Southern Hemisphere Mining Strikes Gold in Chile (ASX:SUH)
The share price of Chile-focused mineral explorer Southern Hemisphere Mining Ltd [ASX:SUH] has rocketed upwards today on the discovery of gold at its Colina2 gold project in Chile.
Progress at Colina2 has been slow, with SUH acquiring the project in 2012.
The company’s exploration project at the site commenced only in March this year to determine the source of the gold previously identified in the soil.
Preliminary works have now turned up promising results with some decent gold grading.
At the time of writing, the SUH share price was up 60%, trading at 4.8 cents per share.
The news has pushed SUH shares well above their previous 52-week high of 3.1 cents per share.
Shares have now made a return of ~157% over the past 12 months.
Small steps but good gold
The results from Colina2 are only preliminary but do suggest some decent potential at the site.
Though today’s results are a little different than those we usually see from explorers…
We typically see results from drilling rigs however, SUH results come from a method called trenching (the name is self-explanatory).
Due to regulations we rarely see this type of method in Australia.
No matter, the results are still promising.
Samples at the site were collected on a 1m length along the trench.
Significant results are shown in the table below.
Source: Southern Hemisphere Mining
Basically, what these results tell us is that there is potential for high-grade gold mineralisation at the Colina2 project.
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But not much more than that unfortunately. Keep in mind, it’s still early days.
Planned work at Colina2 includes additional surface trenching to better define the potential strike of the gold mineralisation.
SUH also said drilling will take place to test the already discovered gold mineralisation.
Historic gold birthing more multi-mineral stocks
With the gold price at historic highs, it seems that a greater number of small-cap explorers are making a play into gold.
We discussed this briefly yesterday.
SUH is another of these multi-mineral explorers. The company owns two other mineral projects in Chile.
These are the Los Pumas manganese project and the Llahuin porphyry copper-gold project.
The Llahuin project has a JORC (2004) compliant resource of 149Mt with grading of 0.41% copper equivalent and 0.12 grams of gold per tonne (g/t).
The Los Pumas project also has a JORC (2004) compliant resource.
Los Pumas resource estimate includes 18.3Mt at a grade of 7.58% manganese.
SUH is currently seeking a joint venture or sale of Los Pumas.
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