The resignation of Alternate Director, Melanie Leighton, effective 1 October 2021

ASX Announcement

Friday 1^st October 2021

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) advises of the resignation of Alternate Director, Melanie Leighton, effective 1 October 2021.

Ms. Leighton has provided invaluable input during the life of the Company to date since her appointment in 2010 when the Company was formed. Her efforts have been enormous and are greatly appreciated.

Hot Chili would like to thank Ms. Leighton for her significant contribution to the Company and wishes her all the best for the future.

Christian Easterday, Managing Director of Hot Chili Limited commented:

“Melanie has provided exceptional technical guidance and performed many different roles within the Company to ensure its continued success. Her dedication to the Company has been unwavering and has allowed the company to survive through difficult times. Mel leaves Hot Chili well positioned towards future growth as a direct result of her efforts. Her contributions will be missed.”

This announcement is authorised by the Board of Directors for release to ASX.

For more information please contact:

Christian Easterday
Managing Director
Tel: +618 9315 9009

Email: christian@hotchili.net.au

or visit Hot Chili’s website at www.hotchili.net.au

To read the full announcement click on the below link.

Resignation of Director

Hot Chili Acquires 100% of Cortadera

ASX Announcement

Thursday 23^rd September 2021

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce the early exercise of its option to acquire a 100% interest in the Company’s world-class Cortadera copper-gold discovery in Chile.

The option agreement between Hot Chili and SCM Carola, the owners of the Cortadera landholding, was dually exercised in Santiago, Chile on Tuesday 21^st September, following acknowledgement of receipt of the final instalment of US$15 million.

Hot Chili have now satisfied US$32 million in payments since February 2019 to acquire Cortadera, securing the centrepiece of the Company’s 724Mt Costa Fuego copper-gold development.

Since drilling began in April 2019, Cortadera has been transformed from a small private porphyry discovery into one of the world’s leading, large-scale, copper-gold discoveries – elevating Hot Chili into the senior ranks of global copper developers.

Hot Chili’s Managing Director Christian Easterday said the early acquisition of Cortadera was an important milestone for the Company.

“We are extremely pleased to move to full ownership of Cortadera almost one year ahead of schedule, given the success of our exploration to date.

“Cortadera is already one of the lowest-cost acquisitions in the copper sector and we believe it has a long way to grow.

“I would like to thank SCM Carola for their partnership to contribute Cortadera to our plan to build a major coastal copper production hub.

“Costa Fuego is set to provide significant benefit to the region and local township of Vallenar for many decades to come.

“Strong green credentials, including the ability to utilise sea water processing and access power from large nearby solar plants, are matched by its low-altitude setting and location next to existing port facilities and regional infrastructure.

“The project is shaping as a cutting-edge, new generation major copper development in the world’s largest copper producing country.”

This announcement is authorised by the Board of Directors for release to ASX.

For more information please contact:

Christian Easterday
Managing Director Tel: +61 8 9315 9009
Email: christian@hotchili.net.au

or visit Hot Chili’s website at www.hotchili.net.au

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

To read the full announcement click on the below link

HCH_24_Hot Chili Acquires 100% of Cortadera_23092021

Costa Fuego Lifts Growth Horizon

ASX Announcement

Friday 17^th September 2021

View looking SE across Productora – New, large 3D geochemical target set to be drilled in Q4 this year

Highlights

• Advanced Three-Dimensional (3D) Geochemical targeting, using multielement surface geochemical data, has been applied for the first time across Hot Chili’s consolidated Costa Fuego copper-gold development hub in Chile
• The 3D geochemical approach generated probability models which accurately mirrored existing copper resource models at both Cortadera and Productora
• Two, large-scale, 3D geochemical targets have been identified as high probability for immediate drill testing– Productora Central and Santiago Z – both considered potential game changers for Costa Fuego’s growing resource base
• Both new 3D geochemical targets are larger in size than the main porphyry (Cuerpo 3) at the Company’s Cortadera copper-gold discovery, where three drill rigs are currently operating to upgrade its maiden 451Mt resource
• A fourth drill rig is being secured to commence exploration drilling at Productora Central in Q4 this year and regulatory approval for drilling at Santiago Z is expected in December. 
• Next assay results from resource expansion drilling at Cortadera expected shortly

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce that it is preparing to commence drilling a series of large-scale exploration targets in parallel with resource expansion drilling at its Costa Fuego copper-gold development hub in Chile.

Costa Fuego combined resource base (Cortadera and Productora) currently stands of 724Mt grading 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64kt molybdenum.

Expansion drilling at Cortadera continues to deliver strong growth ahead of a planned major resource upgrade and the Company has accelerated exploration across its coastal range landholdings over the past year.

Exploration workstreams have included expanded surface geochemical surveys, detailed surface mapping, completion of ground magnetic surveys and the Company’s first-ever application of advanced three-dimensional (3D) geochemical targeting.

The Company plans to commence drilling its pipeline of large exploration growth targets in Q4 this year using a dedicated fourth drill rig.  Two of these targets have been recently generated by 3D geochemical modelling and represent potential game changers for the scale of Costa Fuego.

Two Large 3D Geochemical Targets Added to Costa Fuego Exploration Pipeline

The relatively new 3D geochemical technique was applied to the Company’s extensive multielement (48 elements) surface geochemical datasets collected across the Cortadera, Santiago Z and Productora landholdings within Costa Fuego.

Probability models of potential mineralisation were generated by Fathom Geophysics, using advanced algorithms developed from an extensive study of the spatial distribution of pathfinder element associations across the Yerrington copper-gold porphyry deposit in Nevada, USA (928Mt grading 0.51% Cu, 0.05g/t Au and 1.85g/t Ag – source USGS) (Cohen, 2011; and Halley et al, 2015).

