Southern Hemisphere Mining (ASX: SUH, TSX-V: SH) is a copper-gold exploration company with operational activities based in Santiago, Chile, focused on the discovery and exploitation of large tonnage base metal opportunities in South America.
Southern Hemisphere Mining (ASX: SUH) has identified the potential to increase the Llahuin Porphyry Copper Project resource in Chile with drilling at satellite prospects returning high grade assays.
Scout drilling was carried out at two satellite deposits, Mina San Francisco and La Colina 2, with four reverse circulation holes drilled at each.
Highlights from La Colina 2 included:
- 20 metres at 1.35% copper equivalent from 34 metres;
- 70 metres at 0.66% copper equivalent from 24 metres, including 16 metres at 1.5% copper equivalent; and
- 28 metres at 0.56% copper equivalent from 22 metres.
Southern Hemisphere recently obtained title clearance finalising the option arrangements for La Colina 2, which is located 10 kilometres northwest of Llahuin.
Highlights from Mina San Francisco, less than 10 kilometres north of Llahuin, included:
- 22 metres at 0.66% copper equivalent from 10 metres;
- 26 metres at 0.53% copper equivalent from 128 metres; and
- 20 metres at 1.22% copper equivalent from 180 metres.
These results come less than a month after the company defined a maiden JORC Resource at Llahuin, with 106.2 million tonnes at 0.4% copper equivalent 318,000 tonnes of copper and 307,000 ounces of gold, contained in the Measured and Indicated categories.
An additional Inferred Resource of 12.2 million tonnes at 0.36% copper equivalent has been defined.
The results from satellite deposits close to Llahuin have potential to define additional mineral resources for the project.
Importantly, Southern Hemisphere managing director Trevor Tennant told Proactive Investors that the satellite areas did not need major resources in order to benefit the company.
“With the satellite areas they don’t need standalone tonnages, obviously the bulk of the tonnage is at the Llahuin porphyry,” Tennant said.
“So even if a satellite project has say 10 million tonnes, it’s still useful to us especially if it’s high grade and it’s early on in the project.”
Tennant said Southern Hemisphere was focused on adding to the resource tonnage and grade at Llahuin by pursuing satellite opportunities within economic haul distances from the project.
"The first drill results from the two satellite prospects have been very encouraging with positive indications of higher grade mineralization that we will follow up with further drilling programs,” he said.
“Our objective is to define an operation capable of producing 45,000 to 50,000 tonnes per annum of copper metal plus gold credits at world competitive operating costs.”
Southern Hemisphere’s Llahuin project covers an area of 7.72 square kilometres in Chile, and features similar geological characteristics to Teck Resources’ (TSX: TCK, NYSE: TCK) nearby 400 million tonne Carmen de Andacollo copper mine.
The current resource is based on the Llahuin Porphyry Zone, where the majority of drilling has been focused, and the Cerro Zone. Further drilling in both zones is planned to enhance the resource.
Scoping Study work is underway at Llahuin, based on the recently defined maiden JORC Resource. Llahuin is expected to form the cornerstone of Southern Hemisphere’s copper gold portfolio in Chile.
Tennant said Llahuin features a number of benefits, with favourable infrastructure in the region.
“We were attracted to Llahuin by its favourable location and logistics – just 17 kilometres from the mining town of Combarbala and 56 kilometres from the Pan-American Highway and at an elevation of 1,300 measured – and its potential to deliver a sizeable resource relatively quickly,” he said.
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