Southern Hemisphere eyes 3D copper-gold model in Chile

Southern Hemisphere Mining has used high-tech 3D modelling to unearth two new compelling targets at its flagship Llahuin copper-gold project, some 350km north of Santiago in the South American country of Chile.

The company says an impressive combination of 3D geophysical modelling and a 3D geophysical magnetic inversion model has generated promising targets to help it grow its existing resource that consists of 169 million tonnes at 0.4 per cent copper-equivalent. This provides a 680,000-tonne copper-equivalent resource.

Management engaged Fathom Geophysics to apply its proprietary 3D porphyry footprint modelling method, to map a potential deposit zone based on a known geochemical method. It involves the use of 11 different mineral elements to return the probability of the presence of a porphyry system at a given point in 3D space.

Surface soil samples were used instead of rock chips to create a 3D model outcome, providing the company with better geographical coverage and analytical information. The two targets generated are now known as the Curiosity and the Cerro-Ferro Deeps targets.

3D inversion model drone magnetics was then completed to complement the geochemical modelling. Southern Hemisphere says magnetic inversion modelling and geochemical results complemented each other, with highly-magnetic bodies both adjacent to and above the geochemical footprint models.

The company says its new Curiosity target at the Southern Porphyry prospect sits 550m below the Santa Maria gold workings and is about 1km in diameter, with a depth of 2km where the diameter of the target increases to 2km.

Management is planning to conduct deep drill-testing of Curiosity in the second half of the year, with the work to be funded by expected VAT returns. No drilling or modern exploration has occurred previously at the target.

The scale of the Curiosity Target for a very large copper gold deposit next to our existing resources is way beyond our expectations, and we are looking forward to drilling it.

The Cerro-Ferro target area and the validation of the geochemical model is supported by historic drilling and the resources at the Cerro-Ferro deposit. Further validity is provided by the magnetic inversion model with magnetic cores adjacent to the geochemistry footprint.

The target begins near surface, both outside and below the current resource to a depth of about 500m. With further depth extending to 1250m, a much bigger target forms with the footprint extending 2200m north-to-south and some 900m east-to-west, with a thickness of 650m.

The company plans to release further results from work in progress to assist with refining the two large targets, in addition to the open-pit expansion of current resources.

Southern Hemisphere’s move to bulk-up its Llahuin resource at the time of rising copper prices may be a smart move.

Investment bank Goldman Sachs is bullish on copper, expecting the commodity to experience a supply gap of 250,000 tonnes in this year’s second quarter. Then in the second half of this year, it expects the supply gap to widen to 450,000 tonnes and trigger a price rise to US$10,000 (AU$15,216) per tonne by the end of the year.

Since March, global copper prices have continued to rise. Goldman Sachs’ analysis points out that with strong demand in China and continuous supply constraints, the copper market will gradually transition to a pattern of sustained supply shortages that will support higher prices.

Southern Hemisphere also has an interesting manganese play, with its Los Pumas project to the north of Llahuin that contains 30.26 million tonnes grading 6.24 per cent manganese.

The company has promising deposits, with both copper and manganese minerals expected to play a big part in the future electrification of nearly anything that produces carbon, placing it in an envious position.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au