Southern Hemisphere Mining Limited
TSX VENTURE : SH
ASX : SUH

Southern Hemisphere Mining Limited

July 08, 2011 08:30 ET

Southern Hemisphere Mining Limited: Drilling Confirms Potential for Porphyry Copper System at Chitigua Project, Chile

Drilling and Exploration Update at Chile Copper Projects

PERTH, WESTERN AUSTRALIA--(Marketwire - July 8, 2011) - Southern Hemisphere Mining Limited ("Southern Hemisphere" or the "Company") (TSX VENTURE:SH)(ASX:SUH)

Highlights

  • Significant copper mineralisation intersected at Chitigua Copper Project, with diamond drill hole DDH-CH-002 intersecting two zones:
    • 46m @ 0.40% Cu from 3m
    • 23m @ 0.41% Cu from 63m

  • Results included a best one-metre copper intercept of 2.29% Cu.

  • This together with its location on the Western Fault highlights the potential for a large porphyry copper system at Chitigua.

  • Reverse Circulation (RC) drill rig contracted to increase the rate of drilling at Chitigua to define resource development opportunities.

  • Scout drilling at Santa Gracia and Tres Cruces projects has returned low-grade mineralisation, with the Company now focusing on other opportunities.

International mining company Southern Hemisphere Mining Limited ("Southern Hemisphere" or the "Company") is pleased to provide an update on exploration activities within its portfolio of copper projects in Chile, South America.

The Company's strategy is to explore for a stand-alone copper project at its Chitigua concession and, by conducting scout drilling programs, to target an aggregation of resources at its cluster of concessions close to the city of La Serena, which includes the Santa Gracia, El Arrayan, and Tres Cruces prospects.

Results have now been received from initial drilling programs completed at Chitigua, Santa Gracia and Tres Cruces.

Chitigua Project

The Chitigua Project is located north of the El Abra mine and south of the Quebrada Blanca mine along the Western Fault Belt, a major geological feature in Chile. This is the richest copper metallogenic zone in the world which hosts, amongst others, the Chuquicamata and Escondida mines (see Figure 1).

To view "Figure 1. - Location Map of Chitigua Project", please visit the following link: http://media3.marketwire.com/docs/fg1_sh.jpg

Southern Hemisphere conducted scout drilling programs at two zones located 6km apart at the Chitigua Project. These zones, the Breccia zone and the Church zone, were selected as a result of surface reconnaissance and mapping.

Breccia Zone

A total of five holes were drilled in the Breccia zone, which is located 5km along the strike length from the Church zone (see Attachment 1 for detailed results).

DDH-CH-002 diamond drill hole intersected two mineralised zones. The first zone of mineralisation, from 3m to 49m, averaged 0.40% Cu and the second, from 63m to 86m, returned an intercept of 23m averaged 0.41% Cu.

Both RC-CH-03 and RC-CH-04 were interpreted to be within pyritic halos around the porphyry zone and, despite being heavily mineralised with pyrite, had only sporadic chalcopyrite mineralisation.

To view "Figure 2. - Drill location Map of Chitigua Project – Breccia Zone", please visit the following link: http://media3.marketwire.com/docs/fg2_sh.jpg

The Company is very encouraged by these results and has contracted another drilling company to supply an RC drill rig that will increase the rate of drilling. This will enable the Company to develop a more detailed understanding of the Chitigua geological profile and move more quickly to a resource drilling phase.

Church Zone

The Company drilled three holes at the Church zone (see drill hole location plan in Figure 3 and schedule of drill holes in Attachment 2, together with the best Church zone copper intercepts and analysis results).

To view "Figure 3. - Drill location Map of Chitigua Project – Church Zone", please visit the following link: http://media3.marketwire.com/docs/fg3_sh.jpg

These holes were designed to test the geological model developed by the Company, which postulated that the mineralisation at the Church zone is situated close to a contact between a Dacite intrusive stock and the granodiorite/monzanite host.

The drill results at the Church zone verified the Company's model, but the grades were sporadic and generally low and further work is required before the Company is in a position to target economic accumulations of mineralisation.

