Southern Hemisphere Mining Limited reports that recent results and work have re-interpreted the whole geological system and upside potential at both the large Llahuin Copper-Gold-Moly Project (680kt CuEq) and the nearby Colina2 Gold-Copper Project (Figure 1).
HIGHLIGHTS – (View Full PDF)
- The Llahuin Copper/Gold/Moly deposits hosts over 680kt CuEq in Central Chile. The Company’s team of Geologists have identified a large porphyry/breccia system host at Llahuin from re-interpretation of the geological system following results and logging of recent DDH in conjunction with re-logging historic diamond core.
- This substantial porphyry/breccia system is evident across the whole Central Porphyry deposit which recent diamond drilling suggests may continue across the other two deposits Cerro and Ferro.
- Although a significant process given over 20km of historic diamond core to re-log, this is considered a positive for the project, and will add to the ability to scale up on open pit and deeper underground targets to materially add to its copper/gold endowment.
- A best result of 440m at 0.75% CuEq (Inc 208m at 1.2% CuEq from 2m depth) was intersected in drillhole DDLLA021 at the central deposit.
- Rockchips at Colina2 show many high grade copper oxide targets with a best result of 3.04% Cu (3.88% CuEq) and 92g/t Ag in the northwest of the project area.
- Llahuin and Colina2 sit within the newly recognised NW metallogenic domain which also hosts the giant Los Pelambres Copper Mine.
Recent photo of the Llahuin Copper-Gold-Moly Project taken by the company’s exploration team in Chile.
Llahuin is a very valuable project with large tonnage, simple open pit mining configuration characteristics, multiplier resource growth potential including good location in an excellent copper country.
We are seeing examples worldwide of car manufacturers actually paying for equity in projects to secure long term supply arrangements. There are very few opportunities with the endowment and optimum configuration like Llahuin independently held in the world today and as we continue advancing the project, we are expecting companies to be interested, which we welcome.
Logging and results from recent diamond drilling, reconnaissance, mapping and sampling of old workings at both Llahuin and Colina2, along with re-logging of historical Llahuin core has noted that:
- Mineralisation at Llahuin sits within a large structurally controlled porphyry/breccia system.
- Mineralisation at Colina2 is now interpreted within multiple subvertical fault-controlled lodes.
- Both systems are hosted in an overall northwest trending mineralised ‘corridor’.
The Llahuin and Colina2 Projects sit within one of the newly recognised country-wide northwest trending ‘metallogenic domains’ (as published in recent scientific studies by Yanez and Rivera, 2019) which also hosts the >20Mt Cu Los Pelambres Deposit (Figure 1).
Figure 1. Llahuin/Colina2 Chile Location Map showing Metallogenic Domains
Details of the work on each project are outlined as follows:
LLAHUIN COPPER PROJECT
- A substantial structurally controlled porphyry/breccia system is evident across the whole central deposit, which may continue across the other two deposits Cerro De Oro and Ferrocarril.
- Over 20km of diamond drill core is currently being re-logged to obtain new information considering the revised geological interpretation and is currently at 30% complete.
- Although a significant process this is considered a positive for the project and will add to the ability to scale up on open pit and deeper underground targets to materially add to the copper endowment of the project.
A best result of 440m at 0.75% CuEq (inc 208m at 1.2% CuEq from 2m depth) was previously intersected in drillhole DDLLA021 at the Central Porphyry.
The drillhole sampling locations from recent drilling are shown in Figure 2, with cross section through the Central Porphyry presented in Figure 3.
All of the assays have been received from the ALS Laboratory in Chile and significant results are presented in Table 1.
Figure 2. Llahuin Drillhole Location Plan on Orthophoto Image.
Figure 3. Cross Section with new diamond hole 22LHDD025 and current Block Model.
NEXT PROGRAMS AT LLAHUIN
Over 20km of historic diamond core is being re-logged (30% complete) as a result of the recent diamond drilling which lead to a re-interpretation of the regional and local geology. This is a significant process, however a positive for the project, and will add to the ability to scale up on open pit and deeper underground targets to potentially materially add to the copper endowment of the projects. The re-logging is aiming to obtain new information to further evolve the deposit/regional geological interpretation and controls on mineralisation.
Soil sampling programs are well underway and have been targeted at areas considered to have higher prospectively given the reinterpretation. Concurrent mapping and rock chip sampling of the numerous gold workings on the Llahuin concessions is also in progress.
COLINA2 GOLD-COPPER PROJECT
Drilling results show the recent diamond drill program was successful in identifying the gold mineralising structures and recognising the extent of the nuggety gold nature of the system, which was further confirmed via petrological thin section shown below in Figure 4.
Collar locations are presented in Figure 5.
Figure 4. TS4 polished thin section showing gold grains. 21CLRC003 – 6.25 Au ppm 27-28 meters depth.
Figure 5. Colina2 Drillhole Location Plan.
Results from the Colina2 diamond drilling are presented in Table 2.
The nuggety nature of the gold explains why recent diamond drill hole gold grades did not replicate the gold grades achieved in the prior RC drilling. The cut diamond core sample is ~3kg vs RC ~30kg; samples from the core saw cuttings and diamond drill rig sludge samples (outside return) contained significant gold with grades ranging from 0.05 to 1.8g/t in the rig sludge samples and 0.5g/t from the coresaw sludge sample.
The Company recognised the issue on receipt of results for initial diamond holes and acted accordingly with cessation of the industry-standard sampling methodology of cutting the core using a core saw, switching to a core splitter.
The area of the highest soil sample results (reported ASX 8th Sept 2022) are yet to be drill tested.
Company Geologists are mapping and sampling the under-explored, yet abundant copper-rich outcrops (Figure 6 and Inset 2 of Figure 8) and old copper workings, including the historic Colo Copper mine (Figure 7).
Figure 6. Malachite outcrop Colina2 trending NW (See location map)
Figure 7. Historical Cu-Au Colo Mine at Colina2.
Rockchip results received to date, presented in Table 3 and shown on Figure 8, demonstrate the Project has significant unrealised potential for significant near surface copper/silver+-gold mineralisation which also demonstrates the potential for sulphide potential at depth.
Figure 8. Rockchip Sample Location Map Colina2.
Further low-cost soil and rock chip sampling targeting copper, gold and silver, is in progress and will add to the geological understanding of the Colina2 gold system and generate further drill targets for evaluation.
As exploration work progresses at both the Llahuin and Colina2 Projects, the Company.s Geological Team continue to evolve the interpretation and apply this knowledge to targeting new and untested areas. The Company is also reviewing several projects within trucking distance of Llahuin to try and identify higher grade potential for the project.
Download the Full PDF of Announcement including JORC Tables here.
Date: 3 October 2022 | ASX Code: SUH
Competent Person / Qualified Person Statement: The information in this report that relates to copper and gold exploration results for the Company’s Projects is based on information compiled by Mr Adam Anderson, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australian Institute of Geoscientists. Mr Anderson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Anderson is a consultant for the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Southern Hemisphere Mining Limited is an experienced minerals explorer in Chile, South America. Chile is the world’s leading copper producing country and one of the most prospective regions of the world for major new copper discoveries. The Company’s projects include the Llahuin Porphyry Copper-Gold-Moly Project, the adjacent Colina 2 Gold Project, and the Los Pumas Manganese EV Battery Project, all of which were discovered by the Company.
For the latest information about the Company – please visit our Latest News and Corporate Profile pages. We are also on LinkedIn and Twitter.