Llahuin Project’s Open-Pit Potential Grows Amid Pending Deeper Drilling Results

Robust Drilling Results Bolster Llahuin Project Potential

Southern Hemisphere Mining Limited (ASX: SUH) has delivered a strong update on its Llahuin Copper-Gold-Moly Project in Chile’s Coquimbo region, reporting encouraging results from its 2024 reverse circulation (RC) drilling campaign. The program, which comprised 2,728 metres drilled across 26 holes, has successfully extended the strike length of the Cerro-Ferro mineralised system by 300 metres, now measuring 2.2 kilometres and remaining open for further expansion.

Among the standout intercepts, drill hole 24LHRC065 returned 105 metres grading 0.64% copper equivalent (CuEq) from surface to end of hole, including higher-grade zones of 16 metres at 0.85% CuEq from surface and 26 metres at 0.91% CuEq from 78 metres depth. Other notable results include 132 metres at 0.48% CuEq from surface in hole 24LHRC058 and 81 metres at 0.49% CuEq from near surface in hole 24LHRC055. These intercepts underscore the scale and continuity of mineralisation, which remains open both along strike and at depth.

Strategic Geophysical Survey Enhances Targeting

Complementing the drilling success, Southern Hemisphere has completed a detailed Magneto-Telluric (MT) survey across the project area. This passive geophysical method measures subsurface electrical resistivity to identify large, potentially mineralised copper targets at depth. The MT data acquisition phase is complete, with processing underway to integrate these findings with existing geophysical and geochemical datasets. This integrated approach aims to refine the understanding of deep “blind” targets beneath the known Cerro and Ferro deposits and the broader Curiosity Target area.

Advancing Towards Resource Upgrade and Deeper Drilling

Chairman Mark Stowell emphasised the significance of these results, noting that many of the recent RC holes ended in mineralisation and will be extended with diamond drilling tails in early 2025. This next phase of drilling will test the depth and grade potential of the deposit, which is critical for advancing the project’s development pathway. The company remains on track to deliver an upgraded Mineral Resource Estimate (MRE) for Llahuin in the first half of 2025, reflecting the expanded strike and improved geological understanding.

The mineralisation’s near-surface nature is particularly favourable for open-pit mining, while the ongoing exploration and geophysical work continue to validate the potential for a longer-term underground mining operation. The presence of fresh water intersected in drilling at rates of 40 litres per minute also bodes well for future mine operations, potentially reducing reliance on external water sources.

Regional Context and Comparative Scale

Llahuin is strategically located just 8 kilometres east of the El Espino copper-gold project, currently under construction by Pucobre and Resource Capital Funds, with a planned throughput of approximately 5 million tonnes per annum and a capital expenditure of around US$490 million. This proximity highlights the region’s copper-gold endowment and the potential for Llahuin to emerge as a significant new contributor to Chile’s mining landscape.

Geological modelling and comparisons to deposits such as Filo Del Sol suggest that Llahuin’s deeper targets could mirror the scale and grade improvements seen in other world-class porphyry systems following deeper drilling campaigns. Southern Hemisphere’s methodical approach combining drilling, geophysics, and geochemical footprinting positions the company well to unlock this potential.

Outlook and Next Steps

With assays pending for the remaining drill holes and diamond drilling planned to commence shortly, the market can expect a steady flow of updates as Southern Hemisphere continues to delineate and expand its resource base. The integration of MT survey results with geological models will be a critical input for targeting and resource estimation. Investors should watch closely for the upcoming MRE update in H1 2025, which will provide a clearer picture of Llahuin’s scale and economic potential.