Highlights
- Next phase of Hot Chili's 30,000m
resource growth focused drill programme is underway, with double-
shift diamond drilling operations commencing on 12th
January 2024 at the Company's
low-altitude, Costa Fuego copper-gold project in Chile.
- Seven large-scale copper targets adjacent to the Cortadera and
Productora mineral resources prepared (pre-collars completed) for
diamond drill testing, with ten diamond drill tails planned.
- First-pass Reverse Circulation drilling complete across three
new satellite targets:
Selected significant drill results
at Marsellesa include:
-
- 25m grading 0.4% Copper (Cu)
from surface including 10m
grading 0.8% Cu from 7m
depth
- 16m grading 0.5% Cu from
197m depth downhole including
6m grading 1.1% Cu from
198m depth
- 19m grading 0.5% Cu from
195m depth downhole including
2m grading 2.2% Cu from
195m depth
Selected significant drill results
at Cordillera include:
-
- 93m grading 0.3% Cu from
surface including 14m
grading 0.4% Cu from surface
- 53m grading 0.3% Cu from
19m depth including
10m grading 0.4% Cu from
44m depth
- 184m grading 0.2% Cu from
surface including 14m
grading 0.3% Cu from 42m
depth.
- Resource upgrade for Costa Fuego being finalised and expected
to be announced in Q1 2024
- Pre-feasibility study and water concept study workstreams
advancing, updates expected this quarter
LOCATION, Jan. 23,
2024 /CNW/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH)
(OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to
announce the commencement of the next phase of the Company's
30,000m resource growth focused drill
programme for the Costa Fuego Copper-Gold Project ("Costa Fuego" or
"the Project"), located in the coastal range of the Atacama Region,
Chile.
A total of 47 Reverse Circulation (RC) drill holes for 11,500m
have been completed since the Company's
resource growth focused drill programme commenced in late
July 2023.
Drilling aims to test multiple resource growth opportunities,
which may allow Hot Chili to consider an up-lift in the
Pre-feasibility study scale for Costa Fuego.
The first phase of drilling in H2 2023 focused on resource extensional potential at Cortadera
and first-pass drilling across new satellite
targets. In addition, several RC pre-collars were drilled in
preparation for the second phase of diamond drill testing in
2024 adjacent to the Company's two principal mineral resources:
Cortadera; and Productora.
The second phase of drilling commenced on
12th January with one diamond drill rig operating on a 24-hour
basis (double-shift). A programme of 10 diamond (DD) drill
holes for approximately 5,000m is
initially planned. The initial diamond drill programme
comprises:
- Five DD holes planned to test four large-scale targets at
Cortadera (refer to Figures 2 and 3). The first DD hole is
currently testing a large co-incident conductivity and
chargeability geophysical anomaly located north of Cortadera.
- A further five DD holes are planned to test three large-scale
targets adjacent to Productora (refer to Figures 2 and 4)
The Company looks forward to providing further updates as DD
drilling advances across these targets over the coming months.
First-Pass Exploration Drill Results Returned
Assay results have been received
for first-pass drilling undertaken in late 2023
across three new satellite targets within the
Costa Fuego landholding: Marsellesa, Cordillera and Corroteo.
Both Marsellesa and Cordillera are located approximately 10km
southwest of Costa Fuego's planned central processing hub
at Productora, and Corroteo is located approximately 5km southeast of Cortadera (refer to Figures
1 and 2).
A total of 4 RC drill holes for 1,244m were completed across the historical
Marsellesa open pit copper mine footprint (refer to Figure
5). Significant intersections were recorded in each of the
four drill holes:
- 25m grading 0.4% Copper (Cu)
from surface including 10m
grading 0.8% Cu from 7m
depth
- 16m grading 0.5% Cu from
197m depth downhole including
6m grading 1.1% Cu from
198m depth
- 19m grading 0.5% Cu from
195m depth downhole including
2m grading 2.2% Cu from
195m depth
- 8m grading 0.8% Cu from
1m depth downhole including
4m grading 1.0% Cu from
4m depth
Higher grade copper drilling
intersections are associated with both copper
oxide (Cu bearing limonite, brochantite
and chrysocolla) and copper sulphide
(chalcopyrite) mineralisation localised within moderately east-dipping manto
horizons (refer to Figure 5). Follow-up work is being planned
to further assess mineralisation continuity across the 500m of prospective strike length.
The Marsellesa mine area is laterally extensive, measuring 400m in length and 200m in width, with historical open
pit and underground mine workings exposing multiple zones of
shallowly-dipping, strata-bound (manto-style), copper
mineralisation.
