Big 836m Intercept at 0.5% CuEq* at Cortadera

ASX Announcement

Tuesday 18th May 2021
Highlights
  • Diamond drill hole CRD0080 has returned a strong extensional intersection from initial step-out drilling at the Cortadera copper-gold porphyry discovery in Chile
  • 836m grading 0.4% copper & 0.1g/t gold (0.5% CuEq*) from 536m depth, including a higher grade interval of 436m grading 0.5% copper & 0.2g/t gold (0.6%CuEq*) from 536m
  • CRD0080 extends the southern flank of the main porphyry (Cuerpo 3) by a further 80m, with the hole ending in mineralised porphyry
  • Diamond drill hole CRP0062D has confirmed connection of the two largest porphyries at depth (Cuerpo 2 and 3) at Cortadera – second “gap zone” diamond drill hole complete with assays pending
  • All three drill rigs now focussed on step-out extensional drilling with approximately 9,000m of assay results outstanding

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce strong results from initial step-out extensional drilling at its Cortadera copper-gold discovery in Chile.

The Company’s first two step-out drill holes have expanded the maiden resource envelope for the main porphyry by 80m and, most importantly, have confirmed that the two largest porphyries join at depth.

All three drill rigs in operation at Cortadera have now been directed toward the extensional phase of the Company’s 40,000m drilling programme, focussed on key growth areas outside the maiden resource.

* 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%. 
CRD0080 – Extension of the Main Porphyry at Cortadera

CRD0080 is the Company’s first significant step-out extensional drill hole this year, and was designed to test the width of the main porphyry (Cuerpo 3) across its southern flank.

Results received from CRD0080 recorded 836m grading 0.4% copper & 0.1g/t gold (0.5% CuEq*) from 536m depth, with the hole ending in mineralised porphyry; including a higher grade interval of 436m grading 0.5% copper & 0.2g/t gold (0.6%CuEq*) from 536m

The new result in CRD0080 is substantial; extending the southern flank of Cuerpo 3 by approximately 80m and confirming depth continuation of the main porphyry below 1,000m.

Cuerpo 3 is already approximately 900m in strike length, 600m in width and over 1,200m in vertical extent. 

The porphyry remains open in most directions with forthcoming drilling targeting its south-eastern extent, where the high grade core remains open.

CRP0062D –Confirmation The Two Largest Porphyries Join at Depth

Results from the first diamond drill hole testing the “gap zone” between Cuerpo 2 and Cuerpo 3 confirm that the two largest porphyries connect at depth.

No significant result was returned from CRP0062D; however, the diamond hole intersected a wide 460m zone of weakly mineralised “intra-mineral” porphyry between 600m and 1,060m depth down hole.

Intra-mineral porphyries at Cortadera typically grade between 0.1% and 0.4% copper and were emplaced immediately following the early porphyry phase of mineralisation which typically grades between 0.3% and 1.0% copper. 

A second “gap zone” hole (CRP0090D) has just been completed to a depth of 985m and has intersected a wide zone of porphyry mineralisation between 350m and 650m depth down-hole.  Mineralised porphyry comprised visual estimates of 0.4% – 2.0% chalcopyrite contained as fine dissemination and in association with 1% to 5% B-vein abundance.  Visual estimates of sulphide minerals are not an accurate representation of expected assay value and are provided for indicative purposes only

Results from CRP0090D are expected shortly with further diamond drill holes planned to test the gap zone.

Step-out Drilling Underway and Results for 9,000m of Drilling Expected

The initial phase of the Company’s 40,000m drill programme at Cortadera this year focussed on growth of the high grade core at Cuerpo 3.  Results so far have proven the resource is robust and that the high grade core is continuing to grow predictably.

All three drill rigs are now targeting extensional areas outside of the existing maiden resource envelopes at Cortadera.

Diamond (DD) drilling (two drill rigs) and Reverse Circulation (RC) drilling (one drill rig) is currently being undertaken across potential extensions to the Cuerpo 1 and Cuerpo 3 porphyries.

A third phase of first-pass drilling is scheduled to commence at Cortadera North in the coming weeks.

The Company is awaiting the return of assay results for approximately 9,000m of drilling already undertaken from five DD holes and seventeen RC holes across Cortadera and Cortadera North.

Further updates are expected shortly as the Company advances key workstreams spanning exploration, resource development and development studies for the combined Costa Fuego copper development.

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

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))

Note: only outstanding DD holes included in figures are outlined in Table 1 above.  Assay results for a further two DD holes and seventeen RC holes are pending

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

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 significant historical copper-gold DD intersections across Cuerpo 1, 2, 3 and 4 tonalitic porphyry intrusive centres (represented by modelled copper envelopes, yellow- +0.1% Cu and majenta +0.4% Cu).  Note the selected HCH drilling intersections (White) and the new result reported from CRD0080 (Red).

Figure 3 Long Section displaying the location of CRD0080 in relation to the Cortadera copper-gold discovery window.  A wide intersection of weakly mineralised porphyry in CRP0061D confirms that the two largest porphyries at join at depth.  Results are pending for CRP0090D, CRP0088D and CRP0047D

Figure 4  Plan view across the Cortadera discovery area displaying significant copper-gold DD intersections across Cuerpo 3 since the October 2020 resource estimate.  The plan view displays the Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu). Note the new result reported from CRD0080D (Magenta collar) as well as the location of current deep diamond holes (black traces, red collars).

Figure 5 Cross Section across Cuerpo 3 with a 100m slicing window (+/-50m viewing) through the bulk copper envelope (+0.1%Cu model) and high grade copper envelope (+0.4% Cu model).  Note the location of CRD0080.  Importantly the hole has extended the footwall to the main porphyry by approximately 80m.  The new drill results have added substantially to the 0.1% and 0.4% copper envelopes which have been updated to include the new result.

To read the full announcement click on the below link

http://www.hotchili.net.au/wp-content/uploads/2021/05/HCH_9_Big-836m-Intercept-at-0.5-CuEq-at-Cortadera_18052021.pdf

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