Resource World Magazine

A U S TR A L I A N UP DATE SOUTHERN HEMISPHERE MINING PARTNERS WITH ANGLO AMERICAN by Greg Barns It���s a sign of future success when junior mining and exploration companies are able to attract the attention of the big players like Anglo American PLC [AAL-London]. That���s what Southern Hemisphere Mining Ltd. [SH-TSXV; SUH-ASX] has been able to do with its Chitigua Project in northern Chile. On February 6 this year, Southern Hemisphere Mining announced that Anglo American will spend US $25M to earn up to 75% interest in three copper gold projects, including Chitigua, all located in northern Chile. The Chitigua Project is located 60 km north of Codelco���s Chuquicamata Mine, 270 km northeast of Antofagasta, one of Chile���s major port cities. According to Southern Hemisphere Mining there ���is evidence in the Chitigua Project area of intense geological alteration along and adjacent to the western fault with copper mineralization in previous small scale mining operations.��� Southern Hemisphere Mining has already spent around US $2.3M on this project. In Chitigua, and the two other projects located in the same region, Anglo American will carry out 3,000 m of drilling over the next 48 www.resourceworld.com 18 months. The Chitigua Project is the second project that Southern Hemisphere Mining holds which has attracted interest from a major; its flagship Llahuin copper gold project in central Chile is in a joint venture agreement with the Lundin Mining Corp. [LUN-TSX]. In October last year, Southern Hemisphere Mining announced that Lundin Mining had entered into a joint venture over Southern Hemisphere Mining���s flagship Llahuin copper gold project. Lundin will spend up to US $35 million to earn a direct stake of up to 75% over a maximum six-year period. In addition, Lundin had taken an 11.5% stake in Southern Hemisphere through a US $5 million share placement at CDN $0.25 a share on the TSXV. Lundin will spend US $3M over the next three years under the agreement, which combined with US $3M from the placement, will contribute to a sizeable drilling program over this period. After this initial expenditure commitment is completed, ���Lundin has the option to sole fund a further US $10 million towards Llahuin Project expenditures within three years from 1 November 2012 to earn a cumulative undivided 51% interest in the project,��� and at that point ���Lundin has the option to sole fund an additional US $10 million within one year to earn a further 14% interest for a total undivided 65% interest in the Llahuin Project. Following this earn-in, Lundin Mining has the option to sole fund the last additional earn-in by spending a further US $12 million, within three years of obtaining a 51% interest, to earn an additional 10% interest in the project,��� Southern Hemisphere Mining said, in its October 16 statement. The Llahuin Project is located within the Coquimbo region of central Chile, approximately 250 km north of Santiago and 17 km south of the mining town of Combarbala. The company announced a resource upgrade in September last year. The project has a measured and indicated resource of 145Mt grading 0.40% Cu equivalent with an additional 17 Mt grading 0.33% Cu equivalent in the inferred category. On January 31 this year, Southern Hemisphere Mining announced its latest drilling results from the Llahuin Project. The results include 314 m at 0.41% Cu equivalent from 2 m and 350 m at 0.41 Cu equivalent from surface in the central porphyry zone. Southern Hemisphere Mining is already confident about the commercial viability of the Llahuin Project. At a time when, for many juniors, raising capital and attracting investor interest is hard work, Southern Hemisphere Mining stands out. It���s in the right address for copper projects, with Chile being one of the world���s biggest producers, and now with the backing of Lundin and Anglo American Southern, Hemisphere Mining has a chance to grow quickly. n MARCH 2013

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