“Hot Chili is well on track to become the next major ASX-listed copper producer”
Hot Chili (ASX: HCH) is well on track to become the next major ASX-listed copper producer, with the Pre-feasibility study on its Productora copper project in Chile due for completion in the second half of 2015.
Hot Chili owns the rapidly growing Productora Copper Project in Chile, where resources already stand at over 1 million tonnes of copper and 675,000oz of gold. This inventory is expected to underpin long life, bulk tonnage open pit production of up to 60,000t of copper a year.
Hot Chili recently completed a landmark infrastructure deal with Chilean resource major CMP, with CMP earning 17.5% in Productora in return for contributing surface rights, easements and its mining rights related to Productora.
The deal is pivotal to Productora because the CMP assets will help reduce time and costs associated with the infrastructure needed to underpin the project, and gives Hot Chili a powerful local partner with extensive financial resources and local mining experience. CMP also has an option to acquire an additional 32.6% interest (taking CMP to 50.1%) in Productora for a minimum cost of US$80 million and maximum of US$110 million. This option agreement aligns the interests of both parties to ensuring Productora has a clear funding path through its final stages of growth and development studies.
Earlier this year Hot Chili confirmed the Alice discovery at Productora as a porphyry-style deposit. The addition of Alice and any further bulk porphyry-style discoveries will underpin substantial increases to Productora's Mineral Resources and Ore Reserves, and highlights the potential for Productora to elevate into a new class of much larger emerging copper developments.
Hot Chili is focused on delivering a PFS along with a revised Mineral Resource estimate and Ore Reserve statement for Productora in the second half of 2015, ensuring Hot Chili is on track to capitalise on the forecast recovery in the copper price as it advances Productora towards production in 2019.