SUH Drills 156m at 0.51% CuEq* at Llahuin Project, Chile

Highlights:

-          The first round of drill results of the 2023/24 drilling program are encouraging, indicating substantial exploration upside in the scale of the Llahuin Copper-Gold-Moly open pit style deposits

-          Better intercepts include:

• 156m at 0.51% CuEq from surface in 23LHRD027, including 82m at 0.67% CuEq from 46m and 26m at 0.75% CuEq from 48m

• 136m at 0.47% CuEq from 42m in 23LDRD028, including 32m at 0.66% CuEq from 100m

-          A new structural interpretation and revised drillhole orientation are proving to be effective

-          Compilation and 3D modelling of the results are confirming the new interpretations, indicating that mineralisation is open to the West and South-East

-          Further drill results and news flow in progress

*CuEq means copper equivalent grade, calculated from concentrations of molybdenum, gold and copper, as discussed in the JORC2012 table in the appendix.

Figure 1.  RC rig in action at Cerro De Orro, with Central Porphyry workings in the centre background

15 January 2024, Southern Hemisphere Mining Limited (“Southern Hemisphere” or “the Company”) (ASX: SUH, FWB: NK4) reports encouraging results from expansion drilling at its Llahuin Copper-Gold-Moly project in central Chile.

Figure 2. Location map of SUH projects in South America.

Results Discussion

Laboratory results for the first three holes of a 17-hole program mainly at the Cerro and Ferro deposits targeting resource expansion along strike and at depth. 

Results are;

-          156m at 0.51% CuEq, (0.41% Cu, 0.09ppm Au, and 63ppm Mo) from surface in 23LHRD027

-          136m at 0.47% CuEq, (0.27% Cu, 0.17ppm Au, and 167ppm Mo) from 42m in 23LHRD028

-          18m at 0.46% CuEq, (0.25% Cu, 0.24ppm Au, and 83ppm Mo) from 66m in 23LHRD033

A significant amount of detailed structural mapping and surface sampling has resulted in a new interpretation of the Llahuin mineralised system and a change in preferred drilling orientation.  The new interpretation and resultant change in drilling orientation appear to be valid, with the new holes intersecting more of the higher-grade vein swarm structures than prior historical drilling.

Holes 23LHRD027 and 23LHRD028 were targeting an expansion of the Cerro deposit West and at depth, and both were successful. This data now predicates further drilling to the West and depth in the next campaign.

Figure 3.  Cross section through 23LHRD027, 23LHRD028, and 23LHRD033, showing reported intercepts and implicit model grade shells.  The green outline is +0.1% Cu, yellow +0.1ppm Au, and blue +50ppm Mo.  Note that historical holes are omitted from the cross section for the purpose of clarity, as they are oblique to the section, at a sub optimal angle to interpreted mineralisation.

Figure 4.  Plan view showing the collar locations of the drillholes reported in this announcement.

BACKGROUND WORK AND ONGOING PROGRAMS

Systematic programs of surface geochemistry, surface mapping, structural interpretation, and historical hole re-logging and multi-element assaying were used to plan the current drilling program.  This lead-up work has proved critical in identifying zones for substantial expansion and drill locations.

A new 3D model incorporating the latest drilling and geological interpretation is under construction.  This work involves implicit modelling of grade and geological domains, followed by constrained manual interpretation.  The resulting models will generate a revised Mineral Resource Estimate (MRE) (currently 169mt at 0.4%CuEq) on completion of exploration drilling for a 20+ year mine life estimate.

Terraspec data is also being systematically collected over Central Porphyry to aid identification of alteration assemblages associated with the deposit.  This project is ongoing.  If successful at Central Porphyry, this program will be expanded to the other deposits at Llahuin and assist vectoring towards higher grade feeder zones at depth feeding the known deposits.

Field mapping and surface sampling programs are ongoing at Southern Porphyry, extending North to the southern extent of Ferro.  This program aims to define the nature and extent of the mineralising systems, particularly at Southern Porphyry, which is a very large greenfield opportunity at the Llahuin Project.  Southern Porphyry extends the strike length of the known mineralising system at Llahuin to approximately 3.7km.  Further updates on this large target will be reported as the various stages of technical work is completed.

Figure 5.  3D view looking northeast from Southern Porphyry (SP) to Central Porphyry, showing the scale of the Llahuin mineralising system.

Further drilling and other results will be reported in due course.

Approved by the Board for release.

CONTACTS:

For further information on this update or the Company generally, please visit our website at

www.shmining.com.au or contact the Company :

[email protected]

Telephone: +61 8 6144 0590

BACKGROUND INFORMATION ON SOUTHERN HEMISPHERE MINING:

Southern Hemisphere Mining Limited is an experienced minerals explorer in Chile, South America.  Chile is the world’s leading copper-producing country and one of the most prospective regions of the world for major new copper discoveries.  The Company’s projects include the Llahuin Porphyry Copper-Gold Project and the Los Pumas Manganese Project, both of which were discovered by the Company.

Llahuin Copper/Gold/Moly Project:  Total Measured and Indicated Resources - JORC (2004) Compliant.  As announced to the market on 18 August 2013.

Note: *Copper Equivalent (“Cu Equiv”): The copper equivalent calculations represent the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage.  These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result.  It is the Company’s opinion that elements considered have a reasonable potential to be recovered as evidenced in similar multi-commodity natured mines.  Copper equivalent conversion factors and long-term price assumptions used are stated below: 

Notes on copper recovery from historical test work

-          “Recoveries of copper vary between 75% Cu and 91% Cu with the weighted average of the results being 84% Cu, which is a typically acceptable commercial level”;

-          “Recoveries of gold vary between 41% Au and 57% Au, which is in line with expectations given the relatively low gold grades within the deposit”; and

-          “Flotation concentrates produced during testing contained the resource weighted average copper grade of 28% Cu and 4.9g/t Au.  They also contained low levels of deleterious materials in the concentrate.  Given that these tests were designed to set parameters and were not optimised, the results indicated good flotation process characteristics”.

Copper Equivalent Formula= Cu % + Au (g/t) x 0.72662 + Mo % x 4.412 Price Assumptions- Cu ($3.40/lb), Au ($1,700/oz), Mo ($15/lb)

Los Pumas Manganese Project: Total Measured and Indicated Resources - JORC (2012) Compliant.  As announced to the market on 3 May 2023.

Total JORC Resources for the Los Pumas Manganese Project at a 2.5% Mn cut-off.

In relation to the above resources, the Company confirms that it is not aware of any new information or data that materially affects the information in the announcements, and all material assumptions and technical parameters in the announcements underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

COMPETENT PERSON / QUALIFIED PERSON STATEMENT:

The information in this report that relates to copper and gold exploration results for the Company’s Projects is based on information compiled by Mr Adam Anderson, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australian Institute of Geoscientists.  Mr Anderson 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 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.  Mr Anderson is a consultant for the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information, please refer to the Technical Reports and News Releases on the Company’s website at www.shmining.com.au.

Table 1. Drillhole Location Data and Results.  Intercepts are calculated by length weighted average at a cut off of 0.2% CuEq and a maximum internal dilution of 6m.