Southern Hemisphere Mining Limited
TSX VENTURE : SH
ASX : SUH

Southern Hemisphere Mining Limited

February 16, 2011 15:06 ET

Drilling Returns Encouraging Initial Results From El Arrayan Copper Project, Chile

Highlights:

- Copper mineralisation intersected in four of the first six drill holes

- Results include significant intercepts of 65m with a composite weighted average grade of 1.00 % Cu

- Significant intercepts in this hole included 26m @ 1.54% Cu from 86m, including 17m @ 2.03% Cu

- Style of mineralisation at El Arrayan similar to the nearby porphyry copper mine at Andacollo (owned by Teck Cominco)

- Ongoing drilling planned to test geological interpretation

PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 16, 2011) - International mining company Southern Hemisphere Mining Limited ("Southern Hemisphere" or "Company") (TSX VENTURE:SH)(ASX:SUH) is pleased to report encouraging results from the initial 8-hole reverse circulation drilling program at one of its priority copper exploration projects in Chile, the El Arrayan Project ("Project"), located in the highly prospective Coquimbo Region. 

Results have so far been received for six of the eight holes (1,800m) completed to date as part of the drilling program, which commenced in mid December 2010. From the assay results received, copper mineralisation was recorded in four of these six holes and significant intercepts were recorded in Hole EA002.

These included a composite weighted average for significant intercepts of 65m @ 1.00% Cu in Hole EA002. This composite weighted average contained several higher grade zones which included 26m @ 1.54% Cu, including an internal intersection of 17m @ 2.03% Cu.

Location 

The El Arrayan Project concessions are located in the Province of Elqui, which is part of Chile's Region IV, and are only 37km south east from the regional capital of La Serena and neighbouring major Port of Coquimbo. The concession area covers approximately 64 sq kms.

The Project lies just 15km north-northeast from the Andacollo porphyry copper mine, which is owned by Teck Cominco.

Regional Setting

The El Arrayan Project lies within the Coastal Cordillera of north-east Chile in a north-northwest trending structural corridor, that extends for some 150km from south of Andacollo to Los Choros Creek in the north.

Mineralisation

The El Arrayan style of mineralisation resembles Andacollo with a diorite intrusive being the source of mineralisation, although a large percentage of the mineralised zone is in the adjacent andesitic wall rocks, with propilitic alteration (chlorite, epidote, calcite, specularite), sericitic alteration, and combinations of both types.

The El Arrayan mineralization consists of copper oxides, and minor chalcopyrite with pyrite and magnetite. A preliminary stage geological interpretation shows that the mineralisation could be a mixture of veins and mantles associated with porphyritic diorite intruding volcanic-sub-volcanic sequences of fine grain andesite with minor microdiorites. 

This mineralisation could represent the medium-distal part of a hydrothermal system, probably associated with a copper-gold porphyry target, similar to the Andacollo porphyry copper system. 

The copper-gold porphyry systems are characteristically associated with diorite-tonalite intrusives with moderate to weak quartz-sericitic alteration and rich in magnetite-specularite-quartz veinlet systems. All these characteristics have been observed in the Project area.

The model for El Arrayan mineralisation is similar to the Andocollo system, which has a reserve base of approximately 500 million tonnes with a grade of 0.44% Cu and 0.13g/t gold.

Ongoing drilling will test this copper/gold porphyry model.

Analysis

Assay samples from the reverse circulation drilling program were taken at one metre intervals from splits of the drill chips, using a standard sample splitting system at El Arrayan. Sample preparation and analysis was conducted on 4-5 kg drill samples by Andes Analytical Assay Ltda ("Andes") in Santiago, using Atomic Absorption Spectrometry methods. Andes is an independent full service commercial laboratory accredited under ISO 9001:2008. Control samples were inserted by Andes and every 10th sample was repeat assayed.

From the results to date, four of the six holes intercepted mineralised zones and the remaining two drill holes were found to fall outside the mineralised zones.

To view the map included with this release, please visit the following link: http://media3.marketwire.com/docs/sh216figure.pdf

Detailed Results

An intercept of 26m, between 86m and 112m, returned an average grade of 1.54% Cu. Within that intercept, between 86m and 103m, an intercept of 17m returned an average grade of 2.03% Cu. The most significant intercepts are summarised in the table below, which shows a composite weighted average of significant intercepts for Hole No EA002 of 65m at 1.00% Cu.