A total of 6 RC drill holes for 1,450m were completed across the historical
Cordillera copper mine footprint, located approximately 1km
west of Marsellesa (refer to Figure 6). Significant
intersections recorded, include:
- 93m grading 0.3% Cu from
surface including 14m
grading 0.4% Cu from surface
- 53m grading 0.3% Cu from
19m depth including
10m grading 0.4% Cu from
44m depth
- 184m grading 0.2% Cu from
surface including 14m
grading 0.3% Cu from 42m
depth
Wide RC drilling intersections returned at
Cordillera relate to broad
zones of oxide (Cu bearing
limonite with very minor cuprite) and sulphide
(chalcopyrite, molybdenite) porphyry copper mineralisation
confirmed below and surrounding the small surface mine
workings.
Porphyry copper mineralisation with well-developed stockwork and
sheeted A and B style porphyry veining is exposed in the Cordillera
open pit mine workings, and porphyry outcrop has been mapped across
an area measuring 300m in length and
200m in width.
A total of 8 RC drill holes for 2,324m was completed across the
greenfield Corroteo exploration target located 5km
southeast of Cortadera (refer to Figure
7). No significant intersections were recorded.
Wide spaced RC drilling has tested approximately 1.8km strike
extent of the large-scale Corroteo alteration footprint.
Significant
pyrite mineralisation was encountered in drilling toward
the northern extent of the target area
extending under a wide alluvial gravel
plain. Final drilling
directed under this alluvial cover
confirmed the presence of tonalitic porphyry.
Hot Chili's exploration team is currently assessing the new
drill results on each of these satellite exploration targets in
preparation for potential follow-up drilling and exploration work
programmes.
Resource Upgrade Being
Finalised
The Company is in the final stages of completing an upgrade to
its mineral resource for Costa Fuego based on all drilling
completed since February 2022. The
resource upgrade is expected to be released in Q1 2024.
Ongoing Development and Water Studies
Advancing
The Company also looks forward to providing further updates on
development study and water supply concept study advances this
quarter.
This announcement is authorised by the Board of Directors
for release to ASX and TSXV.
Hot Chili's Managing
Director and Chief Executive Officer
Mr Christian Easterday
is responsible for this announcement and has
provided sign-off for release to the ASX and TSXV.
For more information please contact:
Christian
Easterday
Managing Director – Hot
Chili
|
Tel: +61 8
9315 9009
Email: admin@hotchili.net.au
|
Penelope Beattie
Company Secretary – Hot
Chili
|
Tel: +61 8
9315 9009
Email:
admin@hotchili.net.au
|
Harbor
Access
Investor & Public
Relations
|
Email:
graham.farrell@harbor-access.com
Email:
jonathan.paterson@harbor-access.com
|
or visit Hot Chili's website at www.hotchili.net.au
Table 1 Significant Drilling Intersections from Cordillera
and Marsellesa
Location
|
Hole_ID
|
Coordinates
|
Azim.
|
Dip
|
Hole Depth
(m)
|
Intersection
|
Interval
|
Copper
|
Gold
|
Silver
|
Molybdenum
|
North
|
East
|
RL (m)
|
From
(m)
|
To
(m)
|
(m)
|
(% Cu)
|
(g/t Au)
|
(g/t Ag)
|
(ppm Mo)
|
Cordillera
|
CDP001
|
6811425
|
314680
|
926
|
40
|
-60
|
264
|
0
|
209
|
209
|
0.1
|
0.0
|
0.3
|
13
|
|
|
|
|
|
|
including
|