A trench 720m to the north east of the DDH-CH-01, adjacent the Western Fault, was sampled and the results of this sampling program are shown below:

Sample Number Cu%
020951 0.097
020952 0.055
020953 0.067
020954 0.141
020955 0.350
020956 0.164
020957 0.208
020958 0.346
020959 0.106
020960 0.176
020961 0.343
020962 0.203
020963 0.310
020964 0.008
020965 0.391
020966 1.016
020967 1.363
020968 0.327
020969 0.010
020970 0.296
Tab. 1. Trenching results of Chitigua Project – Church Zone

Each of these channel samples are one metre true widths.

Commenting on the results, the Company's Managing Director, Trevor Tennant, said: "The results from the Breccia Zone indicate that we can drill out from this location and build on the encouraging intercepts returned in hole DDH-CH-02. Hole DDH-CH-03 was a major step-out some 175m north-east of DDH-CH-02 and may in hindsight have been too widely spaced.

"Chitigua is a large porphyry target and will require additional time and drilling to prove up. Our drilling to date has been hampered by very low drill productivity, mainly caused by high altitudes and cold weather. This is being addressed by engaging an additional contractor with a larger RC drill machine"

Central Cluster Projects

Southern Hemisphere's central cluster of concessions, all of which are located within a 60km radius of the City of La Serena, lie within the coastal cordillera belt in a north-north-west trending structural corridor that extends for some 150km from south of Andacollo to Los Chorus Creek in the north.

The Company has completed scout drilling programs at the El Arrayan, Santa Gracia and Tres Cruces projects. The El Arrayan project yielded positive results and the Company is currently negotiating to acquire a property to the immediate south of the El Arrayan area.

Drilling at Santa Gracia and Tres Cruces did not yield the opportunity for quickly moving on to a resource drilling stage and will be relegated in priority.

El Arrayan

The best drilling results from the central cluster of tenements were from the El Arrayan project. These included 17 metres @ 2.03% Cu and 26 metres @ 1.54% Cu, which were reported on 17 February 2011 and 15 April 2011.

Santa Gracia

Two target areas for porphyry copper mineralization, La Cuyana and San Sebastian were drill tested. The resulting intercepts were sporadic and low grade.

The drill schedule and best of the analysis results are shown in Attachment 3.

Tres Cruces

The target at Tres Cruces is mantle type deposits that are higher grade. Some of the holes intercepted mantle style mineralisation but the grades were generally low.

While the Company has only completed first-pass scout drilling, the results from neither Santa Gracia nor Tres Cruces demonstrated sufficient consistency to warrant conducting further exploration activities.

The drill schedule and best of the analysis results are shown in Attachment 4.

Drill location maps for both the Santa Gracia and Tres Cruces drilling campaigns are available on the Company's website at www.shmining.com.au.

To view "Figure 4. - Location Map of Central Cluster Projects", please visit the following link: http://media3.marketwire.com/docs/fg4_sh.jpg

Sampling and Analysis Procedures

From the RC Drill holes, 5kg samples were taken from each metre interval. The samples are derived from riffle splitting each metre intercept. The samples were sent to Andes Analytical Assay Ltda (Chile) in Santiago for sample preparation and analysis.

Assay samples from the diamond core drilling program were taken after splitting core and sending half core samples for each metre interval to Andes Analytical Assay Ltda (Chile) in Santiago.

Duplicate samples were taken on a 1 in 20 basis.

Analysis was undertaken using atomic absorption spectrometry methods. Andes Analytical Assay Ltda (Chile) is an independent full service commercial laboratory accredited under ISO 9001:2008. Standard samples and repeat analyses were used by the laboratory to provide checks on the assay results.

This news release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

Competent Person / Qualified Person Statement

Trevor Tennant (Managing Director - Southern Hemisphere), a Member of the Australasian Institute of Mining and Metallurgy, is a „Competent PersonΓǃ as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a „Qualified PersonΓǃ under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'.

Mr. Tennant 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.

Mr. Tennant consents to the inclusion of such information in this news release in the form and context in which it appears.

Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone)
Hole
ID
Easting Northing Col-
lar
RL

(m)
Total
Depth

(m)
Azi-muth
(Deg)
Dip
(Deg)
From
(m)
To
(m)
Cu % Lithology
DDH-
CH-02
520,409 7,611,232 4,086 170 305 -73
0 1 0.087 Orange
Granodiorite
1 2 0.091 Orange
Granodiorite
2 3 0.082 Orange
Granodiorite
3 4 0.143 Orange
Granodiorite
4 5 0.075 Orange
Granodiorite
5 6 0.104 Orange
Granodiorite
6.7 7 0.107 Dark
Granodiorite
7 8 0.206 Dark
Granodiorite
8 9 0.187 Dark
Granodiorite
9 10 0.316 Dark
Granodiorite
10 11 0.274 Dark
Granodiorite
11 12 0.35 Dark
Granodiorite
12 13 0.685 Dark
Granodiorite
13 14 2.29 Dark
Granodiorite
14 15 1.079 Dark
Granodiorite
15 16 0.302 Light
Brown
Granodiorite
16 17 0.243 Light
Brown
Granodiorite
17 18 0.138 Light
Brown
Granodiorite
18 19 0.121 Light
Brown
Granodiorite
19 20 0.067 Light
Brown
Granodiorite
20 21 0.118 Light
Brown
Granodiorite
21 22 0.111 Light
Brown
Granodiorite
22 23 0.118 Light
Brown
Granodiorite
23 24 0.186 Light
Brown
Granodiorite
24 25 0.162 Light
Brown
Granodiorite
25 26 0.126 Light
Brown
Granodiorite
26 27 0.09 Light
Brown
Granodiorite
27 28 0.238 Light
Brown
Granodiorite
28.05 29 0.521 Light
Gray
Granodiorite
29 30 0.584 Light
Gray
Granodiorite
30 31 0.3 Light
Gray
Granodiorite
31 32 0.242 Light Gray
Granodiorite
32 33 0.238 Light Gray
Granodiorite
33 34 0.199 Light Gray
Granodiorite
34 35 0.124 Light Gray
Granodiorite
35 36 0.191 Light Gray
Granodiorite
36 37 0.777 Light Gray
Granodiorite
37 38 0.842 Light Gray
Granodiorite
38 39 0.938 Light Gray
Granodiorite
39 40 1.54 Light Gray
Granodiorite
40 42 1.169 Fault
42 43 0.511 Light Grey
Granodiorite
43 44 0.282 Light Grey
Granodiorite
44 45 0.274 White
Granodiorite
45 46 0.343 White
Granodiorite
46 47 0.303 White
Granodiorite
47 48 0.483 White
Granodiorite
48 49 0.159 Fault
60 61 0.015 Pink
Granodiorite
61 62 0.005 Pink
Granodiorite
62 63 0.051 Pink
Granodiorite
63 64 0.384 Pink
Granodiorite
64 65 0.173 Pink
Granodiorite
65 66 0.209 Pink
Granodiorite
66 67 0.126 Pink
Granodiorite
67 68 0.269 Pink
Granodiorite
68 69 0.426 Pink
Granodiorite
69 70 0.582 Pink
Granodiorite
70.3 71 0.771 Light
Gray
Granodiorite
71 72 0.286 Light
Gray
Granodiorite
72 73 0.356 Light
Gray
Granodiorite
73 74 0.605 Light
Gray
Granodiorite
74 75 0.725 Light Gray Granodiorite
75 76 0.287 Light Gray Granodiorite
76 77 0.209 Light Gray Granodiorite
77 78 0.084 Light Gray Granodiorite
78 79 0.364 Light Gray Granodiorite
79 80 0.7 Light Gray Granodiorite
80 81 0.355 Light Gray Granodiorite
81 82 0.098 Light Gray Granodiorite
82 83 0.937 Light Gray Granodiorite
83 84 0.41 Light Gray Granodiorite
84 85 0.96 Light Gray Granodiorite
85 86 0.184 Light Gray Granodiorite
RC-CH-03 520,302 7,611,163 4,089 187 200 -73
0 1 0.18 Granodiorite
1 2 0.15 Granodiorite
2 3 0.148 Granodiorite
3 4 0.198 Granodiorite
4 5 0.108 Granodiorite
11 12 0.108 Granitic dike
12 13 0.183 Granite
13 14 0.143 Granite
14 15 0.147 Granite
22 23 0.457 Granodiorite
23 24 0.128 Granodiorite
24 25 0.186 Fault
25 26 0.333 Fault
28 29 0.102 Dacitic Dike
29 30 0.213 Granodiorite
120 121 0.205 Light Gray Granodiorite
121 122 0.169 Light Gray Granodiorite
123 124 0.11 Light Gray Granodiorite
Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) - continued
Hole ID Easting Northing Col-
lar
RL

