Southern Hemisphere, FMR lock-in Chilean | Australian Markets

Southern Hemisphere Mining and FMR Resources have locked and loaded their earn-in three way partnership throughout 4 concessions within the southern portion of Southern Hemisphere’s Llahuin copper-gold-molybdenum project in Chile, after FMR accomplished its technical due diligence.

The two corporations revealed in June that FMR had signed a binding time period sheet to earn up to 60 per cent of the southern concessions by funding a minimal $13 million in exploration and drilling over 5 years and two phases.

Upfront funds for the earn-in on the project, 350 kilometres north of Chile’s capital metropolis of Santiago, comprise a complete $2.67 million, which incorporates FMR issuing 937,500 shares valued at about $150,000 on the time of the disclosure and $2.52 million in money.

FMR appointed skilled mining government Oliver Kiddie, a geologist with 20 years’ expertise, to come back aboard as managing director and navigate its course throughout the Chilean project.

Kiddie beforehand held senior government positions with Dominion Mining, Creasy Group and Legend Mining. He brings a observe report of discoveries on the Silver Knight and Mawson nickel-copper-cobalt deposits.

FMR efficiently accomplished a $2.2 million placement to assist the transaction. Notably, billionaire prospector Mark Creasy has joined its register as a substantial shareholder.

Meanwhile, Southern Hemisphere retains all of the project’s potential northern concessions. It may also maintain on to the company’s Ferrocarril deposit and Ferro South and Ferro West targets, along with its Cerro and Central ground.

Southern Hemisphere maintains a firm grip on all outlined assets on the project website, consisting of a copper useful resource with 218.2 million tonnes grading 0.38 per cent copper equal for 496,600t of copper, 654,900 ounces of gold and 12,500t of molybdenum.

The useful resource, beforehand measured below 2004 JORC pointers, now meets 2012 JORC-compliant pointers.

With many thick intervals from floor or shallow depths, Southern Hemisphere feels it’s in a large place to bolster the useful resource with near-surface tonnes and supply for a potential open-pit operation on the project.

The company believes the settlement with FMR gives it with publicity to an aggressive and well-funded exploration program, with FMR planning deep drilling to focus on the Southern Porphyry copper-gold prospect later this 12 months.

The promising Curiosity goal is within the Southern Porphyry prospect and can type FMR’s main space of curiosity among the many concessions.

We are delighted to welcome FMR to the Llahuin copper-gold project and stay up for joint exploration success throughout the Southern Porphyry zone.

The completion of the Llahuin JV transaction is one other important step as FMR embarks on section one drilling of the thrilling Southern Porphyry goal space.

Southern Hemisphere has additionally accomplished a deep penetrating magneto-telluric (MT) geophysical survey on the probably company-making Curiosity goal.

It revealed a attainable massive copper-gold porphyry system under historic shallow copper porphyry-style mineralisation, offering FMR with lots of work to keep it busy.

Curiosity is 550 metres under the earlier Santa Maria gold workings and is about 1km in diameter and up to 2km deep.

The Curiosity goal is supported by a soil geochemistry anomaly at floor and two shallow drill holes that produced drill intervals of 164m at 0.16 per cent copper equal from 2m and 106m working 0.13 per cent copper equal from 28m.

A 2m slice grading 1.45 per cent copper equal from 168m gives additional encouragement to FMR that it might have lots to work with.

The stage one earn-in initially requires FMR to spend a minimal $1 million on the concessions within the primary 12 months, together with drilling not less than one gap for a minimal of 1400m.

For FMR to earn a 50 per cent legal and helpful curiosity within the agreed concessions, it should spend $3 million within the primary two years, together with a minimal 6000m drill program. When accomplished, a three way partnership shall be established to discover and mine all minerals within the agreed concessions.

Within 30 days of finishing the stage one earn-in necessities, FMR might elect to earn an further 10 per cent, bringing its stake to 60 per cent of the project’s southern concessions. To obtain this, FMR can pay Southern Hemisphere $2.5 million in money or FMR shares at FMR’s election within 60 days and spend a additional $10 million on the website over three years.

The JV earn-in settlement might nicely produce a win-win consequence for the 2 lively mineral explorers.

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