Southern Hemisphere identifies commercial potential at Llahuin project

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THE DRILL SERGEANT: Southern Hemisphere Mining (ASX: SUH, TSX-V: SH) has received encouraging drilling results from the company’s Llahuin copper/gold project in central Chile.

The company is currently conducting an accelerated drilling at the Llahuin project, results from which so far have highlighted potential to grow the current resource inventory.

 

Location map showing the Llahuin project exploitation licenses. Source: Company announcement

 

Southern Hemisphere has also carried out preliminary metallurgical test work, which the company said has supported its plans to progress development of the Llahuin project under a recently established joint venture with North American mining group, Lundin Mining Corporation.

The latest drilling results include some broad intersections of copper/gold mineralisation, including:

Cerro de Oro Zone:

–    88 metres at 0.53 per cent copper equivalent from 40 metres;

Central Porphyry Zone:

–    314m at 0.41 per cent copper equivalent from 2m, including 28m at 0.49 per cent copper equivalent from 32m, 26m at 0.48 per cent copper equivalent from 74m, 40m at 0.50 per cent copper equivalent from 154m; and

–    350m at 0.41 per cent copper equivalent from 0m, including 44m at 0.61 per cent copper equivalent from 0m, 20m at 0.57 per cent copper equivalent from 82m, 48m at 0.52 per cent copper equivalent from 208m.

Ferrocarril Zone:

–    22m at 0.63 per cent copper equivalent from 182m; and

–    16m at 0.87 per cent copper equivalent from 100m.

The company considers the results from its preliminary metallurgical test work indicate the Llahuin project mineralization is amenable to a conventional flotation process, with a low unit energy requirement expected for crushing/grinding to achieve anticipated copper recoveries of up to 91 per cent.

Southern Hemisphere said these characteristics, together with the ability to produce a concentrate grading 28 to 32 per cent copper with low levels of deleterious materials in concentrate, support the commercial development potential of the Llahuin project.

Commenting on the latest developments, “We have started the New Year very strongly with an accelerated drill campaign at the Llahuin project under the work plan agreed with our joint venture partner, Lundin Mining Corporation,” Southern Hemisphere Mining managing director Trevor Tennant said in the company’s announcement to the Australian Securities Exchange.

“The latest results from drilling are excellent and continue to highlight the significant upside potential within the key zones of mineralisation.

“In addition, the early stage results from metallurgical test work, which will be improved upon with optimization in the next stage of metallurgical test work, indicate the comparative advantages of low unit energy requirements, high copper recoveries and commercially attractive concentrate grades.

“We are looking forward to what should be a defining year for Southern Hemisphere and the Llahuin project, which we expect to continue to develop as one of the more significant emerging mid-tier copper-gold opportunities in Chile.”