Mr Christian Easterday Managing Director
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
1
Another High Grade Boost for Cortadera
658m at 0.6% CuEq including 130m at 0.9% CuEq
Highlights
• More significant results from development study drilling at the Cortadera porphyry
discovery, part of the Company’s low-altitude, Costa Fuego senior copper development in Chile
• CORMET005 returned 658m grading 0.6% CuEq (0.4% copper (Cu), 0. 2g/t gold (Au) , 122ppm
molybdenum (Mo)) from 232m depth down-hole, including 134m grading 0.8% CuEq (0.6% Cu,
0.2g/t Au, 181ppm Mo) from 470m depth, and including 130m grading 0.9% CuEq (0.6% Cu,
0.2g/t Au, 253ppm Mo) from 662m depth at the main porphyry (Cuerpo 3)
• 30m grading 1.4% CuEq (1.1% Cu, 0. 5g/t Au, 1 65ppm Mo) from 690m depth was recorded
outside of the current high grade (+0.6% CuEq) resource model in CORMET005
• All three drill holes reported from Cuerpo 3 at Cortadera confirm expansion of the high grade
core ahead of a planned Pre -feasibility study (PFS) and resource upgrade for Costa Fuego later
this year
• Drilling underway across three fronts - Cortadera, Productora and Valentina - with further drill
results expected in the coming weeks
• Update on PFS workstreams and port negotiations expected shortly
* Copper Equivalent (CuEq) reported for the drill holes at Cortadera 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=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. Average
fresh rock metallurgical recoveries were Cu=83%, Au=56%, Mo=82%, and Ag=37%.
Announcement
20th May 2022
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
2
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or “Company”) is pleased to
report another outstanding drill result at the Cortadera porphyry deposit, part of the Company’s Costa
Fuego, coastal range, copper-gold hub in Chile.
Hot Chili’s Managing Director Christian Easterday stated that Cortadera has a track record of outperforming
expectation.
“The PFS in-fill drill programme across Cortadera has collected important geotechnical and hydrogeological
information and has also continued to define and expand high grade resources.
“Upgrading our resources with w ide drill intersections grading 0.8% to 1.0% copper equivalent is a great
outcome, which demonstrates the quality and growth potential of Costa Fuego as one of the only low-altitude,
material, copper developments in the world capable of near-term development.”
Latest Significant Drill Results from Cortadera
Latest results from development study drilling at Cortadera have returned further significant intersections.
Diamond drill hole CORMET005 returned 658m grading 0.6% CuEq (0.4% Cu, 0.2g/t Au, 122ppm Mo)
from 232m depth, including 134m grading 0.8% CuEq (0.6% Cu, 0.2g/t Au, 181ppm Mo) from 470m depth,
and including 130m grading 0.9% CuEq (0.6% Cu, 0.2g/t Au, 253ppm Mo) from 662m depth.
CORMET005 was drilled across the northern flank to the high grade core within the main porphyry (Cuerpo
3) at Cortadera. Pleasingly, the wide significant intersection again confirmed further extension to the high
grade core and included an impressive 30m grading 1.4% CuEq (1.1% Cu, 0.5g/t Au, 165ppm Mo) from
690m depth outside of the current high grade (+0.6% CuEq) resource model.
The latest result follows the previous two outstanding drill results (see announcements dated 4 th April 2022
and 29th April 2022) from Cuerpo 3, which also confirmed further growth of the high grade core, notably:
• 552m at 0.6% CuEq from 276m depth, including 248m at 0.8% CuEq (CORMET003), and
• 876m grading 0.5% CuEq from 246m depth, including 206m grading 0.9% CuEq (CORMET006)
In addition, diamond drill hole CORMET002 has returned 370m grading 0.4% CuEq (0.3% Cu, 0.1g/t Au)
from surface, including 20m grading 0.8% CuEq (0.6% Cu, 0.4g/t Au) from 24m depth, and including 22m
grading 1.0% CuEq (0.8% Cu, 0.5g/t Au) from 136m depth at Cuerpo 2 . These high grade inter sections
were also outside the current high grade resource at Cuerpo 2.
A final development study diamond drill hole (CORMET004) is being completed at Cortadera and results are
also pending for four metallurgical diamond drill holes completed at Productora.
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
3
High Grade Satellite Resource Drilling Underway
Resource growth drilling has commenced targeting the San Antonio and Valentina high grade copper
deposits, located 5 kms northeast of Cortadera. High grade, copper-gold mineralisation at both deposits
remains open at depth and along strike.
