Cortadera Copper-Gold Discovery
Continues Impressive Run of Drill Results

First Diamond Hole Below Cuerpo 2 Records
Broad 500m zone of Mineralised Porphyry


Highlights

  • New drill results at Hot Chili’s Cortadera porphyry discovery in Chile, point toward a significant upgrade to the recently released 451Mt maiden copper-gold Mineral Resource

Significant Drill Result for CRP0032D

373m grading 0.4% copper & 0.1g/t gold
from 648m down-hole depth to end-of hole

including

130m grading 0.5% copper & 0.2g/t gold

                                                                                              (plus additional silver and molybdenum credits)

  • The end-of-hole intersection in CRP0032D extends the maiden Cortadera resource and confirms that the NW margin of the main porphyry (Cuerpo 3) remains open, with up to 400m of potential strike extension remaining to be tested

 

  • Diamond drill rig currently testing the SE extension of Cuerpo 3; CRP0052D is currently in mineralisation at a depth of approximately 360m down-hole, with a planned hole depth of 1,200m

 

  • First Hot Chili diamond hole completed below Cuerpo 2 (CRP0053D) has recorded a broad 500m zone of mineralised porphyry – assays pending and a second hole planned

 

  • Two first-pass Reverse Circulation (RC) holes complete and a third is underway across the 2km long Cortadera North target – results pending, seven RC holes remaining

 

  • Mine plan and final permitting approvals for Productora underground mine received, ramp-up of lease mining activities progressing well towards first commercial cash flow

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to announce the first steps towards a major upgrade of its maiden 451Mt Cortadera Mineral Resource (resource), released just one month ago.


Expansion drilling of the Cortadera resource is seeing continued success, with wide intersections being recorded from extensional drilling of the main porphyry (Cuerpo 3) and the second largest porphyry (Cuerpo 2). These results continue to underpin the Company’s view that Cortadera is rapidly growing toward a potential Tier 1 copper discovery in its own right.

New Results Expand the Size of the Main Porphyry (Cuerpo 3) at Cortadera

New results from ongoing expansion drilling at its Cortadera copper-gold discovery in Chile have recorded a significant drill intersection from a 282m extension of diamond hole CRP0032D, located along the NW
extent of the Cortadera resource. The hole had previously ended in mineralisation, leaving the NW margin of Cuerpo 3 open.

CRP0032D recorded a significant end-of-hole drill result of 373m grading 0.4% copper and 0.1g/t gold from 648m down-hole, including 130m grading 0.5% copper and 0.2g/t gold.

Importantly, this new result further extends the strike and depth extent of Cuerpo 3, indicating a substantial tonnage addition to the recently announced maiden Cortadera resource.

The Company has also completed an 890m diamond drill hole (CRP0041D) located 400m NW of diamond hole CRP0032D. Proximal halo alteration in association with low grade copper mineralisation was intersected in an along-strike target position predicted by the Company’s four-dimensional geological model. Information from CRP0041D will greatly assist in designing the next extensional hole along the NW margin of Cuerpo 3 and confirms a 400m zone of extensional potential remains to be tested.

The Company is currently completing a 1,200m diamond drill hole (CRP0052D) across the SE extension of Cuerpo 3, which also remains open. CRP0052D is at a down-hole depth of approximately 360m and has just entered mineralisation.

The last hole completed by Hot Chili across the SE margin of Cuerpo 3 recorded an outstanding drill intersection in diamond hole CRP0040D, comprising 542m grading 0.5% copper and 0.2g/t gold from 328m, including 218m grading 0.7% copper and 0.2g/t gold.

First Hot Chili Diamond Hole Below Cuerpo 2 Returns a Broad Zone of Mineralisation

Hot Chili has completed its first diamond drill hole (CRP0053D) below Cortadera’s Cuerpo 2 porphyry which tested further depth extensions and the potential for Cuerpo 2 to host a high grade core, similar to that seen
at Cuerpo 3.


CRP0053D was terminated at a depth of 843.9m after recording a broad 500m zone of mineralised porphyry between 284m and 785m down-hole depth.

