All Industries Further Consolidation of Cortadera
All Industries
Further Consolidation of Cortadera
NEWS RELEASE BY HOT CHILI LIMITED
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Perth, Australia | November 30, 2022 07:01 AM Eastern Standard Time
Cortadera Porphyry Footprint Continues to Expand
Hot Chili has succeeded in securing several new prospective mining rights, adjacent to mining rights in
the recently announced transaction with Antofagasta Minerals S.A. (AMSA)
The new mining rights cover the western extension of Hot Chili’s Cortadera copper-gold discovery, the
centrepiece of the Company’s low-altitude, Costa Fuego senior copper development in Chile
The new mining rights were secured 100% and at low cost through a government-run public auction,
recently held for the Huasco region of Chile
Prospective strike length of the existing Cortadera discovery has more than doubled from 2.3km to
5.2km with the addition of these new mining rights and those secured through the AMSA Option
agreement
Four large porphyry targets secured with the potential to materially increase the scale of Costa Fuego
First-pass drilling to start as soon as possible, testing for a larger porphyry cluster at Cortadera
** Copper Equivalent (CuEq) reported for the drillhole intersections 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 × Cu_recovery). The Metal Prices
applied in the calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. The entirety of the
intersection is assumed as fresh. The recovery and copper equivalent formula for Cortadera – Recoveries of 83% Cu, 56% Au,
83% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)
Hot Chili Limited (ASX: HCH) (TSXV:HCH) (OTCQX: HHLKF) (“Hot Chili” or “Company”) is
pleased to announcefurther consolidation of the Cortadera copper-gold discovery in Chile.
The Company has succeeded in securing several new prospective mining rights at a recently held, government-
run, public auction for the Huasco region of Chile. The new mining rights are located alongside mining rights
of the recently announced (25th November 2022) transaction with Antofagasta Minerals S.A. (AMSA).
Together, these new landholdings consolidate the western extension of Cortadera and allow Hot Chili to test a
potentially much larger copper porphyry cluster.
Hot Chili has now secured four new large porphyry targets adjacent to the existing Cortadera resource (Cuerpo
1, 2 and 3), and added significant prospective strike length across two mineralised trends:
· Las Canas trend (+1.8km, N-S) - Three large porphyry targets including the Cuerpo 4 porphyry target
(700m in strike length by 300m in width and drill confirmed, see announcement dated 25th November 2022 for
details of AMSA transaction)
· Cortadera trend (+1.1km, NW-SE) – One large porphyry target located directly along-strike from
Cortadera on the Serrano fault, an important mineralising fault corridor connecting the Cortadera and
Productora copper-gold deposits
The new landholding successfully acquired at auction contains the Cortadera trend extension and comprises
seven mining rights covering 757 hectares. Three mining rights (Falla Maipo 2, 3, 4) were acquired for
US$110,000 and the remaining four mining rights (CF 6, 7, 8, 9) were successfully awarded following
forfeiture of overlapping third party mining rights.
Figures on the following pages outline the location of the new mining rights in relation to Cortadera.
Drilling across the western extension to Cortadera is planned to commence as soon as possible.
This recent strategic consolidation of the Cortadera porphyry deposit area has the potential to deliver another
significant leg of resource growth to the Costa Fuego copper hub.
Further updates and announcements are expected in the lead-up to drill commencement.
Figure 1. Location of new mining rights(AMSA) relating to Cortadera, Productora, San Antonio,
Valentina and nearby coastal range infrastructure of Hot Chili’s combined Costa Fuego copper-
gold project, located 600km north of Santiago in Chile.
* 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 × Cu_recovery).
The Metal Prices applied in the CuEq calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20
USD/oz. Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine
sulphide flotation and oxide leaching performance. The recovery and copper equivalent formula for each deposit is:
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 – Weighted 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)
** Reported on a 100% Basis - combining Mineral Resource Estimates for the Cortadera, Productora and San Antonio deposits.
Figures are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code, CIM and NI
43-101. Metal rounded to nearest thousand, or if less, to the nearest hundred.
Total Resource reported at +0.21% CuEq for open pit and +0.30% CuEq for underground.
Figure 2. Location of Cuerpo 4 and other immediate porphyry targets within the AMSA
landholding and new landholding acquired through public auction, lying immediately west of the
Cortadera resource.
Figure 3. Location of Cuerpo 4 and other immediate porphyry targets within the AMSA
landholding and new landholding acquired through public auction, lying immediately west of the
Cortadera resource. Note magnetic (RTP magnetics image – blue is low, red is high) signature of
the Cortadera deposit window in relation to A+B vein contours and late stage porphyry dykes.
Subtle de-magnetised anomalies along the main mineralising trends (Las Canas and Cortadera)
are of particular interest given the magnetic signatures of Cortadera’s three porphyry centres.
Figure 4. Location of Cuerpo 4 and other immediate porphyry targets within the AMSA
landholding and new landholding acquired through public auction, lying immediately west of the
Cortadera resource. Note surface molybdenum anomalies at Cortadera and Cortadera North in
relation to A+B vein contours and late stage porphyry dykes. Expansion of surface geochemistry
and mapping is planned across the new landholdings.
Refer to ASX Announcement “Hot Chili Delivers Next Level of Growth” (31st March 2022) for JORC Code Table 1 information
related to the Costa Fuego JORC-compliant Mineral Resource Estimate (MRE) by Competent Person Elizabeth Haren,
constituting the MREs of Cortadera, Productora and San Antonio (which combine to form Costa Fuego).
* 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 × Cu_recovery).
The Metal Prices applied in the CuEq calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20
USD/oz. Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine
sulphide flotation and oxide leaching performance. The recovery and copper equivalent formula for each deposit is:
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 – Weighted 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)
** Reported on a 100% Basis - combining Mineral Resource Estimates for the Cortadera, Productora and San Antonio deposits.
Figures are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code, CIM and NI
43-101. Metal rounded to nearest thousand, or if less, to the nearest hundred.
Total Resource reported at +0.21% CuEq for open pit and +0.30% CuEq for underground.
** 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- Costa Fuego Mineral Resources
The information in this report that relates to Mineral Resources for Cortadera, Productora and
San Antonio which constitute the combined Costa Fuego Project is based on information
compiled by Ms 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. Ms Haren is a full-time employee of Haren Consulting Pty
Ltd and an independent consultant to Hot Chili. Ms Haren has sufficient experience, which is
relevant to the style of mineralisation and types of deposits under consideration and to the
activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Ms Haren consents to the inclusion in the report of the matters based on her information in the
form and context in which it appears. For further information on the Costa Fuego Project, refer to
the technical report titled "Resource Report for the Costa Fuego Technical Report", dated
December 13, 2021, which is available for review under Hot Chili's profile at www.sedar.com.
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 × Cu_recovery). The Metal Prices applied in the CuEq
calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz.
Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are
weighted to combine sulphide flotation and oxide leaching performance. The recovery and
copper equivalent formula for each deposit is:
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 – Weighted 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)