(m)
Total
Depth

(m)
Azi-muth
(Deg)
Dip
(Deg)
From
(m)
To
(m)
Cu % Lithology
RC-CH-03 520,302 7,611,163 4,089 187 200 -73
124 125 0.135 Light Gray Granodiorite
125 126 0.121 Light Gray Granodiorite
RC-CH-04 520,313 7,611,245 4,079 187 320 -75
27 28 0.133 Granodiorite
28 29 0.132 Granodiorite
29 30 0.162 Granodiorite
30 31 0.136 Granodiorite
RC-CH-05 520,908 7,611,856 4,095 128 215 -75 No significant intercepts
DDH-CH-03 520,579 7,611,278 4,090 340 20 -75
0 1 0.309 Orange Brown Granodiorite
1 2 0.171 Orange Brown Granodiorite
2 3 0.188 Orange Brown Granodiorite
3 3.6 0.135 Orange Brown Granodiorite
4.4 5 0.302 Brown Granodiorite
Attachment 2: RC and DDH Drill Results for Chitigua Project (Church Zone)
Hole ID Easting Northing Col-
lar
RL

(m)
Total
Depth

(m)
Azi-muth
(Deg)
Dip
(Deg)
From
(m)
To
(m)
Cu %
Lithology
RC-CH-01 517,877 7,606,257 3985 149 325 -75
61 62 0.32 Stockwork Cpy-py
62 63 0.145 Microdiorític Dike
63 64 0.185 Stockwork Cpy-py
64 65 0.087 Millo Granite
65 66 0.172 Millo Granite
66 67 0.045 Fault
67 68 0.041 Stockworke Qz-Py-Cpy
68 69 0.223 Stockworke Qz-Py-Cpy
105 106 0.442 Stockworke Qz-Py-Cpy
106 107 1.618 Vein of Hm
107 108 0.092 Vein of calcite
148 149 0.355 Stockworke Qz-Py-Cpy
RC-CH-02 517,732 7,605,931 4,018 180 310 -60 No significant intercepts
DDH-CH-01 517,733 7,606,183 3,993 420 315 -60
66 67 0.4 Millo Granite
76.6 77 0.802 Dioritic dike
77 78 0.112 Dioritic dike
78.3 79 0.095 Millo Granite
79 80 0.208 Millo Granite
80 81 0.287 Millo Granite
81 82 0.241 Millo Granite
92 93 0.166 Millo Granite
110 111 0.135 Quarciferous Porphyry
189 190 0.144 Vein of calcita
269 270 0.109 Millo Granite
275 276 0.101 Millo Granite
289 290 0.185 Millo Granite
290 291 0.092 Millo Granite
293.2 294 0.101 Millo Granite
297 298 0.525 Millo Granite
Attachment 3: RC Drill Results for Santa Gracia Project
Hole ID Easting Northing Col-lar
RL

