610m at 0.5% CuEq including 138m at 0.8% CuEq
ASX Announcement
Friday 1st 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 17th 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:
| Christian Easterday | Tel: +61 8 9315 9009 |
| Managing Director | 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.
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.
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