Drilling is already underway at Valentina where ten drill holes are planned. A further thirteen d rill holes are
planned at San Antonio.
San Antonio’s maiden Inferred resource, reported in March, extends from surface and already stands at 4.2Mt
@ 1.2% CuEq (1.1% Cu, 2.1g/t Ag) for 48kt Cu and 287kt Ag.
Both high grade satellite deposits are intended to form part of Costa Fuego’s next resource upgrade and
combined PFS open pit mine schedule later this year.
Santiago Z Target Prepared for First-Ever Drilling
Platform and access clearing across the Santiago Z exploration target is expected to be complete in the
coming week and first-pass drilling is expected to commence following conclusion of drilling at Valentina and
San Antonio.
Hot Chili’s soil results and mapping have confirmed a potentially large copper porphyry footprint measuring
over 4km in length and 2km in width at the Santiago Z landholding, located immediately south of Cortadera.
The Company looks forward to releasing further updates from its explor ation, drilling and
development study workstreams shortly.
This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Christian Easterday
Managing Director – Hot Chili
Tel: +61 8 9315 9009
Email: [email protected]
Penelope Beattie
Company Secretary – Hot Chili
Tel: +61 8 9315 9009
Email: [email protected]
ASX Investor
Investor & Public Relations (Australia)
Email: [email protected]
Harbor Access
Investor & Public Relations (Canada)
Email: [email protected]
Email: [email protected]
or visit Hot Chili’s website at www.hotchili.net.au
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
4
Figure 1 Location of Cortadera, Productora and San Antonio in relation to coastal range infrastructure of Hot
Chili’s combined Costa Fuego copper-gold project, located 600km north of Santiago in Chile
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 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. Refer to Announceme nt “Hot Chili
Delivers Next Level of Growth” (31st March 2022) for JORC Table 1 information related to the Costa Fuego Mineral Resource estimates.
* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% p er 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=1,700 USD/oz, Mo=14 USD/lb, and Ag=20
USD/oz. For Cortadera and San Antonio (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%.
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
5
Table 1 New Significant DD Results at Cortadera
Hole_ID
Coordinates
Azim Dip Hole
Depth
Intersection Interval Copper Gold Silver Molybdenum Cu Eq
North East RL From To (m) (%) (g/t) (ppm) (ppm) (%)
CORMET005 6813534 336171 1066 352 -69 951.6 232 890 658 0.4 0.2 0.8 122 0.6
including 470 604 134 0.6 0.2 0.9 181 0.8
including 662 792 130 0.6 0.2 1.1 253 0.9
or including 690 750 60 0.8 0.4 1.3 238 1.2
or including 690 720 30 1.1 0.5 1.6 165 1.4
CORMET002 6813867 335534 992 360 -60 370 0 370 370 0.3 0.1 0.6 8 0.4
including 24 44 20 0.6 0.4 1.0 5 0.8
and including 136 158 22 0.8 0.5 1.8 4 1.0
and including 222 272 50 0.4 0.1 0.9 9 0.4
Significant intercepts 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.
Down-hole significant intercept widths are estimated to be at or aro und true-widths of mineralisation
* Copper Equivalent (CuEq) reported for the drill holes at Cortadera 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 app lied in
the calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. Average fresh rock metallurgical recoveries were Cu=83%, Au=56%, Mo=82%, and
Ag=37%.
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
6
Figure 2. Location of development study diamond drill holes at Cortadera
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
7
Figure 3. Plan view displaying the new significant drilling intersection recorded in CORMET005
targeting the northern flank of the high-grade core at Cuerpo 3, Cortadera porphyry discovery.
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004
www.hotchili.net.au
Contact
Mr Christian Easterday
Managing Director
8
Figure 4. Cross section (looking north) displaying the new significant drilling intersection recorded in
CORMET005 targeting the eastern flank of the high -grade core at Cuerpo 3, Cortadera porphyry
discovery. The majority of the Cu-Au-rich, 658m-long interval is hosted by early- and intra-mineralization
tonalite porphyry intrusions, cut by 1 to > 5 % A- and B-type quartz veins, and adjacent pre-mineralization
wall-rock. Relatively narrow intervals of lower -grade that occur up -hole and within the high -grade
interval are characterized by post- and late-mineralization andesite and tonalite porphyry dikes. The true-
widths of these dikes in this cross-section are < 30 m.