SOUTHERN HEMISPHERE MINING LTD - ASX: SUH

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Description

Southern Hemisphere Mining Limited (the Company) is a duel listed company focused on exploration and mine development in Chile. It was listed on the Toronto Stock Exchange - Ventures Board in December 2007 (TSX-V code SH) after a Qualifying Transaction and Reverse Takeover of Youandi Capital Corporation, a previously listed Capital Pool company. At the end of December 2009 the Company was admitted to the Official List of the Australian Securities Exchange (ASX code SUH). The qualifying transaction in 2007 involved the purchase all the shares in Southern Hemisphere Mining Pty Limited, an Australian registered private company, that held three prospective porphyry copper-gold exploration projects in Chile.

The Company's initial focus was on the exploration of these three projects. Since then a substantial portfolio of exploration projects has been added. The majority of these exploration projects are prospective for porphyry style copper-gold mineralisation. The most advanced project however is the Los Pumas Manganese Project.

In December 2008 the Company began drilling on its newly optioned manganese project, the Los Pumas Manganese Project in the north of Chile. Drilling to date has revealed an inferred resource of 14.6 million tonnes with a grade of 10% Mn. The company is now progressing with a definitive feasibility study on the Los Pumas Manganese Project with a view to early development of a mining operation.

Mantos Grandes

The Mantos Grandes Project was purchased from Sundance Resources Limited in early 2008. The Project was an operating copper-gold mine based on a skarn ore body. It includes a 200 tonne per day processing plant, a 923 hectare rural property and water rights. It is centred at 300 51”S and 700 34”W.

Meteoritica

The Meteoritica Project is centred at 7572500mN and 470000mE to the east of the Sierra de Moreno in the northern portion (Region II) of Chile, 220km north-northeast of the port city of Antofagasta and 66km northwest of the regional mining centre of Calama. The Meteoritica Project is in the northern portion (Region 2) of Chile, 220km north-northeast of the port city of Antofagasta and 66km northwest of the regional mining centre of Calama. The geology of the Meteoritica Project is poorly exposed, however the local basement appears to comprise a north trending succession of steeply west dipping limestones, conglomerates (fanglomerates), sandstones, mudstones and evaporates of the lower Miocene to Upper Pliocene El Loa Formation. The primary exploration target is iron ore, developed as deflationary deposits of resistant magnetite-haematite boulders and cobbles that have accumulated at or near the surface. The secondary target is the primary source of iron ore, believed to be derived from contact metamorphosed ferruginous sandstones (quartzites), mudstones, limestones (marble) within the El Loa Formation. The tertiary target is for porphyry copper systems, based on the likelihood that the iron deposits are indeed of replacement origin, associated with the upper levels of a mineralised porphyry body that has preferentially intruded along faults bounding the eastern margin of the Rio Loa graben.

Carbon

The Carbon Project is centred at 7618000mN and 482000mE in the northern portion (Region II) of Chile, 270km northeast of the port city of Antofagasta and approximately 105km north-northwest of Calama. The Carbon Project lies on the north-south Palaeocene to Eocene mineralised trend that hosts several major porphyry copper deposits including Spence, Cerro Colorado (BHP Billiton), Mocha (Codelco), Sierra Gorda (Quadra mining) and El Tesoro and Esperanza (Anaconda). The geology of the Carbon Project is completely obscured by cover sequences, however (past) drilling suggests that the local basement comprises a north trendind succession of flat to gently west dipping conglomerates (fanglomerates), mudstones and shales. The primary exploration target is for coal, presumably lignite, associated with carbonaceous shales developed towards the base of the El Loa Formation. The secondary target is porphyry copper systems lying below the El Loa Formation, associated with the intersection of two major regional lineaments, one of which is consistant with the eastern margin of the Rio Loa graben. Tertiary targets include the potential for secondary uranium (and possibly gold) deposits precipitated along a redox front associated with carbonaceous shales at the base of the El Loa Formation.

