202m grading
0.6% Copper, 0.3g/t Gold from 70m
depth
Highlights
- First drill hole (DKP001) at La Verde intersects
intercepts 174m grading 0.4%
copper (Cu), 0.1g/t gold (Au) from 36m depth
- Second drill hole (DKP002), located 120m southeast of DKP001, recorded
308m grading 0.5% Cu and 0.3g/t Au
from 46m depth to end of hole
- including 202m grading 0.6%
Cu, 0.3g/t Au from 70m depth
- which includes 100m grading
0.7% Cu, 0.3g/t Au from 118m
depth
- Results for 10 more drill holes
pending and drill program expanded
to 6,000m
- La Verde's porphyry footprint, measures
approximately 850m by 700m; comparable to
Hot Chili's higher-grade Cortadera Cuerpo 3 copper-gold
porphyry, located 30km north
- Costa Fuego Copper-Gold Project
Pre-feasibility Study (PFS) and Huasco Water PFS advancing
towards release in Q1, 2025
- Treasury of approximately A$25.7
million as of 30 September 2024
PERTH,
Australia, Dec. 18, 2024 /CNW/ - Hot Chili Limited
(ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the
"Company") is pleased to confirm a significant copper-gold
discovery, located approximately 30km south of the Company's Costa
Fuego Copper-Gold Project's ("Costa Fuego" or "the Project")
planned central processing hub in the coastal range of the Atacama
region, Chile.
Assay results for the first two drill holes of a 4,000m drill programme being undertaken across
the recently secured La Verde porphyry copper-gold target have
returned a wide drilling intersection of 202m grading 0.6% Cu, 0.3g/t Au from 70m depth within a broader intersection of
308m grading 0.5% Cu and 0.3g/t Au
from 46m depth to end of hole.
La Verde is part of Hot Chili's recent consolidation of the
Domeyko landholding where the Company earlier executed the La Verde
Option Agreement (see announcement dated
11th November
2024), which for the first time consolidated
and provided access to drill test a large potential porphyry copper
target footprint.
The historical La Verde open pit mine was previously exploited
by private interests for shallow porphyry copper-style oxide
mineralisation with limited drill testing outside the central lease
or to depth.
A total of twelve RC drill holes for approximately 3,150m are complete with results returned for the
first two Reverse Circulation (RC) holes of the first-pass drill
programme. The first two drill holes (DKP001 and DKP002) were
designed to (1) validate historic drilling intercepts, and (2) test
the interpreted northern extension of the porphyry from the
previously exploited open pit, respectively.
Drill hole DKP001 was successful in validating the most notable
copper intercept from historic exploration drill
results, returning a broad significant intersection containing
multiple higher-grade zones:
DKP001 returned
174m grading 0.4% Cu, 0.1g/t Au from
36m depth
-
- including 10m grading 0.6% Cu, 0.1g/t
Au from 72m, and
- including 26m grading 0.5% Cu, 0.1g/t
Au from 96m, and
- including 22m grading 0.6% Cu, 0.2g/t
Au from 144m
Drill hole DKP002 was located approximately 120m southeast of DKP001, with assay results
returning a drill intersection, that exceeded the Company's
expectations and suggests potential for a higher- grade copper-gold
zone within the La Verde porphyry:
A total of 308m grading 0.5% Cu, 0.3 g/t Au from 46m depth
-
- including 202m grading
0.6% Cu, 0.3 g/t Au from 70m
depth,
-
which includes 100m grading 0.7% Cu, 0.3 g/t Au from 118m depth
These consistent higher-grade results confirm the extension of
the porphyry system almost 400m to
the north-east of the open pit, a significant step out considering
the existing pit measures approximately 200m x 400m. The
higher-grade mineralisation is also located
immediately beneath a gravel cover sequence which
obscures the ultimate extent
of the porphyry system. Oxide mineralisation is associated with copper clays and chalcocite
up to approximately 80m vertical depth
from surface with the primary sulphide
mineralisation associated with chalcopyrite and pyrite.
Mineralisation appears
to be open in all directions and where the system remains
under cover.
