Southern Hemisphere Mining Limited
TSX VENTURE : SH
ASX : SUH

Southern Hemisphere Mining Limited

August 18, 2011 09:00 ET

Southern Hemisphere Mining Limited: Further Major Copper Intercepts from Llahuin Porphyry Project, Chile

More Strong Results Lay Foundations for Initial JORC Resource Targeted by Year-End

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 18, 2011) - Southern Hemisphere Mining Limited ("Southern Hemisphere" or the "Company") (TSX VENTURE:SH)(ASX:SUH)

Highlights
  • Excellent new results from resource drilling at the Llahuin Copper Project, Chile including:

    • Hole LLA-004 175m @ 0.31% Cu with 0.05g/t Au from 0m
    • Hole LLA-005 199m @ 0.33% Cu with 0.08g/t Au from 1m
    • Hole LLA-006 61m @ 0.37% Cu with 0.08g/t Au from 0m
    • Hole LLA-006 36m @ 0.39% Cu with 0.17g/t Au from 187m
    • Hole LLA-010 210m @ 0.31% Cu with 0.03g/t Au from 0m
    • Hole LLA-011 220m @ 0.39% Cu with 0.08g/t Au from 0m
    • Hole LLA-012 205m @ 0.36% Cu with 0.06g/t Au from 0m

  • Best 1m copper interval of 1.80% Cu in hole LLA-011 and best 1m gold interval of 18.6g/t Au in hole LLA-009.

  • Mineralisation remains open both laterally and at depth.

  • Resource drilling programme continuing with further results for holes LLA-013 to LLA-020 expected shortly – initial JORC resource targeted by year-end.

  • Substantial new anomaly identified from recently completed IP survey at Chitigua Breccia Copper Project – major new drilling program to commence shortly.

Llahuin Copper Project

International mining company Southern Hemisphere Mining Limited ("Southern Hemisphere" or the "Company") is pleased to report further highly encouraging results from resource drilling at the recently acquired Llahuin Copper Project ("Llahuin"), located 250km north of Santiago in Chile at an elevation of 1300 metres.

The latest results, for holes LLA-004 to LLA-012, follow the excellent results for the first three holes reported on 18 July 2011 and confirm the presence of a large-scale porphyry copper-gold system at Llahuin, vindicating the Company's decision to move directly to a resource drilling program.

The latest results include several broad intersections of copper-gold mineralisation, which has now been defined within a dioritic porphyry located within the Llahuin Amapola group of exploitation licences, which cover a total area of 772 hectares.

According to the type of ore deposit, alteration, mineralization, geographic location and geological age, the Llahuin ore body can be defined as a porphyry copper system, rich in gold, similar to the Carmen de Andacollo ore deposit, located 350km north of Santiago, which has a resource of 400 million tonnes grading 0.38% copper plus gold credits. Evidence from all analysis results to date at Llahuin indicates a porphyry deposit with a target copper grade of 0.4% Cu plus molybdenum and gold credits.

Llahuin Drilling Progress

As at 18 August 2011 the Company had completed 19 Reverse Circulation (RC) drill holes for a total depth of 3,733m, and commenced deepening hole LLA-010 with a Diamond Core drill. This included two RC drill holes LLA-008 and LLA-009 located to test a prospective gold area.

A schedule of these holes is shown below:

Hole ID Easting Northing RL Azimuth Dip Depth
LLA-001 307866 6531823 1342 300 -58.00 208
LLA-002 307819 6531846 1346 300 -58.00 170
LLA-003 307740 6531875 1331 300 -58.00 77
LLA-004 307798 6531911 1332 300 -60.00 244
LLA-005 307823 6531869 1342 300 -60.00 200
LLA-006 307809 6531798 1341 300 -60.00 243
LLA-007 307792 6531969 1323 300 -60.00 192
LLA-008 307352 6532693 1289 270 -60.00 167
LLA-009 307368 6532605 1289 270 -60.00 210
LLA-010 307913 6531801 1344 300 -60.00 210
LLA-011 307776 6531865 1345 300 -60.00 220
LLA-012 307733 6531818 1340 300 -61.00 208
LLA-013 307863 6531871 1345 300 -60.00 203
LLA-014 307942 6531845 1335 300 -60.00 197
LLA-015 307822 6531681 1331 300 -60.00 196
LLA-016 307851 6531773 1335 300 -60.00 198
LLA-017 307695 6531900 1323 300 -60.00 194
LLA-018 307653 6531643 1325 300 -60.00 192
LLA-019 307724 6531657 1324 300 -60.00 204
Total 3733

