AMSA and Cuerpo 4

Have been considering again the agreements signed by HCH with Antofagasta at the end of 2022. I don't recall any news related to exploration on this and started to query AI, with the below results

AgreementOverview

• Date Signed: December 2022
• Parties: Hot Chili Ltd (through subsidiary Frontera SpA) and Antofagasta Minerals S.A. (AMSA)
• Assets Involved: 5 mining rights immediately west of the Cortadera discovery, including the Cuerpo 4 porphyry.
• Size of Area: Adds significant strike length—extends Cortadera’s potential from 2.3 km to 4.1 km.

Key Termsof the Agreement

• Hot Chili can earn 100% ownership of the AMSA licenses by:
  
  • Completing 6,000 meters of drilling, and
  • Paying US$1.5 million within a defined period.

• AMSA retains a 55% clawback right, exercisable within 120 days after option exercise, by:
  
  
  • Reimbursing 55% of the option payment, plus
  • Paying 5x Hot Chili’s exploration expenditures.
  
  

KeyExploration Developments

Cuerpo4 Porphyry

• This is the main target among the AMSA licenses.
• It’s a large outcropping copper-gold porphyry, roughly the size of Cortadera’s Cuerpo 3.
• Historical AMSA drill results include:
  
  
  • 128 m @ 0.5% CuEq from 28m depth.
  • Including a high-grade zone of 16 m @ 1.3% CuEq.
  
  

HotChili’s Drilling Program

• Initiated a first-pass program of ~16 drill holes totaling 6,000 meters.
• Goal: Test Cuerpo 4’s mineralization and confirm extension of Cortadera system.
• As of early 2025, drilling was ongoing or in reporting stages.

StrategicImportance

• Extends the Cortadera system and opens up further growth in resource base.
• Supports upcoming Costa Fuego PFS by expanding potential tonnage and grade.
• The AMSA ground could become core development ground if exploration confirms continuity.

CurrentStatus (as of 2025)

• Exploration ongoing; drill results expected or partially reported depending on timing.
• Full ownership not yet exercised; contingent on completing drill requirements.
• Positive early indicators from geophysical data and historical drilling.

Summary

Hot Chili’s agreementwith AMSA is a strategic expansion move that could materially enhance the scaleand value of the Costa Fuego copper-gold project. The Cuerpo 4 porphyry isparticularly promising and may add a significant new resource center if ongoingdrilling confirms mineral continuity.