Costa Fuego Delivers Outstanding Copper-Gold Drill Results o 552m grading 0.6% CuEq (0.4% Cu, 0.2g/t Au, from 276m depth down-hole (Cortadera) including 248m grading 0.8% CuEq (0.6% Cu, 0.2g/t Au, from 574m depth
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
Quarterly Report
Period Ending 30th June 2022
Highlights
Costa Fuego Delivers Outstanding Copper-Gold Drill Results
o 552m grading 0.6% CuEq (0.4% Cu, 0.2g/t Au, from 276m depth down-hole (Cortadera)
including 248m grading 0.8% CuEq (0.6% Cu, 0.2g/t Au, from 574m depth
o 658m grading 0.6% CuEq (0.4% Cu, 0.2g/t Au) from 232m depth down-hole (Cortadera)
including 134m grading 0.8% CuEq (0.6% Cu, 0.2g/t Au) from 470m depth down-hole
including 130m grading 0.9% CuEq (0.6% Cu, 0.2g/t Au) from 662m depth
o 484m grading 0.5% CuEq (0.4% Cu, 0.1g/t Au) from 548m depth down-hole (Cortadera)
including 56m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) from 644m depth,
o 45m grading 1.2% CuEq (1.0% Cu, 0.2g/t Au) from 280m depth downhole (Productora)
including 8m grading 3.6% CuEq (3.0% Cu, 0.8g/t Au)
o 39m grading 1.1% CuEq (1.0% Cu, 0.1g/t Au) from 36m depth downhole (Productora)
including 12m grading 1.5% CuEq (1.4% Cu, 0.2g/t Au)
Development Study Drilling Complete & Exploration Drilling Continues
Drilling Underway Across High Grade Satellite Deposits at San Antonio & Valentina
Pre-feasibility Study Expanded and On-Track for Q1 2023
Cash Position of A$23.6 million at end of Q2, fully funded into late 2023
* 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 we re: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. For Costa
Fuego, the average Metallurgical Recoveries combine leach and flotation and were: Cu=83%, Au=53%, Mo=69%, and Ag=23%.
Drilling at Valentina Deposit, July 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
SUMMARY OF OPERATIONAL ACTIVITIES
Development Study Drilling Boosts High Grade Growth Potential at Cortadera
A significant drilling programme dedicated toward the collection of metallurgical, hydrological, and
geotechnical data for the company’s Pre-feasibility Study (PFS) was completed during the quarter.
Assay results from this programme have exceeded expectation and confirmed further high grade growth
ahead of a planned resource upgrade for Costa Fuego later this year.
A total of six development study diamond drill holes have been completed at Cortadera this year.
Stand-out drill results reported from Cortadera during the quarter include:
o 552m grading 0.6% CuEq (0.4% Cu, 0.2g/t Au, from 276m depth down-hole (CORMET003)
including 248m grading 0.8% CuEq (0.6% Cu, 0.2g/t Au, from 574m depth
o 658m grading 0.6% CuEq (0.4% Cu, 0.2g/t Au) from 232m depth down-hole (CORMET005)
including 134m grading 0.8% CuEq (0.6% Cu, 0.2g/t Au) from 470m depth down-hole
including 130m grading 0.9% CuEq (0.6% Cu, 0.2g/t Au) from 662m depth
o 484m grading 0.5% CuEq (0.4% Cu, 0.1g/t Au) from 548m depth down-hole (CORMET004)
including 56m grading 1.0% CuEq (0.8% Cu, 0.3g/t Au) from 644m depth,
and including 206m grading 0.7% CuEq (0.5% Cu, 0.2g/t Au) from 800m depth.
All four development study drill holes reported from the main porphyry at Cortadera (Cuerpo 3) confirm
expansion of the high-grade core.
Results from drill hole COREMTE001 also outperformed expectation with the hole ending in 6m grading
0.6% copper below the current mineral resource extent of Cuerpo 1.
CORMET003 (775m depth down -hole) – 0.8% copper, 0.1g/t gold, 1.7g/t silver and 510ppm molybdenum.
Planar and continuous, chalcopyrite -pyrite-molybdenite-bearing, B -type quartz vein hosted in sericite-
chlorite-(biotite) altered early-mineralization tonalite porphyry.
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
Metallurgical Drilling at Productora Records Strong Intersections
Four diamond drillholes have been completed for metallurgical testwork across the Productora resource
(three into the Productora central pit area and one into the Alice satellite pit area).
The goal of this testwork is to confirm the processing flowsheet (based on work completed since the 2016
Productora PFS), with a particular focus on material that will be extracted in the first three years of production
at Productora.
