JV Drilling at Llahuin Could Make or Break Southern Hemisphere’s Copper-Gold Ambitions

Strategic Joint Venture Agreement

Southern Hemisphere Mining Limited (ASX – SUH) has entered a conditional binding term sheet with FMR Resources Limited (ASX – FMR) to jointly explore the southern portion of the Llahuin Copper-Gold Project in Chile. The agreement focuses on the highly prospective Curiosity Southern Porphyry copper-gold target, a large, untested system identified through extensive geophysical and geochemical surveys.

Under the terms, FMR Resources can earn up to a 60% interest in four concessions by funding up to A$13 million in exploration expenditure and making staged payments totaling A$2.67 million. The initial stage requires a minimum expenditure of A$3 million over two years, including drilling at least one deep hole of 1,400 metres by the end of 2025.

Exploration Potential and Project Context

The Llahuin Project is located in Chile's Coquimbo Region, a world-renowned copper-producing district. The Curiosity Southern Porphyry target is defined by coincident magnetic, induced polarization, and magnetotelluric anomalies, suggesting a large porphyry system approximately 1,000 metres below surface. Historical shallow drilling has confirmed copper-gold-molybdenum mineralisation above this target, but the core remains untested.

Southern Hemisphere retains 100% ownership of the northern concessions, which include all existing JORC-compliant mineral resources. The JV excludes the Ferro deposit and related targets, which remain under Southern Hemisphere's sole control. The company continues to advance exploration on these assets alongside the JV activities.

Leadership and Funding

FMR Resources has appointed Oliver Kiddie as Managing Director, bringing over 20 years of international experience in base metal and gold exploration. Kiddie’s track record includes significant resource discoveries and project development leadership, positioning FMR to effectively advance the JV targets.

To fund the exploration program, FMR has secured firm commitments to raise A$2.2 million through a share placement priced at $0.16 per share. Notably, renowned resources investor Mark Creasy has joined FMR’s register as a major shareholder, underscoring confidence in the project’s potential.

Next Steps and Market Implications

Drilling is scheduled to commence in the fourth quarter of 2025, with initial programs focusing on geophysical reprocessing and modelling to refine drill targets. The JV aims to unlock significant value through a potential company-making copper-gold discovery in a proven mining jurisdiction.

While the JV agreement is conditional on FMR completing satisfactory due diligence, the partnership represents a strategic move to leverage complementary expertise and capital. Southern Hemisphere’s retention of key northern assets ensures ongoing exposure to resource growth outside the JV area.