Ann: District-Scale Porphyry Cluster Potential at La Verde, page-38

Rick Rule ‘Sneak Peek into the Classroom’

Question from interviewer; Hot Chili, anyprogress there? “none thatI’m aware of, recent acquisitions of yet another porphery cluster helps increase the scale but the scale is already magnificent, already a very large deposit, it’s already well located close to the Chilean coast, close to infrastructure, what’s missing is a starter pit, what’s missing is a high grade core where you can recover capital, they have an interesting strategic initiative underway around their aquatic licences, the ability to desalinate salt water, but this like the copper deposit thus far is promise, in order for this promise to be turned into progress you’re going to need a funding JV partner on the water like BHP, that’s not a forecast, you are going to need to identify a high grade starter pit, the overall returns on capital employed aren’t bad but the recoupment of capital given the extraordinary upfront capitalcost and the extraordinary size of the deposit means it’s going to be difficult for a company the size of Hot Chili to move that project forward unless and until they drill a high grade starter pit which as of yet they have not done.”