In addition to confirming the techniques’ ability to locate Hot Chili’s existing copper-gold resources, two high-probability targets were generated which have larger dimensions than the main porphyry (Cuerpo 3) at the Company’s Cortadera copper-gold discovery:

1. Productora Central

Productora is a breccia-hosted copper-gold deposit located along the eastern flank of a 6km long porphyry lithocap.  Significant exploration efforts have previously been unsuccessful in locating the potential source for approximately 1.2Mt copper and 0.8Moz gold deposited into the Productora breccia fault corridor.

A high probability 3D geochemical target measuring 1.2km by 1km in dimension has been located along the western flank of the planned central pit area of the Productora resource (Productora Central). 

The location of the Productora Central target along the regionally important NW-trending Serrano fault zone, and its location with respect to the most well-endowed sections of the Productora resource is considered particularly encouraging.  Previous shallow exploration drilling over this target area failed to penetrate an extensive advanced argillic clay zone, which was believed to overlie a large-scale porphyry.

Several other large-scale 3D geochemical targets have also been identified within the Productora landholding.

2. Santiago Z

A recently completed ground magnetic survey has confirmed a large coincident magnetic low, in association with a 4km long, surface molybdenum anomaly earlier identified at Santiago Z (as reported to ASX 9^th April 2021). 

3D geochemical modelling has confirmed a corresponding high probability target measuring +1.6km by +1km in dimension.

A regulatory application for first-pass drilling has been submitted and is expected to be approved in December.

Further extensional surface geochemistry and mapping programmes are currently underway across the Cortadera project to further resolve the Cortadera North growth target ahead of 3D geochemical modelling and next exploration drilling.  This work is part of a larger exploration rationalisation and prioritisation process underway across the Company’s landholdings.

Hot Chili looks forward to lifting its growth horizon over the coming twelve months by leveraging its regional consolidation strategy with new discoveries and potential acquisitions.

Further resource expansion drill results from Cortadera and development study updates are expected to be released shortly.

This announcement is authorised by the Board of Directors for release to ASX.

For more information please contact:

Christian Easterday
Managing Director Tel: +61 8 9315 9009
Email: christian@hotchili.net.au

or visit Hot Chili’s website at www.hotchili.net.au

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Figure 2  Plan view across the Cortadera discovery area displaying recent 3D Geochemical Modelling of surface geochemistry.  Note the high (pink) and very high (red) probability model location in relation to the existing copper resource outline (yellow).  The northwest-trending Serano fault corridor extends to Productora, located 14km to the northwest of Cortadera.

Figure 3  Plan view across the Productora central resource area displaying recent 3D Geochemical Modelling of surface geochemistry.  Note the high (pink) and very high (red) probability model location in relation to the existing copper resource outline (yellow).  A large very high probability target has been modelled along the northwest-trending Serrano fault and flanking the western margin of the central resource drilling coverage.

Figure 4  Plan views displaying recently acquired ground magnetic survey in addition to 3D Geochemical Modelling of surface geochemistry across the Santiago Z surface molybdenum anomaly.  Correlation of surface geochemistry, mapping, magnetics and 3D geochemical modelling outlines a compelling large-scale target for first-pass drill testing.  Santiago Z is located approximately 5km south of Cortadera

To read the full announcement click on the below link

http://www.hotchili.net.au/wp-content/uploads/2021/09/HCH_23_Costa-Fuego-Lifts-Growth-Horizon_17092021.pdf

610m at 0.5% CuEq including 138m at 0.8% CuEq

ASX Announcement

Friday 1^st October 2021

Highlights

• Hot Chili has recorded another strong extensional result at the Cortadera copper-gold porphyry discovery in Chile, further expanding the high grade resource (+0.7% CuEq) across the northern flank (North Flank) of the main porphyry (Cuerpo 3)
• CRP0134D returned an extensive intersection of 610m grading 0.5% CuEq (0.4% copper (Cu), 0.1g/t gold (Au)) from 216m depth down-hole, including 138m grading 0.8% CuEq (0.6% Cu, 0.1g/t Au) from 634m depth
• Results from CRP0134D and those recently reported from CRP0124D (362m grading 0.6% CuEq, including 82m grading 1.0% CuEq) have extended the North Flank by approximately 170m
• The Northern Flank of Cuerpo 3 remains open with another 80m step-out diamond drill hole underway (CRP0155D, currently at 490m depth and in mineralisation)
• Results pending for five drill holes from Cuerpo 2 which have visually recorded wide intersections of mineralisation from surface
• Three drill rigs in operation, 4,946m of assay results pending from 20 drill holes, assay turnaround currently 44 days

* Copper Equivalent (CuEq) reported for the drill holes were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  Average Metallurgical Recoveries used were: Cu=83%, Au=56%, Mo=82%, and Ag=37%

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce that recent drill results from its Cortadera copper-gold discovery in Chile continue to demonstrate strong resource growth.

Hot Chili’s Resource Development Manager Kirsty Sheerin said the expansion of the main porphyry was very pleasing ahead of the Company’s plans to up-grade the maiden 451Mt Cortadera resource.

“The North Flank of the high grade core to the main porphyry has continued to be a significant resource addition.

“We have added approximately 170m of width to Cuerpo 3 and hope to extend several other open flanks to the high grade core by year-end.

“We are also continuing to see positive shallow intersections in the current RC drilling program at Cuerpo 2.

“The next resource upgrade at Cortadera will provide a strong basis for the first combined open pit and block cave mining reserve estimate at our growing Costa Fuego copper-gold development.”

Cuerpo 3 North Flank Confirmed as Extensive High Grade Addition

Continued strong results have been reported from extensional resource drilling across the North Flank to the high grade core of the main porphyry (Cuerpo 3) at Cortadera.

