drilling confirms potential for porphyry … · drilling confirms potential for porphyry ......

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ASX: SUH TSX-V: SH Australian Office: PO Box 598 T: +61 8 9481 2122 West Perth F: +61 8 9481 2322 WA 6872 www.shmining.com.au Chilean Office: Minera Hemisferio Sur SCM Unit 1103, Roger de Flor 2907 Los Condes, Santiago 8 July 2011 DRILLING CONFIRMS POTENTIAL FOR PORPHYRY COPPER SYSTEM AT CHITIGUA PROJECT, CHILE DRILLING AND EXPLORATION UPDATE AT CHILE COPPER PROJECTS Highlights Significant copper mineralisation intersected at Chitigua Copper Project, with diamond drill hole DDH-CH-002 intersecting two zones: o 46m @ 0.40% Cu from 3m o 23m @ 0.41% Cu from 63m Results included a best one-metre copper intercept of 2.29% Cu. This together with its location on the Western Fault highlights the potential for a large porphyry copper system at Chitigua. Reverse Circulation (RC) drill rig contracted to increase the rate of drilling at Chitigua to define resource development opportunities. Scout drilling at Santa Gracia and Tres Cruces projects has returned low-grade mineralisation, with the Company now focusing on other opportunities. International mining company Southern Hemisphere Mining Limited (“Southern Hemisphere” or the “Company”) is pleased to provide an update on exploration activities within its portfolio of copper projects in Chile, South America. The Company’s strategy is to explore for a stand-alone copper project at its Chitigua concession and, by conducting scout drilling programs, to target an aggregation of resources at its cluster of concessions close to the city of La Serena, which includes the Santa Gracia, El Arrayan, and Tres Cruces prospects. Results have now been received from initial drilling programs completed at Chitigua, Santa Gracia and Tres Cruces.

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ASX: SUH

TSX-V: SH

Australian Office: PO Box 598 T: +61 8 9481 2122 West Perth F: +61 8 9481 2322 WA 6872 www.shmining.com.au Chilean Office: Minera Hemisferio Sur SCM Unit 1103, Roger de Flor 2907 Los Condes, Santiago

8 July 2011

DRILLING CONFIRMS POTENTIAL FOR PORPHYRY

COPPER SYSTEM AT CHITIGUA PROJECT, CHILE

DRILLING AND EXPLORATION UPDATE AT CHILE COPPER PROJECTS

Highlights

Significant copper mineralisation intersected at Chitigua Copper Project, with

diamond drill hole DDH-CH-002 intersecting two zones:

o 46m @ 0.40% Cu from 3m

o 23m @ 0.41% Cu from 63m

Results included a best one-metre copper intercept of 2.29% Cu.

This together with its location on the Western Fault highlights the potential for a

large porphyry copper system at Chitigua.

Reverse Circulation (RC) drill rig contracted to increase the rate of drilling at

Chitigua to define resource development opportunities.

Scout drilling at Santa Gracia and Tres Cruces projects has returned low-grade

mineralisation, with the Company now focusing on other opportunities.

International mining company Southern Hemisphere Mining Limited (“Southern Hemisphere” or

the “Company”) is pleased to provide an update on exploration activities within its portfolio of

copper projects in Chile, South America.

The Company’s strategy is to explore for a stand-alone copper project at its Chitigua concession

and, by conducting scout drilling programs, to target an aggregation of resources at its cluster of

concessions close to the city of La Serena, which includes the Santa Gracia, El Arrayan, and Tres

Cruces prospects.

Results have now been received from initial drilling programs completed at Chitigua, Santa

Gracia and Tres Cruces.

Chitigua Project

The Chitigua Project is located north of the El Abra mine and south of the Quebrada Blanca

mine along the Western Fault Belt, a major geological feature in Chile. This is the richest copper

metallogenic zone in the world which hosts, amongst others, the Chuquicamata and Escondida

mines (see Figure 1).

Fig. 1. Location Map of Chitigua Project

Southern Hemisphere conducted scout drilling programs at two zones located 6km apart at the

Chitigua Project. These zones, the Breccia zone and the Church zone, were selected as a result

of surface reconnaissance and mapping.

