Southern Hemisphere Mining (ASX:SUH) has signed an option...

Southern Hemisphere Mining (ASX:SUH) has signed an option agreement to farm-out its Juan Soldado Iron-Copper-Gold Project in central Chile to a Chilean private equity fund.

Fondo de Inversión Privado EPG Exploración Minera (EPG Exploration Fund), a private fund managed by EPG Partners, will sole fund US$1.2 million (A$1.46 million) worth of exploration expenditure to earn a 50.1% interest in the project.

This includes a minimum of 1,000 metres of drilling.

Juan Soldado is located in Region IV, 20 kilometres north of La Serena in central Chile.

The 1,200 hectare project covers four granted Exploration Licences encompassing a 6km strike length of a major regional structure referred to as the Romeral Fault.

The area is highly prospective for iron oxide-copper-gold (IOCG) style mineralisation, as evidenced by its proximity to the operating El Romeral iron ore mine, located immediately along strike, and the nearby Santa Dominga, La Higuera, and Caballo Blanco deposits, located along strike to the north and south.