Southern Hemisphere Mining Limited August 2011 Trevor Tennant – Managing Director Contact: +61 (0) 414 895 605 or +56 (9) 7766 4688
Overview Los Pumas Following a review of Company’s projects priority has been Chitigua given to: 1. Newly acquired Llahuin project 2. Chitigua project Positive drill results from Llahuin project confirm potential for El Arrayan Llahuin 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. 2
Company Snapshot Capitalisation Summary Headquartered in Australia and operating Ordinary Shares (1) 152,525,822 Market Capitalisation @ $0.40 (2) AU $61M in Chile Cash (3) AU$15M Dual listed on the ASX (SUH) and the TSXV Debt (3) $0.0 (SH) Enterprise Value (Fully Diluted) AU$46M (1) Excludes 21m options and warrants at various exercise prices and dates between Diversified portfolio of Chilean-based CA $0.20 and AU $0.54 and December 2010 and June 2013; (2) As of August 2, 2011; metals projects: (3) As of August 1, 2011. SUH Historical Share Price Performance (ASX) 14 Copper / Gold Projects (drilling $0.70 1,600,000 underway) 1,400,000 $0.60 1,200,000 Los Pumas Manganese Project $0.50 1,000,000 (awaiting EIS approval) $0.40 800,000 $0.30 600,000 Iron Sands Project (early-stage $0.20 400,000 evaluation) $0.10 200,000 $0.00 0 Aug-10 Sep-10 Oct-10 Dec-10 Jan-11 Mar-11 Apr-11 May-11 Jul-11 MarketVolume ClosePrice Source: IRESS 3
SUH Project Locations Los Pumas Manganese Project Copper/Gold Project Iron Sands Project 4
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 5
Cluster Llahuin The Llahuin Cluster, consisting of 2 mineralizations, Copper and Gold: 1.- Porfido Llahuín: LLAHUIN PORPHYRY Composed of a clear Porphyry (Porhyry Copper Rich copper, rich in gold. in Gold) 2.- Llanos de Llahuín: Composed of structural LLANOS DE LLAHUIN geological mesothermal (Stockwork Cu.Au) system, with large veins, and associated with intense quartz stockwork, with high contents EL ESPINO of Cu-Au. (Strataboun Copper & Gold of Explorator This site is very close to El Resources & Pucobre) Espino Project. 6
Llahuin Copper Porphyry Llahuin Valley showing the porphyry occurrence to the right. The Valley runs north/south. The Llahuin Amapola group of exploitation licences, cover 772 hectares, and include the valley pictured above. 7
Llahuin Copper 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 Gold Zone and ground magnetics in third quarter 2011. Llahuin Porphyry Cerro Zone 8
Llahuin Copper Porphyry Drill Collar Locations at the Llahuin Porphyry as at 16 th 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 9
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. 10
Llahuin Copper Porphyry The mineralisation is open at depth and open laterally. Anomalous gold grades indicate that we are in a typical copper/ gold porphyry similar to the Andacollo porphry that is currently in production. 11
Los Llanos de Llahuin The prospect Llahuin Plains, was exploited since early 1800, but industrially in 1975 to 1980, Cerro Centinela mining company, a Strong quartz stockwork with copper oxides subsidiary of Antofagasta Minerals S A. (AMSA). The project is covered by mining properties over 100 years. Mining camp in 1911, and old mine workings. Look south, in Los Llanos de Llahuin Project. Observe outcrops of large hydrothermal breccias with strong hematite staining Underground mining operations at Cerro Centinela. Note high grade Cu Ox, and Chalcocite 12
Chitigua Copper Porphyry The Chitigua project is located 100km north of Calama, which is the regional centre and has a population of 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. 13
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 14
Chitigua Copper Porphyry 15
Chitigua Breccia Zone (IP survey at the surface minus 200m level.) 16
Chitigua Copper Porphyry Characteristics Required Chitigua Large Licence Holding 190 Sq km West Fault Belt West Fault through centre of licence area Tier 1 Deposits 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 17
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. 18
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 oxides and hence leachable. 19
Update on El Arrayan Project 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. 20
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. 21
Update on Los Pumas Manganese Project 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. 22
Strategy for period ending December 2011 Llahuin Project The Llahuin porphyry is in resource drilling mode and we are planning a total of 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. 23
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. 24
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