Exploration Activities

Drilling activities at Productora are focussed on defining a large at-surface multi-commodity copper resource over an initial 1.4km within the central area of project. Extensional drilling results released along strike from the central area have recorded wide zones of multi-commodity mineralisation in drilling over some 2.5km within land holdings the company controls at the project, and further remains open along strike. Hot Chili controls over 12.5km of strike extent over the Productora iron-oxide-copper-gold (IOCG) trend.

Hot Chili has now completed over 2,400m of diamond drilling and 20,000m of RC drilling at Productora since commencing drilling activities in late August of 2010.

The Productora project has continued to produce robust drill results across the Main breccia zone over 1.4km strike within the central area of the project. In addition, a further two new zones of mineralisation have been located. A total of three zones of mineralisation have now been identified by resource in-fill drilling within the central area of the project.

The second zone lies within a parallel vertical breccia (Eastern Breccia), which the company has identified in other RC drill holes along the extent of the current resource drilling pattern.

A third additional zone of mineralisation has also been identified by resource drilling in the southern extent of the central area at Productora. The zone is similar in style to two shallow dipping mantos horizons recorded in the northern extent of the central area. All three mantos zones lie in close proximity to the main mineralised vertical breccia zone and in combination represent further potentially large tonnage, near-surface, up-side along the extent of the central area.

Extensional drilling results along strike from the central area have recorded wide zones of multi-commodity mineralisation in drilling over some 2.5km strike within land holdings the company controls at the project, and further remains open along strike. The company intends to continue to grow the size of the initially defined resource in conjunction with the commencement of economic studies to evaluate the potential for a large open pit operation at the project.