Southern Hemisphere Mining Limited August 2011 Trevor Tennant - - PowerPoint PPT Presentation

Southern Hemisphere Mining Limited

August 2011

Trevor Tennant – Managing Director

Contact: +61 (0) 414 895 605 or +56 (9) 7766 4688

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Overview

• Following a review of Company’s projects priority has been

given to: 1. Newly acquired Llahuin project 2. Chitigua project

• Positive drill results from Llahuin project confirm potential for

significant porphyry deposit.

• The recently completed IP survey at the Chitigua breccia

project enhances the opportunity for the discovery of a major porphyry deposit in the West Fault system that is the world’s richest copper metallogenic zone.

• Update on El Arrayan and Los Pumas Projects.

Chitigua Llahuin Los Pumas El Arrayan

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Ordinary Shares (1) 152,525,822 Market Capitalisation @ $0.40 (2) AU $61M Cash (3) AU$15M Debt (3) $0.0 Enterprise Value (Fully Diluted) AU$46M

(1) Excludes 21m options and warrants at various exercise prices and dates between CA $0.20 and AU $0.54 and December 2010 and June 2013; (2) As of August 2, 2011; (3) As of August 1, 2011.

Company Snapshot

Capitalisation Summary

• Headquartered in Australia and operating

in Chile

• Dual listed on the ASX (SUH) and the TSXV

(SH)

• Diversified portfolio of Chilean-based

metals projects:

• 14 Copper / Gold Projects (drilling

underway)

• Los Pumas Manganese Project

(awaiting EIS approval)

• Iron Sands Project (early-stage

evaluation)

SUH Historical Share Price Performance (ASX)

Source: IRESS

200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 Aug-10 Sep-10 Oct-10 Dec-10 Jan-11 Mar-11 Apr-11 May-11 Jul-11

MarketVolume ClosePrice

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Copper/Gold Project Los Pumas Manganese Project Iron Sands Project

SUH Project Locations

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Llahuin Copper Porphyry

• July 2011, company signed Option Agreement

to purchase the Llahuin Amapola mining licenses.

• The Llahuin exploration project is highly

prospective for copper and is situated 250 kms north of Santiago and 40km north of the city of Illapel, that has a population of 40,000.

• The Project is easily accessed from Santiago

by driving along the Pan American highway to Los Vilos on the coast and then by a local sealed Road to Illapel. Driving time is about 4 hours.

• The Project is at an elevation of 1,300 metres

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LLAHUIN PORPHYRY (Porhyry Copper Rich in Gold) LLANOS DE LLAHUIN (Stockwork Cu.Au) The Llahuin Cluster, consisting

• f 2 mineralizations, Copper

and Gold: 1.- Porfido Llahuín: Composed of a clear Porphyry copper, rich in gold. 2.- Llanos de Llahuín: Composed of structural geological mesothermal system, with large veins, and associated with intense quartz stockwork, with high contents

• f Cu-Au.

This site is very close to El Espino Project. EL ESPINO

(Strataboun Copper & Gold of Explorator Resources & Pucobre)

Cluster Llahuin

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Llahuin Copper Porphyry

• Llahuin Valley showing the porphyry
• ccurrence to the right. The Valley runs

north/south.

• The Llahuin Amapola group of

exploitation licences, cover 772 hectares, and include the valley pictured above.

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Gold Zone Cerro Zone Llahuin Porphyry

• Llahuin drill hole locations within the

Amapola licenses

• The Llahuin Porphyry is one expression of a

system that incorporates other targets

• These will be better defined by an IP survey

and ground magnetics in third quarter 2011.

Llahuin Copper Porphyry

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Llahuin Copper Porphyry

• Drill Collar Locations at the Llahuin Porphyry

as at 16th August 2011.

• To date we have received 1959 analysis results

averaging 0.32%Cu.

• Removing the lower grade results (less than

0.2%Cu), largely from the granodioritic porphyry, gives us 1429 analysis results averaging 0.40%Cu. The average gold grades within those samples is 0.09g/t

• The Carmen de Andacollo deposit is similar to

Llahuin and has a resource of 400 million tonnes grading 0.38%Cu and 0.13g/t gold. the capital cost of developing their 65,000 tonnes of copper metal per year operation was $440m

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Llahuin Copper Porphyry

• Results from

nine holes in the Llahuin Porphry.

• Hole LLA -010

is being deepened with a DDH hole that is currently at 400m.

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Llahuin Copper Porphyry

• The mineralisation is
• pen at depth and
• pen laterally.
• Anomalous gold grades

indicate that we are in a typical copper/ gold porphyry similar to the Andacollo porphry that is currently in production.

