Chile- The Home of Copper
- Advanced, large-scale copper project with PFS complete
- One of the best located new copper developments globally- Chile, low altitude, infrastructure rich, low capital intensity
- Hot Chili Limited Projects Overview:
- Productora Project
The Productora project is Hot Chili’s flagship project in Chile.
Located 15km south of the town of Vallenar, at low altitude (~800m ASL), in Chile’s Region III, the project benefits from its proximity to existing infrastructure, including the Pan-American Highway, rail, grid power, and established port facilities (water).
In March, 2016 the Company delivered the Productora Pre-feasibility study (PFS), which nearly doubled the existing Ore Reserves at the project. Highlights of the study include:
- Productora confirmed as a new global copper development with strong potential to add further mine life and scale
- Benchmarking demonstrates competitive financial metrics for return on investment and capital intensity
- Positioned as one of the best low-altitude and infrastructure-rich copper developments in Chile. Access and easements to establish key infrastructure already secured
- Mineral Resource expanded to 1.47Mt contained copper and 0.98Moz gold and growing
- Ore Reserve tonnage near-doubled to 166.9Mt. Contained metal now stands at 0.72Mt of contained copper and 0.47Moz of gold
- 10 year mine life with first 8 years production averaging 66kt copper and 25koz gold annually
- Pre-production capital cost of US$725 million (incl US$82M contingency)
- Project revenue of US$4.3 billion, based on long term price deck
- Very competitive C1 cash cost of US$1.47/lb paid metal (including credits)
- Highly leveraged to copper price, resource growth and operating cost improvements
The Company is now assessing various leverage opportunities which include:
- Mine life extension - Exploration of identified large-scale copper porphyry potential adjacent to the planned central pit. The discovery of Alice and the commencement of porphyry resource growth have the potential to rapidly grow Mineral Resources and Ore Reserves.
- Operating cost improvements - Study of an Owner-operator mining scenario (to take advantage of globally depressed mining equipment prices and lower mining costs) including low-cost mine re-handle strategies.
Productora is now positioned with a very strong Mineral Resource base of ~1.5Mt copper and 1M oz of gold, at the beginning of an exciting phase of growth for the Company.