Hot Chili drills 0.5% CuEq over 120 metres at Cortadera, Chile

Hot Chili Ltd. [HCH-TSXV/ASX; HHLKF-OTCQX], in early January 2023, commenced drilling across several extensional targets to the Cortadera copper-gold mineral resource, the centrepiece of the company’s coastal range, low-altitude, Costa Fuego senior copper development in Chile.

First-pass drilling, which comprised 23 drill holes for 7,700 metres, was completed in late March and planning is underway for a second phase of exploration drilling to commence in June.

During the quarter, Hot Chili completed its first 3,000-metre drill commitment on the properties held under a two- year option agreement with Antofagasta Minerals (AMSA) over the potential western extension of the Cortadera resource .

New assay results have recorded a significant drill intersection of shallow copper-gold porphyry mineralization, confirming the presence of a fourth porphyry (Cuerpo 4) at Cortadera.

Diamond drill hole LD0001 was drilled as a confirmatory twin hole to historical AMSA drill hole COR-03 that intersected 128 metres grading 0.5% CuEq (copper equivalent) (0.4% Cu & 0.1 g/t Au) from 28 metres downhole depth, including 16 metres grading 1.3% CuEq (1% Cu & 0.5 g/t Au) from 28 metres depth.

LCD0001 has successfully returned a similar result to AMSA’s hole, intersecting 120 metres grading 0.5% CuEq (0.4% Cu, 0.2 g/t Au from 22 metres depth down-hole to end of hole. Importantly, the wide intersection also included 38 metres grading 1.0% CuEq (0.8% Cu, 0.4  g/t Au) from 22 metres depth, or 18 metres grading 1.3% CuEq (1.0% Cu, 0.5g/t Au) from 32 metres depth.

Final results from shallow Reverse Circulation (RC) and Diamond (DD) drilling across Cuerpo 4 have added further definition, confirming a zone of near-surface, low-grade mineralization measuring approximately 350 metres in strike extent.

The company plans to review the results of its first phase of drilling with AMSA prior to the design of the remaining 3,000-metre drill commitment required to exercise the Option to acquire the mining leases. Advanced 3D modelling is also being completed to assist in the design of the deeper holes to test below Cuerpo 4.

During the quarter, the company also confirmed potential for a significant depth extension to the current Mineral Resource below Cuerpo 1 at Cortadera.

Diamond drill hole CORMET001 was completed to a depth of 350 metres in April 2022 and confirmed significant mineralization below the defined limits of the Cuerpo 1 Mineral Resource, with the hole ending in 6m grading 0.6% Cu in mineralized porphyry.

The company has also extended diamond drill hole CORMET001, and completed a further five drill holes below Cuerpo 1. Assay results received during quarter from this drilling confirm a significant extension to mineralization below the current Mineral Resource, intersecting mineralized porphyry (early- and intra- mineral) up to 300 metres below the Indicated Mineral Resource for Cuerpo 1.

The company is advanced with preparations for the commencement of a second phase of exploration drilling across its Costa Fuego landholding in June this year.

Access and drill platform clearing is complete across the Company’s Cortadera North target and planning is underway to commence clearing across the Corroteo target, located 5km southeast of Cortadera and viewed as a potential Productora “look-alike” target.

The next drill phase will comprise approximately 6,000 metres  to 8,000metres of drilling.

The Costa Fuego PEA is in the final stages of completion and is expected to be released in June 2023.

The company’s study team has added a low-grade sulphide leach option and fully optimized mine scheduling and cost estimation ahead of financial modelling, final independent review, and sign-off by leading independent consultant Wood.

The Company anticipates positive economics for Costa Fuego as a combined open pit and underground mining hub with centralised processing for a conventional 20Mtpa throughput sulphide concentrator and SX/EW plant, producing both copper-gold concentrate and copper cathode. The PEA study scale is targeting potential annual metal production up to 100kt of copper and up to 50koz of gold, with additional molybdenum and silver credits.

The operation would take advantage of proximity to existing infrastructure including power, roads, ports and already permitted sea water supply to deliver significantly reduce development timelines. The operation also looks set to maintain a low carbon intensity by avoiding power intensive desalination plants and accessing abundant renewable energy in the Chilean power market.

Hot Chili plans to release a Pre-feasibility Study (PFS) for Costa Fuego in 2024 following completion of its current Mineral Resource growth drilling. This will assess the potential for expanding metal production.