Southern Hemisphere Mining has extended the strike of its Cerro-Ferro copper system by 15% to 2.2km and confirmed strong geophysical correlations at Llahuin, setting the stage for deep drilling to test new targets.
- Cerro-Ferro system strike extended by 15% to 2.2km via RC drilling
- Strong correlation between MT survey, geochemical modelling, and IP data at Curiosity target
- Multiple wide, shallow mineralised zones with copper equivalent grades up to 0.91% CuEq
- Water intersected at 40-60m depth, supporting potential mine operations
- Company advancing deep drilling plans and marketing Los Pumas manganese project
Exploration Momentum Builds at Llahuin
Southern Hemisphere Mining Limited (ASX: SUH) has reported a productive quarter at its flagship Llahuin Copper-Gold Project in Chile, with exploration activities delivering promising results that enhance the project's resource potential. The recent reverse circulation (RC) drilling campaign successfully extended the strike length of the Cerro-Ferro mineralised system by 15%, now measuring 2.2 kilometres and remaining open along strike. This extension is a significant step forward in defining the scale of the deposit ahead of a planned JORC resource upgrade in the first half of 2025.
The drilling program, comprising 26 holes totaling 2,728 metres, returned multiple wide intervals of copper equivalent mineralisation starting from surface. Highlights include 105 metres at 0.64% CuEq, 132 metres at 0.48% CuEq, and several other substantial intercepts with grades approaching or exceeding 0.9% CuEq in narrower zones. These results reinforce the open-pit potential of Llahuin while also supporting the possibility of future underground mining given the depth and continuity of mineralisation.
Geophysical Surveys Confirm New Targets
Complementing the drilling success, Southern Hemisphere’s recent Magneto-Telluric (MT) geophysical survey has validated the company's litho-geochemical depth target models. The survey delineated a large, sub-circular Curiosity Copper-Gold Target spanning 1 to 2 kilometres in diameter, characterized by a strong resistivity anomaly extending to significant depths. Additionally, a second target, Ferro West, was identified with a 500-metre diameter resistivity anomaly extending 500 metres deep.
These geophysical insights provide compelling new drill targets, with plans underway to test the Curiosity target with three to six deep drill holes, the first designed to reach approximately 1,400 metres depth. This next phase of exploration aims to unlock deeper mineralisation zones that could materially increase the project's resource base.
Water Resources and Operational Readiness
Operationally, the drilling program intersected water at depths between 40 and 60 metres in all holes, with flow tests indicating a rate of 40 litres per minute of fresh, though non-potable, water. This onsite water availability is a positive indicator for future mine development, potentially reducing the need for external water sourcing and associated costs. However, further studies will be required to confirm sustainable water supply for mining operations.
Strategic Portfolio Moves and Financial Position
Beyond Llahuin, Southern Hemisphere has advanced early-stage exploration at its Cardawan Copper Project in Australia, targeting sedimentary-hosted copper deposits in a geologically prospective region. Meanwhile, the company is actively marketing its Los Pumas Battery Metals Manganese Project for joint venture or sale, aiming to capitalise on growing demand for manganese in steelmaking and electric vehicle battery markets.
In a strategic pivot, Southern Hemisphere has relinquished its Lago Lithium Brine Project applications to focus resources on higher priority assets. Financially, the company ended the quarter with $1.72 million in cash, having invested $605,000 in exploration activities. Notably, company directors increased their shareholdings during the quarter, signalling confidence in the company’s prospects. The firm also holds approximately A$4.36 million in accrued VAT claims from its Chilean operations, which may provide future liquidity upon recovery.
Looking Ahead
Southern Hemisphere Mining’s combination of robust drilling results, geophysical target validation, and strategic asset management positions it well for growth. The upcoming deep drilling campaign at Llahuin will be a critical catalyst, potentially unlocking significant new mineralisation at depth. Investors and analysts will be watching closely for assay results and further resource updates as the company advances its South American copper-gold portfolio.
Bottom Line?
With deep drilling imminent and resource extensions confirmed, Southern Hemisphere is poised for a pivotal phase in its copper growth story.
Questions in the middle?
- What will the assay results from the planned deep drill holes reveal about the Curiosity target’s depth potential?
- How soon can Southern Hemisphere expect to recover the accrued A$4.36 million VAT from its Chilean operations?
- What are the market prospects and potential partners for the Los Pumas manganese project’s joint venture or sale?