Cortadera North Flank Delivers High Grade Extensions82m at 1.0% CuEq & 168m at 1.0% CuEq

ASX Announcement

Friday 10th September 2021

CRP00124D (702m depth down-hole) – 1.0% copper, 0.5g/t gold, 2.2g/t silver and 49 ppm molybdenum.  Early-stage porphyry, sericite-chlorite-albite alteration with 11% A-B vein abundance

* 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%

Highlights
  • Hot Chili has recorded further strong extensional results from the Cortadera copper-gold porphyry discovery in Chile, demonstrating continued expansion of high grade resources (+1% CuEq) across the northern flank (North Flank) of the main porphyry (Cuerpo 3)
  • CRP0124D returned a broad intersection of 362m grading 0.6% CuEq (0.5% copper (Cu), 0.2g/t gold (Au)) from 480m depth down-hole, including 82m grading 1.0% CuEq (0.7% Cu, 0.3g/t Au) from 634m depth
  • Final assays from CRP0088D have significantly upgraded the initial result (reported to ASX 16th June, 2021) to 486m grading 0.6% CuEq (0.5% Cu, 0.2g/t Au) from 426m depth down-hole, including 168m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) from 682m depth
  • High Grade (+1% CuEq) mineralisation shows strong continuity across the North Flank over 400m of strike length with further extensions expected (assay results for CRP0134D pending)
  • Successful drill testing of additional open flanks at Cuerpo 2, results pending for five drill holes which have visually recorded wide intersections of strong porphyry mineralisation from surface
  • Three drill rigs in operation, 6,302m of assay results pending from 27 drill holes, assay turnaround currently 44 days

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 add significant resource growth from extensional drilling, as the Company’s Costa Fuego coastal copper development draws ever-closer toward Tier-1 status.

Hot Chili’s Managing Director Christian Easterday said drilling continued to demonstrate strong continuity of high grade extensions ahead of plans to up-grade the maiden 451Mt Cortadera resource.

“Systematic extensional drill testing of multiple open flanks to the orebody is proving highly successful.

“The North Flank of the high grade core to the main porphyry is a significant resource addition with wide results of +1%Cu Eq now recorded in multiple drill holes.

“We are also seeing highly encouraging, wide intersections in new shallow RC drilling at Cuerpo 2.

“Following our recent $40 million capital raising and Glencore’s strategic investment, we are now well positioned to accelerate and broaden our growth plans for Costa Fuego’s existing 724Mt resource base.

“We expect to deliver several announcements across all activity fronts (exploration, resource drilling, development studies and corporate) as we lead into a planned Q4 dual-listing in Canada this year.”

Cuerpo 3 North Flank Extension Emerging as Strong High Grade Addition

New assay results from resource extensional drilling across the North Flank to the high grade core of the main porphyry (Cuerpo 3) at Cortadera have returned further strong results.

CRP0124D returned a broad intersection of 362m grading 0.6% CuEq (0.5% copper (Cu), 0.2g/t gold (Au)) from 480m depth down-hole, including 82m grading 1.0% CuEq (0.7% Cu, 0.3g/t Au) from 634m depth.

In addition, final results from CRP0088D have significantly upgraded the initial result (reported to ASX 16th June, 2021) to 486m grading 0.6% CuEq (0.5% Cu, 0.2g/t Au) from 426m depth down-hole, including 168m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) from 682m depth.

Importantly, the high grade results in CRP0124D and CRP0088D are recorded at approximately the same vertical depth and along strike to CRP0013D, which recorded 100m grading 1.0% Cu and 0.5g/t Au within a broader intersection of 750m grading 0.7% CuEq (0.6% Cu, 0.2g/t Au) from 204m depth.

Recent drilling has increased the width of the main porphyry by approximately 100m and demonstrated strong continuity of high grade (+1% CuEq) mineralisation across the North Flank over 400m of strike length so far.

