DRILLING CONFIRMS POTENTIAL FOR PORPHYRY COPPER SYSTEM AT CHITIGUA PROJECT, CHILE

Transcription

1 ASX: SUH TSX-V: SH Australian Office: PO Box 598 T: West Perth F: WA 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 o 0.40% Cu from 3m 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.

2 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.

3 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

4 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

5 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% 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

6 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 % Cu and % Cu, which were reported on 17 February 2011 and 15 April 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

7 Fig. 4. Location Map of Central Cluster Projects

8 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) Media Enquiries Nicholas Read (Read Corporate) + 61 (8) Media Enquiries Clark Kent (Corporate Communications) + 1 (416) 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 '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.

9 Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % Lithology DDH-CH ,409 7,611,232 4, Orange Granodiorite Orange Granodiorite Orange Granodiorite Orange Granodiorite Orange Granodiorite Orange Granodiorite Dark Granodiorite Dark Granodiorite Dark Granodiorite Dark Granodiorite Dark Granodiorite Dark Granodiorite Dark Granodiorite Dark Granodiorite Dark Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Brown Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite

10 Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) - continued Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % Lithology DDH-CH ,409 7,611,232 4, Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Fault Light Grey Granodiorite Light Grey Granodiorite White Granodiorite White Granodiorite White Granodiorite White Granodiorite Fault Pink Granodiorite Pink Granodiorite Pink Granodiorite Pink Granodiorite Pink Granodiorite Pink Granodiorite Pink Granodiorite Pink Granodiorite Pink Granodiorite Pink Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite

11 Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) - continued Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % Lithology DDH-CH ,409 7,611,232 4, Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite RC-CH ,302 7,611,163 4, Granodiorite Granodiorite Granodiorite Granodiorite Granodiorite Granitic dike Granite Granite Granite Granodiorite Granodiorite Fault Fault Dacitic Dike Granodiorite Light Gray Granodiorite Light Gray Granodiorite Light Gray Granodiorite

12 Attachment 1: RC and DDH Drill Results for Chitigua Project (Breccia Zone) - continued Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % Lithology RC-CH ,302 7,611,163 4, Light Gray Granodiorite Light Gray Granodiorite RC-CH ,313 7,611,245 4, Granodiorite Granodiorite Granodiorite Granodiorite RC-CH ,908 7,611,856 4, No significant intercepts DDH-CH ,579 7,611,278 4, Orange Brown Granodiorite Orange Brown Granodiorite Orange Brown Granodiorite Orange Brown Granodiorite Brown Granodiorite

13 Attachment 2: RC and DDH Drill Results for Chitigua Project (Church Zone) Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % Lithology RC-CH ,877 7,606, Stockwork Cpy-py Microdiorític Dike Stockwork Cpy-py Millo Granite Millo Granite Fault Stockworke Qz-Py-Cpy Stockworke Qz-Py-Cpy Stockworke Qz-Py-Cpy Vein of Hm Vein of calcite Stockworke Qz-Py-Cpy RC-CH ,732 7,605,931 4, No significant intercepts DDH-CH ,733 7,606,183 3, Millo Granite Dioritic dike Dioritic dike Millo Granite Millo Granite Millo Granite Millo Granite Millo Granite Quarciferous Porphyry Vein of calcita Millo Granite Millo Granite Millo Granite Millo Granite Millo Granite Millo Granite

14 Attachment 3: RC Drill Results for Santa Gracia Project Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % SG ,582 6,707, SG ,635 6,707, SG ,482 6,707, SG ,517 6,707, SG ,424 6,707, SG ,610 6,709, SG ,698 6,709, SG ,601 6,709, SG ,611 6,709,

15 Attachment 3: RC Drill Results for Santa Gracia Project - continued Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % SG ,611 6,709, SG ,583 6,707, SG ,448 6,707, SG-011A 297,445 6,707, SG ,664 6,707, 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

16 Attachment 4: RC Drill Results for Tres Cruces Project Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To Cu % TC ,566 6,752, TC ,672 6,752, TC ,541 6,752, TC ,113 6,752, TC ,536 6,752,

17 Attachment 4: RC Drill Results for Tres Cruces Project - continued Hole ID Easting Northing Collar RL Total Depth Azimuth Dip From To TC ,536 6,752, TC ,616 6,752, TC ,679 6,752, TC ,500 6,752, TC ,050 6,750, TC ,042 6,750, TC ,982 6,750, TC ,982 6,750, TC ,916 6,751, 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. Cu %