Stunning 17m Visual Drill Intersection Extends High Grade Copper Zone by 120m at Valentina
Stunning 17m Visual Drill Intersection
Extends High Grade Copper Zone by 120m at
Valentina
NEWS RELEASE BY HOT CHILI LIMITED
Perth, Australia | June 13, 2022 08:34 AM Eastern Daylight Time
Pink Cuprite at 35.3m depth in VALMET002
Highlights
• Drilling has discovered a significant extension to the high grade Valentina copper deposit, part of the
Company’s low-altitude, Costa Fuego senior copper development in Chile
• Diamond drill hole VALMET002 has intersected a shallow zone of copper sulphide and oxide mineralisation
approximately 120m south of the Valentina underground mine workings
• VALMET002 recorded a strong visual drilling intersection (results pending) comprising:
o 17m visual estimate of 2-3% copper mineralisation from 22m depth
(malachite, copper clays, chalcopyrite, chalcocite and covellite)
o Including 8m visual estimate of 4-5% copper mineralisation from 28m depth
(chalcocite, cuprite, chalcopyrite, covellite, malachite, copper clays)
• Cuprite (88.8% Cu), covellite (66.5% Cu) and chalcocite (79.8% Cu) are all high grade copper ore minerals by
molecular weight
• Results pending for ten drill holes at Valentina with a further eight drill holes planned
• Las Losas port access and services negotiation progressing well, proposal received
• Update on PFS workstreams and further development study drill results expected soon
• Strong cash position of approximately $24 million, two drill rigs in operation and fully funded until mid-2023
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or “Company”) is pleased to report
strong visual copper results from drilling at the high grade Valentina deposit, part of the Company’s Costa
Fuego, coastal range, copper-gold hub in Chile.
Two drill rigs are in operation at the Valentina and San Antonio high grade copper deposits, located 5km east of
the Cortadera copper porphyry discovery.
Drilling at Valentina has successfully discovered a significant shallow visual copper zone approximately 120m
south of the existing underground mine development in diamond drill hole VALMET-002.
VALMET-002 recorded a 17m intersection with a visual estimate of 2-3% copper mineralisation from 22m depth,
comprising both oxide and sulphide mineralisation (malachite, copper clays, chalcopyrite, chalcocite and covellite).
The result includes a zone of 8m with a visual estimate at 4-5% copper mineralisation from 28m depth, comprising
chalcocite, cuprite, chalcopyrite, covellite, malachite, copper clays.
Copper mineralisation in VALMET-002 is contained as fine dissemination and strong alteration in association with 1%
to 4% vein abundance (quartz-pyrite-limonite). Visual estimates of sulphide and oxide minerals are not an accurate
representation of final assay values and are provided for indicative purposes only.
Ten drill holes have been completed at Valentina and a further eight drill holes are planned. Drill results from
VALMET-002 are expected to be released in the coming weeks.
Upon completion of drilling at Valentina and San Antonio, further drilling is planned to test several large growth
targets including Santiago Z and extensional porphyry targets along strike from Cortadera.
Pre-feasibility studies (PFS) have been expanded to capture additional metallurgical testwork opportunities across
all deposits at Costa Fuego and preliminary mine planning is being extended to allow the incorporation of new
resource growth from drilling in 2022.
An update on the company’s Costa Fuego PFS as well as ongoing port negotiations is expected soon. Final
development study drill results from Cortadera and Productora will be released once all results have been
received.
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 nearestthousand, 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% pertonne × 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, andAg=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%.
Table 1 Drill hole Details of Significant Visual DD Result at Valentina
*
Results pending for VALMET-002. Visual estimates of sulphide and oxide minerals are not an accurate representation
of final assay values and are provided for indicative purposes only.
Down-hole significant intercept widths are estimated to be at or around 70 per cent of true-widths of mineralisation
Figure 2. Location of drill holes in relation to the Valentina high grade copper deposit.
Note the location of VALMET-002 in relation to previous drilling and the southern
extent of mine development. Valentina is open along strike to the north and to the
south underneath a 10 to 15m deep cover of gravel.
Qualifying StatementsCosta 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. Referto 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=14USD/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% andMo=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
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 toqualify 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
CompetentPerson 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). 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% andMo=42%. For
Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and
Ag=23%.
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
For additional information please visit www.sedar.com
About Hot Chili
Hot Chili Limited is a mineral exploration company with assets in Chile. The Company's
flagship project, Costa Fuego, is the consolidation into a hub of the Cortadera porphyry
copper-gold discovery and the Productora copper-gold deposit, set 14 km apart in an
excellent location – low altitude, coastal range of Chile, infrastructure rich, low capital
intensity. The Costa Fuego landholdings, contains an Indicated Resource of 725Mt
grading 0.47% CuEq (copper equivalent), containing 2.8 Mt Cu, 2.6 Moz Au, 10.4 Moz Ag,
and 67 kt Mo and an Inferred Resource of 202 Mt grading 0.36% CuEq containing 0.6Mt
Cu, 0.4 Moz Au, 2.0 Moz Ag and 13 kt Mo, at a cut-off grade of +0.21% CuEq for open pit
and +0.30% CuEq for underground. The Company is working to advance its Costa Fuego
Project through a preliminary feasibility study (followed by a full FS and DTM), and test
several high-priority exploration targets.
Certain statements contained in this news release, including information as to the future
financial or operating performance of Hot Chili and its projects may include statements
that are "forward - looking statements" which may include, amongst other things,
statements regarding targets, estimates and assumptions in respect of mineral reserves
and mineral resources and anticipated grades and recovery rates, production and
prices, recovery costs and results, and capital expenditures and are or may be based on
assumptions and estimates related to future technical, economic, market, political, social
and other conditions.These forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by Hot Chili,
are inherently subject to significant technical, business, economic, competitive, political
and social uncertainties and contingencies and involve known and unknown risks and
uncertainties that could cause actual events or results to differ materially from estimated
or anticipated events or results reflected in such forward - looking statements.
Hot Chili disclaims any intent or obligation to update publicly or release any revisions to
any forward - looking statements, whether as a result of new information, future events,
circumstances or results or otherwise after the date of this news release or to reflect the
occurrence of unanticipated events, other than as may be required by law. The words
"believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify
forward - looking statements.
All forward - looking statements made in this news release are qualified by the foregoing
cautionary statements. Investors are cautioned that forward - looking statements are not
a guarantee of future performance and accordingly investors are cautioned not to put
undue reliance on forward - looking statements due to the inherent uncertainty therein.