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Mining camp in 1911, and old mine workings. Strong quartz stockwork with copper oxides

Underground mining operations at Cerro Centinela. Note high grade Cu Ox, and Chalcocite

Look south, in Los Llanos de Llahuin Project. Observe

• utcrops of large hydrothermal breccias with strong

hematite staining

The prospect Llahuin Plains, was exploited since early 1800, but industrially in 1975 to 1980, Cerro Centinela mining company, a subsidiary of Antofagasta Minerals S A. (AMSA). The project is covered by mining properties over 100 years.

Los Llanos de Llahuin

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Chitigua Copper Porphyry

• The Chitigua project is located

100km north of Calama, which is the regional centre and has a population

• f 150,000.
• The project is at an elevation of

4,000 metres and is on the western fault between the El Abra and Quebrada Blanca mines.

• Porphyry deposits in this

metallogenic zone are large and include Escondida, Chuquicamata, El Abra Quebrada Blanca and others.

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Chitigua Copper Porphyry

Large Tenement Holding of 190 Sq km Three target areas: Church Zone, Breccia Zone And North Zone. IP Survey completed over Breccia Zone. IP Survey underway over Church Zone

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Chitigua Copper Porphyry

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Chitigua Breccia Zone (IP survey at the surface minus 200m level.)

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Chitigua Copper Porphyry

Characteristics Required Chitigua

Large Licence Holding

190 Sq km

West Fault Belt Tier 1 Deposits

West Fault through centre of licence area Chuquicamata, Escondida, El Abra, Collahuasi, Quebrada Blanca, RT, MM, Mina Sur, El Salvador, Zaldiva and others

Tensional Faults each over 2.5 km strike

Three targets: Church, Breccia and North

Biotite Breccia Evidence of Cu / Mo

Strong Potassic Alteration (Secondary Biotite and K Feldspar), and Quartz Sericite

Drill Intercepts in mineralisation

DDH-CH-02 46m from 3m@0.40%Cu DDH-CH-02 23m from 63m@0.41%Cu

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Update on El Arrayan Project

• El Arrayan is situated 35 km

from the coastal city of La Serena.

• La Serena together with

Coquimbo has a population of 400,000.

• El Arrayan is in the coastal

cordillera with an elevation of 700m.

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Update on El Arrayan Project

• A drill program of 2,294 meters in 10 RC

drill holes was completed and announced in February 2011 .

• The holes collared on the higher

elevations were in volcanic andesites and returned better grades than the holes collared in the valley that were in the intrusive dacite.

• The copper grades intersected were all in
• xides and hence leachable.

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• Following encouraging initial

drill results at El Arrayan ,the Company is in negotiation to acquire the concession group to the south of El Arrayan.

• When acquired, another drill

program will be undertaken to add to the copper oxide resource.

• Although prospective, El Arrayan

ranks in priority below the Llahuin and Chitigua projects.

Update on El Arrayan Project

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Update on Los Pumas Manganese Project

• Los Pumas Project is

located 174 road km from the Port of Arica in the far north of Chile.

• The Port of Arica is

equipped with a bulk commodity loading System.

• The project is at an

elevation of 3,700 metres.

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• Completed JORC compliant resource estimate by Coffey Mining at the

Los Pumas Manganese project in northern Chile.

• Environmental approval filing has been delayed and we now expect approval

to be granted in first quarter of next year.

• Feasibility study completion will be in line with environmental approval.
• Current manganese marketing conditions have lowered the priority of this

project in the Company’s plans.

Update on Los Pumas Manganese Project

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Strategy for period ending December 2011

Llahuin Project

• The Llahuin porphyry is in resource drilling mode and we are planning a total
• f another 40 RC holes that will complete a 50m by 50m grid.
• An IP survey will highlight other porphyry targets in the valley that will be investigated.
• The Company is currently negotiating to purchase land in the valley that comes with

water rights.

• A scoping study is planned for the last month of the calendar year.
• Llanos de Llahuin, which are an additional group of exploitation licenses, will be acquired

following due diligence.

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Strategy for period ending December 2011

Chitigua Project

• Analysis from DDH-CH-02 core, show encouraging results.
• IP surveys, that are being conducted in the Breccia and Church Zones, will assist in the

targeting of drill hole locations.

• An RC drill rig has been mobilised to site and drill productivity will increase with

a target of 23 RC holes, each to a depth of 300m, being completed by the end of the year.

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Strategy for period ending December 2011

• Current cash position is A$15m
• The Company will be focussing on the Llahuin and Chitigua projects
• A stretch target for drilling through to the end of the calendar year is 19,000 metres

Drilling Llahuin (m) Chitigua (m) RC 10,000 7,000 DDH 1,350 850 Total 11,350 7,850

• On the basis of achieving the above drilling, the closing cash forecast for the end of

December is A$10m