Assay results are pending for ten RC drill holes, for which
visual logging confirmed porphyry-style mineralisation associated
with A- and B-type porphyry veining. Preliminary geological
modelling indicates a +1% A + B vein footprint of ~850 m by
~700 m (refer to Figure 3a), based on detailed surface mapping and
downhole logging.
The La Verde footprint is comparable to the +1% A + B vein
footprint at Cuerpo 3 (1,000m by
750m) at the Company's Cortadera
porphyry copper-gold deposit, located 30km to the north (refer to
Figure 3b). Cuerpo 3 is the
largest of Cortadera's three porphyries, a cornerstone to Costa
Fuego's Indicated mineral resource base of 798Mt grading 0.45% CuEq
for 3.6Mt Cu and 3.0Moz Au1 and Inferred2
mineral resource of 203Mt grading
0.31% CuEq for 0.5Mt Cu and 0.4Moz Au.
The Company is particularly pleased with the high gold to copper
ratio returned in drill hole DKP002 with additional results
pending.
Hot Chili has expanded the first-pass RC drill programme with an
additional 2,000m planned, now
expected to be complete in late January
2025.
Hot Chili has a strong balance sheet with A$25.7 million in cash (as of 30 September 2024) and continues to advance two
key development milestones planned for release in the first quarter
of 2025 – Costa Fuego PFS and Water Supply Business Case Study
PFS.
The Company looks forward to providing further updates as
additional drill results are returned and exploration drilling
activities progress at La Verde.
This announcement is authorised by the Board
of Directors for release to ASX
and TSXV.
For more information please contact:
Christian Easterday
Managing Director – Hot
Chili
|
Tel:
+61 8 9315 9009
Email:
admin@hotchili.net.au
|
Carol Marinkovich
Company Secretary – Hot
Chili
|
Tel:
+61 8 9315 9009
Email:
admin@hotchili.net.au
|
Graham Farrell
Investor & Public
Relations
|
Email:
graham@hotchili.net.au
|
or visit Hot Chili's
website at www.hotchili.net.au
1
|
Copper equivalent. See page 10 for the basis for CuEq calculations.
|
2
|
Inferred mineral resources
are considered too speculative geologically
to have economic considerations
applied to them that would enable them to be
categorised as Mineral Reserves. It is reasonably expected that the
majority of Inferred Mineral Resources could
be upgraded to Measured or Indicated Mineral
Resource with continued exploration. See page
10 for details of the mineral resource
estimate.
|
Table 1. Significant Drilling Intersections from La
Verde
Hole ID
|
Coordinates
|
|
Dip
|
Hole Depth
|
Intersection
|
Interval
|
Copper
|
Gold
|
Silver
|
Molybdenum
|
North
|
East
|
RL
|
From
|
To
|
(m)
|
(% Cu)
|
(g/t Au)
|
(ppm Ag)
|
(ppm Mo)
|
DKP0001
|
6786079
|
324546
|
1153
|
89
|
-59
|
390
|
28
|
390
|
362
|
0.3
|
0.1
|
0.5
|
33
|
Mineralised to end of hole at 390m
depth
|
|
|
Or
|
36
|
210
|
174
|
0.4
|
0.1
|
0.6
|
24
|
|
|
|
|
|
|
Incl
|
40
|
82
|
42
|
0.4
|
0.1
|
0.5
|
10
|
|
|
|
|
|
|
Or Incl
|
72
|
82
|
10
|
0.6
|
0.1
|
0.3
|
10
|
|
|
|
|
|
|
And incl
|
96
|
122
|
26
|
0.5
|
0.1
|
0.9
|
20
|
|
|
|
|
|
|
And incl
|
144
|
166
|
22
|
0.6
|
0.2
|
0.7
|
49
|
|
|
|
|
|
|
And incl
|
248
|
272
|
24
|
0.4
|
0.1
|
1.0
|
54
|
DKP0002
|
6785967
|
324835
|
1202
|
270
|
-60
|
354
|
46
|
354
|
308
|
0.5
|
0.3
|
0.6
|
11
|
Mineralised to end of hole at 354m
depth
|
|
|
Incl
|
70
|
272
|
202
|
0.6
|
0.3
|
0.6
|
14
|
|
|
|
|
|
|
Incl
|
76
|
90
|
14
|
0.8
|
0.4
|
0.3
|
6
|
|
|
|
|
|
|
And incl
|
118
|
218
|
100
|
0.7
|
0.3
|
0.8
|
15
|
|
|
|
