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Quarterly Report Period Ending 30th June 2022

·15-min read

DGAP-News: Hot Chili Limited
Quarterly Report Period Ending 30th June 2022
29.07.2022 / 14:09
The issuer is solely responsible for the content of this announcement.

Drilling at Valentina Deposit, July 2022

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 were: 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%.

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 sericitechlorite-(biotite) altered early-mineralization tonalite porphyry.

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.

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

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.

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=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%. 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

Table 1 Significant Drill Results Reported for Cortadera in Q2 2022

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 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
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 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 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%.

Table 3 Details of all Drillholes Completed at Costa Fuego in Q2 2022
Table 3 (continued) Details of all Drillholes Completed at Costa Fuego in Q2 2022 Note 1: NSR – no significant intersection recorded
Figure 2. Plan view across the Cortadera discovery area displaying significant copper-gold DD intersections across Cuerpo 1, 2 and 3 tonalitic porphyry intrusive centres (represented by modelled copper envelopes, yellow- +0.1% Cu, orange +0.3% Cu, pink +0.4% and magenta +0.6% Cu). Note the collar locations of HCH drilling (red) during the quarter
Figure 3 Plan view across the Productora tenements displaying the modelled 0.2% Cu model in yellow and the collar locations of exploration drilling during the quarter in red.
Figure 4 Plan view across the Valentina tenements displaying the underground drives superimposed on the topography and the collar locations of exploration drilling during the quarter in red.
Figure 5 Plan view across the San Antonio tenements displaying the assayed drillholes at the deposit and the collar locations of exploration drilling during the quarter in red.

SUMMARY OF CORPORATE ACTIVITIES

Summary of Options Exercised

The Quarter saw the expiry of a tranche of $1.25 Options. 2,491,477 options were exercised during the quarter under review. Inflows for the quarter from option conversion was $3,114,346. The number of securities that expired without exercise was 2,691,307, or 45% of the options issued.

Filing of NI 43-1-1 Technical Report for Costa Fuego Copper-Gold Project in Chile

The Company has filed with the Canadian Securities Administrators a National Instrument 43-101 Technical Report (“The Report”) for its Costa Fuego copper-gold project in Chile. The Report titled “Resource Report For the Costa Fuego Copper Project Located in Atacama, Chile Technical Report NI43-101” and dated May 13, 2022, with an effective date of March 31 2022, was prepared pursuant to Canadian National Instrument 43-101. It is available for review on both SEDAR (www.sedar.com) and the Company’s website (www.hotchili.net.au).

Issuance of Shares for Convertible Notes

The Company issued 33,704 ordinary fully paid shares during the quarter to certain holders of convertible notes on conversion of 555 Convertible Notes issued on 22 June 2017 and 8 September 2017. The deemed price for the conversion of notes was $1.6665 per share as per the terms and conditions of the notes.

Maturity of Convertible Notes and Interest Payment

During the quarter, the Company issued 6,473,671 ordinary fully paid shares to holders of convertible notes on final maturity of 59,758 Convertible Notes issued on 22 June 2017 and 8 September 2017. The deemed price for the conversion of notes was $0.92309 per share as per the terms and conditions of the notes.

A further 114,455 fully paid ordinary shares in the company, at the deemed issue price of $0.92309 each, were issued in settlement of accrued interest in the amount of $105,658.

Additional ASX Disclosure Information

ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.3: Schedule of Mineral Tenements as at 30 June 2022

The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.

ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.

ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totaled $3,220,062. This is comprised of directors’ salaries and superannuation of $155,795. and payments to Blue Spec Sondajes, a company controlled by Mr Murray Black, former chairman of Hot Chili Limited, for rents of $6,682 and drilling services of $3,057,585.

