Hana Mining hits high grade copper in Gantsi

Brian Benza
Staff Writer | Wednesday November 9, 2011 00:00

Says Hana's CEO and Chairman, Marek Kreczmer: 'At North Limb North, we drilled a total of 94 drill holes in which almost every drill hole intersected significant concentrations of copper-silver mineralisation.  'This drilling not only confirmed the consistent high-grade mineralisation of this area, but also identified areas within North Limb North that had multiple zones of high-grade copper-silver mineralization.'

Hana Mining is focused on the development of the project where the company's recent exploration activities have outlined a significant mineralised area extending 152 kilometres in length.

The Canadian exploration firm recently announced the results of a technical report that indicated resources of 762.3 million pounds of copper and 16.1 million ounces of silver from 37.4 million tonnes, all in the Banana Zone in north-western Botswana.

With the rich deposits extending over an area of roughly 2,200 square kilometres, Kreczmer believes his company has part of one of the largest copper and silver deposits in Africa that can rival the Zambian Copperbelt.

Australian junior miner, Discovery Metals, is at an advanced stage of developing its Boseto deposit nearby, with the mine currently under construction and commissioning set for next year.

The Hana area consists of five licence blocks that contain 'widespread sediment hosted copper-silver mineralisation over a 600km cumulative strike length', the company says. 'The area is an extension of the Zambian Copperbelt that continues into Namibia,' says Kreczmer.

He explains that former explorers only found small deposits of the minerals in different areas and did not connect the dots to see the bigger picture. The previous explorers were Anglo American, Gencor (now BHP Billiton), Anglovaal, Newmont, DeBeers, US Steel Corporation and Delta Gold.

The Banana Zone is the current focus in the Ghantsi property where Hana Mining is reviewing the open-pit and underground potential of the resource. The scoping study, under Phase One, is expected to pave the way for a pre-feasibility study 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 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 as Botswana's only copper and silver producers.