Strong Copper-Silver Drill Results Delivered
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
Strong Copper-Silver Drill Results Delivered
Ahead of San Antonio Resource Upgrade
• New copper (Cu) and silver (Ag) intersections from resource up-grade drilling of the high-
grade San Antonio resource, part of the Company’s low -altitude, Costa Fuego senior copper
development in Chile
• Highlights include:
o 21m grading 1.6% CuEq (1.6% Cu, 3.2g/t Ag) from 74m depth downhole
o 13m grading 1.3% CuEq (1.3% Cu, 3.2g/t Ag) from 133m depth downhole
including 2m grading 3.7% CuEq (3.5% Cu, 7.6g/t Ag)
o 7m grading 1.6% CuEq* (1.5% Cu, 4.8g/t Ag) from 11m depth downhole
including 2m grading 4.0% CuEq (3.9% Cu, 12.9g/t Ag)
o 4m grading 1.7% CuEq (1.7% Cu, 3.9g/t Ag) from 170m depth downhole
o 4m grading 1.6% CuEq (1.4% Cu, 6.4g/t Ag) from 115m depth downhole
• New results positively impact existing Inferred resource (4.2Mt grading 1.2% CuEq), which is
set to be upgraded to Indicated classification in next Costa Fuego resource update, expected later
this year
• Final drill results from the Valentina high grade copper-silver deposit expected shortly ,
regulatory application for follow-up drill programme being prepared
• Drilling continuing at Santiago Z porphyry exploration target - five drill holes complete, results
pending
* Copper Equivalent (CuEq) reported for the drill holes at San Antonio used 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=88%, Au=72%, Mo=88%, and Ag=69%.
Announcement
8th September 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
announce new significant results from resource upgrade drilling across the high-grade San Antonio
copper deposit, part of the Company’s Costa Fuego, coastal range, copper-gold hub in Chile.
Importantly, several drill holes rec orded higher grades than estimated in the current San Antonio
Inferred resource model.
The new drill results will upgrade the classification of the existing resource at San Antonio from Inferred to
Indicated – allowing the resource to be included in open pit reserve estimates for the Costa Fuego Pre -
feasibility Study (PFS).
A total of thirteen Reverse Circulation (RC) drill holes for 2,0 09m were complete across the San Antonio
resource window to test extensional potential, as well as in-fill areas of lower geological confidence. Seven
RC drill holes recoded significant intersections. In addition, three diamond holes for 495m were completed
for metallurgical testwork purposes.
The current resource at San Anton io ((Inferred resource of 4.2Mt grading 1.2% CuEq (1.1% Cu, 2.1g/t Ag)
for 48kt Cu and 287koz Ag, reported March 2022) extends from surface over a strike length of approximately
1km, and is amenable to open pit mining with relatively low strip-ratio.
Drilling undertaken across San Antonio , and its neighbouring high grade deposit Valentina, have provided
significant encouragement for the addition of two potential high grade, front-end, open pit, ore sources for the
combined Costa Fuego coastal copper super-hub.
SAPMET003 mineralisation in altered sandstone containing ~5% sulphides (pyrite and chalcopyrite)
from 140m downhole which graded 3.7% CuEq (3.5% Cu, 7.6g/t Ag)
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
Expanded Drill Programme Planned for Valentina
Recent drill results from San Anton io’s neighbouring deposit Valentina recorded a number of outstanding
shallow results, including 3m grading 12.1% CuEq (11.8% Cu & 52.6g/t Ag) within a broader drilling
intersection of 12m grading 4.6% CuEq (4.5% Cu & 16.5g/t Ag) from 25m depth down -hole
(VALMET0002 as reported on 24th August 2022).
High grade copper -silver mineralisation at Valentina is defined over 300 m and is open along strike and at
depth.
Importantly, these new high grade drill results recorded in VALMET002, which lie 120m south of the historical
Valentina underground mine , remain open and untested to the south below a shallow cover sequence of
gravels.
A regulatory clearing application is being prepared to facilitate follow-up drilling at Valentina, which
will expand resource drill definition across this potentially high -impact future resource addition to
Costa Fuego.