Cunlagua

The Cunlagua Project is centred at 326950mE and 6494400mN near the city of Salamanca in the Choapa Province of Region IV of Chile. The Cunlagua Project lies within the north trending Neogene metallogenic belt which runs along the Andean Cordillera Principal, straddling the border between Chile and Argentina. Magamatism associated hydrothermal alteration and mineralisation progressed northward and eastward along this trend . The Culagua area lies towards the northern extremity of a belt dominated by copper-molybdenum porphyry systems, to the north of which porphyry and epithermal deposits are dominated by precious metals. Structurally the Cunlagua Project lies immediately to the west of a 70km northeast trending lineament that links the Los Pelambres porphyry copper-molybdenum deposit (and adjacent El Pachon in Argintina), located 12km northeast of Cunlagua, with the El Bronce epigenic gold deposit lying further to the south. Mineralisation occurs within a strong and persistant zone of brecciated granodiorite and calcite veining, annealed by calcite (possibly mangano-calcite) and limonite. Ore minerals include tetrahedrite, chalcopyrite and niccolite. Although no uranium minerals have been positively identified sample one assay of material from the project recorded a grade of 4.3% U3O8.

Angel

A copper gold project the Angel Project is in the central northern portion of Chile (Region 4), some 20km south of the regional capital of La Serena and proximal to the port of Coquimbo. Tenements cover an area of 8 square kilometres. The Angel Project is located within a well-developed north-northwest trending structural corridor that extends for some 150km from South of Andacollo to Los Choros Creek in the north, incorporating the Andacollo copper and gold deposits and the El Arrayan (SHM), Gavilanes, Chinchillon and La Higuera prospects. The primary exploration model associated with the Angel Project is a porphyry copper-gold deposit of high iron affinity, essentially identical to that at the nearby Adacollo copper deposit. While only limited mineralisation of this style has been identified to date, the extent and intensity of alteration and the presence of high level intrusives of appropriate composition support the potential for a discovery of this style.

Romeral

The Romeral Project is centred at 6717500mN and 282000mE in the central northern portion (Region IV) of Chile, 20km north of the provincial capital of La Serena. Referred to as the Juan Soldado Project in the Solicitors Report the project encompasses a 6 km strike length of a major regional structure termed the Romeral Fault. This structure is associated with several major iron oxide-copper-gold deposits over a known strike length of at least 60km. To the north of the Romeral Project (from north to south) these deposits include Santa Dominga (Cu, Fe, Au), El Tofo (Fe) and Caballo Blanco (Cu, Fe), while the El Romeral deposit (Fe, Au) lies immediately to the south of the project area. The primary exploration model associated with the Romeral Project relates to iron oxide-copper-gold deposits associated with A-type or I-type intrusive complexes, frequently described as being of porphyry affiliation. The secondary exploration model associated with the Romeral Project involves copper-gold mineralisation associated with mesothermal quartz-carbonate stockwork, sheeted vein, and breccia systems.

Santa Gracia

A copper gold project, the Santa Gracia Project is in the central portion (Region 4) if Chile, 22 km northeast of the provincial capital of La Serena. The Santa Gracia Project includes the Chackay Gold Prospect and covers an area of 37.5 square kilometres. The Santa Gracia Project is located within a well-developed nort-northwest trending structural corridor that extends for some 150km from South of Andacollo to Los Choros Creek in the north, incorporating the Andacollo copper and gold deposits and the El Arrayan (Southern Hemisphere), Gavilanes, Chinchillon and La Higuera prospects. The primary exploration model associated with the Santa Gracia project is a porphyry copper deposit. Given the immediate proximity of the Los Loros porphyry deposit, it is likely that the mineralisation may be accompanied by molybdenum. The presence of porphyry style alteration and high level intrusives of appropriate composition support the potential for a discovery of this style. The secondary exploration model associated with the Santa Gracia and neighbouring Chakay properties involves parallel, high grade mesothermal gold lodes developed towards the northern end of the property, possibly parallel to and overlying the shallowly plunging extent of the Los Loros porphyry.

Tes Cruces

The Tres Cruces Project is centred at 6755500mN and 312500mE in the central northern portion (Region IV) of Chile, 73km north of the provincial capital of La Serena. The primary exploration model associated with the Tres Cruces Project is ‘manto’ style mineralisation, involving sub-horizontal, stratabound deposits (or mantos) and their sub-vertical feeder zones. While the primary target is copper, various combinations of copper, silver, barite and manganese are represented in the artisanal workings scattered throughout the project area. Manto style copper mineralisation is best expressed within a small excised tenement near the southern extremity of the project, where mineralisation is exposed in the steep northern slopes of Colorada Creek. Mineralisation is being exploited via a small underground mining operation. Although extremely inconsistent and difficult to trace, manto copper mineralisation is reportedly up to 30m thick and dips shallowly towards the east.