The analysis results for the remaining two drill holes will be disclosed separately when received.

Hole No. EA 001
Easting 305,576           Total Depth 163m
Northing 6,668,651           Azimuth 0 Degrees
Collar RL 685m           Dip 90 Degrees
From m To m   Intercept m Cu %   Lithology
23 31   8 0.53   Porphyritic Diorite
50 61   11 0.21   Fine Grained Andesite
71 83   12 0.65   Fine Grained Andesite
90 94   4 0.56   Fine Grained Andesite
Composite Weighted Average of Significant Intercepts 35m at 0.47%
                 
                 
Hole No. EA 002
Easting 305,577           Total Depth 265 m
Northing 6,668,619           Azimuth 90 Degrees
Collar RL 695m           Dip 70 Degrees
From m To m   Intercept m Cu %   Lithology
1 4   3 1.03   Porphyritic Diorite
6 9   3 0.59   Porphyritic Diorite / Fine Grained Andesite. Contact zone
12 22   10 0.18   Fine Grained Andesite
62 65   3 1.24   Fine Grained Andesite
86 112   26 1.54   Fine Grained Andesite
86 103   17 2.03   Note: This is within the previous intercept.
134 144   10 0.38   Fine Grained Andesite
152 154   2 1.68   Fine Grained Andesite
166 168   2 0.67   Fine Grained Andesite
183 189   6 1.06   Fine Grained Andesite
Composite Weighted Average of Significant Intercepts 65m at 1.00%
       
       
Hole No. EA 003
Easting 305,333           Total Depth 137m
Northing 6,668,742           Azimuth 105 Degrees
Collar RL 731m           Dip 70 Degrees
No significant Intercepts    
                 
                 
Hole No. EA 004
Easting 305,436           Total Depth 80m
Northing 6,668,655           Azimuth 278 Degrees
Collar RL 711m           Dip 65 Degrees
No significant Intercepts    
                 
                 
Hole No. EA 005
Easting 305,677           Total Depth 278m
Northing 6,668,656           Azimuth 230 Degrees
Collar RL 687m           Dip 65 Degrees
From m To m   Intercept m Cu %   Lithology
99 110   11 0.54   Porphyritic Diorite
119 134   15 0.64   Porphyritic Diorite
138 141   3 0.44   Fine Grained Diorite
144 149   5 0.40   Fine Grained Diorite
Composite Weighted Average of Significant Intercepts 34m at 0.55%
                 
                 
Hole No. EA 006
Easting 305,530           Total Depth 150m
Northing 6,668,631           Azimuth 95 Degrees
Collar RL 700m           Dip 65 Degrees
From m To m   Intercept m Cu %   Lithology
28 31   3 0.39   Fine Grained Andesite
75 83   8 0.36   Porphyritic Diorite
87 90   3 1.31   Porphyritic Diorite
97 100   3 0.86   Porphyritic Diorite
105 111   6 1.79   Fine Grained Andesite
Composite Weighted Average of Significant Intercepts 23m at 0.93%

The intercepts between the reported significant intercepts above consisted of Fine Grained Andesite or Porphyritic Diorite and produced a composite weighted average assay grade of 0.02% Cu.

 
Trevor Tennant (President /CEO Southern Hemisphere), a Member of the Australasian Institute of Mining and Metallurgy, is a Qualified Person as defined by National Instrument 43-101 and was responsible for the design and conduct of this exploration drilling campaign, supervised the preparation of the technical information in this release and has the relevant experience and competence of the subject matter.

This report is prepared in accordance with disclosure and reporting requirements set forth in National Instrument 43-101, Companion Policy 43-101CP, and Form 43-101F1, and complies with Canadian National Instrument 43-101 for the "Standards of Disclosure for Mineral Projects" of December 2005 (the Instrument). "Trevor Tennant (President), a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release."
 

Competent Person's Statement

The details contained in this report pertain to information compiled by Mr. Trevor Tennant, a full time employee of the Company and who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Tennant has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 Edition of the "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Tennant consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release. This news release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Southern Hemisphere Mining Limited
    Trevor Tennant
    CEO
    +61 (0) 414 895 605 or +56 (9) 7766 4688
    or
    Clark Kent
    Corporate Communications
    416-883-3838
    ckent@currentmca.com
    or
    Media Enquiries
    Read Corporate
    Nicholas Read
    +61 (8) 9388 1474