Hot Chili Limited (ASX: HCH | TSXV: HCH | OTCQX: HHLKF) has announced that drilling has re-commenced across the western extension of the Cortadera porphyry resource, part of its Costa Fuego Copper-Gold Project located 600km north of the Chilean capital of Santiago, at low elevation (<1,000m) in the coastal range of the Atacama Region.
Drilling operations have been underway for five days with one reverse circulation rig in operation and further diamond drill rigs to be added as the company ramps up its fully funded 30,000m expansion drilling programme.
Initial drill testing is focused on satisfying Hot Chili’s remaining 3,000m drill commitment with Antofagasta Minerals to acquire key leases lying along the western extension of Cortadera.
Drilling is also planned to test several porphyry targets at Cortadera and within the company’s consolidated landholdings, in addition to remaining required development study drilling.
Given Hot Chili’s significant advance on its pre-feasibility study for Costa Fuego (over 80% complete) and high indicated categorization of the current mineral resource (82% indicated), the majority of planned drilling is being directed toward exploration and mineral resource growth.
Cortadera is the centerpiece of Costa Fuego, with an indicated mineral resource for Costa Fuego currently standing at 725Mt grading 0.47% Cu Eq for 2.8 Mt Cu and 2.6Moz Au, and inferred resources comprising 202Mt grading 0.36% Cu Eq for 0.6 Mt Cu and 0.4Moz Au.
The Company’s recently announced preliminary economic assessment establishes Costa Fuego as a low-risk, long life copper project benefiting from a low start-up capital and a high annual copper equivalent metal production profile of over 100Kt for a 16-year mine life, including 95Kt Cu and 49Koz Au during primary production (first 14 years) at a cash cost of US$1.33/lb (estimated net of by-product credits).
Hot Chili is focused on up-scaling Costa Fuego’s resource base and potential study scale towards a 150,000tpa copper production profile ahead of the delivery of the Costa Fuego pre-feasibility study, expected in H2 2024.
For further information, please visit: www.hotchili.net.au
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