Hot Chili introduces spicy maiden

THE DRILL SERGEANT: Chile-focused ASX-listed Hot Chili has completed its first resource estimate at its Productora copper-gold-molybdenum project.

The maiden resource estimate comes on the back of an intensive ten month drilling program and just 15 months after the company completed its listing on the ASX.

The Productora Resource estimate stands at 85.1 million tonnes grading 0.6 per cent copper, 0.1 grams per tonne gold and 146 grams per tonne molybdenum for contained metal of 483,000 tonnes of copper, 290,000 ounces of gold and 12,418 tonnes of molybdenum.

Approximately 37% of the resource estimate comprises indicated material and 63% inferred material.

The majority of the indicated resource lies within the first 200 metres from surface.

The mineral resource estimate is confined within the central lease area of the company’s Productora project.

Hot Chili controls 12.5 kilometres of strike along the main mineralised trend at Productora through its own 100% tenure, purchase-option agreements and a 65% earn-in agreement with Chile’s largest iron ore producer CMP over its landholdings at the project.

The central lease contains the operating Productora underground copper mine, which was not included in the current resource estimate.

Hot Chili is now preparing to exercise its 100% purchase option right with the owners of the central lease.

The company is committed to a cooperative relationship with the operators of the underground mine at Productora to ensure that mining is allowed to continue under a capped production arrangement during the company’s development phase.

“The resource milestone crystallises an important stage in our progress as we transition the company from explorer to project developer,” Hot Chili chairman Murray Black said in the company’s announcement to the Australian Securities Exchange.

“Our focus now will be to rapidly expand the resource along the entire 9.5 kilometre mineralised trend while also getting economic studies underway.

“The location, size, grade and shallow depth of the initial resource give us confidence that Productora is quickly emerging as one of Chile’s newest copper developments.”

Hot Chili has commenced a 55,000m reverse circulation (RC) and 8,000m diamond drilling program which aims to expand the initial resource adjacent to, along strike, and at depth.

Part of the diamond drilling program will aim to up-grade the categorisation of the central area resource from Inferred to Indicated.