Chitigua

A copper project, the Chitigua Project is in the northern portion (Region 11) of Chile, 270 km northeast of the port city of Antafogasta and 90 km north of the regional mining centre of Calama. The Chitigua Project straddles the West Fault over a strike length of 18 km, located between the Quebrada Blanca and El Abra deposits, situated 70km to the north and 30km to the south respectively. The West Fault is a major north-trending crustal structure that can be semi-continuously traced through northern Chile for a distance of several hundred kilometres. The West Fault provides the locus for mineralised intrusions that comprise the northern porphyry copper molybdenum belt. This belt is one of the most heavily mineralised provinces in the world, incorporating some 29 major porphyry occurrences including several of the world’s largest deposits. From south to north these include Escondida, Gaby, Chuquicamata, El Abra, Collahuasi and Quebrada Blanca. The Chitigua project is considered to be highly prospective for porphyry copper mineralisation. The Jovanka Mine, which lies within a small tenement excised from the central northern portion of the project, provides the best exposed example of porphyry style mineralisation with(in) the project area. While no Mineral Resources or Mineral Reserves have been defined, the style and setting of the mineralisation within the Chitigua Project in general, and at the Javanka Prospect in particular, is remarkably similar to the major Chuquicamata porphyry deposit located along the West Fault some 80km to the south. While the Chitigua Project is considered to be highly prospective, the more obvious potential is primarily dependent on acquiring the excised Jovanka deposit.

San Jose

The San Jose Project is centred at 36º49’S and 71º36’W in Region VIII of central-southern Chile, located 50km southeast of the regional city of Chillan and 390km south of the capital Santiago. The San Jose Project is located in the foothills of the Andean pre-cordillera, equivalent to the older Coastal Cordillera of northern and central Chile. Although not represented within the project itself, the known basement within the district comprises gneisses of the upper Cretaceous Los Azules Metamorphics. These are disconformably overlain by andesites of similar age comprising the El Sauce Formation. The basement stratigraphy has been intruded by a series of co-magmatic batholiths of the Santa Gertrudis Suite. The principal economic target within the San Jose Project is porphyry copper-molybdenum mineralisation. Chalcopyrite and molybdenite is associated with extensive potassic alteration within a dominantly granodioritic intrusive lying along a faulted contact with younger volcano-sedimentary rocks. The mineralised assemblage and alteration is entirely consistent with a porphyry system, with zones of higher tenor mineralisation associated with stockwork veining and fracturing proximal to the fault contact. Porphyry copper-molybdenum mineralisation has been identified in semi-continuous exposures of granodiorite and monzogranite along the deeply incised valleys of the San Jose, San Juanita and Pierna Blanca creeks. Mineralisation is best developed by over a width of 400m immediately adjacent to the faulted contact between the intrusives and younger Pierna Blanca Formation to the west. While the basement geology is obscured by the Cola de Zorro Formation between these valleys, it is reasonable to assume that alteration and mineralisation persist between and beyond these exposures over a distance of at least 3km.

El Arrayan

The El Arrayan Project is centred at 30º07’S and 71º00’W in Region IV of central-northern Chile, located immediately southeast of the regional capital of La Serena and 470km north of Santiago. The El Arrayan Project is located approximately 450km north of Santiago, the capital of Chile. Access is gained via the sealed Pan American Highway northward to the regional capital of La Serena, thence eastward 40km up the Elqui Valley via sealed road and thence15km south via formed gravel road to the project area. The El Arrayan Project is located within a well-developed north-northwest trending structural corridor that extends for some 150km from south of Andacollo to Los Choros Creek in the north, incorporating the Andacollo copper and gold deposits, and the El Arrayan, Gavilanes, Chinchillon and La Higuera prospects.The El Arrayan Project is considered prospective for three principal styles of mineralisation, all of which are well represented within the Coastal cordillera, as follows:

* Porphyry copper-gold systems of high iron affinity, essentially identical to that at the nearby Andacollo deposit. The argillic alteration, tonalitic to dacitic sub-volcanics and copper-gold lode/vein systems are interpreted to represent the upper peripheral expressions of an obscured porphyry system at depth.
* Manto-style mineralisation within sedimentary or andesitic volcanic horizons, similar to those located at the Marquesa Prospect, 15km to the east-northeast of the project, and the Andacollo gold deposit, located some 24km south-southwest of the project.
* Structurally controlled lode or vein style copper-gold mineralisation, similar to the Manto Verde deposit near Copiapo some 300km to the north.