CRP0134D returned an extensive intersection of 610m grading 0.5% CuEq (0.4% copper (Cu), 0.1g/t gold (Au)) from 216m depth down-hole, including 138m grading 0.8% CuEq (0.6% Cu, 0.1g/t Au) from 634m depth.

Importantly, the high grade results in CRP0134D were recorded at approximately the same vertical depth and lateral to CRP0124D, which recorded 82m grading 1.0% CuEq (0.7% Cu and 0.3g/t Au) within a broader intersection of 362m grading 0.6% CuEq (0.5% Cu, 0.2g/t Au) from 634m depth.

This recent drilling has demonstrated strong continuity of high grade (+0.7% CuEq) mineralisation and extended the North Flank by approximately 170m. 

A follow-up hole (CRP0155D) is currently underway to extend the North Flank by a further 80m.  CRP0155D is currently at 490m depth and is in mineralisation.

Figures 2 to 6 display the location of these new significant drilling intersections at Cortadera.

Expansion of Shallow Resources at Cortadera

Initial results have been returned for 5 shallow Reverse Circulation (RC) drill holes at Cuerpo 2. The results have extended the boundary of the resource across the southern, eastern and north eastern flanks of Cuerpo 2.

 In addition, CRP0139 was drilled in an up-dip position over the Cuerpo 2 resource and has recorded a 42m intersection grading 0.5% CuEq (0.4% Cu, 0.3g/t Au) from 180m depth to end-of-hole, within a broader 222m zone grading 0.3% CuEq (0.2% Cu, 0.1g/t Au) from surface. The result of CRP0139 has shown an upgrade in both copper and gold from the maiden resource model in this area.

Assay results are pending for a further five drill holes which have recorded wide zones of oxide and sulphide mineralisation from surface.  Additional RC drilling is continuing in this area to determine the potential for this shallow mineralisation to extend further.

Momentum Building Ahead of Canadian TSXV Dual-Listing

Hot Chili is currently the only major copper-gold developer in the America’s that is not listed in Canada. 

The Company’s low-altitude Costa Fuego copper-gold development in Chile is expected to compare favourably to leading copper-gold developers in Canada, which currently trade at many multiples of Hot Chili’s market capitalisation.

The Company plans to continue building momentum with its activities and newsflow ahead of its dual listing on the TSXV in Q4 this year, with several updates expected from ongoing drilling, exploration and development workstreams.

Hot Chili is operating five shifts of drilling per day with three drill rigs at Cortadera.  In addition, a fourth drill rig is being sourced to commence drill testing several large-scale growth targets (Productora Central and Santiago Z – See ASX announcement dated 17^th September).

Following its dual listing in Canada, Hot Chili aims to release a major resource upgrade from Cortadera followed by the completion of a combined Pre-feasibility study.  These two major milestones will lay the foundation for the Company’s transformation into a major copper-gold producer in the coming years.

This announcement is authorised by the Board of Directors for release to ASX.

For more information please contact:

or visit Hot Chili’s website at www.hotchili.net.au

Table 1 New Significant DD & RC Drill Results at Cortadera

Significant intercepts are calculated above a nominal cut-off grade of 0.2% Cu.  Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu).  Significant intersections are separated where internal dilution is greater than 30m down-hole distance.  The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.
CuEq % = Cu grade (%) + (0.5083x Au grade(g/t)) +0.0039x Ag grade(g/t)) + 0.0004x Mo grade(ppm))

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Qualifying Statements

Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code – Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate

Competent Person’s Statement- Exploration Results
Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Competent Person’s Statement- Productora Mineral Resources
The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources
The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent
Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person.

To read the full announcement click on the below link

Cortadera North Flank Delivers Again

Highlights

• Final prospectus in support of the Company’s application to list on the TSX Venture Exchange filed
• Settlement of the placement scheduled for 22 December, 2021
• Underwriters have indicated they will exercise the over-allotment option for additional gross proceeds of CAD$3,789,750

Together with the over-allotment option, the offering will generate total gross proceeds of CAD$33,790,000.

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or the “Company”) is pleased to announce that further to its announcement 10 December 2021, it has obtained a receipt for its final prospectus from the securities regulatory authorities in the provinces of Canada, excluding Quebec, in connection with its initial public offering (the “Offering”) on the TSX Venture Exchange (the “TSXV”).

The Offering comprises the previously announced CAD$30M funding (refer announcement 10 December 2021) for the issue of new fully paid ordinary shares (“Shares“) at CAD$1.55 per Share, as well as one half subscription receipt for a share purchase warrant (“Warrants”), exercisable for one warrant Share at CAD$2.50 for every whole Warrant issued, to be offered as “Units”.

IA Capital Markets and Cormark Securities Inc. of Canada are acting as co-lead underwriters for the Offering (the “Underwriters“).

In connection with the Offering, the Underwriters were granted an over-allotment option to purchase up to an additional 2,445,000 Units exercisable for 30 days after the Closing Date (as defined below) for additional gross proceeds of up to CAD$3,789,750. 

The Underwriters have indicated that they will exercise the over-allotment option  at closing.

The Company’s major shareholder, Glencore, is participating in the increased Offering to maintain a 9.99% shareholding interest in the Company.

At closing, the Offering, together with the over-allotment option, will generate total gross proceeds of CAD$33,790,000.

Hot Chili’s Managing Director, Christian Easterday, commented:

“We are very pleased to have filed a final prospectus to progress to closing of the Offering and Hot Chili’s listing on the TSXV. 

“We welcome the support of North American institutions and Glencore in the increased Offering, and look forward to satisfying all remaining typical conditions for our TSXV listing shortly, and commencing trading following closing.”