0
|
22
|
22
|
0.2
|
0.0
|
0.3
|
7
|
|
|
|
|
|
|
&
including
|
70
|
78
|
8
|
0.3
|
0.0
|
0.3
|
6
|
|
|
|
|
|
|
&
including
|
146
|
160
|
14
|
0.2
|
0.0
|
0.3
|
37
|
Cordillera
|
CDP002
|
6811502
|
314659
|
900
|
161
|
-60
|
300
|
0
|
240
|
240
|
0.1
|
0.0
|
0.2
|
11
|
|
|
|
|
|
|
including
|
19
|
72
|
53
|
0.3
|
0.0
|
0.3
|
4
|
|
|
|
|
|
|
or including
|
44
|
54
|
10
|
0.4
|
0.0
|
0.3
|
4
|
Cordillera
|
CDP003
|
6811402
|
314718
|
916
|
290
|
-60
|
222
|
0
|
184
|
184
|
0.2
|
0.0
|
0.2
|
5
|
|
|
|
|
|
|
including
|
6
|
9
|
3
|
0.3
|
0.1
|
0.3
|
1
|
|
|
|
|
|
|
&
including
|
42
|
56
|
14
|
0.3
|
0.0
|
0.3
|
7
|
|
|
|
|
|
|
&
including
|
70
|
72
|
2
|
0.4
|
0.1
|
0.3
|
2
|
Cordillera
|
CDP004
|
6811516
|
314676
|
922
|
31
|
-60
|
210
|
0
|
23
|
23
|
0.1
|
0.0
|
0.3
|
2
|
|
|
|
|
|
|
|
|
152
|
158
|
6
|
0.1
|
0.0
|
0.3
|
87
|
Cordillera
|
CDP005
|
6811514
|
314661
|
913
|
290
|
-60
|
204
|
0
|
92
|
92
|
0.1
|
0.0
|
0.3
|
7
|
|
|
|
|
|
|
including
|
0
|
16
|
16
|
0.2
|
0.0
|
0.3
|
6
|
Cordillera
|
CDP006
|
6811510
|
314785
|
909
|
196
|
-59
|
250
|
0
|
93
|
93
|
0.3
|
0.0
|
0.3
|
10
|
|
|
|
|
|
|
including
|
0
|
14
|
14
|
0.4
|
0.0
|
0.3
|
5
|
|
|
|
|
|
|
&
including
|
44
|
49
|
5
|
0.4
|
0.1
|
0.3
|
13
|
|
|
|
|
|
|
|
Assays pending
93m – EOH
|
Marsellesa
|
MRP001
|
6811161
|
316113
|
1,092
|
271
|
-70
|
312
|
0
|
25
|
25
|
0.4
|
0.0
|
0.5
|
13
|
|
|
|
|
|
|
including
|
7
|
17
|
10
|
0.8
|
0.0
|
0.5
|
19
|
|
|
|
|
|
|
|
|
56
|
108
|
52
|
0.3
|
0.0
|
0.3
|
9
|
|
|
|
|
|
|
including
|
58
|
63
|
5
|
1.0
|
0.1
|
0.3
|
21
|
|
|
|
|
|
|
&
including
|
88
|
90
|
2
|
2.2
|
0.1
|
0.4
|
42
|
|
|
|
|
|
|
|
& incl
|
92
|
93
|
1
|
1.1
|
0.0
|
0.3
|
18
|
Marsellesa
|
MRP002
|
6811318
|
316128
|
1,057
|
250
|
-60
|
340
|
13
|
16
|
3
|
0.5
|
0.0
|
0.3
|
8
|
|
|
|
|
|
|
|
|
197
|
213
|
16
|
0.5
|
0.0
|
0.2
|
5
|
|
|
|
|
|
|
including
|
198
|
204
|
6
|
1.1
|
0.1
|
0.2
|
9
|
Marsellesa
|
MRP003
|
6811007
|
316083
|
1,106
|
294
|
-59
|
300
|
195
|
214
|
19
|
0.5
|
0.0
|
0.3
|
3
|
|
|
|
|
|
|
including
|
195
|
197
|
2
|
2.2
|
0.0
|
0.5
|
5
|
|
|
|
|
|
|
&
including
|
202
|
204
|
2
|
1.2
|
0.0
|
0.3
|
2
|
Marsellesa
|
MRP004
|
6810877
|
315903
|
1,077
|
294
|
-59
|
270
|
1
|
9
|
8
|
0.8
|
0.0
|
0.3
|
6
|
|
|
|
|
|
|
or including
|
4
|
8
|
4
|
1.0
|
0.0
|
0.3
|
7
|
Notes to Table 1:
Significant intercepts are calculated above a nominal cut-off grade
of 0.1% Cu. Where appropriate, significant intersections may
contain up to 30m down-hole distance of internal dilution (less
than 0.1% Cu). Significant intersections are separated where
internal dilution is greater than 30m down-hole distance. The
selection of 0.1% Cu for intersection cut-off grade above is
selected on the basis of exploration significance and is not meant
to represent potential marginal economic cut-off grade for bulk
tonnage polymetallic copper deposits of similar grade in Chile and
elsewhere in the world.
|
Down-hole significant intercept widths are estimated to be at or around
true-widths of mineralisation.
|
Qualifying Statements
Qualified Persons – NI 43-101
The scientific and technical information in this new release,
has been reviewed and approved by Mr Christian Easterday, MAIG, Hot Chili's Managing
Director and Chief Executive Officer, and a qualified
person within the meaning of NI 43-101.
