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Los Pumas Project, Chile Technical Report Southern Hemisphere

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Los Pumas Project, Chile Technical Report Southern Hemisphere Los Pumas Project, Chile Technical Report Prepared by Coffey Mining Pty Ltd on behalf of: Southern Hemisphere Mining Limited Effective Date: 20 December 2010 Qualified Person: Ian Dreyer, BSc (Geol), AuslMM MINEWPER00 Los Pumas Project, Chile Technical Report – 20 December 2010 Table of Contents 1 Summary ....................................................................................................................................8 1.1 Introduction .....................................................................................................................8 1.2 Preliminary Assessment ..................................................................................................8 1.3 Facilities ..........................................................................................................................9 1.4 Ownership ..................................................................................................................... 10 1.5 Geology and Mineralization ...........................................................................................11 1.6 Hydrogeology ................................................................................................................11 1.7 Status of Exploration .....................................................................................................12 1.8 Data Acquisition ............................................................................................................12 1.9 Data Reliability .............................................................................................................. 13 1.10 Mineral Resources ........................................................................................................13 1.11 Mining ........................................................................................................................... 15 1.11.1 In-Pit Resources ............................................................................................................. 15 1.11.2 Statement of Preliminary Assessment – Preliminary in Nature .................................... 17 1.12 Financial Evaluation ...................................................................................................... 18 1.13 Environmental Approval ................................................................................................ 18 1.14 Key Performance Indicators .......................................................................................... 19 1.15 Risk Analysis ................................................................................................................. 19 1.16 Conclusions and Recommendations ............................................................................. 20 2 Introduction .............................................................................................................................. 21 2.1 Scope of Report ............................................................................................................21 2.2 Principal Sources of Information....................................................................................21 2.3 Site Visit ........................................................................................................................ 21 2.4 Authors’ Qualifications and Experience ......................................................................... 22 2.5 Units of Measurements .................................................................................................22 2.6 Independence ...............................................................................................................22 2.7 Abbreviations ................................................................................................................24 3 Reliance on Other Experts ...................................................................................................... 25 4 Property Description and Location ........................................................................................26 4.1 Background ...................................................................................................................26 4.1.1 Economy ........................................................................................................................ 26 4.1.2 Legal ............................................................................................................................... 26 4.2 Area of the Property ......................................................................................................31 4.3 Project Location ............................................................................................................31 4.4 Type of Mineral Tenure .................................................................................................32 4.5 The nature and extent of the Titles ................................................................................34 4.6 Boundaries of Properties ...............................................................................................35 4.7 Outside Property Boundaries ........................................................................................35 4.8 Royalties / Agreements and Encumbrances .................................................................. 35 4.9 Environmental Liabilities and Permits ............................................................................ 35 Los Pumas Project, Chile Technical Report – 20 December 2010 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ....................... 36 5.1 Access .......................................................................................................................... 36 5.2 Physiography and Climate ............................................................................................36 5.3 Local Resources and Infrastructure ............................................................................... 36 6 History ...................................................................................................................................... 39 6.1 Ownership History .........................................................................................................39 6.2 Exploration History ........................................................................................................39 6.3 Resource History ...........................................................................................................39 6.4 Production History .........................................................................................................39 7 Geological Setting ................................................................................................................... 40 7.1 Regional Geology ..........................................................................................................40 7.2 Project Geology .............................................................................................................42 7.2.1 Huaylas Formation (Msh) ............................................................................................... 43 7.2.2 Lauca Formation (PIPI) .................................................................................................. 43 7.2.3 Taapaca Volcanic Complex (TVC) ................................................................................ 44 8 Deposit Types .......................................................................................................................... 45 9 Mineralization ........................................................................................................................... 46 10 Exploration ............................................................................................................................... 48 11 Drilling ...................................................................................................................................... 49 12 Sampling Method and Approach ............................................................................................ 50 13 Sample Preparation, Analyses and Security .........................................................................51 14 Data Verification ...................................................................................................................... 52 14.1 Assay ............................................................................................................................ 52 14.2 QAQC ........................................................................................................................... 52 14.2.1 Standard Data ................................................................................................................ 52 14.2.2 Duplicate Data ................................................................................................................ 52 14.2.3 Umpire Assays ............................................................................................................... 52 14.2.4 Blanks ............................................................................................................................. 52 15 Adjacent Properties ................................................................................................................. 56 16 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................. 57 17 Mineral Resource and Mineral Reserve Estimates
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