As outlined in the new technical report entitled “Resource Report for the Costa Fuego Copper Project, Located in Atacama, Chile – Technical Report NI 43-101” dated December 13, 2021 (effective date October 29, 2021) (the “Costa Fuego Technical Report“), prepared by Boris Caro, Member of Chilean Mining Commission, of Caro & Navarro Limitada, and Elizabeth Haren, MAIG MAusIMM (CP), of Haren Consulting Pty Ltd., the Company intends to use the net proceeds from the Offering to upgrade the Cortadera resource, advance the Costa Fuego Project preliminary feasibility study, test several high-priority exploration targets and for general corporate and working capital purposes.

The Costa Fuego Project, which consists of the Company’s Cortadera and Productora landholdings, contains an Indicated Resource of 391Mt grading 0.52% CuEq (copper equivalent), containing 1.7 Mt Cu, 1.5 Moz Au, 4.2 Moz Ag, and 37 kt Mo and an Inferred Resource of 334Mt grading 0.44% CuEq containing 1.2Mt Cu, 1.2 Moz Au, 5.6 Moz Ag and 27 kt Mo, at a cut-off grade of 0.25% CuEq. See Schedule “A” of this news release for the Mineral Resource summaries of Cortadera and Productora.

The closing of the Offering is scheduled to occur on or about December 22, 2021 (the “Closing Date”), and is subject to the satisfaction of customary closing conditions, including the receipt of all necessary. Hot Chili has received conditional approval for the listing of the Shares on the TSXV under the symbol “HCH”, and listing remains subject to Hot Chili fulfilling customary TSXV listing requirements.

Details of the Offering

The following further details of the Offering are announced, in addition to the information in the Company’s announcement of 10 December 2021.

The Units offered under the final prospectus consist of one Share and one-half of one Share purchase “Warrant Receipt”. Each Warrant Receipt shall be convertible into one Warrant upon receipt of shareholder approval for the issuance of Warrants in accordance with the ASX listing rules. Each Warrant, if issued, shall be exercisable to acquire one Share for a period of 24 months from Closing at an exercise price of C$2.50 per Warrant. 

A copy of the final prospectus has been filed on SEDAR and is available for review under Hot Chili’s profile at www.sedar.com.

A copy of the final prospectus will also be separately released to ASX.

A total of 21,567,286 new Shares to be issued under the Offering will not be subject to shareholder approval and will be made within the Company’s 25% placement capacities under ASX listing rules 7.1 and 7.1A. 12,812,541 new Shares will be issued within the Company’s 15% placement capacity under listing rule 7.1 and 8,754,745 new Shares will be issued within the Company’s additional 10% placement capacity under listing rule 7.1A.

As previously announced, 232,714 new Shares (CAD$360,708) will be issued to Blue Spec Sondajes Chile SpA, a Company associated with Hot Chili’s chairman Murray Black, under a second tranche of the Placement, subject to shareholder approval of the issue under ASX listing rule 10.11.

The issue of a total of 10,900,000 Warrants under the Offering will be subject to shareholder approval under the ASX listing rules.

The Company has also agreed to issue to the Underwriters 1,259,789 warrants, exercisable at CAD$1.85 with a term of three years (“Underwriter Warrants”), as part of the payable to the Underwriters in respect of the Offering, subject to shareholder approval of the issue of the Underwriter Options.

Qualified Person

The scientific and technical information in this news release was derived from the Costa Fuego Technical Report and reviewed and approved by Boris Caro, Member of Chilean Mining Commission, and Elizabeth Haren, MAIG MAusIMM (CP), both of whom are independent Qualified Persons under National Instrument 43-101 – Standards of Disclosure for Mineral Projects. For further information on the Costa Fuego Project, refer to the Costa Fuego Technical Report, which is available for review under Hot Chili’s profile at www.sedar.com.

The securities referred to in this announcement have not been and will not be registered under the United States Securities Act of 1933, as amended (the ‘‘U.S. Securities Act’’), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within the United States.

This announcement is authorised by the Board of Directors for release to ASX.

For more information please contact:

or visit Hot Chili’s website at www.hotchili.net.au

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Qualifying Statements

Competent Person’s Statement- Productora Mineral Resources

The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources

The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent

Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements

This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person

Schedule “A”

Mineral Resource Summaries

The Mineral Resource summary for the Costa Fuego Project is presented in the following tables.

Productora Mineral Resource Summary – reported by classification (open pit, using +0.25% CuEq cut-off grade), 28 October 2021

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with CIM and NI-101. Metal rounded to nearest thousand, or if less, to the nearest hundred.

Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%

Cortadera Mineral Resource Summary – reported by classification (using +0.25% CuEq cut-off grade) and by open pit (top), underground (middle) and total (bottom), 28th October 2021

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with CIM and NI 43-101. Metal rounded to nearest thousand, or if less, to the nearest hundred.

Copper Equivalent (CuEq) reported for the drill holes were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  Average Metallurgical Recoveries used were: Cu=83%, Au=56%, Mo=82%, and Ag=37%

Preparations to dual-list the Company in Canada are advancing through final stages and are on-track for Q4 this year.

ASX Announcement

Thursday 14^th October 2021

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or the “Company”) is pleased to announce that preparations to dual-list the Company in Canada are advancing through final stages and are on-track for Q4 this year.

A General Meeting is scheduled for Monday 15^th of November to seek shareholder approval to undertake a consolidation of the number of Shares on issue on the basis that every fifty (50) Shares held be consolidated into one (1) Share (Consolidation), with a corresponding Consolidation of all other securities on issue and fractional entitlements to be rounded to the nearest whole number.

The Consolidation is being undertaken to reduce the number of Shares currently on issue from 4,370,972,524 Shares to approximately 87,419,450 Shares and effectively increase the value of the Company’s assets per Share by a factor of fifty.  The Consolidation will have no effect on the percentage shareholding interest of each individual shareholder.