(m)
Total
Depth

(m)
Azi-muth
(Deg)
Dip
(Deg)
From
(m)
To
(m)
Cu %
SG-001 297,582 6,707,121 495 94 45 75 no significant intercepts
SG-002 297,635 6,707,029 503 350 28 75 no significant intercepts
SG-003 297,482 6,707,354 522 319 60 75
10 11 0.101
14 15 0.107
15 16 0.117
28 29 0.107
40 41 0.113
74 75 0.103
75 76 0.121
95 96 0.295
96 97 0.135
97 98 0.109
123 124 0.112
SG-004 297,517 6,707,234 512 149 65 75 no significant intercepts
SG-005 297,424 6,707,421 528 334 55 75
115 116 0.126
126 127 0.113
127 128 0.09
128 129 0.112
SG-006 296,610 6,709,256 672 226 190 70 no significant intercepts
SG-007 296,698 6,709,458 629 120 305 63 no significant intercepts
SG-008 296,601 6,709,383 645 226 180 60 no significant intercepts
SG-009 296,611 6,709,167 701 250 190 70
23 24 0.155
29 30 0.184
30 31 0
31 32 0.118
55 56 0.394
73 74 0.492
76 77 0.161
81 82 0.311
88 89 0.17
94 95 0.275
SG-010 297,583 6,707,371 506 338 25 65
42 43 0.13
43 44 0.169
53 54 0.117
56 57 0.093
57 58 0.104
58 59 0.158
78 79 0.226
79 80 0.318
SG-011 297,448 6,707,305 506 144 35 65 no significant intercepts
SG-011A 297,445 6,707,305 506 286 30 65 no significant intercepts
SG-012 297,664 6,707,115 512 120 0 60
0 1 0.119
1 2 0.121
2 3 0.12
6 7 0.111
Lithology - General Commentary
Leucocratic tonalite-granodiorite stock with quartz sericitic alteration, show a quartz and minor magnetite stockwork with copper oxides in small mine workings.
Attachment 4: RC Drill Results for Tres Cruces Project
Hole ID Easting Northing Col-
lar
RL

(m)
Total
Depth

(m)
Azi-
muth

(Deg)
Dip
(Deg)
From
(m)
To
(m)
Cu %
TC-01 310,566 6,752,927 854 216 45 70
19 20 0.452
20 21 0.185
83 84 0.117
84 85 0.163
148 149 0.133
149 150 0.321
150 151 0.397
164 165 0.23
TC-02 310,672 6,752,729 846 188 45 60 no significant intercepts
TC-03 310,541 6,752,767 821 324 45 75
45 46 0.124
46 47 0.055
47 48 0.134
48 49 0.58
49 50 0.303
105 106 0.178
106 107 0.312
107 108 0.868
108 109 0.511
139 140 0.139
140 141 0.124
141 142 0.376
142 143 0.302
TC-04 311,113 6,752,053 840 263 45 60
64 65 0.708
TC-05 310,536 6,752,916 846 70 55 60
9 10 0.101
10 11 0.128
11 12 0.314
12 13 0.608
13 14 0.501
14 15 0.112
TC-06 309,616 6,752,627 815 84 20 60 no significant intercepts
TC-07 309,679 6,752,309 802 282 50 70
18 19 0.126
20 21 0.105
TC-08 309,500 6,752,054 822 162 45 60 no significant intercepts
TC-09 313,050 6,750,519 533 329 25 60
162 163 0.651
164 165 0.227
190 191 0.342
197 198 0.194
199 200 0.269
267 268 0.519
TC-10 313,042 6,750,562 537 61 25 60 no significant intercepts
TC-11 312,982 6,750,587 574 36 345 60 no significant intercepts
TC-12 312,982 6,750,587 562 80 30 60
16 17 0.135
TC-13 312,916 6,751,265 570 120 70 60
7 8 0.251
Lithology - General Commentary
Narrow dioritic dykes with propylitic-magnetite alteration cutting a volcanic (andesites and breccia tuff)-subvolcanic (coarse grain ocoitic porphyry) sequence with propylitic alteration and abundant hematite, manganese oxides and barite, mainly in veins.

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.

Contact Information

  • Southern Hemisphere Mining Limited
    Trevor Tennant
    Managing Director
    +56 (9) 7766 4688

    Media Enquiries:
    Read Corporate
    Nicholas Read
    +61 (8) 9388 1474

    Clark Kent
    Corporate Communications
    +1 (416) 883 3838