Competent Persons – JORC
The information in this announcement that relates to Exploration Results
for the Marsellesa and Cordillera projects
is based upon information 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 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 news release.
Cautionary Note for U.S. Investors Concerning Mineral Resources
NI 43-101 is a rule of the Canadian Securities Administrators
which establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral
projects. Technical disclosure contained in this news release has
been prepared in accordance with NI 43-101 and the Canadian
Institute of Mining, Metallurgy and Petroleum Classification
System. These standards differ from the requirements of the U.S.
Securities and Exchange Commission ("SEC") and resource information
contained in this news release may not be comparable to similar
information disclosed by domestic United
States companies subject to the SEC's reporting and
disclosure requirements.
All amounts
in this news release are in U.S. dollars unless otherwise noted.
Forward Looking Statements
This news release 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
news release 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
"believe", "could", "estimate", "expect", "may", "plan",
"potential", "project", "should", 'toward", "up-scale", "will",
"would" and similar expressions are intended to identify forward-
looking statements.
The forward-looking statements within this news release are
based on information currently available and what management
believes are reasonable assumptions. Forward-looking statements
speak only as of the date of this news release. In addition, this
news release may contain forward-looking statements attributed to
third-party industry sources, the accuracy of which has not been
verified by the Company.
In this news release, 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; the results
and impacts of current and planned drilling to convert inferred
mineral resources to indicated, to extend mineral resources and to
identify new deposits; the Company's ability to convert mineral
resources to mineral reserves; opportunities for growth in mineral
projects; the timing and outcomes of this current and future
planned economic studies; the Company's ability to up-scale the
project; the timing and outcomes of regulatory processes required
to obtain permits for the development and operation of the Costa
Fuego Project and/or future planned economic studies; whether or
not the Company will make a development decision and the timing
thereof; the ability of the Company to complete the PFS on the
timeline indicated or at all; and estimates of planned
exploration.
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 news release,
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 serv ice
providers; competition risks;
economic and market
conditions; and other risks and uncertainties described elsewhere in this
news release and elsewhere in the Company's public disclosure
record.
Although the forward-looking statements contained in this news
release 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 news
release, 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 news release 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 news release
are expressly qualified by the foregoing cautionary statements and
are made as of the date of this news release. 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 news release 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 news release 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 31st March 2022)
1 Mineral Resources are reported on a 100% Basis - combining Mineral
Resource estimates for the Cortadera, Productora 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 the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Standards on Mineral
Resources and Reserves, Definitions and Guidelines prepared by the
CIM Standing Committee on Reserve Definition, as required by
National Instrument 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
Limitada (a 100% subsidiary of Hot Chili Limited), and 20% owned by CMP (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
Limitada, 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 Limitada, which is a 100% subsidiary of
Hot Chili Limited) and has an Option Agreement with a private party
to earn a 100% interest.
|
5 The
Mineral Resource estimates 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 Metallurgical recovery averages for
each deposit consider
Indicated + Inferred material
and are weighted to combine sulphide
flotation and oxide leaching performance. Process
recoveries: Cortadera and San Antonio – Weighted recoveries of 82%
Cu, 55% Au, 82% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.56 x
Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). Productora –
Weighted recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not
reported). CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x
Mo(ppm). Costa Fuego – Recoveries of 83% Cu, 53% Au, 69% Mo and 23%
Ag. CuEq(%) = Cu(%) + 0.52 x Au(g/t) + 0.00039 x Mo(ppm) +
0.0027 x Ag(g/t).
|
7 Resource 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 and San Antonio
deposits is 0.21% CuEq while the cut-off grade for mineral
resources considered amenable to underground extraction methods at
the Cortadera deposit is 0.3% CuEq.
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8 Mineral resources are not mineral
reserves and do not have demonstrated economic viability.
These Mineral Resource estimates 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.
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9 The effective date of the estimate of Mineral Resources is March 31st, 2022. Refer to ASX Announcement "Hot Chili Delivers
Next Level of Growth"
("Resource Announcement") for JORC Code Table 1 information related
to the Costa Fuego Resource
Estimate (MRE) by Competent Person Elizabeth
Haren, constituting the MREs of Cortadera, Productora and San
Antonio (which combine to form Costa Fuego). 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 Mineral Resource
Estimates in the Resource Announcement continue to apply and have not materially changed.
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10 Hot
Chili Limited is not aware of political, environmental or other
risks that could materially affect the potential development of the
Mineral Resources.
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SOURCE Hot Chili Limited