This is anticipated to provide a more effective capital structure of the Company and a more appropriate share price for a wider range of investors, particularly institutional investors, as the Company progresses its application for listing on the TSX Venture Exchange (TSXV) (as announced to ASX on 9^th July 2021 “Hot Chili Commences TSXV Dual Listing Process”).

The proposed Consolidation will align Hot Chili’s share price within a range of its Canadian peers including Filo Mining (TSX: FIL, Share Price: CAN$9.00, Mkt Cap: CAN$1.019B), Josemaria Resources (TSX: JOSMF, Share Price: CAN$0.911, Mkt Cap: CAN$346M), Oroco Resources (TSXV: OCO, Share Price: CAN$2.40, Mkt Cap: CAN$460.3M) and Solaris Resources (TSX: SLS, Share Price: CAN$13.13, Mkt Cap: CAN$1.42B) as of 12^th October 2021.

Hot Chili’s Cost Fuego resource (724Mt grading 0.48%CuEq) compares favourably to these leading copper-gold developers who are advancing copper-gold resources in the America’s ranging in scale between 571Mt and 1.0Bt at grades of between 0.32% CuEq to 0.64% CuEq (as announced to ASX on 12^th October 2020 “Costa Fuego Becomes a Leading Global Copper Project”).

A Notice of General Meeting has been released concurrently with this announcement which outlines the background and details of the proposed Consolidation.

The Directors consider the Consolidation will strengthen the Company’s ability to drive a significant re-rate in the Company’s valuation, and support future funding of the Company’s Costa Fuego copper-gold development in Chile.

The indicative timetable if the Consolidation is approved by shareholders is as follows:

The proposed Consolidation will apply to all unlisted options at the time of the consolidation. In accordance with the option terms and ASX Listing Rule 7.22, these options will be consolidated on the same basis as the Shares with the existing exercise price amended in inverse proportion to the consolidation ratio. The expiry dates of the options will not change. The proposed Consolidation will also apply to all convertible notes and performance rights on issue in accordance with ASX Listing Rule 7.21.

This announcement is authorised by the Board of Directors for release to ASX.

For more information please contact:

or visit Hot Chili’s website at www.hotchili.net.au

Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Qualifying Statements

Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code – Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate

Competent Person’s Statement- Exploration Results
Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Competent Person’s Statement- Productora Mineral Resources
The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources
The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent
Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person.

To read the full announcement click on the below link

Proposed Share Consolidation Ahead of TSXV Listing

Materials handling scoping study results have significantly reduced the cost of ore transport

ASX Announcement

Tuesday 28^th September 2021

Highlights

• Materials handling scoping study results have significantly reduced the cost of ore transport for Hot Chili’s Costa Fuego copper-gold development in Chile
• Central processing at Productora allows the use of RopeCon® and significantly reduces development timeframes and additional capital related to locating central processing at Cortadera
• RopeCon® ore transport determined to be most cost-effective materials handling system for transport of Cortadera ore approximately 14 km down-hill to Productora
• RopeCon® determined to be less than 10% of the operating cost associated with truck haulage and 25% less than conventional conveyor
• PFS making good progress across preliminary mine design, geotechnical studies and metallurgical workstreams, further updates expected

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce that its Pre-feasibility study (PFS) into the combined Costa Fuego copper-gold development in Chile is gaining momentum.

A recently completed materials handling scoping study has highlighted the potential for a low-cost rope conveyor (RopeCon^®) option to transport ore down-hill from Cortadera to Productora.

The introduction of low-cost transport into the current PFS has cemented the Company’s decision to locate central processing infrastructure at Productora and take advantage of the existing project definition and permitting (water and power easements, and surface rights) already secured in the 2016 Productora PFS.

Significant time and capital cost savings were expected if the location of central processing remained at Productora, now significant operating savings from transport can also be captured with RopeCon determined to be less than 10% of the operating cost associated with truck haulage.

Costa Fuego combined resource base (Cortadera and Productora) currently stands of 724 Mt grading 0.48% CuEq for 2.9 Mt copper, 2.7 Moz gold, 9.9 Moz silver and 64 kt molybdenum, and the Company has a maritime concession secured to extract sea water for the processing requirements of the entire combined development.

The Company is pursuing a similar development approach to the Nueva Union (Teck 50%, Newmont Goldcorp 50%) copper project in Chile, where the Relincho and El Morro copper-gold deposits are being combined into one development via haulage using a 40 km conveyor belt.

Nueva Union is located between 2,000 m and 4,000 m elevation, approximately 100 km east-northeast of Costa Fuego, with similar average copper grades and co-credit metals. By comparison, Costa Fuego’s Cortadera and Productora copper-gold deposits are located 14 km apart, at low attitude (800 -1,000 m elevation), along the Pan American Highway and within 50 km of port facilities.

Materials Handling a Key Focus

The Costa Fuego hub mining operations will consist of the open pits at Productora, plus three open pits coupled with an underground block cave operation at Cortadera.  The objective of the current study is to determine the optimal output of each area coupled with the analyses and recommendation for a suitable and cost-effective materials handling system to transport the Cortadera ore approximately 14 km to the processing plant at Productora.

The key decision governing this study strategy will be to keep the processing plant located at Productora therefore avoiding lengthy and costly permitting processes to potentially re-locate the processing facility.  The proposed location of the processing plant and associated infrastructure, such as the tailings storage facility, are within the Productora project footprint, are permitted and currently supported by the 2016 Productora Pre-Feasibility Study.

Four primary materials handling options for ore transport between Productora and Cortadera were considered:

1. Trucking
2. Conveyors
3. Aerial Ropeway
4. RopeCon

Of these options, the RopeCon offers the lowest total cost option for transport of the open pit and block cave ore from Cortadera to Productora.  The system design criteria, coupled with the Capital and Operating Expenditure estimates, were calculated from the various OEM options and costs provided for the study. 