|
|
|
And incl
|
178
|
198
|
20
|
0.8
|
0.4
|
1.0
|
11
|
|
|
|
|
|
|
Or Incl
|
186
|
190
|
4
|
0.9
|
0.5
|
1.0
|
11
|
DKP0003
|
6785963
|
324836
|
1202
|
117
|
-59
|
282
|
Results
Pending
|
DKP0004
|
6785831
|
324421
|
1123
|
90
|
-60
|
120
|
Results
Pending
|
DKP0005
|
6785792
|
324552
|
1167
|
91
|
-60
|
248
|
Results
Pending
|
DKP0006
|
6785717
|
324722
|
1178
|
110
|
-60
|
200
|
Results
Pending
|
DKP0007
|
6785846
|
324746
|
1148
|
270
|
-60
|
204
|
Results
Pending
|
DKP0008
|
6785854
|
324745
|
1145
|
5
|
-60
|
324
|
Results
Pending
|
DKP0009
|
6786068
|
324546
|
1151
|
131
|
-60
|
354
|
Results
Pending
|
DKP0010
|
6786097
|
324436
|
1160
|
209
|
-60
|
276
|
Results
Pending
|
DKP0011
|
6786097
|
324436
|
1160
|
91
|
-60
|
326
|
Results
Pending
|
DKP0012
|
6785967
|
324835
|
1202
|
299
|
-60
|
72
|
Currently drilling,
results pending
|
Notes to Table 1:
Significant intercepts for La Verde are calculated above a nominal
cut-off grade of 0.2% Cu. Where appropriate, significant
intersections may contain up to 30m down-hole distance of internal
dilution (less than 0.2% Cu). Significant intersections are
separated where internal dilution is greater than 30m down-hole
distance. The selection of 0.2% Cu for significant intersection
cut-off grade is aligned with marginal economic cut-off grade for
bulk tonnage polymetallic copper deposits of similar grade in Chile
and elsewhere in the world.
|
Qualifying Statements
Qualified Person – NI 43-101
The technical information in this news release
has been reviewed and approved by Mr.
Christian Easterday, MAIG, Hot Chili's Managing Director and a
qualified person within the meaning of NI43-101.
Competent Person – JORC
The information in this announcement that relates to Exploration
Results for the La Verde project is based
upon information compiled
by Mr Christian Easterday, the Managing Director and
a full-time employee of Hot Chili Limited, who 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 deposits 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.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this Report.
Forward Looking Statements
This announcement contains certain statements that are
"forward-looking information" within the meaning of Canadian
securities legislation and Australian securities legislation (each,
a "forward-looking statement"). Forward-looking statements reflect
the Company's current expectations, forecasts, and projections with
respect to future events, many of which are beyond the Company's
control, and are based on certain assumptions. No assurance can be
given that these expectations, forecasts, or projections will prove
to be correct, and such forward-looking statements included in this
report should not be unduly relied upon. Forward-looking
information is by its nature prospective and requires the Company
to make certain assumptions and is subject to inherent risks and
uncertainties. All statements other than statements of historical
fact are forward-looking statements. The use of any of the words
"could", "estimate", "expect", "expectations", "interpreted",
"may", "plan", "planned", "potential", "project", "should", "will",
"would" and similar expressions are intended to identify
forward-looking statements.
The forward-looking statements within this announcement are
based on information currently available and what management
believes are reasonable assumptions. Forward-looking statements
speak only as of the date of this report.
