plan, Hana Mining will conduct a scoping study this year, which will determine the Ghanzi Project's economic viability. The study will involve establishing indicated and inferred resources, water access studies, project economics and progress infrastructure issues.

Previous studies have estimated that the Ghanzi project could have two billion tonnes of copper and 34.9 million ounces of silver, from 60.4 million tonnes.

The Canadian company also hopes to conduct environmental and social assessments this year as well. Much of the focus for the year will be on Hana's flagship area, the Banana Zone, which represents 67 percent or 40.7 million tonnes of the company's total resources in Ghanzi. The lion's share of the recently secured funds will be directed towards drilling and development efforts this year. Announcing the recent funding, Hana Chief Executive Officer and Chairman Marek Kreczmer said the US$4 million had been raised via a non-brokered private placement of shares. 'The private placement consisted of five million shares for a purchase price of 80 cents per share. The net proceeds of this private placement will be used to continue drilling and to commence a scoping study on the Ghanzi project,' he said.

The funding is the latest in a slew of capital-raising initiatives designed to advance the Ghanzi project. Last year, Hana conducted a series of highly successful fund raising initiatives including a P19.4 million placement and another for P3 million.

Late last year, the Canadian explorer closed a P916 000 private placement, all designed to advance Phase One of the copper and silver project.

The scoping study under Phase One, is expected to pave way for a Pre-Feasibility Study in 2011, scheduled under Phase Two. This Phase will also mark completion of resource drilling at the Banana Zone and the advancing of the resource from measured to indicate, from which the Pre-Feasibility Study will be based.Between 2012 and 2013, Hana will focus on Phase Three, 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 is being aided, in 2010, by the spike in the price of copper, which this week reached a 17 month high of US$7 440 per tonne. The stronger copper price will prop up Hana Mining's fund raising initiatives and enhance shareholder support towards mine development.

In addition, preliminary studies have indicated that a lucrative mining district is feasible around the Banana Zone and Hana's other copper and silver licence areas. Already, Hana officials are confident the pre-feasibility study will show that the Project has no metallurgical, water or power issues.

Australian media recently quoted Kreczmer as saying Hana would likely consider using diesel generators, although government officials have said the area could be hooked up to the national power grid by 2012.

The Canadian company also hopes that the proposed Trans-Kalahari Railway will run a few kilometres near the copper and silver project, providing Hana with a valuable and cost effective route to the Namibian coast.