The RopeCon system can provide handling capacities of up to 25,000 t/hr across difficult terrain whilst occupying a minimum structural footprint.  Simple maintenance of the conveying line and low space requirements are the key features of this product.  The unit cost for running a RopeCon installation is estimated to be approximately a quarter of the cost when compared to a conventional conveyor for this project.

The mined ore transport route spans 15 km and threads along a relatively straight route from the Cortadera Project directly across the hilly terrain toward the proposed Productora processing plant, progressing through the southern section of the Productora footprint, making use of the natural topographic low point directly South – Southeast of the main Productora open pit area termed the “saddle”

Hot Chili is pursuing a strategy of low-cost ore transport to a central concentrator for high-grade ore in conjunction with low-grade sulphide leaching adjacent to mining operations.

Executive Study Manager John Hearne described the option value by saying:

“The beauty of this strategy is that it allows the selection of ore grade for the concentrator to be highly dynamic.

“Not only can it be optimised to deliver value in our study models, it will be flexible enough to adapt with the evolving resource base being assembled regionally.

“A region that appears to be getting larger when we consider a low-operating cost option like a RopeCon.”

This announcement is authorised by the Board of Directors for release to ASX.

For more information please contact:

or visit Hot Chili’s website at www.hotchili.net.au

Figure 3 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile

Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants

* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne).  The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz.  For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%.  For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%.  For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade

Qualifying Statements

Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code – Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate

Competent Person’s Statement- Exploration Results
Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Competent Person’s Statement- Productora Mineral Resources
The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.

Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources
The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Reporting of Copper Equivalent
Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.

Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person.

To read the full announcement click on the below link

Costa Fuego Hub to Leverage Low-Cost Transport & Central Processing

Hot Chili and Christian Easterday anecdote at 40 minutes.

The Mining Journal | Paul Harris | 23 January 2023

The drive north along Ruta 5 from La Serena towards Vallenar is to drive through more than a century of mining history. From the silver mines of the 1800s, to the iron ore mines of the late twentieth century, and the almost continual small-scale production of high-grade copper oxide. The four-lane highway passes through a wide valley with desert scrub and cacti, in parts reminiscent of Nevada or Arizona in the US, particularly with the cobalt blue sky and beating sun.

The drive passes a wind farm funded by Barrick Gold and various solar generation facilities but tucked away to the east of the Coastal Range and the Pacific Ocean, it also runs along part of the 2,000km-long north-south Atacama Fault in central Chile, which hosts iron, copper-iron and copper-gold deposits including IOCG, porphyry and vein deposits.

It also holds promise for Chile’s future copper developments, such as with companies like Hot Chili and Tribeca Resources, and further north, Capstone Copper’s Santo Domingo project, looking at bringing forward affordable projects which benefit from the rich regional infrastructure endowment, which includes access, high-tension power lines, local mining culture and port facilities. This should be music to the ears of mining investors who are still beating the capital discipline drum and nervous about development cost blowouts, which has made the greenlighting of new mine developments noticeable by their absence despite the copper price being notionally above the US$4 per pound incentive price. No wonder diversified miner Glencore and royalty company Osisko Royalties are interested.

Within this context, the long-overlooked coastal range in Chile is drawing increasing attention from copper explorers and developers who believe viable and economic deposits can be found, which, while smaller than the mega porphyries in the high cordillera which have powered the country’s copper production, can potentially be brought to market with less permitting, development and financing risk.

Costa Fuego

Hot Chili and its Costa Fuego project is growing into a strong development candidate south of Vallenar, with exploration bringing the project ever closer to the magical threshold of 1 billion tonnes of resources. While its Productora deposit has been around for a number of years, the more recent definition and integration of the Cortadera deposit 14km away into Costa Fuego via a 2022 resource update has increased the scale and attractiveness of the project. The continual fall in the average production grade in Chile adds shine to the project, which with each passing year, sees it get closer to and equalling production grade.

Diversified miner Glencore certainly sees the possibilities, having invested in the company and provided an offtake agreement in 2022. Glencore invested as Hot Chili debuted on the TSXV in 2022, participating in the C$30 million capital raise to take a 9.99% stake. “The Glencore investment gives us a solid endorsement and provides a good rubber stamp on what we’re doing and the asset we have,” Hot Chili chief executive Christian Easterday told Mining Journal at the time.

Glencore’s influence can be seen in the current drill programme at the Las Cañas target (body #1, Cortadera), to rapidly add further tonnes to its overall resource, with a prefeasibility study postponed until this drilling and the next resource update has been completed.

The consolidated March 2022 Costa Fuego resource featured an indicated resource of 725Mt grading 0.47% copper equivalent for 2.8Mt of copper, 2.6Moz of gold, 10.5Moz of silver and 67,000t of molybdenum, and inferred resources of 202Mt grading 0.36% copper equivalent. It also featured a high-grade indicated component of 156Mt grading 0.79% copper equivalent for 1Mt of copper, 850,000oz of gold, 2.9Moz of silver and 24,000 of molybdenum.

Hot Chili and Productora were widely dismissed by the market as being too small and too low-grade. That is no longer the case with the company looking at 100,000tpa of copper production for 20 years, and possibly more, although the market view perhaps still languishes in its past perception judging by the slow uptick of its share price. However, Costa Fuego is rapidly taking its position on the relatively short list of development stage projects that can be developed.

While Hot Chili’s star is starting to rise, the years spent in the investor doldrums saw the company use the time to advance low-cost but equally important work to derisk the project and make it a more robust and viable development proposition. “During the downturn in the market, we held onto Productora but stopped drilling and instead focused on the infrastructure we would need, such as obtaining the surface rights and easements we will need for access, power, a water pipeline and the maritime concession,” country manager Jose Ignacio Silver told Mining Journal during a site visit.

