PERTH, AUSTRALIA — (Marketwire) — 07/18/11 — Southern Hemisphere Mining Limited (TSX VENTURE: SH)(ASX: SUH) –
Highlights
International mining company Southern Hemisphere Mining Limited (TSX VENTURE: SH)(ASX: SUH) („Southern Hemisphere“ or the „Company“) is pleased to report initial results from drilling at the Llahuin Copper Project („Llahuin“), located 250km north of Santiago in Chile.
Southern Hemisphere recently signed an option agreement to purchase the Mining Licences which comprise the Llahuin Project and commenced an initial Reverse Circulation (RC) drilling program on 1 June. Initial results have been received which indicate the potential for a large-scale porphyry copper-gold system on the tenements.
The results from the first four drill holes, which include 208m averaging 0.42% Cu and 0.19g/t Au, 170m @ 0.3% Cu and 0.08g/t Au, 70m @ 0.61% Cu and 0.06g/t Au and 151m @ 0.31% Cu and 0.05g/t Au, have substantially elevated Llahuin within the Company-s copper exploration portfolio in Chile.
Llahuin comprises two elements: the Amapola Group of Exploitation Licences (the „Amapola Group“) and the Llanos Group of Exploitation Licences (the „Llanos Group“). Refer to the announcement dated 14 July 2011 for location and licence maps.
Drilling Progress
As of 8 July 2011, the Company has completed 9 RC drill holes on the Amapola licences for a total depth of 1,719m. A schedule of these holes is shown below:
Holes LLA-001 through to LLA-007 tested the Llahuin Porphyry within the Amapola Group.
Holes LLA-008 and LLA009 tested an area prospective for gold as evidenced by past artisanal mining activities. This area is located 1km north of the Llahuin Porphyry.
Refer to below for the drill location map.
To view Fig. 1 – Drill Hole Location Map – Llahuin Project, please visit the following link:
Geology
The Llahuin porphyry is one of a cluster of four potential targets, within the Amapola licenses, that have been defined by surface reconnaissance and mapping. The Llahuin porphyry is the main target.
All the targets are part of the same porphyry copper – gold system and exhibit similar geology, with medium sized early dioritic stock with propylitic to potassic (biotite) alteration emplaced in a North-South regional fault system.
Argillic- quartz sericite alteration zones are evident in the upper zones and borders of the hydrothermal system within the volcanic wall rocks. At the Llahuin porphyry, a NNE trending elongated late granodioritic stock intrudes the early dioritic porphyry
The mineralisation in the Llahuin porphyry is related to the early dioritic porphyry stock with abundant stockworks of quartz and variable amounts of magnetite, biotite, tourmaline, actinolite, calcite, copper oxides, iron oxides and some pyrite, chalcopyrite, covelite, chalcocite and molybenite. The mineralisation is mainly associated with veinlet systems.
Evidence from all analysis results including samples taken from the underground galleries, open cut and the drill results to date, indicate a porphyry with a target copper grade of 0.4% Cu plus molybdenum and gold credits.
Drilling Highlights
Refer below for a cross section of the Llahuin porphyry drill program. Refer to Attachment 1 for detailed drill results received to date.
To view Fig. 2 – Cross section – Llahuin Project, please visit the following link:
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. 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.
Future Planning and Comments
As well as the Amapola Group, the Company will also enter into a separate option agreement to purchase the Llanos Group once due diligence on the licence areas is completed.
Southern Hemisphere-s Managing Director, Mr Trevor Tennant, said the Company was very encouraged by the results received from initial drilling at Llahuin.
Mr Tennant made the following comments:-
„The width and grade of these intercepts indicates the potential for a sizeable porphyry system at Llahuin and has substantially elevated this project within our copper portfolio. This will enable us to move rapidly to resource drilling and potentially underpin a resource statement and Scoping Study by the end of the fourth Quarter of 2011.“
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.
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.
Contacts: Trevor Tennant (Managing Director – Southern Hemisphere Mining) +56 (9) 7766 4688
Media Enquiries Nicholas Read (Read Corporate) + 61 (8) 9388 1474
Clark Kent (Corporate Communications) + 1 (416) 883 3838
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