Southern Hemisphere Mining Limited · ASX:SUH
Southern Hemisphere Mining — Investor Presentation (June 2010)
33 slides from Southern Hemisphere Mining's investor presentation, June 2010
Slide 1: Southern Hemisphere Mining Limited - Los Pumas Project
Southern Hemisphere Mining Limited June 2010 Los Pumas Project
Slide 2: Disclaimer Notice
Disclaimer Notice This Presentation contains certain forward –looking information and forecasts. Such forecasts , projections and information are not a guarantee of the Company’s future performance and include unknown risks and uncertainties. Accordingly, the actual results and developments may diff
Slide 3: Overview
Overview Los Pumas Project location Dual listed exploration company focused on early development of Los Pumas Manganese Project in Northern Chile Completed a secondary listing on the ASX in January 2010 ASX Code: SUH Company Focus Los Pumas Manganese Project – target completion of project fe
Slide 4: SUH Share Price since listing and capital structure
Southern Hemisphere SUH Share Price since listing Listed on ASX - 5 January 2010 $0.60 5,000,000 $0.50 4,000,000 Major shareholders include Board of $0.40 3,000,000 Directors and independent Chinese $0.30 investors $0.20 2,000,000 $0.10 1,000,000 Fully funded to complete Los Pumas $0.00 0 Mang
Slide 5: Board of Directors
Board of Directors Chairman and Managing Director Non-Executive Director mining engineer with over 37 over 25 years experience in mine Trevor Tennant years experience Eduardo Valenzuela operations, technical services and previous executive director of project financing Portman, OMH and Territo
Slide 6: Mining in Chile
Mining in Chile The largest copper producer in the world Strong mining history with westernised regulations Robust, growing economy and stable government Australia, Canada, USA, EU, China, Japan, South Korea, Mexico and European Free Trade Association have free trade agreements Los Pumas P
Slide 7: Manganese market
Manganese market Manganese is primarily used in steel production with no suitable substitute Increasing steel production (especially in China) is increasing the demand for Manganese Manganese Price History (44% Mn) 18 Market fundamentals are changing, 15 leading to increased Chinese imports Ma
Slide 8: Los Pumas Manganese Project
Los Pumas Manganese Project Los Pumas Regional Location Map Large, easy to mine JORC Resources Low capital and operating costs expected Excellent logistics and near mine infrastructure Shallow deposit with low strip ratio Beneficiates using heavy liquid separation High manganese to iron
Slide 9: Potential Development Scenario
Potential Development Scenario Targeting annual production of 400kt with plant designed to 500ktpa (38% Mn, 1.0% Fe, 20% SiO2 and 0.06% P) Product Sizing 10mm – 0.5mm Recent discussions with alloy producers indicates a market for minus 0.5mm product. This could add a further 20% of Mn units avai
Slide 10: Project Infrastructure
Project Infrastructure Arica Port Undercover stockpile warehouse Ship loading conveyor system Port Infrastructure Arica Port 170km by road from Los Pumas with bulk loading capabilities for Handymax ships Undercover stockpile facilities available (used for zinc concentrates from Bolivia) Additi
Slide 11: Project Infrastructure
Project Infrastructure Arica – La Paz Rail Line Arica – La Paz Highway Project Access Road Transport logistics Major arterial highway from Arica to La Paz 40kms from Los Pumas Rail line between Arica to La Paz less than 11km from Los Pumas – considered for re-commissioning by Chilean Government
Slide 12: Project Infrastructure
Project Infrastructure Proposed Mine Camp/Hotel at Putre Regional Capital of Arica Arica Chacalutta Airport Mine Camp Mine camp/hotel available at Putre – established by Shell to service a large mine workforce at mothballed gold mine – We have come to agreement on the terms of a sale and purchase
Slide 13: Geology
Geology Los Pumas Project Area DDH drilling at Los Pumas Tabular flat mantle near surface Resource at 0-30m depth with low strip ratio Past artisan mining activity evident
Slide 14: Geology
Geology Mineralisation is flat, shallow and easy to mine, outcropping, to a maximum depth of 30m Los Pumas Cross Section of the North Sector Los Pumas Major Geological Features Taapaca Volcano Los Pumas Project Area Taapaca Volcanic Complex (TVC) Lauca Ignimbrite (PII) Huaylas Formation (Msh) Los Pu
Slide 15: Northern segment of Los Pumas deposit showing drill collar locations
Northern segment of Los Pumas deposit showing drill collar locations
Slide 16: Bulk sample shafts and pilot plant testing at Mintek
Four shafts were sunk into the deposit to get a large bulk sample for dynamic pilot plant testing at Mintek’s laboratory in South Africa. Results from the processing of bulk samples through a pilot plant are currently being received.
