Hot Chili Reports 144m at 1.0% CuEq-

High Grade Resources Set To Grow Significantly

ASX Announcement

Wednesday 16th June 2021

Highlights

  • Hot Chili has recorded its second-best high grade interval from the Cortadera copper-gold porphyry discovery in Chile, 300m from its high grade discovery hole CRP0013D, and demonstrating strong mineralisation (+1% CuEq) across the northern flank of the main porphyry
  • CRP0088D returned a broad intersection of 410m grading 0.6% CuEq (0.5% copper (Cu), 0.2g/t gold (Au)) from 440m to 850m depth down-hole, with the last 144m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) between 706m and 850m depth – Assays results pending for the remainder of CRP0088D (850m to 1,434m)
  • CRP0013D intersected 188m grading 1.1% CuEq (0.9% Cu and 0.4g/t Au) at approximately the same vertical depth as CRP0088D, within a broader intersection of 750m grading 0.7% CuEq (0.6% Cu and 0.2g/t Au) from 204m depth
  • Pre-feasibility study for Hot Chili’s combined 724Mt Costa Fuego resource will take advantage of a high grade inventory which is set to significantly expand– currently 56.6Mt grading 0.97% CuEq (0.8% Cu & 0.22g/t Au, Oct 2020)
  • Three drill rigs in operation, 5,900m of assay results pending, and reverse circulation drilling to re-commence at Cortadera North in the coming fortnight

CRP0088D (768m to 770m depth down-hole) – 2.0% copper, 0.7g/t gold, 4.1g/t silver and 751 ppm molybdenum.  Early-stage porphyry, chlorite-albite-sericite alteration with 6% 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%

Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce it has recorded its second best high grade intercept from drilling at its Cortadera copper-gold discovery in Chile.

Hot Chili’s Managing Director Christian Easterday said the new drill results suggest Cortadera’s growth has a long way to go.

“It is an exciting time for our Company ahead of our Pre-feasibility and resource upgrade.

“Cortadera continues to deliver exceptional widths of copper and gold, with the new result recording some 62m grading 1.0% copper and 0.4g/t gold, much higher grade than we had estimated in that area of the main porphyry.

“Our combined Costa Fuego copper project is set to deliver on both scale and grade – at a time of increasing copper price and limited large-scale new copper supply opportunities in top-tier mining jurisdictions.

“We are now poised to commence our Pre-feasibility study into the largest copper development of any ASX-listed emerging company since Equinox Minerals advanced it’s Lumwana copper project to production over ten years ago.  Equinox Minerals, which was dual-listed in Toronto, was acquired by Barrick Gold in 2011 for A$7.1 billion.

“The PFS for our 724Mt combined Costa Fuego resource will take advantage of a large high grade copper-gold inventory – currently 56.6Mt grading 0.97% CuEq (0.80% copper & 0.22g/t gold) – which we expect will grow significantly”.

Cuerpo 3 High Grade Core Returns Another Outstanding Result

 

New assays from definition drilling of the high grade core of the main porphyry (Cuerpo 3) have returned results grading up to 2% copper (Cu) and 0.7g/t gold (Au) within a wide intercept of 144m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) between 706m and 850m depth in drill hole CRP0088D.

The new results were recorded within an even broader intersection of 410m grading 0.6% CuEq (0.5% Cu, 0.2g/t Au) from 440m to 850m depth down-hole.

Assays results are pending for the remainder of CRP0088D between 850m and 1,434m.

Importantly, CRP0088D returned a 62m wide zone grading 1.0% Cu and 0.4g/t Au – significantly higher than previous drilling included in Cortadera’s maiden resource of 451Mt grading 0.46% CuEq.

The new result is similar to the high grade discovery zone hole 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

CRP0088D is located 300m to the southeast of CRP0013D along the northern flank of Cuerpo 3, with both high grade intersections recorded at approximately the same vertical depth.

In addition, diamond drill hole CRP0047D also returned a strong new intercept from Cuerpo 3.  CRP0047D recorded 218m grading 0.6% CuEq (0.5% Cu, 0.1g/t Au) from 720m depth down-hole including 24m grading 0.8% CuEq (0.7% Cu, 0.2g/t Au).

Figures 2 to 5 display the location of these new significant drilling intersections at Cortadera.

New Discovery Joins Cortadera’s Porphyries Together Across 2.3km

 

A new porphyry zone located between Cuerpo 1 and Cuerpo 2 has been discovered by new extensional drill testing.  The new porphyry zone is approximately 500m in strike length, 60m in width, extends from surface, and confirms that all of Cortadera’s porphyry centres are connected over 2.3km of strike extent.

Results returned from the first four holes completed into the new discovery include 56m grading 0.4% Cu and 0.1g/t Au from 40m depth in drill hole CRP0091, which included 20m grading 0.7% Cu and 0.2g/t Au.

Results for eight shallow holes completed across the near-surface position of the new discovery are pending.

Deeper testing of this zone will commence in the coming months.

Three Drill Rigs in Operation to Deliver Resource Upgrade in 2021

 

Hot Chili is operating five shifts of drilling per day with three drill rigs at Cortadera, as it advances towards a targeted major resource upgrade this year.
Planning is underway to follow-up and continue expanding the high grade zone confirmed by drill holes CRP0088D and CRP0013D at Cuerpo 3.
The Company looks forward to providing further updates across several activity streams over the coming weeks, including:

  • Progress towards a dual-listing in the Canadian market this year
  • Commencement of a combined Pre-feasibility study for Costa Fuego and key appointments
  • Ongoing drill results, with assay results currently pending for 23 drill holes comprising approximately 5,900m of drilling
  • Exploration activity updates from Cortadera North and Santiago Z growth targets

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 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

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 result reported from CRP0088D and CRP0047D (Red).

Figure 3  Long Section displaying the location of CRP0088D and CRP0047D in relation to the Cortadera copper-gold discovery window.  A new shallow porphyry zone confirms that all of Cortadera’s porphyries join across 2.3km strike length.  Results are pending for CRP0090D, CRP00103D and CRP0058D.  Diamond drilling of CRP0103D and CRP0058D is in progress

Figure 4  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 CRP0088D and CRP0047D (Magenta collar) as well as the location of CRP0090D which is pending assay results (black traces, red collars).

Figure 5  Plan view across the Cortadera discovery area displaying new significant copper-gold DD and RC drilling intersections (Majenta).  The plan view displays the Mineral Resource extents (represented by modelled copper envelope, yellow- +0.1% Cu) and the extent of modelled porphyries. Note the location of the new shallow porphyry discovery zone as well as the location of DD holes which are pending assay results (black traces, red collars).

To download the full announcement please click on the below link.

http://www.hotchili.net.au/wp-content/uploads/2021/06/HCH_11_Hot-Chili-Reports-144m-at-1.0-CuEq_16062021.pdf

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