Hot Chili Intersects Significant Copper-Gold Porphyry-Style Mineralisation At La Verde

(MENAFN- PR Newswire)

202m grading 0.6% Copper, 0.3g/t Gold from 70m depth

Highlights

• First
  drill
  hole (DKP001) at La Verde intersects intercepts 174m grading 0.4% copper
  (Cu), 0.1g/t gold (Au) from 36m depth
• Second drill hole
  (DKP002), located 120m southeast of DKP001,
  recorded 308m grading 0.5% Cu and 0.3g/t Au from 46m depth to end of hole
  • including 202m grading 0.6% Cu, 0.3g/t Au from 70m depth
  • which includes 100m grading 0.7% Cu, 0.3g/t Au from 118m depth
• Results
  for
  10
  more
  drill
  holes pending
  and
  drill
  program
  expanded to
  6,000m
• La Verde's
  porphyry footprint, measures approximately
  850m by
  700m;
  comparable
  to Hot
  Chili's higher-grade Cortadera Cuerpo 3 copper-gold porphyry, located 30km north
• Costa
  Fuego
  Copper-Gold
  Project Pre-feasibility
  Study
  (PFS)
  and
  Huasco
  Water
  PFS
  advancing towards release in Q1, 2025
• Treasury
  of
  approximately
  A$25.7 million
  as
  of
  30
  September
  2024

PERTH, Australia, Dec. 18, 2024 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF ) ("Hot Chili" or the "Company") is pleased to confirm a significant copper-gold discovery, located approximately 30km south of the Company's Costa Fuego Copper-Gold Project's ("Costa Fuego" or "the Project") planned central processing hub in the coastal range of the Atacama region, Chile.

Continue Reading



Hot Chili geologist reviewing drill chips from drill hole DKP002 at La Verde (CNW Group/Hot Chili Limited)


Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile (CNW Group/Hot Chili Limited)


Figure 2. Plan view map of the La Verde porphyry system showing the significant intercepts of DKP001 and DKP002 compared to historic drill collars, open pit extent (white), in pit geological mapping, +1% A+B vein footprint from mapping and drillholes (blue) and logged copper mineralisation footprint from historic logging (yellow). (CNW Group/Hot Chili Limited)

Christian Easterday Managing Director – Hot Chili	Tel: +61 8 9315 9009 Email: [email protected]
Carol Marinkovich Company Secretary – Hot Chili	Tel: +61 8 9315 9009 Email: [email protected]
Graham Farrell Investor & Public Relations	Email: [email protected]

or
visit
Hot
Chili's website
at

1

Copper equivalent. See page 10 for the basis for CuEq calculations.

2

Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued exploration. See page 10 for details of the mineral resource estimate.

Table 1. Significant Drilling Intersections from La Verde

Hole ID	Coordinates		Dip	Hole Depth	Intersection	Interval	Copper	Gold	Silver	Molybdenum
North	East	RL	From	To	(m)	(% Cu)	(g/t Au)	(ppm Ag)	(ppm Mo)
DKP0001	6786079	324546	1153	89	-59	390	28	390	362	0.3	0.1	0.5	33
Mineralised to end of hole at 390m depth			Or	36	210	174	0.4	0.1	0.6	24
						Incl	40	82	42	0.4	0.1	0.5	10
						Or Incl	72	82	10	0.6	0.1	0.3	10
						And incl	96	122	26	0.5	0.1	0.9	20
						And incl	144	166	22	0.6	0.2	0.7	49
						And incl	248	272	24	0.4	0.1	1.0	54
DKP0002	6785967	324835	1202	270	-60	354	46	354	308	0.5	0.3	0.6	11
Mineralised to end of hole at 354m depth			Incl	70	272	202	0.6	0.3	0.6	14
						Incl	76	90	14	0.8	0.4	0.3	6
						And incl	118	218	100	0.7	0.3	0.8	15
						And incl	178	198	20	0.8	0.4	1.0	11
						Or Incl	186	190	4	0.9	0.5	1.0	11
DKP0003	6785963	324836	1202	117	-59	282	Results Pending
DKP0004	6785831	324421	1123	90	-60	120	Results Pending
DKP0005	6785792	324552	1167	91	-60	248	Results Pending
DKP0006	6785717	324722	1178	110	-60	200	Results Pending
DKP0007	6785846	324746	1148	270	-60	204	Results Pending
DKP0008	6785854	324745	1145	5	-60	324	Results Pending
DKP0009	6786068	324546	1151	131	-60	354	Results Pending
DKP0010	6786097	324436	1160	209	-60	276	Results Pending
DKP0011	6786097	324436	1160	91	-60	326	Results Pending
DKP0012	6785967	324835	1202	299	-60	72	Currently drilling, results pending