Breccia Zone

A total of five holes were drilled in the Breccia zone, which is located 5km along the strike

length from the Church zone (see Attachment 1 for detailed results).

DDH-CH-002 diamond drill hole intersected two mineralised zones. The first zone of

mineralisation, from 3m to 49m, averaged 0.40% Cu and the second, from 63m to 86m,

returned an intercept of 23m averaged 0.41% Cu.

Both RC-CH-03 and RC-CH-04 were interpreted to be within pyritic halos around the porphyry

zone and, despite being heavily mineralised with pyrite, had only sporadic chalcopyrite

mineralisation.

Fig. 2. Drill location Map of Chitigua Project – Breccia Zone

The Company is very encouraged by these results and has contracted another drilling company to

supply an RC drill rig that will increase the rate of drilling. This will enable the Company to

develop a more detailed understanding of the Chitigua geological profile and move more quickly

to a resource drilling phase.

Church Zone

The Company drilled three holes at the Church zone (see drill hole location plan in Figure 3 and

schedule of drill holes in Attachment 2, together with the best Church zone copper intercepts and

analysis results).

Fig. 3. Drill location Map of Chitigua Project – Church Zone

These holes were designed to test the geological model developed by the Company, which

postulated that the mineralisation at the Church zone is situated close to a contact between a

Dacite intrusive stock and the granodiorite/monzanite host.

The drill results at the Church zone verified the Company’s model, but the grades were sporadic

and generally low and further work is required before the Company is in a position to target

economic accumulations of mineralisation.

A trench 720m to the north east of the DDH-CH-01, adjacent the Western Fault, was sampled

and the results of this sampling program are shown below:

Sample Number Cu%

020951 0.097

020952 0.055

020953 0.067

020954 0.141

020955 0.350

020956 0.164

020957 0.208

020958 0.346

020959 0.106

020960 0.176

020961 0.343

020962 0.203

020963 0.310

020964 0.008

020965 0.391

020966 1.016

020967 1.363

020968 0.327

020969 0.010

020970 0.296

Tab. 1. Trenching results of Chitigua Project – Church Zone

Each of these channel samples are one metre true widths.

Commenting on the results, the Company’s Managing Director, Trevor Tennant, said: “The

results from the Breccia Zone indicate that we can drill out from this location and build on the

encouraging intercepts returned in hole DDH-CH-02. Hole DDH-CH-03 was a major step-out

some 175m north-east of DDH-CH-02 and may in hindsight have been too widely spaced.

“Chitigua is a large porphyry target and will require additional time and drilling to prove up.

Our drilling to date has been hampered by very low drill productivity, mainly caused by high

altitudes and cold weather. This is being addressed by engaging an additional contractor with a

larger RC drill machine”

Central Cluster Projects

Southern Hemisphere’s central cluster of concessions, all of which are located within a 60km

radius of the City of La Serena, lie within the coastal cordillera belt in a north-north-west

trending structural corridor that extends for some 150km from south of Andacollo to Los Chorus

Creek in the north.

The Company has completed scout drilling programs at the El Arrayan, Santa Gracia and Tres

Cruces projects. The El Arrayan project yielded positive results and the Company is currently

negotiating to acquire a property to the immediate south of the El Arrayan area.

Drilling at Santa Gracia and Tres Cruces did not yield the opportunity for quickly moving on to a

resource drilling stage and will be relegated in priority.

El Arrayan

The best drilling results from the central cluster of tenements were from the El Arrayan project.

These included 17 metres @ 2.03% Cu and 26 metres @ 1.54% Cu, which were reported on

17 February 2011 and 15 April 2011.

Santa Gracia

Two target areas for porphyry copper mineralization, La Cuyana and San Sebastian were drill

tested. The resulting intercepts were sporadic and low grade.

The drill schedule and best of the analysis results are shown in Attachment 3.

Tres Cruces

The target at Tres Cruces is mantle type deposits that are higher grade. Some of the holes

intercepted mantle style mineralisation but the grades were generally low.

While the Company has only completed first-pass scout drilling, the results from neither Santa

Gracia nor Tres Cruces demonstrated sufficient consistency to warrant conducting further

exploration activities.

