Southern Hemisphere Mining Limited
TSX VENTURE : SH
ASX : SUH

Southern Hemisphere Mining Limited

November 10, 2010 11:28 ET

Southern Hemisphere Reports Positive Sampling Results From Key Copper/Gold Projects in Chile

Drilling Program Expanded to Include El Arrayan Project

Key Points:

- Copper Grades of Up to 3.45% and Length Weighted Average Grade of 1.40% Cu From Underground Channel Sampling at the El Arrayan Project

- Results Confirm El Arrayan as an Additional Drilling Target, to be Included in the Forthcoming Copper-Gold Exploration Drilling Program

- Highest Gold Grade of 14.0 g/t Au Over a 3 Metre Interval and 4.58% Cu Over a 4 Metre Interval Achieved From Underground Sampling at the Mantos Grandes Project With a Length Weighted Average Grade From Sampling of 4.58g/t Au and 1.56% Cu

- New Results Provide Immediate, Easy Access Drilling Targets to be Included in the Forthcoming Drilling Programme.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2010) - Southern Hemisphere Mining Limited ("Southern Hemisphere" or "Company") (TSX VENTURE:SH)(ASX:SUH) is pleased to report positive results from sampling of old workings at two projects within its extensive portfolio of copper and copper-gold projects in Chile, as it prepares to commence a major drilling program on selected targets.

The new results, from the El Arrayan and Mantos Grandes Projects in Chile, have reinforced the prospectivity of these projects and resulted in the inclusion of the El Arrayan Project in Southern Hemisphere's forthcoming drilling program.

The Company is set to launch major exploration drilling programs at the Chitigua, Santa Gracia/Chacay and Mantos Grandes Projects following a $20 million capital raising announced on 27 October 2010.

This capital raising was designed to fund immediate drilling programs at several walk-up copper and copper-gold targets, while enabling Southern Hemisphere to continue to progress its flagship Los Pumas Manganese Project in Chile and assess a newly acquired iron sands project.

El Arrayan Project

As part of recent field reconnaissance at the 87km2 El Arrayan Project, which is located in the Elqui Valley 40km south-east of the regional capital city of La Serena, Southern Hemisphere undertook channel sampling within a set of underground galleries, approximately 50m below surface, previously excavated by artisanal miners.

The channel samples were extracted along the gallery walls and backs and submitted to Andes Analytical Assay Laboratory for analysis. Both gold and copper analysis methods were by Atomic Absorption Spectrometry.

The assay results produced a length weighted average grade of the samples taken of 1.40 % Cu, with a highest copper grade of 3.45% Cu and a lowest of 0.004% Cu. Full results are shown in Table 1 below:

Table 1: El Arrayan Analysis Results
ID Easting Northing Length m Cu %
A1 305559 6668678 1.5 0.004
A2 305563 6668665 6.5 0.390
A3 305566 6668663 5.0 1.837
A4 305569 6668661 2.5 2.589
A5 305571 6668658 4.0 0.289
A6 305572 6668656 4.0 0.658
A7 305573 6668652 4.0 0.713
A8 305572 6668646 4.0 0.473
A9 305575 6668637 2.5 0.963
A10 305582 6668631 6.0 2.746
A11 305586 6668635 5.5 1.548
A12 305587 6668640 3.0 2.179
A13 305579 6668643 5.0 1.509
A14 305587 6668645 2.7 3.449
A15 305592 6668650 5.5 1.663
A16 305599 6668652 8.0 1.725
A17 305591 6668652 2.5 2.316
A18 305589 6668656 4.0 1.240
A19 305587 6668658 4.0 0.804
A20 305584 6668663 4.0 1.435
A21 305584 6668668 5.0 0.541
A22 305581 6668677 4.0 1.288
A23 305577 6668674 3.2 1.892
A24 305579 6668672 2.5 2.334
A25 305568 6668664 5.5 1.924

These sampling results confirm El Arrayan as an additional drill target and justify its immediate inclusion as a priority drilling target in the forthcoming exploration drilling program.

The El Arrayan Project lies within the Coastal Cordillera of north central Chile and is in an identical geological setting to the Teck/Cominco's Andacollo copper mine, which is located 12km to the south. The mineralisation at El Arrayan is found in disseminated copper oxides and the host rock is an intrusive medium grained monzo diorite porphyry.

Mantos Grandes

As part of preparatory exploration field work prior to the commencement of drilling, Southern Hemisphere also undertook sampling of underground galleries at the La Demonia site at the Mantos Grandes Project, which is located 85km by road from the city of Ovalle and approximately 90km south-east of La Serena.

Underground galleries at the La Demonia site were assessed and channel samples taken along the wall and backs of these headings, which are about 35 metres below the surface. These samples were submitted to Andes Analytical Assay Laboratory for analysis.

The assay results produced a length weighted average grade from the samples of 4.58 g/t Au and 1.56% Cu. The highest copper grade was recorded from sample D20, which contained 4.58% Cu over a four metre interval and the highest gold grade was 14.0 g/t Au over a three metre interval. Full results are shown in Table 2 below:

Table 2: Mantos Grandes Analysis Results
ID Easting Northing Length m Au g/t Cu %
D1 351739 6583945 2 0.12 0.053
D2 351742 6583946 4 3.96 1.775
D3 351746 6583947 4 4.60 2.042
D4 351747 6583948 2 0.64 0.360
D5 351748 6583949 4 11.35 0.611
D6 351751 6583946 4 0.42 0.269
D7 351757 6583945 5 0.44 0.377
D8 351756 6583950 4 1.30 0.330
D9 351758 6583953 4 1.49 0.808
D10 351762 6583955 4 1.64 0.692
D11 351764 6583956 4 1.53 0.647
D12 361756 6583955 3.5 9.12 1.585
D13 351755 6583957 3 8.40 3.222
D14 351757 6583960 3 14.00 2.744
D15 351761 6583961 5 4.19 1.569
D16 351755 6583962 3 6.72 2.557
D17 351751 6583961 3 2.54 1.920
D18 351749 7583965 4 0.06 0.022
D19 351749 6583960 3 6.57 0.980
D20 251743 6583957 4 9.73 4.576
D21 351752 6583954 3 6.94 3.193
D22 351752 6583951 3 13.39 4.545
D23 351740 6583949 4 0.33 1.932

Mantos Grandes has gravel road access, power and water supply and basic camp facilities. The project area includes 35km2 of exploitation concessions and 19km2 of exploration concessions.

The project includes the old workings of a small-scale skarn-hosted underground mine, which recovered gold and copper in a 200 tonne per day float plant. The mine was closed in 2000 when copper and gold prices were depressed.

The project is situated between the Loica and Mollacas Cu-Au porphyry systems at elevations of approximately 2,500 metres. The host lithology is a garnet-rich skarn and the copper mineralisation is in an oxide form and disseminated.

These results provide a drill target that will be assessed along with others that are currently being investigated. Site access is easy and preparation for initiating a drill campaign will be minimal.

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 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
    CEO
    +56 (9) 7766 4688
    or
    Southern Hemisphere Mining Limited
    Clark Kent
    Investor Relations
    647-519-2646
    ckent@currentmca.com
    or
    Media Enquiries
    Read Corporate
    Nicholas Read
    + 61 (8) 9388 1474