ASX Announcement

7th December 2020

Water Rights Secured for Costa Fuego Copper-Gold Super Hub


Highlights

  • Crucial water extraction rights granted for the Company’s Costa Fuego coastal copper development in Chile
  • Water extraction rights represent a critical infrastructure requirement for Costa Fuego, securing sufficient water supply to support a large-scale conventional copper-gold operation
  • Water extraction rights for sea water processing (no de-salination plant) adds to Costa Fuego’s growing credentials as one of the leading new “green” copper developments (existing infrastructure footprint, adjacent to largest solar projects in Chile and clean arsenic-free concentrate)

Hot Chili Limited, through its Chilean subsidiary company Sociedad Minera El Aguila SpA, is pleased to announce that it has been granted a Maritime Concession for extraction of sea water just 60 kilometres from the Company’s Costa Fuego coastal copper-gold development in Chile.

Costa Fuego has a combined Mineral Resource of 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64kt molybdenum (released to ASX 12th October 2020) and is located at low altitude (800m to 1,000m), along the Pan American highway and adjacent to port facilities, 600km north of Santiago.

Following a rigorous seven-year application process, Hot Chili is now one of the few copper developers in Chile controlling a Maritime Concession for water. This adds significantly to critical infrastructure access requirements already secured including surface rights and water and electricity easements.

The water rights represent a major step forward in establishing an infrastructure-ready major coastal copper development which can leverage from a central processing and combined infrastructure approach.
Pre-feasibility studies completed in 2016 (contemplating Productora only) modelled the extraction of seawater via a 62km buried water pipeline from the coast to Productora (as announced to ASX 2nd March 2016). All metallurgical testwork results to date from Costa Fuego have achieved strong metal recoveries using sea water processing.

The seawater pipeline design is now planned to be increased and extended to Cortadera, as the new operating centre for the combined Costa Fuego development.

The maritime concession alone is considered a significant asset, and further enhances the Company’s social license to operate ensuring no ground water will be used and no de-salination plant is required.

The Directors of Hot Chili are pleased with advances being made with Chilean regulatory applications and growing local community support for Costa Fuego.

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

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