Southern Hemisphere Mining Launches Maiden Drilling at Llahuin, Eyes 218Mt Resource Upgrade

Exploration Momentum Builds at Llahuin

Southern Hemisphere Mining Limited (ASX, SUH) has reported significant progress in its September quarter activities, notably commencing maiden drilling at the Southern Porphyry target within its flagship Llahuin Copper-Gold-Molybdenum Project in Chile. The initial drill hole at Target A is planned to reach 1,600 metres, aiming to test a large porphyry copper system identified through integrated geophysical modelling.

This drilling phase, managed by joint venture partner FMR Resources Limited, is expected to take approximately three months, with assay results anticipated 4-6 weeks after hole completion. The program leverages magnetic, magnetotelluric, and induced polarisation surveys combined with geological mapping to refine target zones.

Resource Upgrade Highlights Scale and Potential

Alongside drilling, Southern Hemisphere updated its JORC Mineral Resource Estimate (MRE) for the Llahuin Project to 218 million tonnes at an average grade of 0.38% copper equivalent (CuEq), incorporating 496,600 tonnes of copper, 654,900 ounces of gold, and 12,500 tonnes of molybdenum. This resource spans three deposits; Central Porphyry, Cerro, and Ferro; with measured, indicated, and inferred classifications.

The CuEq calculation is based on metal prices of US$3.50 per pound of copper, US$3,000 per ounce of gold, and US$20 per pound of molybdenum. While metallurgical recoveries remain preliminary and optimisation is ongoing, early flotation testwork suggests promising recoveries without deleterious elements.

Exploration Target and Strategic JV Developments

Beyond the current resource, Southern Hemisphere has delineated an exploration target ranging from 260 to 340 million tonnes with grades between 0.20% and 0.30% copper, exclusive of the existing MRE and the Curiosity-Southern Porphyry target. This broad target underscores the potential for significant resource expansion pending further exploration success.

The company’s joint venture with FMR Resources on the southern concessions of Llahuin is a strategic move to accelerate exploration. Southern Hemisphere retains full ownership of the northern concessions, including the main resource areas, while FMR undertakes the southern porphyry drilling program.

Diversification with Cardawan and Los Pumas Projects

In Western Australia, Southern Hemisphere is advancing early-stage exploration at the Cardawan Copper Project, targeting sedimentary-hosted copper deposits. The project’s location near established copper and silver mines adds strategic value to this prospective asset.

Meanwhile, the Los Pumas Battery Metals Manganese Project in Chile is being actively marketed for offtake agreements, joint ventures, or sale. This advanced manganese deposit aims to supply multiple markets, including agriculture, steelmaking, and the electric vehicle sector, reflecting the company’s diversification into battery metals.

Financial Position and Governance

Southern Hemisphere closed the quarter with $1.02 million in cash after spending $137,000 on exploration activities and $56,000 on related party payments, including directors’ fees and consulting costs. Notably, company directors increased their shareholdings by approximately $14,000 during the period, signaling confidence in the company’s prospects.

With a current cash runway estimated at over three quarters based on operating outflows, Southern Hemisphere appears positioned to sustain its exploration momentum while awaiting critical assay results and JV progress updates.