Further expansion of the North Flank is expected to be confirmed with assay results pending from another step-out diamond hole CRP0134D, which has returned a wide visual intersection of mineralised porphyry between 480m and 830m depth down-hole. 

Mineralised porphyry in CRP0134D comprises visual estimates of 0.7% – 3.0% chalcopyrite contained as fine disseminations 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.

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

Expansion of Shallow Resources at Cortadera

A significant number of Reverse Circulation (RC) drill holes have been completed in up-dip positions across Cuerpo 3 and Cuerpo 2 over the past two months.

Several of these holes have been completed as pre-collars for deeper diamond tail extensions and others have tested areas of shallow resource potential across both porphyries where drill hole density was limited.

Shallow RC drilling across the southern, eastern and north eastern flanks of Cuerpo 2 has been particularly encouraging – identifying new, shallow mineralisation.  Assay results are pending for five drill holes which have returned wide zones of oxide and sulphide mineralisation from surface.  Further drilling is being undertaken to assess this potential.

All five drill holes have visually recorded mineralised porphyry in RC chips at Cuerpo 2.  Mineralisation comprises visual estimates of 0.5% – 1.5% chalcopyrite contained as fine dissemination and 0.5% – 2% copper-bearing limonite in oxides.  Visual estimates of sulphide and oxide minerals are not an accurate representation of expected assay value and are provided for indicative purposes only.  Widths of mineralisation in all five holes extend from surface to approximately 100m down-hole.

Further Updates Expected in Advance of Canadian TSXV Dual-Listing

Hot Chili continues to operate five shifts of drilling per day with three drill rigs at Cortadera in advance of a targeted major resource upgrade this year.  A fourth drill rig is being sourced to accelerate drilling in the coming months.

Diamond drilling is continuing to test open flanks to the Cortadera resource at both Cuerpo 3 and Cuerpo 2 with a focus on expansion of both size and grade across the 2.3km discovery zone.

The Company is on-track with its process to dual-list on the TSXV in Q4 this year.

In the lead-up to the planned dual listing in Canada, Hot Chili aims to provide several updates on multiple activity streams, including:

  • Exploration activity updates and new results across Costa Fuego
  • Ongoing drill results, with assay results currently pending for 27 drill holes comprising approximately 6,302m of drilling
  • Preliminary Feasibility Study (PFS) work stream advances for Costa Fuego
  • Further corporate appointments

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.

* 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%

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 magenta +0.4% Cu).  Note the selected HCH drilling intersections (White) and the new result reported from CRP0088D and CRP0124D (Magenta).

Figure 3  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 CRP00124D, CRP0088D and CRP0090D (Magenta collar) as well as the location of DD holes which are pending assay results (black traces, red collars).

Figure 4  Plan view flitch across Cuerpo 3 at Cortadera.  Flitch plan set at 380m RL (+/-100m window) displaying recent significant intersections in relation to the 4D geology model for Cortadera.  Note the growth in early (magenta) and intra-mineral (red) porphyries since the October 2020 maiden resource estimate.  High grade at this level in Cuerpo 3 correlates with the transition from stockwork to flat A-B veining.  Several areas of lateral growth are being tested to expand the extent of high grade mineralisation (+1% CuEq)

Figure 5 Cross section A-A’ displaying the location of CRP00124D in relation to the geology model at the time of the maiden Cortadera Resource Estimate (October 2020).  Note the lateral extension of early mineralised porphyry by approximately 85m.

Figure 6 Cross section B-B’ displaying the location of CRP00134D (assays pending) in relation to the geology model at the time of the maiden Cortadera Resource Estimate (October 2020).  Note the lateral extension of a further 85m from the recent significant intersection reported in CRP0124D and the continued extension of early mineralised porphyry which remain open for further extensional drill testing.

To read the full announcement click on the below link

http://www.hotchili.net.au/wp-content/uploads/2021/09/HCH_22_Cortadera-Delivers-82m-at-1-CuEq-168m-at-1-CuEq_10092021.pdf

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