Slide 17: Resource
Resource LOS PUMAS PROJECT JORC COMPLIANT RESOURCE ESTIMATION - APRIL 2010 Resource Tonnes Mn SiO2 Fe Al2O3 P (Mt) (%) (%) (%) (%) (%) High Grade Measured 4.3 9.4 58.5 1.8 5.7 0.04 +4%Mn Indicated 6 9 57.8 2.0 5.8 0.04 Measured plus Indicated 10.3 9.2 58.2 1.9 5.7 0.04 Inferred 3.1 10.3 56.2 2.0 5.5
Slide 18: Metallurgy
Metallurgy Los Pumas Drill Core Regional Artisanal Workings Test work from surface grab samples using heavy liquid at an S.G. of 3.0 – average of 37.4% Mn, 1.0% Fe, 22.3% SiO2 and 0.07% P Exceptionally high Mn to Fe ratio makes product highly attractive to smelters
Slide 19: Metallurgy
Metallurgy Heavy liquid separation tests on core samples were designed to test yields and product grades from different litho units that comprise the Los Pumas Manganese deposit. An initial review of the results indicate that the Lauca lithological unit delivers the most promising results. These for
Slide 20: Testing at Mintek's plant in South Africa
Crushed bulk samples prior to dense media testing at Mintek’s plant in South Africa
Slide 21: Los Pumas Met Testwork
Los Pumas Met Testwork HLS Products on UG2M and UG3M @ 2.4 sg @ 3.2 sg @ 2.4 sg @ 3.2 sg
Slide 22: Los Pumas Met Testwork
Los Pumas Met Testwork Pilot DMS Set-up at Mintek Feed Hopper DMS Cyclone would be at the top Medium tank Medium pump
Slide 23: Results of HMS tests prior to pilot plant test work
Results of HMS tests prior to commencement of pilot plant test work The mass yields have allowed for the fines generated by crushing. Cal'd Head Grade HLS Sinks Grade at 2.8 SG HMS Mass Yield Mn Geological Unit Mn Fe Mn Fe Al 2O3 SiO2 CaO Mass Yield Recovered % % % % % % % % % % 42.79 2.08 Block and
Slide 24: Feasibility Study Progress
Feasibility Study Progress • Original Schedule to end June - 50.4% • Actual Schedule - 45.2% • Scheduled Completion Date - 9 Sep 10 • Forecast Completion Date - 9 Sep 10
Slide 25: Feasibility Study Progress
Feasibility Study Progress Minera Hemisferio Sur Scope Resource Estimation 83% All fieldwork complete Recently commenced after Production Modelling 15% final drilling Testwork in progress in Metallurgical testwork 70% South Africa Pricing from contractors in Contract Mining Estimate mid-August Study
Slide 26: Regional Exploration
Regional Exploration Regional map of exploration potential Mineralisation known since World War II but potential not assessed previously Other regional manganese targets identified
Slide 27: Project Status
Project Status Identified the Los Pumas Project in 2008 Key tasks completed: 482 RC drill holes (14,177 m ) 32 Diamond Drill holes (650 m ) Measured, indicated and inferred resources estimated – independent recalculation underway Hydrology Report completed Crushability and SG tests on
Slide 28: Targeted Milestones
Targeted Milestones July 2010 Revised resource estimate Third quarter 2010 Completion of Definitive Feasibility Study Second half 2010 Raise capital for project development Second half 2011 First shipment
Slide 29: Copper/Gold Projects
Copper/Gold Copper/ Gold Projects Projects 29
Slide 30: Chitigua Copper Project
480000 490000 Chitigua Copper Project * | SOUTHERN +) HEMISPHERE mining limited 480000 490000 510000 520000 530000 30
Slide 31: Copper/Gold Exploration Projects
Copper/Gold Exploration Projects Historical open cut at La Cuyana in the Central Cluster Historical mining activity at Tres Cruces in the Central Cluster Large portfolio of exploration projects throughout Chile over 800km2 Held in four clusters: – Calama – Salamanca – Southern – Central
Slide 32: Copper/Gold Exploration Projects
Copper/Gold Exploration Projects Initial exploration work to be focused on a small number of projects - a preferred target will be drill tested Calama Cluster Chitigua Project porphry copper on controlling structure to some of world’s largest copper mines Salamanca Cluster Las Santas Project por
Slide 33: Summary
Summary Los Pumas Manganese Project – large easy to mine JORC Inferred Resource – low capital and operating costs expected – excellent logistics and near mine infrastructure – shallow deposit with low strip ratio – beneficiates using heavy liquid separation – high manganese to iron ratio and low p
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