The primary exploration model associated with the El Arrayan Project is a porphyry copper-gold deposit of high iron affinity, essentially identical to that at Andacollo.

Las Santas

The Las Santas Project, formerly known as the Coiron Project, is centred at 31º 58’ 31” S and 70º 41’ 36” W in the Comuna de Salamanca district of Region IV in central-northern Chile. The Las Santas Project is located approximately 320km or four hours drive north of Santiago, the capital of Chile. Access is gained via the sealed Pan American Highway northward to the regional coastal centre of Los Vilas, thence inland via sealed roads through the township of Illapel and the regional administrative centre of Salamanca to the village of Tranquilla, located on the northern perimeter of the property. Access within the property is via a series of recently upgraded unformed gravel roads and tracks. The Las Santas area lies toward the northern extremity of a belt dominated by copper-molybdenum porphyry systems, to the north of which porphyry and epithermal deposits are dominated by precious metals. Structurally the Las Santas Project lies along a 70km northeast trending lineament that links the Los Pelambres porphyry copper-molybdenum deposit (and adjacent El Pachon in Argentina), located 15km northeast of Las Santas, with the El Bronce epigenetic gold deposit 17km to the southwest. The principal economic target within the Las Santas Project is porphyry copper mineralisation. Unlike the nearby porphyry copper-molybdenum deposits at Los Pelambres and El Pachon, however, metallogenic evidence within the Las Santas Project suggests that a porphyry copper-gold association is more likely. Extensive potassic alteration within both monzonitic and granodioritic intrusives has been identified at two localities within the property to date, one of which includes extensive zones of disseminated copper mineralisation. A secondary target includes the oxidised portions of copper-gold vein systems hosted by andesitic volcanics, associated with peripheral faulting and fracturing marginal to the Mount Tacho implosion breccia and intrusive complex. Several such vein systems have been identified within the Las Santas Project and these have been the subject of superficial artisanal mining activity over a long period of time.

Los Pumas

The Project has an inferred resource of 14.6 million tonnes of manganese mineralisation with an average grade of 10% Mn. Early test work has indicated that the mineralisation is amenable to upgrade with heavy media separation. The company is proceeding with a definitive feasibility study into the project. Currently the major focus of the Company is to produce a feasibility study for the Los Pumas Manganese Project. The Los Pumas Manganese Project is located in Northern Chile, approximately 175 km or three hours drive East of Arica, the major port city in the number 15 region of Chile. Arica is serviced by domestic flights between Santiago and a number of cities in Chile and is located within 1 hours drive of Tacna, the Southernmost city of Peru. The city of Arica has existing modern port infrastructure which currently handles base metal concentrate exports. Access from Arica to the Los Pumas Project is via the International Highway from Arica to La Paz to the regional administrative centre of Putre, then via the all weather gravel road to the project area. The main railway line between La Paz and Arica runs approximately 11km from the Los Pumas Manganese Project. The railway is currently being rehabilitated, however no official anticipated completion date is available and the Company expects that it will transport product by road. In the event of production, the Company will use the Arica port to ship bulk manganese. The manganese mineralisation at the Los Pumas Project is divided into the north and south targets. The north target is approximately 1.7 km by 0.6 km in area and approximately 1m to 10m in thickness, while the south target is 1 km by 0.2 km in area and a similar thickness. Mineralisation outcrops from surface in most cases, extending up to a maximum depth of 30m below the surface. The manganese occurs as mantle style mineralisation of crytomelane.

Mine For

copper, gold, coal, uranium, molybdenum, iron ore, manganese

Location of operation(s)

Chile

Address

Unit 7, 1200 Hay St
WEST PERTH, WA, Australia

Phone

(61 8) 9481 2122

Email

Website

http://www.shmining.com.au/

Last Updated

04/02/2011