Mr. Trevor Tennant of Southern Hemisphere reports
MAJOR DRILLING PROGRAM RESTARTS AT LLAHUIN COPPER/GOLD PROJECT AS LUNDIN MINING JV PROGRESSES
Southern Hemisphere Mining Ltd.'s drilling has resumed at its flagship Llahuin copper-gold project in central Chile following the Christmas/New Year break as part of an accelerated drilling campaign being implemented under its joint venture with leading Canadian base metals miner Lundin Mining Corp.
- Drilling recommences at Llahuin copper-gold project with three rigs currently operating as part of accelerated drilling campaign;
- Chilean joint venture company incorporated to facilitate recently concluded joint venture with Lundin Mining -- option to spend up to $35-million (U.S.) to earn up to 75 per cent of the Llahuin project;
- Lundin Mining representative joins Southern Hemisphere board following its acquisition of a strategic 11.5-per-cent stake;
- Technical committee formed between Southern Hemisphere and Lundin Mining, with the initial approved JV budget providing for the accelerated drilling campaign;
- Purchase of Llahuin Amapola exploitation licences completed by final payment of $1.3-million (U.S.) under the July, 2011, option agreement.
Three drill rigs, one reverse circulation and two diamond drill rigs, are currently operating at both the Central porphyry and the nearby Ferrocarril zone at the Llahuin project, targeting additions to the current measured and indicated resource of 145 million tonnes grading 0.4 per cent copper equivalent.
A joint venture technical committee between Southern Hemisphere and Lundin Mining has been established, with the initial joint venture budget providing for this approved accelerated drilling campaign.
After completing an initial review of the Llahuin project and the results to date, the technical committee has decided to defer completion of the previously announced Llahuin project scoping study to enable additional drilling results to be included in an updated resource estimate. This reflects the technical committee's view of the potential exploration upside at the Llahuin project.
The joint venture arrangements with Lundin Mining have progressed under the terms of the option agreement announced on Oct. 17, 2012, including the incorporation of a Chilean joint venture company, Minera Llahuin SCM, and the establishment of the joint venture technical committee.
Also, Paul McRae has been appointed to the Southern Hemisphere board as a non-executive director and representative of Lundin Mining.
Acquisition of Llahuin project exploitation licences
Southern Hemisphere also advises that it has completed the purchase of the Amapola exploitation licences covering the Llahuin project under the original option arrangements announced on July 13, 2011. This purchase completes the 100-per-cent ownership of all the Llahuin project licences, including the three targeted zones of Central porphyry, Cerro de Oro and Ferrocarril.
Southern Hemisphere's managing director, Trevor Tennant, said resource drilling was now back in full swing at the Llahuin project with an accelerated program formally approved by the joint venture and the two companies working closely together to progress the Llahuin project to the next level and to evaluate exciting new growth opportunities in Chile. He said:
"Lundin Mining's extensive experience in exploration, project evaluation and development will bring a host of benefits to Southern Hemisphere and will help us to unlock the value of the Llahuin project.
"The Llahuin project is and will remain our key focus but we are also aware of and currently evaluating other copper/gold opportunities within the Coquimbo region of central Chile in conjunction with Lundin Mining, which may provide future opportunities for joint operations."
Llahuin copper/gold project
The Llahuin project is located within the Coquimbo region of central Chile, approximately 250 kilometres north of Santiago and 17 kilometres south of the mining town of Combarbala. The Llahuin project is located at an altitude of 1,300 metres, situated on the coastal cordillera, and is approximately 56 kilometres from the Pacific Ocean.
Competent person/qualified person statement
Mr. Tennant is a fellow 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 has reviewed the design and conduct of the resource 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 exploration results and other such information in this news release in the form and context in which it appears.