The drill schedule and best of the analysis results are shown in Attachment 4.

Drill location maps for both the Santa Gracia and Tres Cruces drilling campaigns are available

on the Company's website at www.shmining.com.au

Fig. 4. Location Map of Central Cluster Projects

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.

Assay samples from the diamond core drilling program were taken after splitting core and

sending half core samples for each metre interval to Andes Analytical Assay Ltda (Chile) in

Santiago.

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.

For further information please contact:

Trevor Tennant – (Managing Director - Southern Hemisphere Mining) +56 (9) 7766 4688.

Media Enquiries – Nicholas Read (Read Corporate) + 61 (8) 9388 1474

Media Enquiries – Clark Kent (Corporate Communications) + 1 (416) 883 3838

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.

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 such information in this news release in the form and context in which it

appears.

Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone)

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

DDH-CH-02 520,409 7,611,232 4,086 170 305 -73

0 1 0.087 Orange Granodiorite

1 2 0.091 Orange Granodiorite

2 3 0.082 Orange Granodiorite

3 4 0.143 Orange Granodiorite

4 5 0.075 Orange Granodiorite

5 6 0.104 Orange Granodiorite

6.7 7 0.107 Dark Granodiorite

7 8 0.206 Dark Granodiorite

8 9 0.187 Dark Granodiorite

9 10 0.316 Dark Granodiorite

10 11 0.274 Dark Granodiorite

11 12 0.35 Dark Granodiorite

12 13 0.685 Dark Granodiorite

13 14 2.29 Dark Granodiorite

14 15 1.079 Dark Granodiorite

15 16 0.302 Light Brown Granodiorite

16 17 0.243 Light Brown Granodiorite

17 18 0.138 Light Brown Granodiorite

18 19 0.121 Light Brown Granodiorite

19 20 0.067 Light Brown Granodiorite

20 21 0.118 Light Brown Granodiorite

21 22 0.111 Light Brown Granodiorite

22 23 0.118 Light Brown Granodiorite

23 24 0.186 Light Brown Granodiorite

24 25 0.162 Light Brown Granodiorite

25 26 0.126 Light Brown Granodiorite

26 27 0.09 Light Brown Granodiorite

27 28 0.238 Light Brown Granodiorite

28.05 29 0.521 Light Gray Granodiorite

29 30 0.584 Light Gray Granodiorite

30 31 0.3 Light Gray Granodiorite

LithologyHole ID Easting Northing Cu %

Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) - continued

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

DDH-CH-02 520,409 7,611,232 4,086 170 305 -73

31 32 0.242 Light Gray Granodiorite

32 33 0.238 Light Gray Granodiorite

33 34 0.199 Light Gray Granodiorite

34 35 0.124 Light Gray Granodiorite

35 36 0.191 Light Gray Granodiorite

36 37 0.777 Light Gray Granodiorite

37 38 0.842 Light Gray Granodiorite

38 39 0.938 Light Gray Granodiorite