In this announcement, forward-looking statements relate, among other things,
to: prospects, projections and success of the Company and its
projects; the ability of the Company to expand mineral resources
beyond current mineral resource estimates, including
at La Verde; the results
and impacts of planned drilling to extend
mineral resources and to identify new deposits, including at La
Verde; the metallurgical recoveries of any
oxide and/or sulphide mineral resources defined
at La Verde; the economics
of any mineral resources defined at La Verde;
the Company's ability to convert exploration potential into mineral
resources, such as at La Verde; the Company's ability to explore
effectively and execute drilling operations in a timely manner,
including at La Verde; the Company's ability to fulfill obligations
and exercise the La Verde and Domeyko
Option Agreements; the Company's ability
to convert mineral resources currently defined
and those that may be defined through additional
drilling to mineral reserves; the timing and outcomes of current
and future planned economic studies including the planned PFS for
the Costa Fuego copper-gold project; the potential
to develop a water business
in the Huasco valley and the future
economics thereof; the timing and results of
the PFS level Water Supply Business Case Study; the timing and
outcomes of regulatory processes required to obtain permits for the
development and operation of the Costa Fuego Project, including the
EIA, as well as for the Huasco Water business and
any mineral resources that may be defined at La Verde; whether or
not the Company will make a development decision for the Costa
Fuego Project and/or Huasco Water and the timing thereof; and
estimates of planned exploration costs and the results thereof.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors, which may cause the actual
results, performance, or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. A number of factors could cause actual results to
differ materially from a conclusion, forecast or projection
contained in the forward-looking statements in this announcement,
including, but not limited to, the following material factors:
operational risks; risks related to the cost estimates of
exploration; sovereign risks associated with the Company's
operations in Chile; changes in
estimates of mineral resources of properties where the Company
holds interests; recruiting qualified personnel and retaining key
personnel; future financial needs and availability of adequate
financing; fluctuations in mineral prices; market volatility;
exchange rate fluctuations; ability to exploit successful
discoveries; the production at or performance of properties where
the Company holds interests; ability to retain title to mining
concessions; environmental risks; financial failure or default of
joint venture partners, contractors or service providers;
competition risks; economic and market conditions; and other risks
and uncertainties described elsewhere in this announcement and
elsewhere in the Company's public disclosure record.
Although the forward-looking statements contained in this
announcement are based upon assumptions which the Company believes
to be reasonable, the Company cannot assure investors that actual
results will be consistent with these forward-looking statements.
With respect to forward-looking statements contained in this
announcement, the Company has made assumptions regarding: future
commodity prices and demand; availability of skilled labour; timing
and amount of capital expenditures; future currency exchange and
interest rates; the impact of increasing competition; general
conditions in economic and financial markets; availability of
drilling and related equipment; effects of regulation by
governmental agencies; future tax rates; future operating costs;
availability of future sources of funding; ability to obtain
financing; and assumptions underlying estimates related to adjusted
funds from operations. The Company has included the above summary
of assumptions and risks related to forward-looking information
provided in this announcement to provide investors with a more
complete perspective on the Company's future operations, and such
information may not be appropriate for other purposes. The
Company's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits the Company will derive therefrom.
For additional information with respect to these and other
factors and assumptions underlying the forward- looking statements
made herein, please refer to the public disclosure record of the
Company, including the Company's most recent Annual Report, which
is available on SEDAR+ (www.sedarplus.ca) under the Company's
issuer profile. New factors emerge from time to time, and it is not
possible for management to predict all those factors or to assess
in advance the impact of each such factor on the Company's business
or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in
any forward-looking statement.
The forward-looking statements contained in this announcement
are expressly qualified by the foregoing cautionary statements and
are made as of the date of this announcement. Except as may be
required by applicable securities laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking statement to reflect events or circumstances after
the date of this announcement or to reflect the occurrence of
unanticipated events, whether as a result of new information,
future events or results, or otherwise. Investors should read this
entire announcement and consult their own professional advisors to
ascertain and assess the income tax and legal risks and other
aspects of an investment in the Company.
