Business & Finance
Business and Finance
Business and Finance 
Mon, May 10, 2010
Southern Hemisphere Mining Limited: New Jorc Resource and Progress Update Los Pumas Manganese Project, Chile
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 10, 2010) - Southern Hemisphere Mining Limited (TSX VENTURE:SH)(ASX:SUH) -
HIGHLIGHTS
Updated JORC Measured and Indicated resource of 10.3 million tonnes @ 9.2% Manganese ("Mn") estimated by Coffey Mining
Remaining high grade Inferred Resource of 3.1 million tonnes @ 10.3% Mn
Next stage of bulk sampling, comprising the excavation of four winzes, is nearly completed, and a 4.5 tonne sample will be sent to a laboratory in South Africa for bench scale pilot plant testing
Pilot plant test work designed to confirm the beneficiation potential of Los Pumas Project resource to a targeted product specification of 38% Mn, 0.8% Fe, 20% SiO2 and 0.06% P
Community Land Owners Agreement signed granting easements which allow further manganese exploration and mine development to be undertaken at Los Pumas
Southern Hemisphere Mining Limited ("Southern Hemisphere" or "the Company") is pleased to report a number of significant developments with its 100% owned Los Pumas Manganese Project in Northern Chile, including the completion of an updated JORC resource estimate and signing of a key Land Owners Agreement enabling further exploration and mine development to proceed.
Southern Hemisphere has continued to focus its activities on the Feasibility Study currently underway on the Los Pumas Project. This Study is targeted for completion during the third Quarter of 2010, paving the way for the Company to raise capital for project development in the second half of 2010 with the objective of commencing manganese production in the second half of 2011.
Independent Resource Determination
The Company engaged Coffey Consultoria e Servicios Ltda Brazil ("Coffey Mining") to review the results of previous drilling at Los Pumas, re-model the resource and provide an updated resource statement.
Using a 4% Mn block cut off grade, Coffey Mining has calculated a High Grade Measured and Indicated Resource of 10.3 million tonnes grading 9.2% Mn, 58.2% SiO2, 2.7% Fe2O3, 5.7% Al and 0.04% P.
A summary of the new high grade resource estimate is provided in the table below:
| LOS PUMAS PROJECT | |||||||
| JORC COMPLIANT RESOURCE ESTIMATION – APRIL 2010 | |||||||
| Tonnes | Mn | SiO2 | Fe2O3 | Al | P | ||
| Resource | (Mt) | (%) | (%) | (%) | (%) | (%) | |
| Measured | 4.3 | 9.4 | 58.5 | 2.6 | 5.7 | 0.04 | |
| High Grade | Indicated | 6.0 | 9.0 | 57.8 | 2.9 | 5.8 | 0.04 |
| +4% Mn | Measured plus indicated | 10.3 | 9.2 | 58.2 | 2.7 | 5.7 | 0.04 |
| Inferred | 3.1 | 10.3 | 56.2 | 2.9 | 5.5 | 0.05 | |
In addition to the High Grade Resource, Coffey Mining has calculated a JORC compliant Low Grade Resource as detailed in the table below.
| Tonnes | Mn | SiO2 | Fe2O3 | Al | P | ||
| Resource | (Mt) | (%) | (%) | (%) | (%) | (%) | |
| Measured | 10.0 | 2.8 | 65.7 | 3.2 | 6.5 | 0.04 | |
| Low Grade | Indicated | 20.3 | 2.9 | 63.1 | 4.0 | 6.8 | 0.05 |
| +2% -4% Mn | Measured plus indicated | 30.3 | 2.8 | 64.4 | 3.6 | 6.7 | 0.04 |
| Inferred | 234.3 | 2.3 | 62.3 | 4.1 | 7.0 | 0.06 |
Since commissioning the updated resource, Southern Hemisphere has completed a further 88 reverse circulation drill holes, the results of which will be incorporated in the next resource update.
Los Pumas is a flat, tabular deposit, which lies close to surface, indicating the potential for a low strip ratio and favourable mining characteristics despite an expected relatively low product yield.
Metallurgical Test Work
Initial metallurgical test work on Los Pumas mineralisation using heavy liquid separation ("HLS") tests supported the beneficiation potential of the mineralisation to achieve the Company's targeted product specification of 38% Mn, 0.8% Fe, 20% SiO2 and 0.06% P.
The Company has since undertaken more tests on composite core samples from 25 diamond drill holes using HLS techniques at the Transmin Metallurgical Consultants' laboratory in Lima, Peru. These tests were carried out using core, crushed to a top size of 10mm and sample sizes ranging from 600 grams to 6 kilograms. HLS tests were completed on three size fractions, namely +0.5mm -2mm, +2mm -5mm and +5mm -10mm.
Recoveries from this test work programme yielded variable results that indicated the need for further investigation of the beneficiation characteristics of the Los Pumas deposit. The dynamic pilot plant test work that is to be conducted by Mintec in South Africa, will provide the closest simulation to expectations from the full scale plant. Mintec is a recognised leader in heavy media separation.
20 Year Community Agreement
The Company is also pleased to advise that its 100%-owned Chilean subsidiary, Minera Hemisferio Sur SCM ("MHS") has signed an agreement with the Putre Community Land Owners (the surface owners at the Los Pumas Project) providing MHS with easement rights over the Putre Community Lands.
These Community Lands include MHS's current exploration and exploitation concession areas.
The Putre Community recognises the economic benefits of the potential investment in the Project for their lands, which are part of Chile's Region XV, which is targeting development.
Subject to annual easement payments the agreement grants MHS use of the land for all exploration and mining purposes, including the construction of plant, buildings, and associated infrastructure for a 20 year period.
"JORC" (Joint Ore Reserves Committee Code of the Australasian Institute of Mining and Metallurgy)
Competent Person's Statement
The details contained in this report pertain to information compiled by Mr. Trevor Tennant, a full time employee of the Company and who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Tennant has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 Edition of the "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Tennant consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
As required by Canadian National Instrument 43-101, Coffey Mining designated qualified persons responsible for reviewing the technical information herein contained are Beau Nicholls and Bernardo Horta de Cerqueira Viana.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release. This news release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.