Cortadera has been a game-changer for the company, bringing high-grade outcropping material into the picture and almost quadrupling the resource base. The area has seen small-scale mining from local miners targeting high-grade copper oxide exposures on the mountain tops, with material containing 3% copper or more sent to the processing plants of state mineral company Enami. Their workings with the outcropping bluish-green chrysocolla mineral provide an obvious visual clue for explorers like Hot Chili to start their exploration efforts.

At Cortadera, which the company obtained in 2019, it has defined three ore bodies and an indicated resource of 471Mt grading 0.46% copper equivalent and an inferred resource of 108Mt grading 0.36% CuEq. The mineralisation outcrops at body #1, with mineralisation getting deeper and larger volumes moving to the southeast for body #2 and then again for body #3. Body #3 is the biggest and deepest, and where the company completed an 1185m hole which showed high-grade at depth in hole 13D (750m grading 0.6% Cu and 0.2g/t Au from 204m depth down-hole, including 188m grading 0.9% copper and 0.4g/t gold).

The area has been picked over by larger companies in the past, but seemingly in a half-hearted manner and never consolidated, perhaps using exploration results as a reason to move on rather than as a reason to stay and grow a resource. “Explorers didn’t want the Coastal Range as they were looking for the mega porphyries in the high Andes. There was also the issue of consolidating the concessions and the surface rights, which not everyone wants to take on,” geology manager Andrea Aravena told Mining Journal.

Piecing the project together is a task that the relatively young and ambitious Hot Chili team relished, particularly Silva, a lawyer who studied international trade law in the UK and spent some time working with the UK Serious Fraud Squad. There is a palpable enthusiasm for the exploration opportunities this now provides, with various new drill targets being worked up and permitted around both deposits. Silva has a similar enthusiasm for obtaining the infrastructure easements and entering the permitting process in the future. “I love this because we are building a long-term company and something that will have real value,” he said.

The next piece of the puzzle, and the one which may push the company over the 1Bt of resources threshold (already 927Mt), is an earn-in agreement with Antofagasta Minerals (AMSA) on the ground between Productora and Cortadera called Las Cañas for $1.5 million and 6,000m of drilling in two phases. The first phase is underway and will see 3,000m drilled as part of Hot Chili’s 10,000m initial exploration drill plan for 2023. Following a joint review of the results with AMSA, the second 3,000m will be drilled. AMSA previously drilled five holes at Las Cañas, and so the first Hot Chili holes are twinning some of those holes seeking to confirm the high-grade results previously obtained.

The evolution of Productora and Cortadera into Costa Fuego, with a central processing plant planned to be located at Productora, has energised the exploration team to find more ore bodies nearby in the Huasco Valley which could potentially feed into this. This is a task helped by growing confidence in the geological model they have developed and refined. Zones carrying mineralisation are characterized by the presence of tightly packed parallel quartz veinlets, which carry the copper sulphide mineral chalcopyrite, gold, silver and molybdenum credits.

Consulting geologist Dr Steve Garwin, a key member of the SolGold team which discovered the Alpala deposit in Ecuador, is also the lead technical advisor to Hot Chili and has trained the exploration team on the key things to record in core logging, such as the alteration, the number of veinlets and the presence of a molybdenum halo. With accurate core logging of crucial importance, one or both of the principal project geologists Miguel Tapia and Cristian Vasquez, are always on-site to ensure this is done correctly and consistently. “What we see at the #1 ore body at Cortadera we see at Las Cañas, which means we can advance quicker because we have a good idea of what is happening,” Tapia told Mining Journal.

“We always start by looking at the regional context as we think about the potential of having a cluster of deposits. Most deposits are structurally controlled by the north-south Atacama Fault structure and NW trending faults. The intersection of these can be zones of interest,” said Aravena.

Productora is a different beast as it is a structurally-controlled tourmaline breccia hosted in volcanic rocks, although exploration has also been guided by where small miners previously worked.

While undertaking a PFS on Costa Fuego has been postponed pending the Las Cañas drilling, the company has a general idea of how it wants to develop the project, having previously completed a PFS on Productora, as well as the majority of a PFS for the combined project. Mining would start with open pits at Productora and high-grade material from body #1 at Cortadera, with the company targeting a multi-decade project to produce approximately 100,000tpa of copper and up to 70,000ozpa of gold.

Material from Cortadera is planned to be transported to Productora via a rope conveyor, one of three key elements to reduce the environmental footprint and lower operating costs for future operation. The tailings storage facility has been relocated down the valley to a site that will have greater storage capacity and be cheaper to build and operate. “This is not upstream of any river, so there should be no opposition from the Huasco Valley Agricultural Association. The rope conveyor towers have minimal surface disturbance, and the Project is being designed with all stakeholders in mind,” said Silva.

The company reported a key development in December about the award of a maritime concession from the government where it will build its seawater capture infrastructure, the culmination of eight years of work. Processing will use seawater, and not needing to build a desalination plant will save considerable capital and operating cost. “It also improves the copper recovery,” said Silva. Marimaca Copper, which is advancing its Marimaca project in the coastal range near Antofagasta, is also looking to use seawater for processing and also says this will improve recoveries.

With the wind in its sails, the coming milestones for Hot Chili are to complete a preliminary economic assessment during the first semester, a resource upgrade in the second semester, and then the PFS in the first half of 2024.

“Growth from the drill bit is very much Hot Chili’s focus in 2023, with the company confident of continued resource growth. This is underpinning the company and our shareholder Glencore’s view that Costa Fuego and our regional consolidation may support a long-life mine producing 150,000tpa of copper. This would put Costa Fuego toward the top-end of scale for new copper developments being advanced in the world,” said Easterday.

