Los Mantos Project
Drilling results confirm moderate widths of multi-commodity copper over 1.5km strike length

Exploration Activities

Los Mantos Drilling

The company’s 10,000m first-pass drilling programme at Los Mantos is now complete. Importantly this is the first drilling to be directed towards Los Mantos following over 40 years of small-scale mining at the project. Drilling has targeted substantial copper-gold shear-hosted and mantos zones that are currently being exploited from both surface and underground small-scale development over some 2.5km of strike length.

These first drilling results confirm Hot Chili’s earlier surface exploration which indicated a zoned metal distribution between the northern and southern zones of the deposit.

The northern zone of the deposit hosts a sequence of moderately east-dipping mantos zones. First drilling across this zone has successfully returned several moderate width intersections of copper and gold at shallow depths. Higher-grade mineralisation is associated with sediments and breccia zones related to cross faults locations. To date, drilling intersections in the northern zone average 8m width (down-hole), 1.2% copper and 0.1g/t gold. The average cumulative width of mineralisation in each of the first drill holes directed towards the northern zone is 14m (down-hole).

Mineralisation in the southern zone of Los Mantos is hosted by a series of west-dipping shears. Several orientations of drilling were utilised owing to the presence of mineralised cross faults. Many of the individual drill holes returned multiple intersections, recording significant multi-commodity grades in breccia. The multi-commodity drilling intersections individually average 6m width (down-hole), 0.8% copper, 0.1g/t gold, 118 molybdenum, 25ppm uranium and 102 cobalt. The average cumulative width of mineralisation in each of the first drill holes directed towards the southern zone is 28m (down-hole).

Pending the receipt of all results, the company will finalise planning of a second-pass RC programme to provide infill drill coverage across the 2.5km cumulative strike extent of mineralisation at Los Mantos. The second-pass drilling is expected to commence in the coming months.

The directors are very encouraged by the grades and widths being returned from early drilling results at Los Mantos. While there are several drill hole results still be returned, these results confirm the company’s understanding of the deposit and allow the commencement of planning for second-pass drilling activities. Further successful drilling results at Los Mantos will provide the company confidence to progress towards the definition of a second large-scale multi-commodity copper resource in Chile.