Southern Hemisphere Mining (ASX: SUH, TSX-V: SUH) has intersected higher grades of copper at depth at its Llahuin Copper Project in Chile.
The Llahuin exploitation licenses cover an area of 7.72 square kilometres and have similar geological characteristics to Teck Resources' (TSX: TCK, NYSE: TCK) nearby Carmen de Andacollo copper mine.
Highlights from the latest round of assays are:
- 270 metres at 0.50% copper equivalent from 64 metres, including 130 metres at 0.60%;
- 154 metres at 0.56% copper equivalent from 106 metres, including 90 metres at 0.61%; and
- 164 metres at 0.42% copper equivalent from 227 metres, including 84 metres at 0.49%.
To date Southern Hemisphere Mining has completed 13,998 metres of reverse circulation drilling and 6,140 metres of diamond drilling at Llahuin.
Recent drilling has been focussed on the Cerro Zone, which is located 1 kilometre southwest of the Llahuin porphyry.
This zone has a significant foot print area and is a mineralised manto-style deposit close to the surface.
The results, including some significant higher grade results from deeper portions of the deposit, continue to pave the way for a maiden JORC Resource estimate for the Llahuin Project, which is on track for completion by the end of this month.
The Llahuin Project is located 250 kilometres north of Santiago and 17 kilometres south of the town of Combarbala, which has a population of 14,000 and full amenities. The national power grid is within 10 kilometres of the project.
The fact that the Llahuin porphyry outcrops at surface and is located close to infrastructure should enhance the potential for competitive capital and operating costs.
Southern Hemisphere Mining has previously returned broad intersections of 66 metres at 0.45% copper equivalent from 126 metres, 102 metres at 0.46% from 96 metres and 74 metres at 0.45% from surface from drilling on the project.
The company currently has three diamond drill rigs and one reverse circulation drill rig operating at Llahuin.
Indicating the potential of the project, continuous mineralisation was previously intersected at depth in the first diamond drill hole, which returned an impressive 496 metres at 0.4% copper from surface including 126 metres at 0.6% copper from 210 metres.
Once Southern Hemisphere Mining has delivered a maiden JORC Resource, the company plans to begin a Scoping Study, which is also expected to commence before the end of the March quarter.
Southern Hemisphere Mining has completed an option agreement for the Mina San Francisco exploitation licences covering an area of 0.75 square kilometres, located about 10 kilometres from the Llahuin Amapola concessions.
The company acquired the option agreement over the Mina San Francisco licences for staged cash payments of US$505,000 (A$478,841) over a period of 24 months of which US$15,000 has been paid to date.
Apart from the work of artisanal miners, there has been no previous significant exploration activity on the property.
Mapping of the licence area has identified a breccia zone that extends 750 metres in a north to south direction and is 130 metres wide.
Southern Hemisphere Mining has begun a limited pilot drilling program at Mina San Francisco.
The company has also submitted an application for the surrounding exploration licences covering 40 square kilometres.