Hana Mining Limited, the Toronto Stock Exchange (TSX) listed company, said Thursday that it has closed a bought-deal private placement┬áworth P 170 million┬á aimed at advancing its project along the Ghantsi area.
The copper-silver exploration outfit indicated that the proceeds will be used┬áto carry out┬á “further exploration development work” on its┬á concession area in Ghantsi area “including the preparation of a feasibility study and for general working capital requirements”.
In April, the exploration┬ácompany stated that it was embolden by the results of its finds within a swathe of land┬á measuring┬á2,169 km2.
Its┬ácopper-silver deposits are within an area of 37.6 kilometers, which were┬áupgraded to┬áan “inferred resource” prompting it┬áto come up with┬á a US $ 24 million (P 168 million) worth of share placement to advance the project.
“Based on the geological confidence, the integrity of the data, the spatial continuity of the mineralization as demonstrated by the variography, and the quality of the estimation, the entire resource has been classified as an inferred resource,” the company has said.
Hana Mining said it has an inferred resource estimated at┬á3.9 billion lbs (pounds) of copper and 62.1 million ozs (ounce) of silver from 177 million tones┬á within its Ghantsi project.
“ This resource estimate is based on a 0.75 percent Cu cutoff grade, and averages 1.50 percent Cu and 18 g/t Ag from the Banana Zone and a 0.30 percent Cu cutoff grade, and averages of 0.46 percent Cu and 3.58 percent AG from the new Chalcocite Zone,” the company said.
It said the new discovery area and the fold nose at the northern end of the zone┬árepresent an opportunity to locate starter pits and mine initial tonnages at higher than average grades.
“These higher grade pockets tend to be well within open pit depth parameters and represent opportunities to improve early cash flow and overall returns in development,” it added.
“This updated resource estimate is a very positive step for the Ghanzi Project, and culminates an 8 month drill program that has demonstrated the predictable nature of mineralization on the property. We focused exclusively on the Banana Zone, and have approximately doubled the tested strike length and the corresponding contained copper there since our last resource estimate,” the company said earlier.
Our drilling program continues to be focused on the untested sections of the Banana Zone and the Chalcocite Zone. We have mining engineers developing a mining plan and metallurgists working on copper recovery methods and options for both the sulfide and oxide mineralization in the main Banana Zone as well as the chalcocite-malachite mineralization in the Chalcocite Zone. Environmental and hydrogeology work has also begun this quarter.”
Hana Mining said the area demonstrated a copper grade┬á of 0.46 percent Cu at 0.3 percent cut-off┬á the┬á area┬á also offers an opportunity for potential low cost bulk mining.
The chalcocite/malachite mineralogy also offers the potential for treatment by proven, low cost copper leaching method ÔÇô against the more expensive smelter technology — reducing capital costs.