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HK Huakan International Mining Inc.

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Share Name Share Symbol Market Type
Huakan International Mining Inc. TSXV:HK TSX Venture Common Stock
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Huakan International Mining Inc. Provides Update on J&L Metallurgical Testwork

17/01/2013 12:57pm

Marketwired Canada


Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") is pleased to
report results of a preliminary metallurgical testing program undertaken on bulk
samples obtained from the Company's J&L Project Main Zone deposit. The results
provide further support to forward a process flowsheet to generate lead and zinc
flotation concentrates, and produce gold/silver Dore, with additional precious
metal credits provided from the lead concentrate. The program follows a similar
process concept, with some modifications for the Company's Preliminary Economic
Assessment ("PEA") (see NR 12-04).


Metallurgical testwork that has been completed to date on the Main Zone bulk
sample includes; comminution, heavy media separation, and flotation, as well as
pressure oxidation and bioleach testing of the precious metal bearing
arsenopyrite/pyrite flotation concentrate. This testwork culminated in
performing locked cycle flotation testing on a master composite sample grading
6.9 g/t Au, 58 g/t Ag, 2.4% Pb, and 3.9% Zn. Differential flotation was used to
produce separate lead, zinc and arsenopyrite/pyrite concentrates. The locked
cycle results show that the average lead concentrate graded 59% Pb, 40.7 g/t Au,
and 699 g/t Ag, recovering 63% of the lead. The zinc concentrate assayed 61% Zn,
accounting for 62% of the contained zinc. Further optimization testwork to
reduce concentrate grade in order to improve base metal recovery will be
performed. The arsenopyrite/pyrite concentrate that was produced was subjected
separately to both pressure oxidation leaching (POX) and bioleaching
pre-treatment methods prior to cyanidation. The resulting cyanidation of the POX
product gave up to 97% gold recovery. Silver recovery of 93% was obtained
following lime boil of the POX residue. As an alternative cyanide pretreatment
method, bioleaching resulted in 89% gold recovery and 97% silver recovery. After
accounting for heavy media, flotation and POX leaching losses, including the
assumption of no precious metal payables for the zinc concentrate, the overall
recoveries of the principal metal credits were calculated at 92% for gold and
90% for silver. 


In addition, the Company has recently commenced a metallurgical testwork program
on drill core samples from the J&L Yellowjacket Zone. The Yellowjacket testwork
will primarily be comprised of flotation studies. Leaching of the Yellowjacket
concentrates is not envisioned to be required.


The majority of the testwork is being conducted by Inspectorate Exploration and
Mining Services Ltd., in Richmond, British Columbia, under the supervision of
the Company's independent metallurgical consultant, Frank Wright, P.Eng.
Metallurgical testing is planned to be continued with the advancement of the
project development. 


About the J&L Project 

Since 2010, the Company has focused on advancing its 100% owned J&L precious and
polymetallic (gold, silver, lead, zinc) advanced-stage exploration project,
located near Revelstoke, British Columbia. The Company completed a positive PEA
on the J&L Main Zone in April 2012, and recently updated the resource estimate
for the J&L project. 


Frank Wright, P.Eng., independent metallurgical consultant, is the Qualified
Person as defined in National Instrument 43-101, who has reviewed and approved
the technical content of this news release.


CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements made and information contained herein may contain
forward-looking statements or forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or forward-looking
information include, but are not limited to, statements concerning the results
of metallurgical testwork programs. Forward-looking statements or information
include statements regarding the expectations and beliefs of management. Often,
but not always, forward-looking statements and forward-looking information can
be identified by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or the negatives thereof or variations of such words and phrases or
statements that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Forward-looking statements or
information include, but are not limited to, statements or information with
respect to known or unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements or information. 


Forward-looking statements or information are subject to a variety of risks and
uncertainties which could cause actual events or results to differ from those
reflected in the forward-looking statements or information, including, without
limitation, risks and uncertainties relating to: completion of announced
transactions, history of losses; requirements for additional capital; dilution;
loss of its material properties; interest rates increase; global economy;
limited history of production; speculative nature of exploration activities;
periodic interruptions to exploration, development and mining activities;
environmental hazards and liability; industrial accidents; failure of processing
and mining equipment; labour disputes; supply problems; commodity price
fluctuations; uncertainty of production and cost estimates; the interpretation
of drill results and the estimation of mineral resources and reserves; legal and
regulatory proceedings and community actions; title matters; regulatory
restrictions; permitting and licensing; volatility of the market price of common
shares; insurance; competition; hedging activities; currency fluctuations; and
loss of key employees. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described in forward-looking statements or
information. Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information. The Company disclaims any intent or
obligation to update forward-looking statements or information except as
required by law, and you are referred to the full discussion of the Company's
business contained in the Company's reports filed with the securities regulatory
authorities in Canada.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Huakan International Mining
Fiona Leung
Chief Financial Officer
(604) 694-2344
www.huakanmining.com


TMX Equicom
Joe Racanelli
(416) 815-0700 ext. 243

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