STOCKHEAD | Oct 31, 2022
Pic: Hot Chili has gone back to basics to win a huge uptick in the value of its Costa Fuego copper development. Pic via Getty Images.
Here’s how to make an already attractive project even more lucrative: take some previously unsampled intervals and get high-grade results out of them.
Not exactly easy in real life but that’s exactly what Hot Chili (ASX:HCH) has managed at its Costa Fuego copper development in Chile with previously unsampled diamond core at the Productora and Alice pits yielding higher than expected copper grades.
And the results are encouraging to say the least – especially coming from a development that is no stranger to multi hundred metre copper-gold intersections.
Over at the Productora central pit area, the core returned an intersection of 244m at 0.8% copper equivalent (0.7% copper and 0.2g/t gold) from a down-hole depth of just 23m and includes a higher-grade zone of 71m at 1% CuEQ (0.8% copper and 0.2g/t gold).
The Alice satellite pit area yield a 152m zone at 0.6% CuEqu (0.6% copper and 0.1g/t gold) from 42m including 39m at 1.1% CuEq (1% copper and 0.1g/t gold) and a separate 23m interval at 0.9% CuEq from 226m to the end of hole.
This is on top of final drill results from the Valentina deposit returning a 6m interval at 1.3% copper from 10m down-hole while first ever drilling at Santiago Z did not intersect significant widths of copper but returned wide zones of silver which may indicate a potential distal response to copper porphyry mineralisation.
The results from the first holes at the Productora and Alice pits provide further high grade growth ahead of a planned resource upgrade for Costa Fuego.
Both have continued to demonstrate grade upside with infill drilling, providing positive reconciliation ahead of any future mining activities.
Entire hole results from the remaining two diamond holes at Productora are expected to be received in the coming weeks.
Valentina and its neighbouring San Antonio satellite copper deposit are immediately to the east of the company-making Cortadera deposit.
Of the four holes drilled in the expanded program at Valentina, two recorded significant intersections while one hit historical underground workings.
A regulatory clearing application has been submitted to facilitate follow-up drilling at Valentina, which will expand resource drill definition across this potential high-impact future addition to Costa Fuego that could provide early, high-grade copper feed.
The company is also updating its Santiago Z geological model using RC chip logging and downhole multi-element geochemistry for use in any additional phases of exploration.
Further exploration is expected to focus on the southern extent of the Santiago Z porphyry footprint in advance of any planned second-pass clearing and drilling activities.
This article was developed in collaboration with Hot Chili, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.