ASX Announcement

Friday 16th April 2021

Cortadera Copper-Gold Update

More Copper, More Gold

Highlights

  • New drill results continue to expand size and increase grade at the Cortadera copper-gold discovery in Chile
  • Eight new extensional drilling intersections post Cortadera 451Mt resource estimate (October 2020)
  • Results (CRP0046D) confirm further wide zones of higher-grade copper and gold within Cortadera’s main porphyry (Cuerpo 3)
  • Two more wide visual intersections of mineralisation recorded in extensional diamond drill holes CRD0080 and CRP0047D; assays pending
  • First diamond drilling underway at Cuerpo 1 porphyry at Cortadera

Significant Drill Results for CRP0046D

114m grading 0.5% copper & 0.2g/t gold
from 248m down-hole depth
 &
185m grading 0.5% copper & 0.2g/t gold
from 568m down-hole depth

(including additional silver and molybdenum credits)

Two More Wide Visual Intersections – Assays Pending

CRD0080 – 550m of Porphyry Mineralisation Recorded
from 550m to 1,100m depth, hole complete
&
CRP0047D – 200m of Porphyry Mineralisation Recorded
from 720m to 920m depth, current hole depth at 960m

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to announce that extensional drilling at the Cortadera copper-gold discovery is on-track to deliver a significant upgrade to the Company’s combined Costa Fuego copper-gold resource in Chile.

Costa Fuego’s combined resource base sits at 724Mt grading 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64kt molybdenum and is being expanded toward a Tier-1 copper resource (+5Mt copper).

New results for CRP0046D and confirmation of a further two wide visual intersections (assays pending for CRD0080 and CRP0047D) continue Cortadera’s run of strong resource extensions.

Hot Chili have now achieved eight significant extensional diamond drill intersections since Cortadera’s maiden resource was announced in October last year.

Cortadera core photos

Various Photos of CRP0047D diamond core between 757m and 783m depth down-hole, displaying well mineralised porphyry with strong A-B vein abundance along with disseminated pyrite-chalcopyrite-molybdenite mineralisation.

New Diamond Drill Results from Cortadera

Two diamond drill rigs are operating on a 24-hr basis to complete a large resource expansion drill programme across Cortadera this year.

New results for drill hole CRP0046D have returned two significant intersections comprising 114m grading 0.5% copper and 0.2g/t gold from 248m depth and 185m grading 0.5% copper and 0.2g/t gold from 568m depth down-hole.  The two higher grade intersections were contained within a broader drill result of 838m grading 0.3% copper and 0.1g/t gold from 140m depth.

Importantly, the two higher grade intersections in CRP0046D were recorded in areas previously modelled as low grade within the main porphyry (Cuerpo 3) of the Cortadera resource.

Results are pending for two wide visual intersections of porphyry mineralisation recorded in CRD0080 (between 550m and 1,100m depth) and CRP0047D (between 720m and 920m depth) across extensions to the high grade core at Cortadera’s main porphyry.

Both zones of mineralised porphyry comprise visual estimates of 0.5% – 2.5% chalcopyrite contained as fine dissemination and in association with 2% 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.

These latest results add to the high grade zone recently recorded in CRP0061D (318m grading 0.6% copper and 0.2g/t gold) and continue to confirm growth of higher grade, bulk tonnage, resources at Cortadera.

First diamond drill testing by Hot Chili below Cuerpo 1 has commenced and diamond drilling is continuing across Cuerpo 3. 

RC Drilling Update at Cortadera and Cortadera North

The Company is also advancing well with its Reverse Circulation (RC) drill programme at Cortadera and Cortadera North. 

A total of eight first-pass RC drill holes are complete across the large Cortadera North target, located 2km north of Cortadera.  An additional three RC drill holes remain to be drilled and the Company expects to report results once all assays have been received and compiled.

Multielement pathfinder results will be key to determining potential areas for second-pass diamond drill hole tails and RC follow-up drilling at Cortadera North. 

In addition, several shallow significant intersections have been recorded from preliminary RC drill holes across Cuerpo 1 at Cortadera, including 36m grading 0.4% copper and 0.1g/t gold from surface (including 10m grading 0.7% copper and 0.2g/t gold from 24m) and 22m grading 0.5% copper and 0.1g/t gold from surface. 

Further RC drilling is planned to extend areas of shallow higher grade copper and gold at Cuerpo 1. 

The Company looks forward to providing further drill results and operational updates from its rapidly advancing Costa Fuego copper development in Chile. 

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

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.

Figure 1 Location of the Cortadera discovery and Productora 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 magenta +0.4% Cu). Note the selected HCH drilling intersections (White) and the new results reported from CRP0046D, CRP0068 & CRP0075 (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 Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu). Note the selected HCH drilling intersections (White) and the new results reported from CRP0046D (Red). as well as the location of diamond holes (black traces) with assays pending.

Figure 4. Long Section displaying the location of CRP0061D in relation to the Cortadera copper-gold discovery window.

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 announcement in full click on the below link

Cortadera Update- More Copper, More Gold

Subscribe to Hot Chili updates