


Further Increase in Los Pumas Manganese Resource Underpins Final Feasibility Study
PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 8, 2011) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
HIGHLIGHTS
• | 28% increase in JORC Measured and Indicated Resource to 18.34 million tonnes @ 7.58% Manganese ("Mn") estimated by Coffey Mining |
• | 24% increase in contained manganese metal units compared with October 2010 resource estimate (for Measured and Indicated categories) |
• | 34% increase in Inferred Resource to 5.39 million tonnes @ 8.59% Mn – 70.6% increase in manganese metal content (for Inferred category) |
• | Coffey Mining advises that the new resource model is viewed as a heavily diluted model and will require minimal mining dilution when converting resource to reserves |
• | Final Feasibility Study now underway following completion of Preliminary Assessment |
• | A$20 million share placement completed to underpin Feasibility Study and ongoing copper exploration drilling in Chile |
International resource company Southern Hemisphere Mining Limited (TSX VENTURE:SH)(ASX:SUH) ("Southern Hemisphere" or "the Company") is pleased to advise that it is moving to a final Feasibility Study on development of its flagship 100%-owned Los Pumas Manganese Project in Northern Chile, after reporting a further significant increase in the JORC compliant resource estimate.
The updated resource assessment, by independent consultants Coffey Mining, will extend the Project's mine life to a minimum 7.5 years based on Measured and Indicated Resources only, without considering the Inferred Resource which has also been significantly increased.
Following the successful completion of the Preliminary Assessment on the Los Pumas Manganese Project – which confirmed that the Project has the potential to underpin an economic mining and processing operation – the Company is progressing the key outstanding elements of the Feasibility Study for the Project.
Southern Hemisphere has also successfully completed the final phase of its A$20 million capital raising by the issue of shares on the TSX-V and ASX. Part of the funds raised will underpin the completion of the Los Pumas Manganese Project Feasibility Study, as well as an ongoing program of exploration drilling within its portfolio of copper projects in Chile.
Results from the Company's recent copper drilling program are expected to be received in the near future.
Independent Resource Determination
The Company engaged Coffey Consultoria e Servicios Ltda Brazil ("Coffey Mining") to review additional results from 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 Measured and Indicated Resource of 18.33 million tonnes grading 7.58% Mn, 55.82% SiO2, 2.91% Fe2O3, 5.62 Al, and 0.05% P.
Summaries of the February 2011 resource estimate and the October 2010 resource estimate are provided in the table below:
LOS PUMAS MANGANESE PROJECT | |||||||
JORC COMPLIANT RESOURCE ESTIMATION – FEBRUARY 2011 | |||||||
Resource | Tonnes (Mt) | Mn (%) | SiO2 (%) | Fe2O3 (%) | Al (%) | P (%) | |
+4% Mn Grade | Measured | 5.27 | 7.39 | 57.85 | 2.78 | 5.56 | 0.05 |
Indicated | 13.06 | 7.65 | 55.00 | 2.96 | 5.64 | 0.05 | |
Measured plus indicated | 18.33 | 7.58 | 55.82 | 2.91 | 5.62 | 0.05 | |
Inferred | 5.39 | 8.59 | 51.44 | 2.72 | 5.49 | 0.06 | |
LOS PUMAS MANGANESE PROJECT | |||||||
JORC COMPLIANT RESOURCE ESTIMATION – OCTOBER 2010 | |||||||
Resource | Tonnes (Mt) | Mn (%) | SiO2 (%) | Fe2O3 (%) | Al (%) | P (%) | |
+4% Mn Grade | Measured | 7.71 | 8.21 | 57.46 | 2.68 | 5.70 | 0.05 |
Indicated | 6.59 | 7.42 | 57.76 | 2.97 | 6.01 | 0.05 | |
Measured plus indicated | 14.30 | 7.85 | 57.60 | 2.81 | 5.84 | 0.05 | |
Inferred | 4.01 | 6.77 | 53.37 | 3.03 | 5.80 | 0.06 |
"JORC" (Joint Ore Reserve Committee Code of the Australasian Institute of Mining and Metallurgy) | |
Coffey Mining has also reported that: | |
• | the new resource model is more robust as it has additional results from previous drilling and is based on a more accurate interpretation of the Project's geology; |
• | the bulk approach of the new interpretation is in line with findings from bulk sample work and shaft mapping; |
• | the new resource model is viewed as a heavily diluted model and will require minimal mining dilution when converting the resource to reserves; |
• | the reduction in tonnage of the Measured category is due to the application of more robust criteria with respect to the number of composites required to attain measured status; |
• | the increase in the Indicated category is a result of the bulked up interpretations, recent surface sampling and more consistent interpretation following a field review; |
• | the Inferred category should be easily converted into the Indicated category with the appropriate drilling due to the structural consistency of the mantles; |
• | the deposit is still open to the south-west; and |
• | feeder zones inspected on site have not been specifically targeted and represent an additional opportunity for high grade manganese mineralisation. |
A full NI 43-101 Technical report for the Updated JORC Measured and Indicated Resource Statement will be filed on SEDAR within 45 days and posted on the Company's website at [ www.shmining.com.au ].
Feasibility Study
Following the successful completion of the Preliminary Assessment of the Los Pumas Manganese Project last year, the following Feasibility Study items are in progress:
• | further investigation into the metallurgical characteristics of the ore – this ongoing test work, which is being undertaken by Mintek in Randburg, Gauteng, South Africa and by Transmin in Lima Peru, is expected to assist with the optimisation of the manganese unit recoveries, with the study report targeted for completion by the end of the first Quarter of 2011; |
• | refinement of the processing requirements and amendment to the process flow sheet – currently underway by Battery Limits; and |
• | permitting applications and processes |
Environmental Approval
Southern Hemisphere has previously announced that its environmental approval will be delayed, due to its decision to seek approval by way of an Environmental Impact Statement ("EIS") rather than an Environmental Impact Declaration. Work has commenced on this process with the commissioning of an environmental consultant to prepare the study in the EIS format.
The draft of the EIS is expected in March of 2011 and the Company will be able to take advantage of this delay to complete other Feasibility Study items currently in progress.
A$20 million Share Placement
Southern Hemisphere has also successfully completed the final phase of its A$20 million capital raising by the issue of shares on the TSX-V and ASX to institutional and sophisticated investors. The final phase consisted of 14,285,800 ordinary shares issued to Canadian investors. Following the issue of these ordinary shares, the Company currently has 151,224,121 ordinary shares / CDIs on issue.
This report is prepared in accordance with disclosure and reporting requirements set forth in National Instrument 43-101, Companion Policy 43-101CP, and Form 43-101F1, and complies with Canadian National Instrument 43-101 for the "Standards of Disclosure for Mineral Projects" of December 2005 (the Instrument), and the resource and reserve classifications adopted by CIM Council in November 2004.
Competent Person's Statement
The details contained in this report pertain to information compiled by Mr. Trevor Tennant, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Tennant is a Mining Engineer and Managing Director of Southern Hemisphere Mining. He 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.
The information in this report that relates to resource estimations is based upon information compiled by Mr Ian Dreyer, who is a member of the Australasian Institute of Mining and Metallurgy and has the relevant qualifications, experience and independence as defined in the Australian JORC codes and a Qualified Person as defined in Canadian Instrument 43-101. He is a full time employee and Principal Geologist of Coffey Mining Limited and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Dreyer visited the site of Los Pumas in December 2010 and consents to the inclusion in the report of the information that relates to resource estimation the form and context in which it appears.
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.