The Company looks forward to releasing final drill results from Valentina shortly as well as an update
on first-pass drilling activities across the Santiago Z porphyry exploration target.
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: [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, San Antonio and Valentina 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 Announcement “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 calcula ted 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 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 RC and DD Results at San Antonio
Hole_ID
Coordinates Azim Dip Hole
Depth Intersection Interval Copper Gold Silver Molybdenum Cu Eq
North East RL From To (m) (% Cu) (g/t
Au)
(ppm
Ag) (ppm Mo) (% Cu
Eq)
SAP0042 6819270 342486 1204 89.4 -80 150 95 97 2 0.8 0.0 2.5 4.8 0.9
SAP0044 6818761 342438 1208 240 -60 170 100 104 4 1.7 0.0 3.9 0.5 1.7
Including 147 150 3 1.2 0.1 4.1 0.3 1.2
SAP0047 6818793 342448 1213 200 -75 200 146 151 5 1.0 0.0 2.4 1.4 1.0
SAP0048 6818509 342288 1233 329 -59 100 11 18 7 1.5 0.1 4.8 3.1 1.6
Including 12 14 2 3.9 0.2 12.9 7.5 4.0
SAP0049 6818601 342317 1235 14.9 -60 120 85 88 3 1.3 0.0 3.3 2.0 1.3
SAP0053 6818402 342314 1267 347 -60 200 115 119 4 1.4 0.2 6.4 18.0 1.6
SAP0054 6818545 342409 1217 239 -60 162 12 14 2 0.7 0.1 4.1 0.8 0.8
SAPMET-001 6818913 342555 1178 330 -60 165.2 149 150 1 0.8 0.1 0.6 2.8 0.8
SAPMET-002 6818824 342424 1210 255 -60 130 54 60 6 1.3 0.0 3.9 1.0 1.3
74 95 21 1.6 0.0 3.2 1.7 1.6
SAPMET-003 6818628 342432 1192 321 -61 200 133 146 13 1.3 0.0 3.2 2.2 1.3
Including 140 142 2 3.5 0.1 7.6 1.0 3.7
175 177 2 2.0 0.0 3.4 0.7 2.0
Significant intercepts are calculated above a nominal cut-off grade of 0.5% Cu, with a minimum estimated true thickness of 1.5m. These parameters are aligned with marginal economic
cut-off grades for narrow, high-grade 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 70 per cent of true -widths of mineralisation
* Copper Equivalent (CuEq) reported for the drill holes at San Antonio used Costa Fuego averages (as no metallurgical testwork has been completed) 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 Pr ices 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%.
6
Figure 2. Long section (along the plane of mineralisation) showing significant intersections from phase 1 RC drilling at
San Antonio. Current Resource Model (May 2022) shown for reference (filtered to show Inferred blocks above 0.2%
CuEq). Note southern high-grade drill intersections (SAP0048 and SAP0053) recorded outside resource envelope.
7
Qualifying Statements
Costa Fuego Combined Mineral Resource (Reported 31st March 2022)
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 Announcement “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% 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 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%.
** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate
8
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 su fficient
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 Char tered
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 suf ficient 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 tec hnical 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% 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 US D/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%.
Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or imp lied)
as to the accuracy, reliability, relevance or completeness of the material containe d in the Announcement and nothing contained in the
Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Co mpany
hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may
be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately
achieved.
The Announcement contains “forward -looking statements”. All statements other than those of historical facts included in the
Announcement are forward -looking statements including estimates of Mineral Resources. However, forward -looking statements are
subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expres sed,
projected or implied by such forward -looking statements. Such risks include, but are not limited to, copper, gold and other me tals price
volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining
plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake
any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the
Announcement, or to reflect the occurrence of unanticipated events, except as may be required u nder applicable securities laws. All
persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect
to the Company and evaluating the business, financial performance and operations of th e Company. Neither the provision of the
Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the
Announcement is, or should be taken as, constituting the giving of investment advice to any person
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven ture
Exchange) accepts responsibility for the adequacy or accuracy of this news release