THE DRILL SERGEANT: Hot Chili (ASX: HCH) has almost doubled the resource at the company’s Productora copper project in Chile.
The resource at Productora now stands at 165.2 million tonnes at 0.6 per cent copper, 0.1 grams per tonne gold and 132 grams per tonne molybdenum for 920,000 tonnes of copper, 590,000 ounces of gold and 22,000 tonnes of molybdenum.
Hot Chili pointed to the high-grade, shallow resources, which it said have grown to 53 million tonnes at 0.8 per cent copper and 0.2g/t gold following the definition of a second major zone of high-grade material located within the project’s planned central pit development.
A substantial drilling program is currently underway, which Hot Chili expects will result in a further resource increase at Productora later this year.
“The project continues to deliver strong growth and the company is on track to establishing Productora as one of the leading large-scale copper developments in Chile’s coastal range,” Hot Chili chairman Murray Black said in the company’s announcement to the Australian Securities Exchange.
“Our focus now is to deliver a second major resource upgrade in parallel with the completion of a Pre-feasibility study to be released in the second half 2013.”
The current drilling program at Productora is utilising four multi-purpose diamond and reverse circulation drilling rigs.
The company hopes the program will achieve:
A second major up-grade to the Productora copper-gold-molybdenum resource;
A maiden iron ore resource estimation for the parallel and western magnetite zones; and
Completion of metallurgical, hydrogeological and geotechnical drilling programs.