Southern Hemisphere Mining Limited
TSX VENTURE : SH

Southern Hemisphere Mining Limited

November 05, 2009 11:50 ET

Southern Hemisphere Mining Announces the Completion of the $3 Million Private Placement and the Results From the Diamond Drill Program at the Los Pumas Manganese Project in Northern Chile

TORONTO, CANADA--(Marketwire - Nov. 5, 2009) - Southern Hemisphere Mining Limited (TSX VENTURE:SH) is pleased to report the completion of the $3 million private placement and to provide the results of the diamond drill program at the Los Pumas manganese project in northern Chile.

Private Placement

Southern Hemisphere previously reported on the $3 million dollar non brokered private placement for the issuance of 15 million units comprising one common share and a half warrant. Each whole warrant will entitle the holder to purchase one common share at $0.40 per share, exercisable for a period of 2 years from closing date, Subscription agreements were signed on the 1st August 2009 and funds were placed in a holding account. One of the subscribers will be the holder of over 10% of the issued shares and therefore had to submit a personal information form to the TSX. The TSX has now approved the issuance of these shares.

Diamond Drill Results

Background

The Los Pumas Manganese Project is located 170km north-east of the port city of Arica in Chile. The nearest town is Putre which is located 130 km by road from the port of Arica. The port of Arica has bulk commodity conveyor ship loading facilities. Transport logistics for this project are excellent.

A reverse circulation (RC) drill program commenced on the 16th December 2008 and since then a total of 151 RC drill holes have been completed for a total of 3500 meters. A large low strip ratio inferred resource has been identified. Metallurgical test work using dense media separation has indicated that saleable grade product can be obtained at acceptable mass yields. The product will have a very high manganese to iron ratio and low phosphorous grades. An independent expert has visited the site and reported on the project. This report has been posted with SEDAR and on the Company website. The qualifying person who authored the report is Mr Beau Nicholls of Coffey Mining. The inferred resource is, at a cut off of 6%Mn, 14.6 million tonnes with a grade of 10% Mn. Methodology used for the resource estimation was ordinary krieging and inverse distance.

The Company holds exploration and exploitation licenses over the project area and has rights by means of an option agreement to purchase additional exploitation licenses.

The next stage towards proving the feasibility of the project is to complete a diamond drill program to check on the correlation of results from RC chips with core and to provide representative core samples for further metallurgical testing. The first diamond drill program has been completed comprising of 25 core holes for a total of 540 meters.

A RC drill rig is on site to commence infill drilling to a 50 meter grid to upgrade the resource from inferred to indicated and measured status.

Analysis results from the diamond core program



Diamond Drill Program - Selected Analysis Results

Hole ID From To Mn% Intercept m Average Mn%

DDHLP-001 1 2 18.8 1 18.8

DDHLP-002 5 6 8.7 1 8.7
11 12 12.1
12 13 11.1
13 13.5 9 2.5 11.1
14 15 14.9
15 16 9.9
16 17 4.9
17 18 10.1
18 18.5 11 4.5 10.1
23 24 3.6
24 25 11.7
25 26 25.2
26 27 11.1
27 28 20.3
28 28.7 19.5 5.7 15

DDHLP-003 0 1 10
1 2 9.2 2 9.6
8 9 11.4 1 11.4
12 13 8.4
13 14 9.4 2 8.9
17 18 10
18 19 27
19 20 11.9 3 16.3
27 28 23
28 29 23.9
29 30 9.8
30 31 16.3 4 18.3

DDHLP-004 5 6 15.6 1 15.6
7 8 8.8
8 9 28.9
9 10 8.7
10 11 16.2
11 12 18.3
12 13 19.4
13 14 16.4
15 16 16
16 17 16.5 9 16.6

DDHLP-005 0 1 14.4 1 14.4
9 10 16.3
10 11 11.9 2 14.1

DDHLP-006 0 2 14.2 2 14.2
9 10 16.3
10 11 11.9 2 14.1

DDHLP-007 7 8 20.6
8 9 10.1
9 10 10.1 3 13.6
12 13 15
13 14 14 2 14.5

DDHLP-008 0 1 24.6
1 2 10.2 2 17.4

DDHLP-009 0 1 14.3
1 2 15
2 3 10.2
3 4 19
4 5 8.9 5 13.5
38 39 10
39 40 17 2 13.5

DDHLP-010 13 14 42.2 1 42.2

DDHLP-011 4 5 11.7
5 6 8.1 2 9.9
7.7 8 14.8
8 9 11.4 1.3 12.2
10 11 10.1 1 10.1
26 27 10
27 28 10.6
28 29 15.9
29 30 11 4 11.9

DDHLP-012 4 5 10.8
5 6 17.3
6 7 9.5 3 12.5

DDHLP-014 8 9 20.7
9 10 8.2
10 11 12.6
11 12 11 4 13.1

DDHLP-015 1 2 14.9
2 3 8.8
3 4 10.6 3 11.4
7 8 10.4
8 9 11.2 2 10.8

DDHLP-016 23 24 8.5
24 25 15.4
25 26 7.3 3 10.4

DDHLP-017 0 1 19.4
1 2 18.4 2 18.9

DDHLP-018 0 1 21.6
1 2 19.1
2 3 12.1
3 4 12.1
4 5 7.9
5 6 25.7
6 6.7 10.9 6.7 15.8

DDHLP-019 3 4 22.5
4 5 18.8 2 17.8

DDHLP-020 0 1 19
1 2 16.6 2 17.8

DDHLP-021 0 1 14.4
1 1.4 21.5 1.4 16.4

DDH-023 0 1 16.4
1 1.75 14.2 1.75 15.5

DDHLP-024 0 1 10
1 2 11.1
2 2.8 8.1 2.8 9.8

DDHLP-025 0 1 16.8
1 2 11.1
2 3 9.3
3 4 16.9
4 4.35 11.3 4.35 13.3

Average grade of all intercepts 14.2


Next Stages

Core samples have been delivered to a metallurgical lab at Lima, Peru for dense media separation tests. Segments of competent full core have been delivered to a lab in Perth, Australia for Specific Gravity (S.G.) determinations and crushability tests.

A RC drill program to bring the drill spacing in to a 50m grid will commence this week. This will enable the confidence level of the ore resource to be upgraded from inferred to indicated and measured status.

Assays and Analysis

All analyses were carried out by Andes Assay Laboratory an accredited analytical laboratory located in Arica, Chile.

A number of check samples have been analysed by ALS in La Serena, Chile and results to date indicate satisfactory correlation between laboratories.

Qualified Person

The drilling and sampling program was under the direct control of Mr Igor Collado the Company's Senior geologist. Mr Collado is a qualified geologist. Trevor Tennant designated as the qualified person defined by the National Instrument 43-101, prepared the data as described in this release.

About Southern Hemisphere Mining (SH)

Southern Hemisphere Mining Limited has an extensive portfolio of copper/gold properties as well as the Los Pumas Manganese Project in Chile. Work is currently focussing on the manganese project as there is indication that this property can be developed into a profitable mining operation in the short to medium term. A feasibility study on this project is a priority. Work will also recommence on further drilling on the copper/gold properties in 2010.

Shares Outstanding: 57,685,686

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • Southern Hemisphere Mining Limited
    Clark Kent
    Investor Relations
    1-416-883-3838
    ckent@currentmca.com
    or
    Southern Hemisphere Mining Limited
    Trevor Tennant
    President
    +61-8-9481-2122