Southern Hemisphere Mining Limited

Southern Hemisphere Mining Limited

December 01, 2010 09:45 ET

Southern Hemisphere News Release Clarifying 43-101 Disclosure Made in October 15 News Release

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2010) - Southern Hemisphere Mining Limited (TSX VENTURE:SH)(ASX:SUH) wishes to clarify the disclosure contained in its October 15, 2010 news release concerning the Pre-Feasibility Study (the "Study") for its Los Pumas Manganese Project.

For Australian purposes, the Study was designated as a Pre-Feasibility Study. However, for Canadian securities regulatory purposes, the Study should have been characterized as a Preliminary Assessment pursuant to requirements contained in Canadian National Instrument 43-101 ("NI 43-101") as the economic analysis of the Los Pumas Project contained in the Study includes inferred mineral resources.

However, an issuer may disclose a "Preliminary Assessment" that includes inferred mineral resources if the assessment is accompanied by certain cautionary statements. A "Preliminary Assessment" is defined in NI 43-101 as a study that includes an economic analysis of the potential viability of mineral resources taken at an early stage of the project prior to the completion of a Preliminary Feasibility Study. Preliminary Feasibility Study is also a defined term of NI 43-101.

Accordingly, all references to "Pre-Feasibility Study" and "PFS" in the Company‟s October 15 news release should be considered revised to read "Preliminary Assessment" and "PA" respectively Furthermore, investors are cautioned that:

  • the results of the Preliminary Assessment are preliminary in nature;

  • the mineral resources that form the basis of the Preliminary Assessment are not mineral reserves, do not have demonstrated economic viability and do not account for mineability, selectivity, mining loss and dilution;

  • the economic evaluation in the Preliminary Assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves;

  • there is no certainty that the inferred mineral resources included in the Preliminary Assessment will be converted to the measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied; and

  • there is no certainty that the Preliminary Assessment will be realized.

The Company will be filing an NI 43-101 compliant technical report on SEDAR in the near future with respect to the Preliminary Assessment.

Neither 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 press release.

Contact Information

  • Southern Hemisphere Mining Limited
    Trevor Tennant
    +56 (9) 7766 4688
    Southern Hemisphere Mining Limited
    Clark Kent
    Investor Relations