Copper gold exploration player with a side order of production. Hunting for tier 1 type Copper deposit/s in Chile.
mcap: $60.9mill
SOI: 2.3bill
Sp: 2.6c
Recent placement and rights issue at 1.5c raised $8.9mill total, (Lead Manager of the Rights Issue, Veritas Securities Limited). Shares from the raise hit market on 29th June.
Company is now well-funded to deliver an exciting period of growth and transformation centred around its rapidly emerging Cortadera copper-gold discovery in Chile, with key catalysts over the coming six months to include:
• First resource estimates for Cortadera and then San Antonio • Completion of metallurgical testwork across Cortadera and San Antonio • Completion of internal scoping studies into a large combined development scenario • Commencement of first production from the Company's Productora copper project in partnership with the Chilean government agency ENAMI
Announced today:
New diamond drilling results from the Company’s flagship Cortadera porphyry discovery expected to be released shortly
• Cortadera maiden resource estimate nearing completion
Recent increases in copper and gold prices has seen mining commence ahead of schedule at the Company’s Productora copper-gold project:
• Initial production targeting 1.8% copper and 0.5g/t gold head grade will generate important revenue for Hot Chili
Hot Chili’s Managing Director Christian Easterday said that first production marked an important milestone and the beginning of first revenue for the Company.
“We have been able to deliver a unique transition from explorer and project developer to producer without the requirement for capital or operating cost".
“Even more unique is to have achieved this in partnership with the government of Chile while safe-guarding jobs in the local community in which we operate".
“Higher copper and gold prices in combination with high grade ore production is set to deliver stronger than anticipated first revenue.
“This is welcome news ahead of our plans to shortly unveil a maiden resource estimate for our neighbouring world-class Cortadera copper-gold discovery". Given current spot prices of approximately US$2.95/lb copper and US$1,840/oz gold, projected annual revenue to Hot Chili from the ENAMI agreement at Productora is expected to be approximately A $1.4million to $1.8million per annum-based on 120,000 tonnes per annum and targeted annual head grade of 1.4% copper and 0.3g/t gold.
My perspective:
Probable nearer term catalysts for upside include release of recent drilling assay results, along with the maiden resource estimate coupled with increasing prices for copper and gold and now production at Productora.
The Cortadera prospect is definitely looking highly likely to deliver a very solid first resource estimate imo. However it doesn't seem to be garnering too much attention as it is a classic 'low grade porphyry' style deposit and apparently people only like to buy up high grade announcements most of the time. These deposits can deliver huge resource numbers and due to their size are generally highly economic and much sort after by majors for long mine life and so on.
Hot Chili’s recent drill holes at Cuerpo 3 (the largest of the four porphyries discovered to date) include some of the worlds’ stand-out copper-gold porphyry drill results reported in recent time. The Cuerpo 3 porphyry remains open to the north, south and at depth. Significant intersections include:
• 972m grading 0.5% copper and 0.2g/t gold from surface (including 412m grading 0.7% copper and 0.3g/t gold) • 750m grading 0.6% copper and 0.2g/t gold from 204m down-hole depth (including 188m grading 0.9% copper and 0.4g/t gold) • 848m grading 0.4% copper and 0.2g/t gold from 112m down-hole depth (including 184m grading 0.7% copper and 0.3g/t gold) • 864m grading 0.4% copper and 0.1g/t gold from 62m down-hole depth (including 348m grading 0.6% copper and 0.2g/t gold), • 649m grading 0.4% copper and 0.1g/t gold from 328m down-hole depth (including 440m grading 0.5% copper and 0.2g/t gold), • 596m grading 0.5% copper and 0.2g/t gold from 328m down-hole depth (including 184m grading 0.7% copper and 0.3g/t gold),and • 542m grading 0.5% copper and 0.2g/t gold from 422m down-hole depth, (including 218m grading 0.7% copper and 0.2g/t gold)
Recent news:
Recently completed drill hole CRP0016D recorded a broad 220m zone of strongly mineralised porphyry indicating a potential major expansion of the high grade core– assays pending on priority turnaround.
CRP0042D recorded 330m of mineralised porphyry to end of hole at 945m
Hot Chili has just commenced its third diamond drill hole (CRP0043D), designed to test a major up-dip extension to the northern flank of the high grade copper-gold core.
Current drilling programme is initially focussed on growth of high grade copper and gold within the 2.3km discovery zone and aims to facilitate a second resource estimate for Cortadera.
TA shows a 'middle of the road' type set up imo..........price consolidation after recent spike with SS neither bullish or bearish imo. Trading within BB's above 35ema. Vols dropping off. First target would be a break and hold above 3.0c.
Do not hold this one but watching closely.
Good fortune to all and don't forget to protect your capital.
