Hot Chili Limited · ASX:HCH
Hot Chili — Diggers and Dealers 2018
29 slides from Hot Chili's conference presentation, Aug 6, 2018
Slide 1: San Antonio Rising
San Antonio Rising • Scale & Grade • Strong First Drill Results ASX code: HCH August 2018
Slide 2: Disclaimer
Disclaimer This Presentation is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may
Slide 3: Triggering a Major Re-rate
Triggering a Major Re-rate Hot Chili in 2013 ▪ HCH Market Capitalisation A$250M (Cu price US$S3.00 – 3.30/lb) ▪ Half the current resource base, no completed PFS, no major partner or infrastructure access Hot Chili Now ▪ Current Market Capitalisation A$30M fully dilute (Cu price US$S3.00 – 3.30/lb) ▪
Slide 4: Rising Momentum
Copper Price Rising Momentum ▪ Set to test Bull Market conditions ahead of looming supply deficit expected in 2020 ▪ Advanced large copper developments are rare HOT CHILI Presentation 4
Slide 5: High Grade Growth to Deliver Major Upside
High Grade Growth to Grade Deliver Major Upside Major Chilean Copper Asset - Productora ▪ 10 Years Mine Life PFS Complete 1.5Mt Cu & 1Moz Au Resource ▪ 66kt Cu and 25koz Au production annually over first 8 Yrs ▪ Extending to +17 Yrs Mine Life High Grade Options Drill Ready – El Fuego Being Mined ▪ 3
Slide 6: Critical Mass
Mine Life Critical Mass Emerging Large Coastal Operating Centre Pan American Huasco Highway Maintencillo Feirina Sub Station ▪ Taking advantage of planned large- scale , low-cost processing facility Las Losas Port Vallenar (CAP) Seawater Pipeline Power Easement Transmission ▪ Combining multiple ore
Slide 7: Strong First Drill Results Confirm Large Extensional Discovery for San Antonio
Strong First Drill Results Confirm Large Extensional Discovery for San Antonio ▪ First drill results released to ASX confirm continuation of the San Antonio Main Lode. ▪ SAP0001 – 19m grading 2.0% copper from 61m down-hole depth (including 11m grading 2.4% copper) ▪ SAP0002 – 15m grading 1.7% copper
Slide 8: Corporate Overview
Corporate Overview Board of Directors Capital Structure Murray Black Non Exec Chairman Issued Shares 743.9M Christian Easterday Managing Director Unlisted Options 8.0M (10c, exp Sept 2018 Michael Anderson Non Exec Director 11.0 M (30c, exp Jun 2019) 20.0M (3.33c, exp Jun 2019) Allan Trench Non Exec
Slide 9: Centre of Gravity
Centre of Gravity ▪ Low altitude coastal range copper operating centre ▪ 700km north of Santiago Chile, significant infrastructure advantage secured Productora (Flagship JV) ▪ 80% HCH ▪ 20% CMP 20 km Radius El Fuego (4 Yr Options) Valentina ▪ San Antonio ▪ Valentina ▪ Lulu HOT CHILI Presentation 9
Slide 10: Productora – Value Springboard
Productora– Value Springboard ▪ Asset highly leveraged to copper price ▪ Economics also highly leveraged to additional mine life and higher grade blend ▪ Confirming critical mass key to delivering standout economics and DFS green light Productora PFS Valuation (US$ NPV) against Copper Price and Targ
Slide 11: El Fuego – High Grade Options
El Fuego – High Grade Options ▪ Option deals to earn controlling interest in three high grade copper mines combined as the El Fuego copper project ▪ San Antonio Antonio ▪ Valentina ▪ Lulu ▪ Family owned mines for over 50 years with little/no modern exploration or resource drilling ▪ 2.5km of high pr
Slide 12: San Antonio - Scale & Grade
San Antonio- Scale & Grade ▪ Privately owned and mined since 1964 ▪ JV Option Agreement executed 8th Nov 2017 ▪ 4 Yr term to earn 90% interest ▪ No payments/commitments in first 3 Yrs San Antonio Main Lode ▪ Payment of US$0.3M in 36 Historical Production months and US6.7M in 48 2Mt grading 2% Cu and
Slide 13: Initial Mine Model
Initial Mine Model ▪ Only 9 historical surface drill holes and limited information available. ▪ Strike & depth potential untested and unknown – limited information initially Parallel Lode San Antonio Main Lode San Antonio Main Lode Historical Production 2Mt grading 2% Cu and 0.3g/t Au Historic Devel
Slide 14: Lease Miners Provide the Key
Lease Miners Provide the Key ▪ Lease mining allowed to continue under capped 50ktpa arrangement during Option period ▪ Sulphide copper being mined from near-surface and processing of ore through nearby ENAMI plant ▪ 2- 4% Cu ore grades being exploited from shallow depth along northern extent of mine
