Line up of Drill Rigs
The High Grade Sweeteners

El Fuego

SAN ANTONIO

San Antonio forms part of the Company’s new consolidated El Fuego copper project in Chile, and is located 20km east of Productora.

    The Company has now completed its first-pass 5,000m drilling programme across two recently consolidated high grade copper mines, which had seen little previous modern exploration owing to their private ownership for over 50 years.
    The majority of drilling was directed towards San Antonio which had reportedly produced approximately 2M tonnes grading 2% copper and 0.3g/t gold and 17g/t silver from shallow depths since mining commenced in 1964.

The Company has completed a first-pass 5,000m drilling programme across two recently consolidated high grade copper mines (San Antonio & Valentina), which had seen little previous modern exploration owing to their private ownership for over 50 years.

The majority of drilling was directed towards San Antonio which had reportedly produced approximately 2M tonnes grading 2% copper and 0.3g/t gold and 17g/t silver from shallow depths since mining commenced in 1964.

Significant results include:9m grading 2.0% copper from 132m down-hole depth,

 

  • 16m grading 1.1% copper from 93m down-hole (including 5m grading 2.7% copper),

  • 6m grading 2.1% copper from 65m down-hole depth,

  • 19m grading 2.0% copper from 61m down-hole depth (including 11m grading 2.4% copper),

  • 15m grading 1.7% copper from 80m down-hole depth,

  • 13m grading 1.3% copper from 17m down-hole depth (including 5m grading 2.3% copper),

  • 53m grading 0.9% copper from 72m down-hole depth (including 27m grading 1.3% copper),

  • 10m grading 1.6% copper from 58m down-hole depth (including 4m grading 2.7% copper),

  • 5m grading 2.5% copper from 31m down-hole depth (including 2m grading 4.3% copper),

  • 18m grading 1.3% copper from 52m down-hole depth (including 5m grading 2.1% copper), and

  • 11m grading 1.6% copper from 83m down-hole depth

 

HCH drilling results have confirmed the discovery of significant extensions to high grade copper below the San Antonio mine area which indicate:

1. Copper sulphide mineralisation extends from shallow depth (10m from surface) and is associated with chalcopyrite and bornite,

 2. Mineralisation is dipping shallowly (30-40°) towards the east with the slope of the topography, representing ideal conditions for low-strip ratio open cut mining potential

3. Wider zones of mineralisation (20 to 30m true thickness) present in the historical underground mine have now been confirmed at depth by drilling (SAP0031 - 53m grading 0.9% copper, 3g/t silver from 72m down-hole depth (including 27m grading 1.3% copper, 3.9g/t silver),

4. Strong continuity of drilling intersections over 700m strike extent, with three in every 4 effective drill holes recording intersections of strong copper mineralisation over good widths, and

5. High grade copper mineralisation is open along strike and at depth, with current dimensions already representing significant open pit resource potential.

Given the shallow, high grade nature of mineralisation, San Antonio looks set to become a key addition to Hot Chili’s large-scale open pit resource inventory with the potential to make a positive material impact on the head grade of the Company’s future copper production plans.

VALENTINA

Valentina lies 5 kilometres north of the San Antonio project, and forms part of the Company’s growing El Fuego copper project.  

Due diligence completed by Hot Chili has confirmed Valentina as a third potential high grade copper opportunity (following San Antonio and Lulu) to define potential resources from a shallow high grade copper mine which has been privately owned for several decades. Valentina represents a second shallow copper deposit which will add further scale to Hot Chili’s targeted high grade resource inventory.

Two of these holes have recorded significant drilling intersections including:
• 12m grading 1.5% copper from 28m down-hole depth (including 6m grading 2.7% copper), and
• 8m grading 2.0% copper from 124m down-hole depth (including 2m grading 4.8% copper).

Three shallow holes have been drilled by the Company at Valentina, with two of these holes recording significant intersections:

  • 12m grading 1.5% copper from 28m down-hole depth (including 6m grading 2.7% copper), and

  • 8m grading 2.0% copper from 124m down-hole depth (including 2m grading 4.8% copper)

 

Copper mineralisation at Valentina is fault hosted within a sequence of andesites and volcaniclastics that have been locally intruded by felsic porphyry dykes. High grade copper sulphide mineralisation is present from near surface and is associated with chalcopyrite and bornite.

Certified historical mine production data from 1997 (Table 1), when the shallow (40m development depth) small-scale Valentina underground mine was in operation, has revealed that sulphide ore parcels ranged in grade between 3.4% and 4.8% copper (weighted average grade of 4.0% copper). Underground and surface data indicates ore was extracted over widths ranging between 1 and 5 metres.

 

LULU