Hot Chili confident new copper means new project

THE DRILL SERGEANT: Hot Chili (ASX: HCH) has moved closer to its stated goal of establishing a multi-project copper production hub in Chile, by claiming the discovery of a copper-gold porphyry at Frontera, situated 70 kilometres from the company’s Productora project.
 
The company’s first round of drilling at Frontera has returned wide copper and gold intersections, including:

– 256 metres at 0.5 per cent copper and 0.3 grams per tonne gold from 72m down-hole;

– 188m at 0.5 per cent copper and 0.4g/t gold from surface;

– 122m at 0.5 per cent copper and 0.3g/t gold from 244m down-hole – hole finishes in mineralisation; and

– 73m at 0.5 per cent copper and 0.3g/t gold from 96m down-hole.

“These outstanding results show Frontera is set to be the company’s second major copper-gold project,” Hot Chili managing director Christian Easterday said in the company’s announcement toteh Australian Securities Exchange.

“These results highlight Frontera’s potential to double Hot Chili’s production profile, while its close proximity to Productora will enable the project to capitalise on existing infrastructure.”

 

Cross-section of Frontera copper project displaying first significant drilling intersections. Source: Company announcement

Hot Chili is now in the final stages of its maiden reverse circulation and diamond drilling program at Frontera.

At the same time, Hot Chili is continuing an extensive drilling program at Productora as part of its strategy to release a second major resource upgrade and deliver a Pre-feasibility Study in the second-half of this calendar year.

The company aims to make a decision to mine at Productora in late 2014.