Mineralisation between 284m and 785m down-hole depth comprises a visual estimate of 0.3% – 2.5% chalcopyrite contained as fine dissemination and in association with 1% to 8% B-vein abundance. Visual estimates of sulphide minerals are not an accurate representation of expected assay value and are provided for indicative purposes only.

Once all assay results have been received for CRP0053D, the Company will incorporate this data into its integrated four-dimensional geological model in order to optimise the design of a second diamond hole below Cuerpo 2.

Assay results for CRP0053D are pending and have been assigned priority turnaround.

Cortadera North First-Pass Drilling Progressing Well

The Company is also advancing well with it first-pass RC drill programme across the exciting 2km long Cortadera North target zone. To date, two deep RC drill holes have been completed and a third RC drill hole is underway. RC drilling is operating in parallel with pre-collar drilling at Cortadera and at this stage is being undertaken on a two week-on, two week-off basis.

The first two deep RC holes (CRP0054 and CRP0055) are located along a 700m long traverse across a large surface molybdenum soil geochemical anomaly at Cortadera North. Both drill holes have recorded encouraging proximal alteration and low-level pyrite mineralisation towards the end-of hole. Minor copper- oxide mineralisation (copper oxide clays between 17m and 37m depth) has also been recorded in the third RC drill hole (CRP0056), which is underway and at a depth of approximately 90m.

The Company plans to complete the remaining eight holes (including CRP0056) and await receipt of all results prior to moving to a follow-up drill programme in the New Year, which may involve further RC drilling and targeted diamond tails from certain first-pass RC drill holes.

Results for the two completed Cortadera North holes are pending.

Next Steps and Forward News Flow

Drilling – The Company looks forward to releasing further drill results from its phase three drill program at Cortadera once assay results are received. This will include diamond drill results for CRP0053D (Cuerpo 2), CRP0052D (Cuerpo 3 – currently drilling) and updates on first-pass drilling being undertaken at Cortadera North over the coming weeks.

Hot Chili is working closely with its drilling contractor to plan for the commencement of accelerated drilling operations in a safe manner given ongoing COVID restrictions and challenges in the Vallenar region. The Company expects to provide an update once this is implemented.

Resource Growth – The Company is on-track to complete a maiden resource estimate for its San Antonio high grade satellite deposit located 4km from Cortadera. Hot Chili is also planning an extensional drilling
programme along the San Antonio to Valentina corridor during 2021. High grade resource additions and a resource upgrade at Cortadera aim to grow Costa Fuego into a Tier-1 copper resource base in 2021.

First Commercial Cash Flow – Lease mining and processing activities at the Productora copper-gold deposit are expected to ramp-up following receipt of mine plan and final permitting approvals for the
Productora underground mine. This approval will greatly assist lease mining operations and the commencement of first commercial cash flow to Hot Chili through its agreement with Chilean government agency ENAMI.

The Directors look forward to providing an update on production as well as discussions to potentially expand the lease mining and processing agreement with ENAMI within the coming month.

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

For more information please contact:

Christian Easterday                Tel:   +61 893159009

Managing Director                 Email: christian@hotchili.net.au

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

Table 1 New Significant DD Drill Results at Cortadera

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
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 results reported from CRP0032D (Red).

Figure 3 Plan view across the Cortadera discovery area displaying significant historical copper-gold DD intersections across Cuerpo 2 and 3. The plan view displays the 500m level block model flitch of the JORC Mineral Resource in relation to the Uncategorised expansion target  area (represented by modelled copper envelope, yellow- +0.1% Cu). Note the selected HCH drilling intersections (White) and the new results reported from CRP0032D, CRP0041D as well as the location of CRP0052D and CRP0053D (Red).

Figure 4 Plan view displaying the location of the Cortadera discovery zone in relation to the Cortadera North target. The plan displays the location of Cuerpo 1, 2, 3 and 4 tonalitic porphyry intrusive centres (represented by modelled copper envelopes, yellow- +0.1% Cu) in relation to surface molybdenum anomalism and IP chargeability response at 200m depth slice. Cortadera North, located 2km north of Cortadera displays “look alike” characteristics to the Cortadera discovery. Note locations of first pass RC drill holes.

Qualifying Statements

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.

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

Appendix 1. JORC Code Table 1 for Cortadera

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

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