Table 1Drilling Program to date, Llahuin Project

Holes LLA-001 through to LLA-007 and LLA-010 through to LLA-018 tested the Llahuin Porphyry within the Amapola Group.

Holes LLA-008 and LLA-009 tested an area prospective for gold as evidenced by past artisanal mining activities. This area is located 1km north of the Llahuin Porphyry.

To date analysis results have been received for holes LLA001-LLA012. For hole LLA-009 samples were taken and analysis results received for each alternate metre interval.

To view Fig. 1 – Llahuin Copper Drilling Location Map for Holes LLA-001 to LLA-006 & LLA-010 to LLA-012, please visit the following link: http://media3.marketwire.com/docs/shm_fg1_818.jpg

Refer to attachment for detailed drill results received for LLA004-LLA012.
Refer to 18 July 2011 ASX and TSX-V announcements for Llahuin geological information and analysis results for holes LLA-001 to LLA-003.

To view Fig. 2 – Cross-section showing holes LLA001-LLA003 and LLA010-LLA011, Llahuin Project, please visit the following link: http://media3.marketwire.com/docs/shm_fg2_818.jpg

Sampling and Analysis Procedures

From the RC Drill holes, 5kg samples were taken from each metre interval, with the exception of hole LLA-009 where samples were taken for each alternate 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. 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.

Chitigua Porphyry Copper Project

The Chitigua Project is located 100km north of Calama at an elevation of 4,000 metres on the Western Fault between the El Abra and Quebrada Blanca mines.

Following 8 July 2011 ASX and TSX-V announcements, which confirmed the potential for a porphyry copper system at the Chitigua Project, the Company has completed an Induced Polarization and Resistivity survey (IP Survey) on the Breccia Zone of the Chitigua Project.

Additionally, an IP survey has commenced over the Chitigua Church zone, which lies 3.5 km to the south west of the Breccia Zone. Interpretation of the results is underway and this will assist with determining future drill-hole locations and enhance the likelihood of a discovery of a major porphyry deposit in the Western Fault system, which is the world's richest copper metallogenic zone.

An RC rig will commence a further drilling campaign at Chitigua in September with the objective of completing 23 holes to a depth of 300 metres. This program is targeted for completion by year-end.

To view Fig 3. - IP Survey - Chitigua Breccia Copper Project, please visit the following link: http://media3.marketwire.com/docs/shm_fg3_818.jpg

Los Pumas Manganese Project

Work is continuing on the Los Pumas Project with the amended Environmental Impact Statement (EIS) being lodged this month with the Arica Regional Committee. Approval is expected in the 1st Quarter of 2012.

Further heavy media separation metallurgical test work is currently being undertaken by Transmin Metallurgical Consultants in Lima, Peru with results expected by the 4th Quarter of 2011.

However, the current manganese market conditions have reduced the priority of the Los Pumas Manganese Project in the Company's plans. Accordingly, the Feasibility Study has been delayed but will continue to be progressed in line with the testwork results and EIS approval.

Competent Person / Qualified Person Statement

Trevor Tennant (Managing Director - Southern Hemisphere), a Member of the Australasian Institute of Mining and Metallurgy, is a 'Competent Person' as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a 'Qualified Person' 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 exploration results and other such information in this news release in the form and context in which it appears

To view the tables associated with this press release, please visit the following link: http://media3.marketwire.com/docs/SHtables818.pdf.

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. 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
    Managing Director
    +56 (9) 7766 4688

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

    Clark Kent
    Corporate Communications
    + 1 (416) 883 3838