39 40 1.54 Light Gray Granodiorite

40 42 1.169 Fault

42 43 0.511 Light Grey Granodiorite

43 44 0.282 Light Grey Granodiorite

44 45 0.274 White Granodiorite

45 46 0.343 White Granodiorite

46 47 0.303 White Granodiorite

47 48 0.483 White Granodiorite

48 49 0.159 Fault

60 61 0.015 Pink Granodiorite

61 62 0.005 Pink Granodiorite

62 63 0.051 Pink Granodiorite

63 64 0.384 Pink Granodiorite

64 65 0.173 Pink Granodiorite

65 66 0.209 Pink Granodiorite

66 67 0.126 Pink Granodiorite

67 68 0.269 Pink Granodiorite

68 69 0.426 Pink Granodiorite

69 70 0.582 Pink Granodiorite

70.3 71 0.771 Light Gray Granodiorite

71 72 0.286 Light Gray Granodiorite

72 73 0.356 Light Gray Granodiorite

73 74 0.605 Light Gray Granodiorite

LithologyHole ID Easting Northing Cu %

Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) - continued

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

DDH-CH-02 520,409 7,611,232 4,086 170 305 -73

74 75 0.725 Light Gray Granodiorite

75 76 0.287 Light Gray Granodiorite

76 77 0.209 Light Gray Granodiorite

77 78 0.084 Light Gray Granodiorite

78 79 0.364 Light Gray Granodiorite

79 80 0.7 Light Gray Granodiorite

80 81 0.355 Light Gray Granodiorite

81 82 0.098 Light Gray Granodiorite

82 83 0.937 Light Gray Granodiorite

83 84 0.41 Light Gray Granodiorite

84 85 0.96 Light Gray Granodiorite

85 86 0.184 Light Gray Granodiorite

RC-CH-03 520,302 7,611,163 4,089 187 200 -73

0 1 0.18 Granodiorite

1 2 0.15 Granodiorite

2 3 0.148 Granodiorite

3 4 0.198 Granodiorite

4 5 0.108 Granodiorite

11 12 0.108 Granitic dike

12 13 0.183 Granite

13 14 0.143 Granite

14 15 0.147 Granite

22 23 0.457 Granodiorite

23 24 0.128 Granodiorite

24 25 0.186 Fault

25 26 0.333 Fault

28 29 0.102 Dacitic Dike

29 30 0.213 Granodiorite

120 121 0.205 Light Gray Granodiorite

121 122 0.169 Light Gray Granodiorite

123 124 0.11 Light Gray Granodiorite

Hole ID Easting Northing Cu % Lithology

Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) - continued

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

RC-CH-03 520,302 7,611,163 4,089 187 200 -73

124 125 0.135 Light Gray Granodiorite

125 126 0.121 Light Gray Granodiorite

RC-CH-04 520,313 7,611,245 4,079 187 320 -75

27 28 0.133 Granodiorite

28 29 0.132 Granodiorite

29 30 0.162 Granodiorite

30 31 0.136 Granodiorite

RC-CH-05 520,908 7,611,856 4,095 128 215 -75

DDH-CH-03 520,579 7,611,278 4,090 340 20 -75

0 1 0.309 Orange Brown Granodiorite

1 2 0.171 Orange Brown Granodiorite

2 3 0.188 Orange Brown Granodiorite

3 3.6 0.135 Orange Brown Granodiorite

4.4 5 0.302 Brown Granodiorite

No significant intercepts

LithologyHole ID Easting Northing Cu %

Attachment 2: RC and DDH Drill Results for Chitigua Project (Church Zone)

