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Valentina Delivers Hot Chili’s Highest-GradeResult 8m grading 5.7% Copper & 24g/t Silver
Highlights· New assay resultsfrom the Valentina copper deposit confirm a potential second highgrade satellite addition for the Company’s low-altitude, CostaFuego senior copper development in Chile · Drill hole VAP0009 returned 8m grading5.9% CuEq (5.7% copper & 24g/t silver) from 27m depthdown-hole · VAP0009 extends high grade mineralisation by 120m to the south ofshallow historical mine development · Results of diamond hole VALMET0002 ,which recorded a stunning 17m visual intersection (see announcementdated 13 th June 2002) in a twin hole ofVAP0009, are expected shortly following delays in receiving oregrade analysis results · Assay results are pending for a furtherseventeen drill holes at Valentina as well as sixteen drill holes fromthe neighbouring San Antonio high grade copper resource · First drillingunderway at the large-scale Santiago Z target, part of a potentialregional porphyry cluster south of the Company’s Cortadera porphyrycopper-gold discovery |
* Copper Equivalent(CuEq) reported for the drill holes were calculated using thefollowing formula: CuEq% = ((Cu% × Cu price 1% per tonne ×Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm× Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t ×Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied inthe calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb,and Ag=20 USD/oz. Average fresh rock metallurgical recoveries used forCortadera were Cu=83%, Au=56%, Mo=82%, and Ag=37%. Average fresh rockmetallurgical recoveries used for Productora/Alice were Cu=89%,Au=58%, Mo=60%, and Ag=0%. 1 including 3munsampled outside of metallurgical test area.
Hot Chili Limited(ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or“Company”) is pleased to announce the highest-grade drillintersection recorded by the Company to date.
First assaysreturned from drilling across the historical Valentina high gradecopper mine confirm a significant 120m strike extension to thedeposit, recording 8m grading 5.9% CuEq (5.7% copper (Cu), 24.1g/tsilver (Ag)) from 27m downhole in reverse circulation (RC)drill hole VAP0009.
Valentina and its neighbouring San Antonio satellite copperdeposit (Inferred resource of 4.2Mt grading 1.2% CuEq (1.1% Cu, 2.1g/tAg) for 48kt Cu and 287koz Ag, reported March 2022) are locatedimmediately to the east of Cortadera, the centre-piece of theCompany’s Costa Fuego, coastal range, copper-gold hub in Chile.
Both depositsrepresent shallow high grade open pit opportunities, with thepotential to provide front-end ore sources and make a positivematerial impact on the payback period and overall project economics ofthe Costa Fuego copper-gold development.
Impressive First Assay Results fromValentina, More to Come
Hot Chili’s recently completed phase-one drillingprogramme at Valentina primarily focussed on proving continuity of themineralised trend along strike of the successful 2018 drill campaign(see announcement dated 5th September 2018).
Of the nine holes aspart of a phase-one programme, four drill holes recorded significantintersections. Best drill intersections include:
· 8m grading 5.9%CuEq (5.7% Cu, 24.1g/t Ag) from 27m depth and 2m grading 1.9%CuEq (1.8% Cu, 11g/t Ag) from 46m depth (VAP0009)
· 7m grading 2.0%CuEq (1.9% Cu, 11g/t Ag) from 163m depth (VAP0004)
Drilling confirmscontinuity of the mineralised Valentina structure 120m south ofcurrent underground workings, in an area previously masked at-surfaceby a shallow horizon of Atacama gravels.
Mineralisation is interpreted to befault-hosted, dipping steeply towards the east within a sequence ofvolcanic-sedimentary units, similar to the deposit setting of theneighbouring San Antonio resource. Copper grades between 27m and 35mdepth in VAP0009 were associated with both copper sulphide (2-5 %chalcopyrite) and oxide mineralisation.
Importantly, the result in RC drill holeVAP0009 is complimented by a twin Diamond Drill (DD) hole (VALMET0002drilled for metallurgical test work), which recorded a much wider 17mvisual intersection of copper sulphide and oxide mineralisation( see announcement dated 13th June 2022 ).
Assay results forVALMET0002 are expected to be received shortly following additionaltest work requirements and delays in receiving ore grade analysisresults. A second-phase of seventeen shallow RC drill holes has beenrecently completed at Valentina with results expected to be receivedover the coming weeks.
