Higher Grade Core Confirmed at Cortadera

Home / Investor News / Higher Grade Core Confirmed at Cortadera

Highlights

  • Updated copper models confirm a new higher-grade core (+0.6% Cu) at Cuerpo 3 and material expansion of both high grade and bulk tonnage mineralisation at the Cortadera copper-gold porphyry discovery in Chile
  • Final assays received from 2021 resource drilling, including several significant results from the margins of Cuerpo 2 and Cuerpo 3
    • CRP0155D – 202m grading 0.5% CuEq* (0.4% copper (Cu), 0.1g/t gold (Au)) from 492m dept
      • including 42m grading 0.7% CuEq* (0.6% copper (Cu), 0.2g/t gold (Au)) from 596m depth
    • CRP0144D – 927m grading 0.3% CuEq* (0.2% copper (Cu), 0.1g/t gold (Au)) from 14m depth
      • including 208m grading 0.4% CuEq* (0.3% copper (Cu), 0.1g/t gold (Au)) from 382m depth
      • And 32m grading 1.0% CuEq* (0.8% copper (Cu), 0.2g/t gold (Au)) from 682m depth
    • CRP0170D – 208m grading 0.5% CuEq* (0.4% copper (Cu), 0.1g/t gold (Au)) from 524m depth
      • including 18m grading 0.6% CuEq* (0.5% copper (Cu), 0.1g/t gold (Au)) from 814m depth
  • Additional 52,000 metres from 146 drill holes have been added to the Cortadera Mineral Resource (October 2020), resulting in a 129% increase in drill meters and linking of all three porphyries
  •  Cortadera Resource Upgrade to be delivered in Q1 2022

Figure 1. Oblique long sections showing the comparison of the Oct 2020 and Feb 2022 Cu wireframes and drilling coverage for Cortadera (looking NE)

Hot Chili Limited (ASX: HCH) (TSXV:HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce that final drill results from its Cortadera copper-gold discovery have been received allowing for a global resource upgrade of the Company’s combined Costa Fuego coastal copper development in Chile.

Final results have returned a number of significant wide intersections from drilling undertaken on the margins of Cuerpo 2 and Cuerpo 3 at Cortadera.

The Company has commenced remaining workstreams to complete a resource upgrade for Cortadera, utilising an additional 52,000m drilled since its maiden resource of 451Mt was reported in October 2020.

Hot Chili expects to deliver its next leg of resource growth for Costa Fuego in Q1 2022, followed by the completion of a combined Pre-feasibility Study (PFS) in Q3, 2022.

Hot Chili’s Managing Director Christian Easterday said:

“We are one of a handful of company’s outside of the majors that are advanced enough to deliver a meaningful new copper mine into production in the next five years.

“It takes an average 18 to 21 years to move from discovery to production with large-scale copper projects.  The quality of Hot Chili’s Costa Fuego project is evidenced by the speed in which we have advanced the project from discovery to resource delineation to the planned release of an updated PFS.

“Hot Chili is well positioned ahead of a forecast step-change in global copper demand, combined with a paucity of new copper supply, this decade.”

Final Drilling Results Allow Completion of Expanded Model for Cortadera

Rigorous technical analysis by Hot Chili’s geological team led by Dr Steve Garwin has resulted in updated copper mineralisation models for resource estimation purposes.

Updated modelling provides encouragement ahead of Cortadera’s resource upgrade, in particular:

  • The Cortadera Resource footprint now links all three Cuerpos, which reflects the significant extent of the porphyry system discovered to date and provides versatile low grade, low-strip ratio sulphide mining options
  • The delineation of an additional high-grade domain (+0.6% Cu) within Cuerpo 3 and expansion of +0.3% Cu material at Cuerpo 1 and 2 from surface, provides both open pit and underground mining options
  • Confirmation of strong vertical and concentric continuity of higher grade mineralisation
  • The delineation of new high grade copper oxide mineralisation above each of Cortadera’s three porphyries
  • The expanded drilling dataset provides confidence for a material conversion from Inferred to Indicated Classification, paving the way for a successful PFS

Drilling Operations Continuing at Cortadera and Productora

The Company’s 2022 drilling programme is progressing well.  Two diamond (DD) drill rigs are in operation at Cortadera completing a number of drill holes for hydrology and geotechnical testwork purposes.

In addition, a third drill rig is completing Reverse Circulation (RC) drilling across the first of several large targets being tested this year, Productora Central, located immediately adjacent to the Productora resource, some 14kms from Cortadera.

First assay results from Productora Central are expected to be received in the coming weeks.

The Directors look forward to providing further updates from the Company’s various work programmes as we focus on delivering key growth and development milestones this year.

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

For more information please contact:

Christian Easterday Managing Director – Hot Chili Tel:     +61 8 9315 9009 Email: admin@hotchili.net.au  
Penelope Beattie Company Secretary – Hot Chili Tel:     +61 8 9315 9009 Email: admin@hotchili.net.au  
ASX Investor Investor & Public Relations (Australia)   Email: eliza@asxinvestor.com.au  
Harbor Access Investor & Public Relations (Canada) Email: Graham.Farrell@harboraccessllc.com or jonathan.paterson@harboraccessllc.com
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.

Down-hole significant intercept widths are estimated to be at or around true-widths of mineralisation

* 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 2 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 3 Plan view across the Cortadera discovery area displaying the location of new drill results (cyan) in relations to significant historical copper-gold DD intersections across Cuerpo 1, 2, and 3 tonalitic porphyry intrusive centres.  Note the revised Feb 2022 copper models (represented by modelled copper envelopes, yellow- +0.05% Cu, magenta- +0.4% Cu and red- +0.6% Cu).

Figure 4 Plan view across Cuerpo 3 of the Cortadera discovery area displaying significant copper-gold DD intersections 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 significant results reported including CRP0155D, CRP0144D, CRP0136D and CRP0170D.  All new results are shown by cyan collars.

Figure 5 Plan view across Cuerpo 2 of the Cortadera discovery area displaying significant copper-gold DD intersections 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 significant results reported including CRP0150D, CRP0161D and CRP0149D and CRP0159D. All new results are shown by cyan collars.

Qualifying Statements

The Mineral Resource summary for the Costa Fuego Project is presented in the following tables.

Productora Mineral Resource Summary – reported by classification (open pit, using +0.25% CuEq cut-off grade), 28th October 2021

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with CIM and NI-101. 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 Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%

Cortadera Mineral Resource Summary – reported by classification (using +0.25% CuEq cut-off grade) and by open pit (top), underground (middle) and total (bottom), 28th October 2021

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with CIM and NI 43-101. Metal rounded to nearest thousand, or if less, to the nearest hundred.

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%

** 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

Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Appendix 1.  JORC Code Table 1 for Cortadera

To access the announcement please click on the link below:

Higher Grade Core Confirmed at Cortadera