Silva also noticed a clear change in the government’s attitude towards mining following the rejection of a new draft constitution on September 4 last year. While the country will continue creating a new constitution, it will likely be a less radical and more centrist document than the rejected draft.

“After 4 September, everything felt more stable in Chile. The rejection of the new draft constitution was a defeat for the extreme Left and moved politics in Chile back into the centre. The new constitution will have limits as there are 12 basic aspects of the political structure which have been agreed upon and will not be changed,” said Silva. These include that Chile is one united nation with a separation of powers and the existence of an independent Central Bank, as well as an independent Prosecutor and Electoral Office.

Hot Chili is not alone in this new development thrust. Some 500km north near Antofagasta, Marrimaca Copper plans a feasibility study this year for its Marimaca coastal range deposit for a 50,000-60,000tpa operation from a measured and indicated resource of 140Mt grading 0.48% copper for 665,500t of contained copper. Capstone Copper’s permitted and shovel-ready Santo Domingo copper-iron-gold project near regional mining hub Copiapo is due to see a feasibility study update later this year, which will include additional processing circuits for cobalt and iron ore, and may see a lower capex than the $1.5 billion in the current feasibility through integration with its nearby Manto Verde mine.

Tribeca

Exploration spending in Chile has been increasing in recent years, amounting to US$713.2 million in 2022, according to state copper agency Cochilco, a 24.6% rebound from the low of $450 million in 2020, the lowest amount since before 2010. The majority of spending at $345 million is by miners around their mines, with large mining companies spending most on exploration at 74.6% of the total. Early-stage exploration accounted for $197.3 million in 2022, with the amount spent by junior explorers almost doubling from 2021 to 2022, increasing its share from 9% to 18%. Copper is the most sought mineral, accounting for 74% of spend, followed by gold at 21%.

A new crop of junior copper explorers in Chile includes Culpeo Minerals, Torq Resources, Atacama Copper, Pampa Metals, ATEX Resources, Solis Minerals, Rugby Resources, Alto Verde Copper, Great Southern Copper and Nobel Resources. The newest of all is Tribeca Resources, one of a new generation of copper exploration juniors in Chile’s IOCG belt whose La Higuera project, some 100km south of Costa Fuego echoes many of the attractions Hot Chili sees in the region.

Tribeca is also drawn by the fact the coastal region has been overlooked and under-appreciated in the past, even though it is possible to find a sizeable deposit. Lundin Mining’s Candelaria near Copiapo is the exemplar in this context. With infrastructure development being a key factor in development time and cost blowouts, the coastal zone and its proximity to existing infrastructure are very attractive.

I drove to the site, a few hundred metres off the Pan-American highway, with chief executive Paul Gow in a VW Gol. Having a four-wheel drive truck was unnecessary, which also attests to Gow’s frugal and parsimonious financial management, a habit carried over from when he and partner Thomas Schmidt funded the early days of the company from their own pockets. Both Gow and Schmidt worked for Xstrata Copper in their previous lives. The company doesn’t have a corporate office and has a monthly burn rate of just $40,000, excluding drilling, while its drilling costs are just $130/m before assays and geological team.

Tribeca was also attracted by the presence of high-grade small-scale operations in the district and is leveraging the experience of Gow exploring for IOCG deposits around the Olympic Dam mine in Australia. Olympic Dam has several hundred metres of barren sedimentary cover above its mineralisation. “We are looking for a sulphide copper-gold system containing hundreds of millions of tonnes of resources. We see opportunity under the gravel cover in areas where there have been high-grade oxides exploited from the mountain tops. Copper is present in outcrops, and we follow them under the gravel,” Gow told Mining Journal during the visit.

Like Hot Chili, the Atacama Fault is the main regional controlling structure, and the northwest cross faulting is also relevant. With up to 60m of gravel cover, soil geochemistry is not such a useful exploration tool, but the presence of magnetite and hematite in IOCG deposits means geophysical methods like magnetics and gravity are.

Gow says good targets are near high magnetic anomalies, although the highest copper grade is not necessarily where the highest magnetic anomaly is. “My experience in the Olympic Dam province, particularly with the Prominent Hill discovery by Minotaur Resources, is that the mineralisation is related to hematite and is commonly offset from the magnetic anomaly. The magnetic anomaly tells you there is a hydrothermal system present, but then you have to identify where the mineralisation is located within that system.”

The company is also picking up where a previous explorer called Peregrine Metals left off. Peregrine drilled some 4000m in 12 holes at Gaby, which is Tribeca’s main target and where drilling began in November 2022. “We are drilling step-out holes to the north of the Peregrine drilling and have drilled up to 600m to the north,” Gow said.

Tribeca expects to release its first drill results in the coming weeks and show whether or not it has been successful in its initial aim of expanding the mineralisation footprint. “What got me into exploration was the excitement of waiting by the fax machine for the drilling results to come in,” said Gow. With the company’s concessions extending for another kilometre to the north, there is potential to continue expanding the footprint further.

For its first programme, Tribeca uses reverse circulation drilling to pre-collar the holes and penetrate the gravels and weathered zone before switching to diamond drilling for the tail to a total depth of about 400m. It plans some 2200m at Gaby and will then look to drill 600m at its Chirsposo target, 3km to the south.

Luck plays a role in exploration, and Tribeca appears to have had some already. It is perhaps the youngest copper explorer in Chile, having completed a reverse takeover transaction in October 2022 to list on the Toronto Stock Exchange Junior board when at least two other Chile copper exploration hopefuls delayed their listing efforts. “We raised US$2.1 million in January 2022 from mainly experienced mining people, so we didn’t look to raise any money when we listed, so we didn’t encounter any adverse market reaction,” said Gow.

Shares in Hot Chili are trading at C95c, valuing the company at C$114 million.

Shares in Tribeca Resources are trading at C36c, valuing the company at C$19 million.