ASX Waivers. The Company applied for and was granted a waiver for the issue of up to 167,090 shares to unrelated parties and up to 14,996 shares to related parties in consideration for the payment of interest of 8% per annum on Convertible Notes, payable quarterly through the issue of shares (“Interest Shares”) over the 12 month period from the date of the Company’s Annual General Meeting held 14 December 2021 in respect to the quarters ending on 31 December 2021, 31 March 2022 and the period to 22 June 2022. Interest Shares issued during the quarter:

Health, Safety, Environment and Quality

Hot Chili's sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems.

Importantly, the Company has implemented COVID safety measures and procedures to ensure the safety of its staff, consultants and contractors during these challenging times. This has been critical in allowing for continuation of drilling and other field activities during the quarter.

The Company has refined these protocols and ensured adequate manning of each operational shift to maintain strong productivity at its operations, there is no greater importance than ensuring the safety of our people and their families.

No safety incidents were recorded this quarter. Field operations during the period including geological reconnaissance activities, RC and diamond drilling, core-testing and logging, field mapping, and sampling exercises across the Cortadera, El Fuego and Productora landholdings. El Fuego field activities are run from the Cortadera operations centre and safety statistics are combined for reporting.

The Company’s HSEQ quarterly performance is summarised below:

Table 4 HSEQ Quarter 2 2022 Performance and Statistics
Table 4 (continued) HSEQ Quarter 2 2022 Performance and Statistics Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million man hours. Safety performance is reported on a monthly basis to the National Mine Safety Authority on a standard E-100 form; (1) man-hours; (2) Average monthly headcount (3) Cumulative statistics since April 2019.

Tenement Changes During the Quarter

During the Quarter, there were the following changes to the Company’s tenement holdings during the quarter, also shown in Figure 6:

• SM Frontera SpA acquired 100% (with no further commitments or royalties) of the following mining rights for the El Fuego tenements: o Doña Felipa 1 al 10.

o Elenor Rigby 1 al 10.

o Peggy Sue 1 al 10.

• SM El Aguila added a small lease titled Julieta 1 al 4 to the Productora tenements.

Figure 6. Additional tenements added this quarter to the tenement packages.
Table 5. Current Tenement (Patente) Holdings in Chile as at 30 June 2022 Cortadera Landholding
Productora Landholding
Productora Landholding (continued)
Productora Landholding (continued)
Productora Landholding (continued)
El Fuego Landholding
El Fuego Landholding (continued)
El Fuego Landholding (continued)
El Fuego Landholding (continued)

Qualifying Statements

The Mineral Resource summary for the Costa Fuego Project is presented in Table 5. Tables 6 to 8 present the individual deposits that combine to form the Costa Fuego Project.

Table 5. Costa Fuego Copper-Gold Project Mineral Resource Estimate, March 2022

1 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

2 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 Costa Fuego, the average Metallurgical Recoveries combine leach and flotation and were: Cu=83%, Au=53%, Mo=69%, and Ag=23%.

Table 6. Productora Deposit Mineral Resource Estimate, March 2022

1 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.

2 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%.

Table 7. Cortadera Deposit Mineral Resource Estimate, March 2022

1 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

2 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, the average Metallurgical Recoveries combine leach and flotation and were: Cu=82%, Au=55%, Mo=82%, and Ag=37%.

Table 8. San Antonio Deposit Mineral Resource Estimate, March 2022

1 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

2 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 San Antonio, the average Metallurgical Recoveries were: Cu=88%, Au=72%, Mo=88%, and Ag=69%.

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 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 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 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 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 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%.

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.

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.

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.

Contact Details

Investor Relations

Graham Farrell

+1 416-842-9003

Graham.Farrell@harbor-access.com

Investor Relations

Jonathan Paterson

+1 475-477-9401

Jonathan.Paterson@harbor-access.com

Managing Director

Christian Easterday

admin@hotchili.net.au

Company Website

https://www.hotchili.net.au/investors/


News Source: News Direct


29.07.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Hot Chili Limited

United States

ISIN:

AU000000HCH9

EQS News ID:

1409435


 

End of News

DGAP News Service

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