Southern Hemisphere Mining increases Llahuin Resources
THE DRILL SERGEANT: Dual-listed Southern Hemisphere Mining (ASX: SUH, TSXV: SH) has reported an increase in the Measured category of the Mineral Resource for the company’s Llahuin copper-gold project in central Chile.
The company said the increase provides it with further confidence in the robustness and quality of the deposit ahead of additional resource extension drilling planned for later this year.
The June 2013 Mineral Resource update includes the most recent drilling Southern Hemisphere has completed up to 31 March, 2013 under the Llahuin Joint Venture arrangements with global base metals miner Lundin Mining Corporation.
Southern Hemisphere explained that Lundin recently committed to proceed with the next phase of sole-funded exploration expenditure at Llahuin, comprising US$10 million to increase its interest from the current 20 per cent to 51 per cent.
Lundin can earn up to 75 per cent of the Llahuin project in three phases by spending a total of up to US$35 million.
Most of the recent drilling has been in-fill drilling, resulting in a substantial amount of material within the Indicated Resource category being upgraded to the Measured Resource category.
The Measured Resource for the Llahuin project now stands at 112 million tonnes at 0.42 per cent copper equivalent and equates to 344,000 tonnes of copper and 433,000 ounces of gold.
This represents a 26 per cent increase in Measured Resource tonnage, compared with the JORC and NI 43-101 Mineral Resource estimate Southern Hemisphere completed in September 2012, using the same 0.28 per cent copper equivalent cut off.
Additional drilling within the higher grade core in the Central Porphyry Zone has increased the Measured Resource in this section to 60 million tonnes, an 18 per cent tonnage increase, when compared with the September 2012 resource estimate.
The Inferred Resource of 20 million tonnes grading 0.36 per cent copper equivalent has increased by 20 per cent compared with the September 2012 Mineral Resource.
The overall Measured and Indicated Resource has increased compared with the September 2012 Mineral Resource (Measured and Indicated) of 145 million tonnes to currently sit at 149 million tonnes at 0.42 per cent copper equivalent.
Chart showing growth of the Llahuin project Mineral Resource during last 12 months of drilling. Source: Company announcement
The company indicated the increase reflects its focus on infill drilling within the Central Porphyry Zone.
“The increase in the Measured resource category gives the company greater confidence in the quality and potential of the Llahuin project as the foundation for future mine development,” Southern Hemisphere Mining managing director Trevor Tennant said in the company’s announcement to the Australian Securities Exchange.
“The next steps for this project will be to further expand the resource in the Cerro de Oro Zone and Ferrocarril Zones with ongoing drilling as these zones remain open.
“Comments contained within the independent resource estimate note that there are two higher grade drill hole intercepts at depth within the Ferrocarril Zone which require further drilling in the surrounding area.
“We believe we have a very significant copper-gold project on our hands at Llahuin and we are looking forward to progressing it to the next level.”