Notes to Table 1: Significant intercepts for La Verde 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.

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

This announcement contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this report should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "could", "estimate", "expect", "expectations", "interpreted", "may", "plan", "planned", "potential", "project", "should", "will", "would" and similar expressions are intended to identify forward-looking statements.

The forward-looking statements within this announcement are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this report.

In
this
announcement,
forward-looking
statements
relate,
among
other
things, to: prospects, projections
and success of the Company and its projects; the ability of the Company to expand mineral resources beyond current
mineral resource
estimates,
including at
La
Verde;
the
results and
impacts
of
planned
drilling to
extend mineral resources and to identify new deposits, including at La Verde; the metallurgical recoveries of any oxide
and/or
sulphide mineral
resources
defined at
La
Verde;
the
economics of
any
mineral
resources
defined at La Verde; the Company's ability to convert exploration potential into mineral resources, such as at La Verde; the Company's ability to explore effectively and execute drilling operations in a timely manner, including at La Verde; the Company's ability to fulfill obligations and exercise the La Verde and Domeyko Option
Agreements;
the
Company's
ability to
convert
mineral resources
currently
defined and
those
that
may be defined through additional drilling to mineral reserves; the timing and outcomes of current and future planned economic studies including the planned PFS for the Costa Fuego
copper-gold project; the
potential to
develop a
water business in
the
Huasco
valley and
the
future economics thereof;
the
timing and
results
of the PFS level Water Supply Business Case Study; the timing and outcomes of regulatory processes required to obtain permits for the development and operation of the Costa Fuego Project, including the EIA,
as
well
as for the Huasco Water business and any mineral resources that may be defined at La Verde; whether or not the Company will make a development decision for the Costa Fuego Project and/or Huasco Water and the timing thereof; and estimates of planned exploration costs and the results thereof.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this announcement are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.

For additional information with respect to these and other factors and assumptions underlying the forward- looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ () under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.

Mineral Resource Statement
Costa Fuego Combined Mineral Resource (Effective Date 26th February 2024)

1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral Resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (November 29, 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014) that are incorporated by reference into NI 43-101.

2 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili Limited), and 20% owned by Compañía Minera del Pacífico S.A (CMP).

3 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili Limited.

4 The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili Limited) and Frontera has an Option Agreement to earn a 100% interest.

5 The Mineral Resource Estimates (MRE) in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.

6 All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave Extraction mining methods at Cortadera and Open Pit mining methods at the Productora, Alice and San Antonio deposits.

7 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)

San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x Ag(g/t) Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t) Costa Fuego – Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t)

8 Copper Equivalent (CuEq) grades are calculated based on the 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 × Cu recovery). The base case cut-off grade for Mineral Resources considered amenable to open pit extraction methods at the Cortadera, Productora, Alice and San Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq. It is the Company's opinion that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold.

9 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration.

10 The effective date of the MRE is February 26th, 2024. The MRE were previously reported in Hot Chili's ASX announcement released February 26th, 2024 "Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project Increases to 798 Mt" (Resource Announcement). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the Resource Announcement and all material assumptions and technical parameters stated for the MRE in the Resource Announcement continue to apply and have not materially changed.

11 Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in this Report. A detailed list of Costa Fuego Project risks is included in Chapter 25.12 of the Technical Report "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated April 8th, 2024.

SOURCE Hot Chili Limited

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE? 440k+
Newsrooms &
Influencers 9k+
Digital Media
Outlets 270k+
Journalists
Opted In GET STARTED