While only the intervals to be used in the metallurgical testwork program have been assayed, every hole
drilled achieved impressive intersections, including:
o 45m grading 1.2% CuEq* (1.0% Cu, 0.2g/t Au) from 280m (MET027 - Productora)
including 8m grading 3.6% CuEq* (3.0% Cu, 0.8g/t Au) from 280m
o 39m1 grading 1.1% CuEq* (1.0% Cu, 0.1g/t Au) from 46m (MET028 – Alice porphyry)
including 12m grading 1.5% CuEq* (1.4% Cu, 0.2g/t Au)
(1including 3m unsampled outside of metallurgical test area) from 60m
o 39m 0.9% CuEq* (0.7% Cu, 0.2g/t Au) from 141m (MET026 – Productora)
o 39m 0.8% CuEq* (0.7% Cu, 0.2g/t Au) from 78m (MET025 – Productora)
* 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). 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 Productora, the average Metallurgical Recoveries combine leach and flotation and were: Cu=84%, Au=47%, Mo=47%, and Ag=0%.
The intersection in MET028 is particularly exciting as it is located near -surface in the higher -grade Alice
porphyry satellite pit.
MET028 (65m to 68m depth down-hole) near-surface, high-grade, copper-oxide drill intersection through Alice
felsic porphyry host rock with 5 to 10% A-B vein abundance.
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
Resource Definition Drilling Underway at San Antonio and Valentina
A total of 27 drill holes have been completed at the high grade Valentina copper mine during the quarter .
Initial drilling confirmed a strong visual drilling intersection approximately 120m south of the underground
mine workings. Drilling is being finalised shortly and first assay results from this programme are expected
shortly.
Work is underway to create detailed geological and mineralisation models to asses the resource potential
of Valentina ahead of a maiden Mineral Resource estimate later this year.
A further 9 drill holes are complete at the San Antonio high grade satellite resource during the quarter.
Assay results are pending and four holes remaining to be drilled.
San Antonio’s maiden Inferred resource, reported in March 2022, extends from surface and already stands
at 4.2Mt grading 1.2% CuEq (1.1% Cu, 2.1g/t Ag) for 48kt Cu and 287koz Ag.
Drilling at San Antonio is designed to upgrade the categorisation of the resource from Inferred to Indicated,
as well as testing for down-plunge mineralisation extensions.
Both high-grade satellite deposits will be included in the next Mineral Resource upgrade and subsequent
PFS open pit mine schedule, expected in Q1 2023.
Oxide and secondary sulphide minerals clearly visible in drill core from Valentina
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
Regional Exploration Update
Platform and access clearing across the Santiago Z exploration target were completed this quarter and Hot
Chili is poised to commence first -ever drilling on the 4km long by 2km wide potential porphyry footprint in
early August.
The Santiago Z exploration target in the context of the deposits at Cortadera.
PFS Expansion and Updated Timeline
Pre-feasibility studies (PFS) are now expected in Q1 2023 following an expansion to capture additional
metallurgical testwork opportunities across all deposits at Costa Fuego and an extension of preliminary mine
planning to allow the incorporation of new resource growth from drilling in 2022.
Technical drilling for the development study is complete and the Company has reduced its drilling operations
from three drill rigs (5 -shifts of drilling per day) to one drill rig (1- shift of drilling per day) along with
implementing other cost rationalisation initiatives.
The revised timeline ensures the company is now fully funded into late 2023.
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 1 Location of Productora, Cortadera and San Antonio deposits in relation to the coastal range
infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile
Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information
related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource
estimate by AMC Consultants.
* 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). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1, 700 USD/oz, Mo=1 4
USD/lb, and Ag=20 USD/oz.
For Costa Fuego, the average Metallurgical Recoveries combine leach and flotation and were: Cu=83%, Au=53%, Mo=69%, and Ag=23 %.
For Productora, the average Metallurgical Recoveries combine leach and flotation and were: Cu=84%, Au=47%, Mo=47%, and Ag=0%. For
Cortadera, the average Metallurgical Recoveries combine leach and flotation and were: Cu=82%, Au=55%, Mo=82%, and Ag=37%. For San
Antonio, the average Metallurgical Recoveries were: Cu=88%, Au=72%, Mo=88%, and Ag=69%.