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

RC-CH-01 517,877 7,606,257 3985 149 325 -75

61 62 0.32 Stockwork Cpy-py

62 63 0.145 Microdiorític Dike

63 64 0.185 Stockwork Cpy-py

64 65 0.087 Millo Granite

65 66 0.172 Millo Granite

66 67 0.045 Fault

67 68 0.041 Stockworke Qz-Py-Cpy

68 69 0.223 Stockworke Qz-Py-Cpy

105 106 0.442 Stockworke Qz-Py-Cpy

106 107 1.618 Vein of Hm

107 108 0.092 Vein of calcite

148 149 0.355 Stockworke Qz-Py-Cpy

RC-CH-02 517,732 7,605,931 4,018 180 310 -60

DDH-CH-01 517,733 7,606,183 3,993 420 315 -60

66 67 0.4 Millo Granite

76.6 77 0.802 Dioritic dike

77 78 0.112 Dioritic dike

78.3 79 0.095 Millo Granite

79 80 0.208 Millo Granite

80 81 0.287 Millo Granite

81 82 0.241 Millo Granite

92 93 0.166 Millo Granite

110 111 0.135 Quarciferous Porphyry

189 190 0.144 Vein of calcita

269 270 0.109 Millo Granite

275 276 0.101 Millo Granite

289 290 0.185 Millo Granite

290 291 0.092 Millo Granite

293.2 294 0.101 Millo Granite

297 298 0.525 Millo Granite

No significant intercepts

Cu % LithologyHole ID Easting Northing

Attachment 3: RC Drill Results for Santa Gracia Project

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

SG-001 297,582 6,707,121 495 94 45 75

SG-002 297,635 6,707,029 503 350 28 75

SG-003 297,482 6,707,354 522 319 60 75

10 11 0.101

14 15 0.107

15 16 0.117

28 29 0.107

40 41 0.113

74 75 0.103

75 76 0.121

95 96 0.295

96 97 0.135

97 98 0.109

123 124 0.112

SG-004 297,517 6,707,234 512 149 65 75

SG-005 297,424 6,707,421 528 334 55 75

115 116 0.126

126 127 0.113

127 128 0.09

128 129 0.112

SG-006 296,610 6,709,256 672 226 190 70

SG-007 296,698 6,709,458 629 120 305 63

SG-008 296,601 6,709,383 645 226 180 60

SG-009 296,611 6,709,167 701 250 190 70

23 24 0.155

29 30 0.184

30 31 0

31 32 0.118

55 56 0.394

73 74 0.492

76 77 0.161

81 82 0.311

no significant intercepts

no significant intercepts

no significant intercepts

Hole ID Easting Northing Cu %

no significant intercepts

no significant intercepts

no significant intercepts

Attachment 3: RC Drill Results for Santa Gracia Project - continued

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

SG-009 296,611 6,709,167 701 250 190 70

88 89 0.17

94 95 0.275

SG-010 297,583 6,707,371 506 338 25 65

42 43 0.13

43 44 0.169

53 54 0.117

56 57 0.093

57 58 0.104

58 59 0.158

78 79 0.226

79 80 0.318

SG-011 297,448 6,707,305 506 144 35 65

SG-011A 297,445 6,707,305 506 286 30 65

SG-012 297,664 6,707,115 512 120 0 60

0 1 0.119

1 2 0.121

2 3 0.12

6 7 0.111

Lithology - General Commentary

Leucocratic tonalite-granodiorite stock with quartz sericitic alteration, show a quartz and minor magnetite stockwork with copper oxides in small mine workings.

no significant intercepts

Hole ID Easting Northing Cu %

no significant intercepts

Attachment 4: RC Drill Results for Tres Cruces Project

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

TC-01 310,566 6,752,927 854 216 45 70

19 20 0.452

20 21 0.185

83 84 0.117

84 85 0.163

148 149 0.133

149 150 0.321

150 151 0.397

164 165 0.23

TC-02 310,672 6,752,729 846 188 45 60

TC-03 310,541 6,752,767 821 324 45 75

45 46 0.124

46 47 0.055

47 48 0.134

48 49 0.58

49 50 0.303

105 106 0.178

106 107 0.312

107 108 0.868

108 109 0.511

139 140 0.139

140 141 0.124

141 142 0.376

142 143 0.302

TC-04 311,113 6,752,053 840 263 45 60

64 65 0.708

TC-05 310,536 6,752,916 846 70 55 60

9 10 0.101

10 11 0.128

11 12 0.314

12 13 0.608

13 14 0.501

Hole ID Easting Northing

no significant intercepts

Cu %

Attachment 4: RC Drill Results for Tres Cruces Project - continued

Collar RL Total Depth Azimuth Dip From To

(m) (m) (Deg) (Deg) (m) (m)

TC-05 310,536 6,752,916 846 70 55 60

14 15 0.112

TC-06 309,616 6,752,627 815 84 20 60

TC-07 309,679 6,752,309 802 282 50 70

18 19 0.126

20 21 0.105

TC-08 309,500 6,752,054 822 162 45 60

TC-09 313,050 6,750,519 533 329 25 60

162 163 0.651

164 165 0.227

190 191 0.342

197 198 0.194

199 200 0.269

267 268 0.519

TC-10 313,042 6,750,562 537 61 25 60

TC-11 312,982 6,750,587 574 36 345 60

TC-12 312,982 6,750,587 562 80 30 60

16 17 0.135

TC-13 312,916 6,751,265 570 120 70 60

7 8 0.251

Lithology - General Commentary

Narrow dioritic dykes with propylitic-magnetite alteration cutting a volcanic (andesites and breccia tuff)-subvolcanic (coarse grain ocoitic porphyry) sequence with propylitic alteration

and abundant hematite, manganese oxides and barite, mainly in veins.

no significant intercepts

Cu %

no significant intercepts

no significant intercepts

no significant intercepts

Hole ID Easting Northing