Sixteen Drillholes Completed at San Antonio Ahead of UpdatedMineral Resource
Thirteen RC and three DD drill holes have been completed at theSan Antonio high-grade copper resource to upgrade its categorisationfrom Inferred to Indicated, ahead of a planned resource upgrade forCosta Fuego in late 2022.
RC drill holes have in-filled and extended the mineralisedtrend along interpreted high-grade plunging shoots, with most of thedrill holes supporting the current interpretation of structure andmineralisation at San Antonio.
Diamond drillholes will provide material formetallurgical testwork, key to the inclusion of the San AntonioResource in the Costa Fuego combined prefeasibility study (PFS) due inQ1 2023.
Assayresults from San Antonio drilling are also expected to be received inthe coming weeks.
First drilling is now underway across the Santiago Zporphyry target, one of several large-scale targets planned fortesting this year.
The Company looks forward to next drilling results fromValentina and San Antonio, and an exciting period of explorationdrilling across its consolidated, coastal range,landholdings.
Reported on a 100% Basis - combining Mineral Resource estimatesfor the Cortadera, Productora and San Antonio deposits. Figures arerounded, reported to appropriate significant figures, and reported inaccordance with CIM and NI 43-101. Metal rounded to nearest thousand,or if less, to the nearest hundred. Total Resource reported at +0.21%CuEq for open pit and +0.30% CuEq for underground. Refer toAnnouncement “Hot Chili Delivers Next Level of Growth” (31st March2022) for JORC Table 1 information related to the Costa Fuego MineralResource estimates.
* Copper Equivalent (CuEq) reported for the resourcewere calculated using the following formula: CuEq% = ((Cu% × Cu price1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t ×Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm× Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). TheMetal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,700USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. For Cortadera and San Antonio(Inferred + Indicated), the average metallurgical recoveries wereCu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred +Indicated), the average metallurgical recoveries were Cu=83%, Au=43%and Mo=42%. For Costa Fuego (Inferred + Indicated), the averageMetallurgical Recoveries were Cu=83%, Au=51%, Mo=67% and Ag=23%.
Significant intercepts are calculated above a nominalcut-off grade of 0.5% Cu, with a minimum estimated true thickness of1.5m. These parameters are aligned with marginal economic cut-offgrades for narrow, high-grade polymetallic copper deposits of similargrade in Chile and elsewhere in the world.
Down-hole significantintercept widths are estimated to be at or around 70 per cent oftrue-widths of mineralisation
* Copper Equivalent (CuEq) reported for thedrill holes at Valentina used Costa Fuego averages (as nometallurgical testwork has been completed) using the followingformula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Moppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t× Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cuprice 1% per tonne). The Metal Prices applied in the calculation were:Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz.Average fresh rock metallurgical recoveries were Cu=83%, Au=56%,Mo=82%, and Ag=37%.
Reported on a 100% Basis - combining Mineral Resourceestimates for the Cortadera, Productora and San Antonio deposits. Figures are rounded, reported to appropriate significant figures, andreported in accordance with CIM and NI 43-101. Metal rounded tonearest thousand, or if less, to the nearest hundred. Total Resourcereported at +0.21% CuEq for open pit and +0.30% CuEq for underground.Refer to Announcement “Hot Chili Delivers Next Level of Growth”(31st March 2022) for JORC Table 1 information related to the CostaFuego Mineral Resource estimates.
Copper Equivalent (CuEq) reported for theresource were calculated using the following formula: CuEq% = ((Cu% ×Cu price 1% per tonne × Cu_recovery) +(Mo ppm × Mo price per g/t ×Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm× Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). TheMetal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,700USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. For Cortadera and San Antonio(Inferred + Indicated), the average Metallurgical Recoveries were:Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred +Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43%and Mo=42%. For Costa Fuego (Inferred + Indicated), the averageMetallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% andAg=23%.
**Note: Silver (Ag) is only present within the Cortadera MineralResource estimate
CompetentPerson’s Statement- Exploration Results
Exploration informationin this Announcement is based upon work compiled by Mr ChristianEasterday, the Managing Director and a full-time employee of Hot ChiliLimited whom is a Member of the Australasian Institute ofGeoscientists (AIG). Mr Easterday has sufficient experience that isrelevant to the style of mineralisation and type of deposit underconsideration and to the activity which he is undertaking to qualifyas a ‘Competent Person’ as defined in the 2012 Edition of the‘Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves’ (JORC Code). Mr Easterday consents tothe inclusion in the report of the matters based on their informationin the form and context in which it appears.