Slide 15: San Antonio 60 Level - Main Lode
San Antonio 60 Level- Main Lode ▪ Strong continuity of grade and width in historical mine data ▪ 7m to 30m development widths Selected UG Face Channel Results 7.5m grading 10.4% Cu 8.5m grading 2.3% Cu 9m grading 2.0% Cu 6.1m grading 2.2% Cu Selected UG Drilling Results 12m grading 2.9% Cu (includin
Slide 16: San Antonio 90 Level - Main Lode
San Antonio 90 Level- Main Lode ▪ Shallow development depth ▪ Sulphide orebody from near-surface (chalcopyrite, bornite association) Selected UG Face Channel Results 24.6m grading 2.2% Cu 24.7m grading 1.7% Cu 24.7m grading 1.8% Cu 12.3m grading 2.4% Cu Selected UG Drilling Results 14m grading 3.1%
Slide 17: San Antonio 110 Level - Main Lode
San Antonio110 Level- Main Lode ▪ Historical development on 150 Level ineffective (30m too far east) ▪ Main Lode dimensions potentially over 700m strike extent, at 7-30m width and +2% copper grade (+Au and Ag credits) ▪ Co-ordinated UG face sampling to commence shortly with Lease Miners Refer to ASX
Slide 18: San Antonio - Rare Opportunity
San Antonio- Rare Opportunity ▪ Brownfield high grade copper opportunity – Large Open Pit and Underground potential ▪ Initial drilling to target depth and strike extensions of San Antonio mine area Refer to ASX Announcement dated 23rd April 2018 for Table 1 Notes to historical mine information HOT C
Slide 19: San Antonio – First Drill Results
San Antonio – First Drill Results Impress ▪ 39 Reverse Circulation (RC) drill holes for approximately 4,600m completed across mine area over 700m ▪ Results released for first 16 holes ▪ Assays pending for 10 holes which have recorded strong visual copper intersection ▪ Drilling now underway across V
Slide 20: San Antonio Long Section
San Antonio Long Section Refer to ASX Announcement dated 18th July 2018 for Table 1 Notes to exploration drilling HOT CHILI Presentation 20
Slide 21: San Antonio – Shallow Depth, Shallow Dip
San Antonio – Shallow Depth, Shallow Dip ▪ Shallow dipping high grade copper mineralisation ▪ Near true width drilling intersections ▪ High tonnage per vertical metre ▪ Attractive for shallow open-cut mining Refer to ASX Announcement dated 23rd April 2018 for Table 1 Notes to historical mine informa
Slide 22: San Antonio – Wide Extensions
San Antonio – Wide Extensions ▪ Wide (20-30m widths) continuation of Main Lode confirmed at depth by drilling ▪ Additional footwall lodes intersected HOT CHILI Presentation 22
Slide 23: Large Targets Confirmed South of San Antonio
Large Targets Confirmed South of San Antonio ▪ Follow-up confirmation of 6 large targets south of San Antonio ▪ Surface results up to 6.5% copper, 2g/t gold and 24g/t silver ▪ Geophysics and details surface work being planned Refer to ASX Announcement dated 23rd April 2018 for Table 1 Notes to histo
Slide 24: Expected News Flow
Expected News Flow ▪ High priority drill results pending for strongly mineralised visual intersections at San Antonio - Results for 23 RC drill holes expected over the coming weeks ▪ Results for drilling at Valentina pending- 2 high priority holes ▪ Exploration work to kick-off across numerous large
Slide 25: Qualifying Statements
Qualifying Statements Mineral Resource and Ore Reserve Confirmation The information in this presentation that relates to Mineral Resources and Ore Reserve estimates on the Productora copper project was previously reported in the ASX announcement “Hot Chili Delivers PFS and Near Doubles Reserves at P
Slide 26: Productora JORC Compliant Mineral Resource
Productora JORC Compliant Mineral Resource Productora Project Higher Grade Resource, March 2016 Grade Contained Metal Tonnage Cu Au Mo Copper Gold Molybdenum Deposit Classification (Mt) (%) (g/t) (ppm) (tonnes) (ounces) (tonnes) Indicated 166.8 0.50 0.11 151 841,000 572,000 25,000 Productora Inferre
Slide 27: Qualifying Statements
Qualifying Statements Competent Person’s Statement Exploration Results Exploration information in this Presentation is based upon work undertaken by Mr Christian Easterday, the Managing Director and a full- time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscien
Slide 28: View Across San Antonio
View Across San Antonio HOT CHILI Presentation 28
Slide 29: Hot Chili Limited
Hot Chili Limited ACN 130 955 725 ASX: HCH Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au