ASX Announcement

Friday 9th April 2021

Second Large Copper Porphyry System Confirmed 5km South of Cortadera

Highlights

  • New soil geochemical results have lifted the potential for a second large 4km by 2km copper porphyry system, located 5km south of the Company’s Cortadera copper-gold discovery in Chile
  • Soil results from Hot Chili’s recently consolidated Santiago Z landholding confirm a stronger molybdenum (+10ppm) anomaly than originally recorded in historical XRF soil results
  • Santiago Z is also enriched in copper, gold and silver (Cortadera’s metal signature) as well as displaying typical coincident copper porphyry metal zonation patterns
  • Similar aged porphyries (91- 96Ma) to Cortadera have also been identified in detailed historical mapping at Santiago Z
  • Further work is planned to advance Santiago Z toward first drill testing later this year
  • Drilling operations at Cortadera are on-track to deliver a significant upgrade to the Company’s combined Costa Fuego copper-gold resource (724Mt grading 0.48% Cu Eq for 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64kt molybdenum) this year
  • Results are imminent for CRP0046D which intersected two wide zones of well mineralised porphyry within a broad zone of mineralisation at Cortadera (as outlined in ASX announcement “Cortadera Rising RIU presentation”, 16th Feb 2021)
  • An update on drilling activities and new drill results is expected to be released next week

Hot Chili Limited (ASX code HCH) (“Hot Chili” or “Company”) is pleased to confirm that evidence is building toward the potential for Cortadera to be part of larger regional copper porphyry cluster on the Chilean coastal range.

New soil results and mapping confirm a large copper porphyry footprint measuring over 4km in length and 2km in width at the Santiago Z landholding, located immediately south of Cortadera.

Santiago Z contains a large historical XRF soil molybdenum anomaly that is twice the size and four times the tenor of the soil molybdenum anomaly related to the Cortadera copper-gold porphyry discovery.

Soil assays confirm stronger molybdenum results than first outlined in earlier XRF molybdenum results as well as enrichment in copper, gold and silver (Cortadera metal signature).

Other element zonation patterns provide confidence in the presence of a potentially large copper porphyry system at depth.

Mapping by Hot Chili has recognised several areas of outcropping copper-bearing hydrothermal breccia at Santiago Z.

In addition, a review of detailed historical mapping at Santiago Z has highlighted the presence of a corridor of porphyries (91-96Ma) with similar age to Cortadera, recently dated by Hot Chili as a Late Cretaceous porphyry (92Ma +/- 2Ma).

Further detailed mapping will focus across the corridor of hydrothermal brecciation and porphyries which have intruded the shallowly dipping local volcano-sedimentary sequence, similar to the Cortadera porphyry deposit setting.

A review of historical geophysical datasets across Santiago Z is underway and the Company is planning a programme of extensional soil geochemistry and detailed mapping as its next steps in advance of first-pass drilling later this year.

Hot Chili is advancing well with its 40,000m drill programme at Cortadera with three rill rigs in operation.

New drill results are being compiled for release (including CRP0046D) and the Company expects to provide an update on drilling activities next week.

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

Figure 1 Location of landholdings consolidated into the Company’s Costa Fuego copper project in relation to coastal range infrastructure, 600km north of Santiago in Chile.
Figure 2. Location of the Santiago Z soil molybdenum footprint, 5km south of the Cortadera Cu-Au discovery
Figure 3. New soil geochemistry results for copper, gold, molybdenum and silver across the Santiago Z copper porphyry alteration footprint
Figure 4. New soil geochemistry results for other pathfinder elements and metal zonation patterns across the Santiago Z copper porphyry alteration footprint

Qualifying Statements

Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)

Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code – Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. 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 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%.

** 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.

Appendix 1. JORC Code Table 1 for Cortadera

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

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