** Reported on a 100% Basis - combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade
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
Table 1 Significant Drill Results Reported for Cortadera in Q2 2022
Hole_ID
Coordinates
Azim Dip Hole
Depth
Intersection Interval Copper Gold Silver Moly CuEq*
North East RL From To (m) (%) (g/t) (g/t) (ppm) (%)
CORMET003 6813372 336123 1068 59 -60 1023 276 828 552 0.4 0.2 0.8 89 0.6
including 574 822 248 0.6 0.2 1.1 179 0.8
CORMET001 6814269 334736 976 74 -60 350 86 156 70 0.5 0.1 1.1 11 0.6
- 222 350 128 0.2 0.0 0.6 14 0.3
including at end-of-hole 344 350 6 0.6 0.0 1.4 4 0.6
CORMET005 6813534 336171 1066 352 -69.2 951.6 232 890 658 0.4 0.2 0.8 122 0.6
- 470 604 134 0.6 0.2 0.9 181 0.8
- 662 792 130 0.6 0.2 1.1 253 0.9
- 690 750 60 0.8 0.4 1.3 238 1.2
- 690 720 30 1.1 0.5 1.6 165 1.4
CORMET002 6813867 335534 992 0 -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
CORMET004 6813819 336428 1094 218 -64 1126 548 1032 484 0.4 0.1 0.6 94 0.5
including 644 700 56 0.8 0.3 1.1 48 1.0
and including 800 1006 206 0.5 0.2 0.7 173 0.7
or including 878 922 44 0.8 0.3 1.1 131 1.0
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 30 m 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 around true- widths of mineralization.
* 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. For Cortadera, the average
Metallurgical Recoveries combine leach and flotation and were: Cu=82%, Au=55%, Mo=82%, and Ag=37%.
Table 2 Significant Drill Results Reported for Productora in Q2 2022
Hole_ID
Coordinates
Azim Dip Hole Depth
Intersection Interval Copper Gold Molybdenum CuEq*
North East RL From To (m) (%) (g/t) (ppm) (%)
MET025 6820931 323027 884 90 -60 280 39 66 27 0.5 0.2 92 0.7
78 117 39 0.7 0.2 136 0.8
129 139 10 0.5 0.1 169 0.6
159 168 9 0.5 0.1 117 0.6
246 256 10 0.5 0.1 64 0.6
MET026 6822284 323426 816 90 -60 260 93 111 18 0.4 0.1 193 0.5
120 129 9 0.4 0.1 33 0.5
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
Table 2 (continued) Significant Drill Results Reported for Productora in Q2 2022
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 economi c cut-off grade for bulk t onnage 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
* Copper Equivalent (CuEq) reported for the drill holes at Productora 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. For Productora, the average
Metallurgical Recoveries combine leach and flotation and were: Cu=84%, Au=47%, Mo=47%, and Ag=0%.
Hole_ID
Coordinates
Azim Dip Hole
Depth
Intersection Interval Copper Gold Molybdenum CuEq*
North East RL From To (m) (%) (g/t) (ppm) (%)
MET027 6821389 323082 858 90 -62 394.6 36 61 25 0.4 0.1 159 0.5
100 135 35 0.4 0.1 228 0.5
including 122 128 6 1.2 0.2 770 1.5
247 271 24 0.5 0.1 209 0.6
280 325 45 1.0 0.2 225 1.2
including 280 288 8 3.0 0.8 699 3.6
MET028 6822576 322851 790 270 -59 250.1 46 85 39 1.0 0.1 31 1.1
including 60 72 12 1.4 0.2 37 1.5
105 115 10 0.5 0.0 71 0.6
132 142 10 0.5 0.0 36 0.5
165 175 10 0.3 0.0 175 0.4
PRF001 6821677 323055 837 264.7 -68.87 451 34 180 146 0.1 0.0 4 0.1
including 57 60 3 0.3 0.3 4 0.4
and including 116 120 4 0.1 0.3 4 0.2
and including 176 180 4 0.1 0.3 3 0.3
PRF003 6821398 322916 825 38.57 -60.24 326 20 120 100 0.1 0.1 21 0.1
including 24 50 26 0.1 0.3 12 0.2
236 290 54 0.1 0.1 4 0.1
including 236 239 3 0.8 0.5 7 1.1
290 326 36 0.2 0.1 7 0.2
including 290 302 12 0.4 0.1 11 0.4
PRF004 6821398 322916 825 270.87 -61.05 321 26 30 4 0.1 0.9 52 0.5
37 93 56 0.1 0.1 19 0.2
including 81 91 10 0.3 0.1 28 0.3
162 165 3 0.2 0.2 11 0.3
PRF005 6821989 323069 810 88.34 -79.14 504 270 272 2 0.3 0.1 6 0.3
314 320 6 0.2 0.1 7 0.2
PRF006 6822161 323154 794 91.58 -59.49 373 20 124 104 0.1 0.0 14 0.1
including 22 30 8 0.2 0.0 1 0.2
including 43 51 8 0.2 0.1 36 0.2
and including 92 95 3 0.3 0.1 44 0.3
344 347 3 0.4 0.0 90 0.4
PRF008 6822349 323033 772 102.83 -58.43 432 50 58 8 0.2 0.1 10 0.2
including 50 52 2 0.4 0.2 25 0.4
PRF009 6822608 323120 762 251.2 -59.5 432 246 278 32 0.1 0.0 3 0.1