STOCKHEAD | Aug 18, 2022
Pic: Getty Images
Hot Chili has uncovered further evidence that it has shallow, high-grade material that can provide early feed to a development at its Costa Fuego copper hub in Chile.
Drilling at the Valentina satellite deposit returned a very rich 3m intersection grading 12.1% copper equivalent (11.8% copper and 52.6g/t silver) from a down-hole depth of just 29m within a broader 12m zone at 4.6% copper equivalent from 25m.
Adding further interest for Hot Chili (ASX:HCH), the mineralisation in VALMET0002 is dominantly sulphide and amenable to sulphide flotation, which contributes further to the deposit’s potential to contribute to early sulphide cash flow generation.
With the hole also confirming a 120m extension of high-grade, copper-silver mineralisation to the south of the historical Valentina underground mine, mineralisation at the deposit is now defined over about 300m in strike while remaining open at depth and along strike.
Along with the San Antonio deposit, Valentina is looking increasingly likely to provide high-grade ore which could have a positive material impact on the payback period and overall project economics.
Assays are pending for a further six drill holes at Valentina and 16 holes at San Antonio.
Hot Chili has received assays for 11 of the 17 Phase 2 drill holes. Of these, four holes returned significant drill intersections while three intersected the mineralised structure (at 0.2% to 0.5% copper).
This drilling was focused on proving the continuity of the mineralised trend along strike and at depth below the historical shallow underground mine.
High-grade hits received to date – including VALMET0002 – are located on the southern extent of an area previously masked at-surface by a shallow horizon of Atacama gravels.