Southern Hemisphere Mining's Llahuin Project: A Quarter of Progress
SOUTHERN HEMISPHERE MINING LIMITED (SUH) Share Update October 2024 Wednesday 23rd
Southern Hemisphere Mining Reports Significant Progress at Llahuin Project
Southern Hemisphere Mining Limited has released its quarterly activity report, highlighting substantial advancements at its Llahuin Copper-Gold-Moly Project in Chile.
Instant Summary:
- Continued drilling at Llahuin Copper-Gold-Moly Project.
- New zones of Molybdenum identified through pXRF assays.
- Engagement of Hyland Geological for resource estimate upgrade.
- Significant new rock chip sampling results.
- 156 new rock chips collected for assay.
Exploration Activities
During the quarter, Southern Hemisphere Mining focused on advancing the Llahuin Copper-Gold-Moly Project. The company continued its drilling operations, aiming to enhance the copper and gold resources from the 2013 estimates. The new drilling data, along with re-interpretation and re-logging efforts, are expected to significantly boost the project's resource estimates.
The company conducted a pulp compositing campaign using pXRF assays, which identified significant zones of Molybdenum in historical drill holes that were not previously assayed. Notable intercepts included 150m at 375ppm Mo from 20m in drillhole RDLLA014 and 20m at 756ppm Mo from 110m in drillhole DDLLA018.
Resource Estimate and Future Plans
Southern Hemisphere has engaged Hyland Geological and Mining Consultants to upgrade the mineral resource estimate, incorporating all recent drilling results. This upgrade is anticipated in the first half of 2025, aiming to provide a comprehensive view of the project's potential.
Additionally, the company collected 156 new rock chip samples and selected 73 historical drillhole pulp samples for multi-element assay. These efforts are part of refining the 3D modeling for the Curiosity and Cerro-Ferro Deeps drill targets.
Other Projects and Corporate Activities
While the main focus remains on Llahuin, Southern Hemisphere continues to market its Los Pumas Battery Metals Manganese Project and the Lago Lithium Brine Project. The company is actively seeking partnerships or sales opportunities for these assets.
On the corporate front, directors increased their shareholdings with purchases totaling approximately $93k. The company also filed for a VAT refund in Chile, which could result in a refund of around A$3.5m, pending governmental approval.
The advancements at the Llahuin Project are likely to positively impact Southern Hemisphere's stock, as the potential for increased resource estimates could attract investor interest. The identification of significant Molybdenum zones adds value to the project, given the current market price of Molybdenum compared to copper.
Investor Reaction:
Analysts may view the progress at Llahuin positively, particularly the potential for a resource estimate upgrade. However, the company's financial position and cash flow management will be closely monitored, given the ongoing exploration expenses.
Conclusion:
Investors should keep an eye on Southern Hemisphere's upcoming resource estimate update in 2025, which could significantly influence the company's valuation and market position. The company's strategic focus on its key projects will be crucial for maintaining investor confidence.