Technical Report – Los Pumas Manganese Project Chile
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Australian Office: Southern Hemisphere Mining Limited PO Box 598 T: +61 8 9481 2122 West Perth F: +61 8 9481 2322 ASX: SUH WA 6872 www.shmining.com.au TSX-V: SH Chilean Office: Minera Hemisferio Sur SCM Unit 1103 Roger de Flor 2907 Los Condes, Santiago 25 March 2011 Australian Securities Exchange Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000 Dear Sir/Madam Technical Report – Los Pumas Manganese Project Chile For disclosure purposes, please refer below for a Technical Report issued in Canada by the Company. The Technical Report is issued in support of the announcement ‘Resource Upgrade - Los Pumas Manganese Project’ lodged on 9 February 2011. Yours faithfully SOUTHERN HEMISPHERE MINING LIMITED Derek Hall Company Secretary Los Pumas Manganese Project, Chile Technical Report Prepared by Coffey Mining Pty Ltd on behalf of: Southern Hemisphere Mining Limited Effective Date: 21 March 2011 Qualified Persons: Ian Dreyer - BSc (Geol.), AUSIMM Coffey Mining Pty Ltd DOCUMENT INFORMATION Author: Ian Dreyer Principal Geologist BSc (Geol), MAUSIMM Tony Mason Principal Metallurgist PhD, C.Eng, F.I.M.M.M Date: 21 March 2011 Project Number: MINEWPER00645AD Version / Status: Final Path & File Name: F:\MINE\Projects\Southern Hemisphere Mining\MINEWPER00645AD_Geological Interpretation & Resource Model\Report\CMWPr_645AD_LosPumas_TechnicalReport_March2011_23March11.docx Print Date: 21st March 2011 Copies: Southern Hemisphere Mining Limited (2) Coffey Mining – Lima (1) Coffey Mining – Perth (1) Document Change Control Version Description (section(s) amended) Author(s) Date Document Review and Sign Off [signed] [signed] Primary Author Supervising Principal Ian Dreyer Alex Virisheff Los Pumas Manganese Project, Chile – MINEWPER00645AD Technical Report – 21 March 2011 Coffey Mining Pty Ltd Table of Contents 1 Summary .......................................................................................................................................1 2 Introduction ..................................................................................................................................3 2.1 Scope of the Report...........................................................................................................3 2.2 Principal Sources of Information .......................................................................................3 2.3 Qualifications and Experience ...........................................................................................3 2.4 Independence ....................................................................................................................4 2.5 Abbreviations .....................................................................................................................4 3 Reliance on Other Experts ..........................................................................................................5 4 Property Description and Location ............................................................................................6 4.1 Project Location .................................................................................................................6 4.2 Land Area ..........................................................................................................................7 4.3 Mining Claim Description ...................................................................................................7 4.4 Agreements and Encumbrances .......................................................................................9 4.5 Environmental Liabilities and Permits ...............................................................................9 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ...................... 10 5.1 Access ............................................................................................................................ 10 5.2 Physiography and Climate ............................................................................................. 10 5.3 Local Resources and Infrastructure ............................................................................... 10 6 History ........................................................................................................................................ 13 6.1 Ownership History .......................................................................................................... 13 6.2 Exploration History ......................................................................................................... 13 6.3 Resource History ............................................................................................................ 13 6.4 Production History .......................................................................................................... 13 7 Geological Setting ..................................................................................................................... 14 7.1 Regional Geology ........................................................................................................... 14 7.2 Project Geology .............................................................................................................. 16 7.2.1 Huaylas Formation (MSH) ..................................................................................... 18 7.2.2 Lauca Formation (PIPI) ......................................................................................... 18 7.2.3 Taapaca Volcanic Complex (TVC) ........................................................................ 19 8 Deposit Types ............................................................................................................................ 20 9 Mineralisation ............................................................................................................................ 21 10 Exploration ................................................................................................................................. 23 11 Drilling ........................................................................................................................................ 24 12 Sampling Method and Approach ............................................................................................. 25 13 Sample Preparation, Analyses and Security .......................................................................... 26 14 Data Verification ........................................................................................................................ 27 Los Pumas Manganese Project, Chile – MINEWPER00645AD Technical Report – 21 March 2011 Coffey Mining Pty Ltd 14.1 Assay .............................................................................................................................. 27 14.2 QAQC ............................................................................................................................. 27 14.2.1 Standard Data ....................................................................................................... 27 14.2.2 Field Duplicate Data .............................................................................................. 27 14.2.3 Laboratory Duplicate Data ..................................................................................... 27 14.2.4 Blanks .................................................................................................................... 27 14.2.5 Umpire Assays ...................................................................................................... 27 14.2.6 Twinned DDH and RC Holes ................................................................................. 31 14.2.7 Conclusions and Recommendations ..................................................................... 31 14.3 Bulk Densities ................................................................................................................. 31 15 Adjacent Properties .................................................................................................................. 35 16 Mineral Processing and Metallurgical Testing ....................................................................... 36 17 Mineral Resource Estimates and Mineral Reserve Estimates .............................................. 38 17.1 Introduction ..................................................................................................................... 38 17.2 Database Review ........................................................................................................... 38 17.3 Geological Modelling ...................................................................................................... 41 17.4 Sample Selection and Compositing ............................................................................... 46 17.5 Basic Statistics ............................................................................................................... 47 17.6 Variography .................................................................................................................... 50 17.7 Block Modelling .............................................................................................................. 54 17.8 Grade Estimation ............................................................................................................ 55 17.9 Ancillary Fields ............................................................................................................... 58 17.10 Resource Classification