Competent Person’s Statement- Costa Fuego MineralResources
Theinformation in this report that relates to Mineral Resources forCortadera, Productora and San Antonio which constitute the combinedCosta Fuego Project is based on information compiled by Ms ElizabethHaren, a Competent Person who is a Member and Chartered Professionalof The Australasian Institute of Mining and Metallurgy and a Member ofthe Australian Institute of Geoscientists. Ms Haren is a full-timeemployee of Haren Consulting Pty Ltd and an independent consultant toHot Chili. Ms Haren has sufficient experience, which is relevant tothe style of mineralisation and types of deposits under considerationand to the activities undertaken, to qualify as a Competent Person asdefined in the 2012 Edition of the ‘Australasian Code of Reportingof Exploration Results, Mineral Resources and Ore Reserves’. MsHaren consents to the inclusion in the report of the matters based onher information in the form and context in which it appears. Forfurther information on the Costa Fuego Project, refer to the technicalreport titled "Resource Report for the Costa Fuego TechnicalReport", dated December 13, 2021, which is available for reviewunder Hot Chili's profile at www.sedar.com.
Reporting of Copper Equivalent
Copper Equivalent (CuEq)reported for the resource were calculated using the following formula:CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Moprice per g/t × Mo_recovery)+(Au ppm × Au price per g/t ×Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price1% per tonne). The Metal Prices applied in the calculation were:Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. ForCortadera and San Antonio (Inferred + Indicated), the averageMetallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. ForProductora (Inferred + Indicated), the average MetallurgicalRecoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred+ Indicated), the average Metallurgical Recoveries were: Cu=83%,Au=51%, Mo=67% and Ag=23%.
About Hot Chili
Hot Chili Limited is amineral exploration company with assets in Chile. The Company'sflagship project, Costa Fuego, is the consolidation into a hub of theCortadera porphyry copper-gold discovery and the Productoracopper-gold deposit, set 14 km apart in an excellent location – lowaltitude, coastal range of Chile, infrastructure rich, low capitalintensity. The Costa Fuego landholdings, contains an IndicatedResource of 725Mt grading 0.47% CuEq (copper equivalent), containing2.8 Mt Cu, 2.6 Moz Au, 10.4 Moz Ag, and 67 kt Mo and an InferredResource of 202 Mt grading 0.36% CuEq containing 0.6Mt Cu, 0.4 Moz Au,2.0 Moz Ag and 13 kt Mo, at a cut-off grade of +0.21% CuEq for openpit and +0.30% CuEq for underground. The Company is working to advanceits Costa Fuego Project through a preliminary feasibility study(followed by a full FS and DTM), and test several high-priorityexploration targets.
Certain statements contained in this newsrelease, including information as to the future financial or operatingperformance of Hot Chili and its projects may include statements thatare "forward?looking statements" which may include, amongstother things, statements regarding targets, estimates and assumptionsin respect of mineral reserves and mineral resources and anticipatedgrades and recovery rates, production and prices, recovery costs andresults, and capital expenditures and are or may be based onassumptions and estimates related to future technical, economic,market, political, social and other conditions.These forward-lookingstatements are necessarily based upon a number of estimates andassumptions that, while considered reasonable by Hot Chili, areinherently subject to significant technical, business, economic,competitive, political and social uncertainties and contingencies andinvolve known and unknown risks and uncertainties that could causeactual events or results to differ materially from estimated oranticipated events or results reflected in such forward?lookingstatements.
Hot Chili disclaims any intent or obligation toupdate publicly or release any revisions to any forward?lookingstatements, whether as a result of new information, future events,circumstances or results or otherwise after the date of this newsrelease or to reflect the occurrence of unanticipated events, otherthan as may be required by law. The words "believe","expect", "anticipate", "indicate","contemplate", "target", "plan","intends", "continue", "budget","estimate", "may", "will", "schedule"and similar expressions identify forward?lookingstatements.
All forward?looking statements made in this newsrelease are qualified by the foregoing cautionary statements.Investors are cautioned that forward?looking statements are not aguarantee of future performance and accordingly investors arecautioned not to put undue reliance on forward?looking statementsdue to the inherent uncertainty therein.
Neither the TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this news release.
ContactDetails
Investor Relations
GrahamFarrell
+1 416-842-9003
Graham.Farrell@harbor-access.com
InvestorRelations
Jonathan Paterson
+1 475-477-9401
Jonathan.Paterson@harbor-access.com
ManagingDirector
Christian Easterday
CompanyWebsite
https://www.hotchili.net.au/investors/
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