Hot Chili Adds La Verde Cu Mine to its Costa Fuego Coastal Copper Hub, Drilling Underway
PR Newswire
PERTH, Australia, Nov. 11, 2024
Highlights
-- Hot Chili has executed an Option Agreement to acquire a 100% interest in
the historical La Verde Copper Mine (La Verde), located 30 km south of
the Company's low-altitude, Costa Fuego copper-gold project in Chile
-- La Verde encompasses 800m strike length of open pit workings, previously
exploited by private interests for shallow porphyry copper-style
oxide mineralisation
-- The La Verde Option Agreement, along with the recently executed Domeyko
Option Agreement (see announcement dated 30th April 2024), for the first
time consolidates and provides access to, a much larger potential
porphyry copper deposit footprint measuring approximately 1.4km by 1.2km
-- A first-pass, 4,000m drill program commenced at La Verde on 30th October
2024, with one drill rig in operation and two drill holes already
complete (assay results pending)
-- Hot Chili has updated timing for the planned release of its next key
catalysts to accommodate additional project optimisation and to align the
outcomes of its copper and water studies:
-- Water Supply Business Case Study (Pre-feasibility Study level
$(PFS)$) for Huasco Water has been brought forward - now planned for
release in Q1 2025
-- Costa Fuego PFS will be delivered in parallel with the Huasco
Water PFS -- now also planned for release in Q1 2025
-- Strong treasury of approximately A$25.7 million as of 30 September 2024
PERTH, Australia, Nov. 11, 2024 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce the Company has entered into a three-year Option Agreement to acquire a 100% interest in the historical La Verde open pit copper mine ("La Verde").
La Verde is located in the core of the historical Domeyko mining district and lies approximately 30 km south of the Company's Costa Fuego copper-gold project ("Costa Fuego" or "the Project") planned central processing hub in the coastal range of the Atacama region, Chile.
La Verde comprises significant historical open pit workings, where shallow porphyry copper oxide mineralisation was previously exploited by private interests across a strike extent of approximately 800m, widths of up to 200m and depths of up to 15m. Historical drilling was limited to the surrounding leases, with little to no drilling undertaken across the mine area.
Importantly, La Verde sits in the centre of Hot Chili's recently consolidated and larger Domeyko landholding, secured in an Option Agreement in April 2024 (Figures 1 and 2). The execution of the La Verde Option Agreement marks the first time that the entire La Verde porphyry system has been consolidated and controlled by a single party, allowing for drill testing across a potentially much larger porphyry copper deposit footprint, measuring approximately 1.4km by 1.2km (Figures 4 and 5).
The Company has undertaken several exploration programs (soil geochemistry, mapping, magnetics surveys) across the Domeyko region (see ASX announcement on 31 October 2024 of the Quarterly Report for period ending 30 September 2024) since April of this year. These programs were extended over the La Verde copper mine area as part of the Company's due diligence process, prior to the Option Agreement execution.
Geological mapping of outcrop within the open pit has identified copper oxide mineralisation associated with porphyry-style quartz veins, fractures, and faults, as well as several porphyry intrusive phases of similar age (late Cretaceous) and style to the Company's Cortadera porphyry copper deposit located 30km to the north (Figures 2 and 3).
Historical exploration undertaken by Hudbay Minerals Inc. across surrounding tenements attempted to define continuations of La Verde's mineralisation, outside of the privately held mining lease, with several reverse circulation $(RC)$ and diamond drill holes $(DD)$ completed.
Hot Chili commenced a first-pass drill program at La Verde, comprising eleven RC drill holes for approximately 4,000 m, on 30 October 2024 with one drill rig in operation (Figure 5). Two drill holes for 800m are already complete, confirming wide intersections of porphyry-style copper mineralisation in both holes, based on visual logging, with assay results pending.
This latest project acquisition is an important step in Hot Chili's ongoing consolidation and growth strategy for Costa Fuego. The Company continues to evaluate opportunities to secure additional advanced prospects within economic distance of planned central processing facilities. This approach may provide additional bulk tonnage and/or high-grade copper-gold mineral resource additions for Costa Fuego.
The Company looks forward to the receipt of first assay results and providing further updates as exploration drilling activities progress at La Verde.
Hot Chili is well positioned with A$25.7 million in cash (as of 30 September 2024) to complete the Costa Fuego PFS, Environmental Impact Statement $(EIA)$, Huasco Water PFS, port upgrade studies and planned regional growth drilling programs.
Updates to Timing of Next Company Catalysts
Hot Chili has updated the timing for delivery of its next key milestones in order to allow for additional project optimisations and to ensure alignment of the outcomes of each of the following:
-- Water Supply Business Case Study (PFS-level) for Huasco Water has been
brought forward - now planned for release in Q1 2025
-- Costa Fuego PFS will be delivered in parallel with the Huasco Water PFS
-- now planned for release in Q1 2025
All Costa Fuego PFS workstreams are on track for completion by late 2024, laying the groundwork for integrating results into both the Costa Fuego and Huasco Water PFSs in Q1 2025.
Accelerating the Huasco Water PFS aligns its release with Costa Fuego's, enabling further project optimizations based on multiple independent reviews. These refinements will be incorporated into the Costa Fuego PFS in early 2025, ahead of the planned simultaneous release of both studies.
The material terms of executed La Verde Option Agreement are as follows:
-- Hot Chili's 100% owned subsidiary Sociedad Minera La Frontera SpA
("Frontera") has executed a definitive option agreement with SLM Los
Dominiceros una de la Sierra Los Chiqueros ("SLM Dominoceros"), the
holder of a 100% interest in the concession comprising La Verde, for the
grant to Frontera of an option to acquire a 100% interest in the La Verde
concession ("La Verde Option Agreement").
-- Non-refundable cash payment of US$320,000 to SLM Dominoceros upon grant
of the La Verde Option Agreement.
-- Non-refundable cash payment of US$680,000 within 12 months from the grant
of the La Verde Option Agreement.
-- Non-refundable cash payment of US$1,000,000 within 24 months from the
grant of the La Verde Option Agreement.
-- Option may be exercised within 36 months of the date of grant of the La
Verde Option for a final non-refundable cash payment of US$6,890,000.
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
For more information please contact:
Christian Easterday Tel: +61 8 9315 9009 Managing Director -- Hot Chili Email: admin@hotchili.net.au ------------------------------- -------------------------------- Carol Marinkovich Tel: +61 8 9315 9009 Company Secretary -- Hot Chili Email: admin@hotchili.net.au ------------------------------- -------------------------------- Graham Farrell Email: graham@hotchili.net.au Investor & Public Relations
or visit Hot Chili's website at www.hotchili.net.au
Qualifying Statements
Qualified Person -- NI 43-101
The technical information in this news release has been reviewed and approved by Mr. Christian Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of NI43-101.
Competent Person -- JORC
The information in this announcement that relates to Exploration Results for the La Verde project is based upon information compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, who 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 deposits 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.
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 Report.
Forward Looking Statements
(MORE TO FOLLOW) Dow Jones Newswires
November 11, 2024 07:00 ET (12:00 GMT)
Comments