11th December 2020
Annual Ore Production Cap with ENAMI Increased by 50%
- Hot Chili has expanded its agreement with Chilean government agency ENAMI for the mining and processing of ore from the Company’s Productora copper-gold project
- Concession for maximum annual production lifted by 50% to 180,000 tonnes per annum
- Ore supply from Productora planned to account for all remaining capacity at ENAMI’s nearby Vallenar oxide and sulphide processing facility
- New decline access being developed in the Productora underground mine
Hot Chili Limited, through its Chilean subsidiary company Sociedad Minera El Aguila SpA (SMEA), is pleased to announce a significant expansion to its lease mining and processing agreement with Chilean government agency ENAMI.
The Company has granted ENAMI a further concession for an additional 60,000 tonnes of oxide ore supply per annum to their Vallenar processing facility, located 15km north of Productora.
The concession for lease mining and processing now allows a maximum180,000 tonnes per annum of oxide and sulphide ore supply from Productora. The Increased production rate accounts for all remaining processing capacity at ENAMI’s oxide and sulphide processing facility.
The Productora joint venture company SMEA (80% Hot Chili) will be paid US$2 per tonne for ore purchased by ENAMI and a 10% royalty on the sale value of extracted minerals subject to ENAMI toll treatment conditions (as announced to ASX on 26th March).
Since the ENAMI agreement was first announced in late March this year, the royalty component has provided significant upside exposure to the copper price which has increased from US$2.15/lb to and eight year high of US$3.57/lb today.
Ramp-up of lease mining is underway following recent mine plan and permitting approval at Productora (as announced to ASX on 11th November 2020). The lease mining team is currently extending the existing decline to access new ore development below the Productora underground mine.
Once access to new development is In-place, the lease mining team expects to increase its production rate which has been limited to small-scale remnant ore extraction to date.
The Directors of Hot Chili are pleased with this next positive step forward in its local partnership with Chilean government agency ENAMI.
This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Tel: +61 8 9315 9009
or visit Hot Chili’s website at www.hotchili.net.au