Hana Mining, the copper/ silver prospecting outfit near Ghantsi Township says it is overwhelmingly excited with its find within the 150 kilometers strike length area, and is now looking forwards to the potential of an open pit mine.
“Our focus is on the Banana Zone simply because of its size and folding. We are looking at the potential of an open pit mine,” Fred Stahlbush of Hana Mining told a two-day Botswana Resources Sector conference.
The move comes as the Toronto Stock Exchange (TSX) listed company is working around the clock to obtain a mining license for the area within the next two years.
The company is also working on plans to confirm the projects by 2011 and apply for the mining license between 2011/12, while the commissioning of the mine is slated for 2014.
According to available reports the mine has a potential of producing 74 million tons of copper at 1.47 percent copper which is enough to sustain a stand- alone mine. The Canadian listed company said it is also “excited” about the result at Chalcocite which is still within its concession area near Ghantsi Township.
“Cholcocite Zone is another area that we are excited about. Results from our calculations are very exciting,” he said.
Cholcacite Zone is said to be a rich property with 4.9 billion tons of copper valued at a cut off grade of 0.75 percent that has already been classified as a resource.
“We feel we have the resourcesÔÇöcash and people to make it happen. We are looking at a potential of 6 billion tons of copper,” Stahlbush said.
In April, the exploration company stated that it was embolden by the results of its finds within a swathe of land measuring 2,169 km2.
Its copper-silver deposits are within an area of 37.6 kilometres which were upgraded to an “inferred resource” prompting it to come up with 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 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 3.9 billion (pounds) lbs of copper and 62.1 million (Ounce) oz of silver from 177 million tones 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 represent 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 focus 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 the sulfide and oxide mineralization in the main Banana Zone as well as the chalcocite-malachite mineralization in the Chalcocite Zone” read a statement from the company.