Mineral Resource Statement
Costa Fuego Combined Mineral Resource (Effective Date 26th February 2024)
1
Mineral Resources are reported
on a 100% Basis - combining Mineral
Resource estimates for the Cortadera, Productora, Alice and San Antonio
deposits. All figures are rounded, reported to
appropriate significant figures and reported in accordance with the
Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral
Resource estimation practices are in accordance with CIM
Estimation of Mineral Resource and Mineral Reserve Best Practice
Guidelines (November 29, 2019) and reported in accordance CIM
Definition Standards for Mineral Resources and Mineral
Reserves (May 10, 2014) that are incorporated by reference into NI
43-101.
|
2 The Productora
deposit is 100% owned by Chilean incorporated company Sociedad
Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company –
80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary
of Hot Chili Limited), and 20% owned by Compañía Minera del
Pacífico S.A (CMP).
|
3 The
Cortadera deposit is controlled by a Chilean
incorporated company Sociedad
Minera La Frontera SpA (Frontera). Frontera
is a subsidiary company – 100% owned by Sociedad
Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili
Limited.
|
4 The San Antonio
deposit is controlled through Frontera (100% owned by Sociedad
Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili
Limited) and Frontera has an Option Agreement to earn a 100%
interest.
|
5 The
Mineral Resource Estimates
(MRE) in the tables above form coherent
bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods
based on the following parameters: Base Case Metal Prices: Copper
US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver
US$20/oz.
|
6 All MRE were
assessed for Reasonable Prospects of Eventual Economic Extraction
(RPEEE) using both Open Pit and Block Cave Extraction mining
methods at Cortadera and Open Pit mining methods at the
Productora, Alice and San Antonio deposits.
|
7
Metallurgical recovery averages for each deposit
consider Indicated + Inferred material
and are weighted to combine sulphide
flotation and oxide
leaching performance. Process recoveries: Cortadera
– Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%)
= Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x
Ag(g/t)
|
San
Antonio - Weighted recoveries of 85% Cu,
66% Au, 80% Mo and 63%
Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x
Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted
recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) +
0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x
Ag(g/t) Productora – Weighted recoveries of 84% Cu, 47% Au,
48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x
Mo(ppm) + 0.0021 x Ag(g/t) Costa Fuego – Recoveries of 83% Cu,
53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) +
0.00040 x Mo(ppm) + 0.0030 x Ag(g/t)
|
8
Copper Equivalent (CuEq) grades
are calculated based on the 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 × Cu recovery). The base case cut-off grade for
Mineral Resources considered amenable to open pit extraction
methods at the Cortadera, Productora, Alice
and San Antonio deposits is 0.20%
CuEq, while the cut-off grade for Mineral
Resources considered amenable to underground extraction
methods at the Cortadera deposit is 0.27% CuEq. It is the Company's
opinion that all the elements included in the CuEq calculation
have a reasonable potential to be recovered and
sold.
|
9
Mineral Resources are not Mineral Reserves
and do not have demonstrated economic viability. The MRE include
Inferred Mineral Resources that are considered too speculative geologically to
have economic considerations applied to them that would enable them
to be categorised as Mineral Reserves. It is reasonably expected
that the majority of Inferred mineral resources could be
upgraded to Measured or Indicated Mineral Resources with continued
exploration.
|
10 The
effective date of the MRE is February 26th,
2024. The MRE were previously reported in Hot Chili's
ASX announcement released February 26th,
2024 "Hot Chili
Indicated Resource at Costa Fuego Copper-Gold Project
Increases to 798 Mt" (Resource
Announcement). Hot Chili confirms it is not aware of any new information or data that materially affects
the information included
in the Resource Announcement and all material
assumptions and technical parameters stated for the MRE in the Resource Announcement continue to apply
and have not materially changed.
|
11 Hot Chili Limited is
not aware of political, environmental, or other risks that could
materially affect the potential development of the Mineral
Resources other than as disclosed in this Report. A detailed
list of Costa Fuego Project risks is included in Chapter 25.12 of
the Technical Report "Costa Fuego Copper Project – NI 43-101
Technical Report Mineral Resource Estimate Update" dated April
8th, 2024.
|
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SOURCE Hot Chili Limited