Announcement • Jun 16
Hot Chili Limited Reports Strong Copper-Gold Drill Results at La Verde Project
Hot Chili Limited has provided further positive drilling results from its La Verde Cu-Au porphyry discovery, located 30 km south of the Company's Costa Fuego Cu-Au Project planned central processing hub in Chile's coastal Atacama region. Diamond drill hole DKD044 was collared on the western side of La Verde's high-grade core and was designed to test continuity of broad high-grade mineralisation reported by diamond drillhole DKD039, which recorded 725m grading 0.42% CuEq from 18 m depth including 62 m grading 1.03% CuEq (0.90% Cu, 0.18 g/t Au) from 671 m depth. Assay results returned so far have recorded a strong drill intersection of 391.1 m grading 0.51% CuEq (0.42% Cu, 0.11 g/t Au) from surface, including: 17.8 m grading 0.68% CuEq (0.63% Cu, 0.06 g/t Au) from surface; 40.7 m grading 0.60% CuEq (0.50% Cu, 0.12 g/t Au) from 103.3 m; 85.4 m grading 0.61% CuEq (0.50% Cu, 0.15 g/t Au) from 160 m; 19.7 m grading 0.70% CuEq (0.57% Cu, 0.15g/t Au) from 276.1 m. Mineralisation was intersected from surface, further supporting the potential for La Verde to deliver a significant high-grade starter pit opportunity for Costa Fuego. Assay results for DKD044 have been returned up to 493.7 m depth so far. Assay results up to end-of-hole (493.7 m to 711.4 m) remain outstanding and are expected to be returned in the coming weeks. DKD044 is located approximately 150 m west of step-out diamond drill hole DKD049, which visually recorded a 180 m zone of strong chalcopyrite-rich, porphyry-style copper mineralisation from 536.7 m depth. This drilling indicates potential for the high-grade core to widen between DKD044 and DKD049. Assay results for DKD049 are also expected to be returned in the coming weeks. Additional results returned for DKD042 and DKP041 have continued to confirm and expand near-surface, bulk tonnage mineralisation as resource definition drilling continues at La Verde. Diamond drill hole DKD042, collared on the western flank of the deposit, has confirmed extension of the high-grade core 125 m further west: Recording 96.4 m grading 0.40% CuEq (0.31% Cu, 0.12 g/t Au) from 11.6 m depth, including 11.9 m grading 0.51% CuEq (0.41% Cu, 0.13 g/t Au) from 13.6 m and including 22.4 m grading 0.62% CuEq (0.46% Cu, 0.21 g/t Au) from 84.2 m. Reverse Circulation drill hole DKP041, an infill hole, has confirmed expansion and continuity of mineralisation across this zone. Recording 224 m grading 0.40% CuEq (0.30% Cu, 0.10 g/t Au) from 92 m depth, including 24 m grading 0.60% CuEq (0.49% Cu, 0.15 g/t Au) from 112 m depth, including 46 m grading 0.50% CuEq (0.38% Cu, 0.14 g/t Au) from 216 m depth. Significant intercepts for La Verde are reported above a nominal cut-off grade of 0.20% Cu. Reported intersections may include internal dilution (intervals below 0.20% Cu), including zones exceeding 30 m downhole width, where the overall weighted average grade of the intersection remains above the cut-off grade. Significant intersections are separated where zones of internal dilution result in discrete intervals that do not meet the reporting criteria. The selection of a 0.20% Cu cut-off grade is aligned with a marginal economic cut-off for bulk tonnage polymetallic copper deposits of comparable grade in Chile and globally. Copper Equivalent (CuEq) reported for the drillhole intersections 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 × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu (%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). Since March, delivery of assay results has increased to over 10 weeks in some cases. Hot Chili has taken proactive measures and engaged the services of an additional ISO accredited laboratory in the region, to ensure reporting of outstanding assay results is fast tracked and assay turnaround times are accelerated. Three drill rigs are in operation at La Verde, and the Company expects to continue delivering strong news flow from drill results, ahead of a maiden Mineral Resource for La Verde and a revised Pre-feasibility for Hot Chili's Costa Fuego Cu-Au Project.
