Southern Hemisphere Mining Quarterly Report: New Targets and Funding Boost
SUH (SUH) Share Update July 2024 Monday 29th
Southern Hemisphere Mining Identifies New Drill Targets and Secures Funding
Southern Hemisphere Mining Limited (ASX: SUH, FWB: NK4) has released its quarterly activity report for the period ending 30 June 2024, highlighting significant advancements in exploration and securing substantial funding for future operations.
Instant Summary:
- Identification of two large drill targets at Llahuin Copper-Gold porphyry system.
- Emergence of a large copper-gold target at the Curiosity target, Southern Porphyry.
- Confirmation of two shallower targets at Cerro and Ferro near surface.
- Completion of a A$5M share placement to institutional investors.
- Fully funded to commence RC and diamond drilling campaign at Llahuin.
Exploration Activities
Southern Hemisphere Mining has reported promising results from its recent 3D Soil Geochemical Footprint Modelling and 3D Drone Magnetic Inversion Modelling at the Llahuin Copper-Gold Porphyry Project. These efforts aim to significantly increase the copper and gold resources from the current estimate of 680,000t Copper Equivalent.
The company engaged Fathom Geophysics to apply its proprietary 3D porphyry footprint modelling method at Llahuin, resulting in the identification of two new potential drill targets. These targets are supported by drone magnetic inversion models, which provide a better understanding of the porphyry system's geometry.
Southern Porphyry Curiosity Copper-Gold Target
The Curiosity target is located 550m below the Santa Maria epithermal vein system and has a pipe-like geometry with a diameter of approximately 1km, expanding to 2km at depth. This target is supported by the drone magnetic inversion model, which shows a strongly magnetic core located above and to the side of the geochemistry model.
Cerro-Ferro Target
The Cerro-Ferro target begins near the surface and extends to a depth of approximately 500m. At greater depths, a significantly larger target develops, extending to approximately 1,250m. This target area is supported by existing drilling and the location of the Mineral Resources at Ferro and Cerro, as well as the drone magnetic inversion model.
Ongoing Programs
Surface sampling programs continued during the quarter to improve the spatial coverage and analytical information of the datasets. The company has invited tenders from four Chilean drilling companies for an initial RC drilling program up to 250m depth, targeting resource expansion and possible pre-collars for deep targets. Subsequent deeper diamond drilling will use historical holes where possible to optimize costs.
Corporate Activities
During the quarter, Southern Hemisphere Mining raised A$5M through a share placement to institutional investors at an issue price of $0.035 per share. The company is now fully funded to commence its drilling campaign at Llahuin. Additionally, the company has filed for a VAT refund in Chile, with accumulated returns indicative of A$3.5M.
The identification of new drill targets and the successful raising of A$5M in funding are significant positive developments for Southern Hemisphere Mining. These advancements are likely to boost investor confidence and positively impact the company's stock price. The upcoming drilling campaign could lead to substantial resource increases, further enhancing the company's valuation.
Investor Reaction:
Investors and analysts have reacted positively to the announcement, noting the potential for significant resource expansion at the Llahuin Copper-Gold Porphyry Project. The successful funding round has also been seen as a strong vote of confidence from institutional investors.
Conclusion:
Investors should keep a close eye on Southern Hemisphere Mining's upcoming drilling campaign and the results of the new targets. The company's strategic advancements and strong financial position make it a compelling investment opportunity in the mining sector.