Hot Chili Limited · ASX:HCH
Hot Chili — RIU Explorers Conference (February 2019)
28 slides from Hot Chili's conference presentation, Feb 19, 2019
Slide 1: United Transformation
Cortadera Productora United Transformation Cortadera Discovery Deal HG Satellites ASX code: HCH February 2019
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: Transformation Begins
Transformation Begins 1. The Game Changer – Large Discovery Next to Productora 2. Corporate Overview – One of Few Large ASX Cu Developers 3. Productora – Critical Mass Arrives 4. Cortadera – Major Copper-Gold Discovery Unveiled 5. High Grade Satellites – The Sweeteners 6. Copper Time – Supply Crunch
Slide 4: The Game Changer: Large Discovery Next to Productora
1. The Game Changer Large Discovery Next to Productora ▪ Terms secured1 with private Chilean mining group SCM Carola to acquire 100% interest in major copper-gold discovery, named Cortadera ▪ Located 14km from Hot Chili’s flagship Productora copper development on the Chilean coastal range ▪ Details
Slide 5: Consolidation of a Copper "Super-hub" in Coastal Chile
Consolidation of a Copper “Super-hub” in Coastal Chile Huasco Maintencillo Pan Freirina Power Substation American Highway Seawater Pipeline Los Losas Easement Vallenar Regional Port (CAP) Granitoids Power Transmission Line Easement 20km Radius Valentina Productora Copper Development PFS Complete 10
Slide 6: Cortadera – A Major Copper-Gold Porphyry Discovery
Cortadera – A Major Copper-Gold Porphyry Discovery 90m grading 1.0% copper and 0.4g/t gold from 4m down-hole depth, 52m grading 0.9% copper and 0.4g/t gold from 6m down-hole depth, 864m grading 0.4% copper and 0.1g/t gold from 62m down-hole depth (including 348m grading 0.6% copper and 0.2g/t gold),
Slide 7: Option to Consolidate the Entire Cortadera Copper-Gold Discovery
Option to Consolidate the Entire Cortadera Copper-Gold Discovery 1. Binding MOU executed with SCM Carola to acquire 100% interest in Cortadera (1.5km of the 2km long discovery zone) Purchase price of US$30 million, over a 30 month term as follows: ▪ US$5 million within 6 months from execution of the
Slide 8: One of Few Large ASX Cu Developers
2. Corporate Overview One of Few Large ASX Cu Developers Board of Directors Capital Structure Murray Black Non Exec Chairman Issued Shares 819.9M Christian Easterday Managing Director Unlisted Options 11.0 M (30c, exp Jun 2019) Michael Anderson Non Exec Director 20.0M (3.33c, exp Jun 2019) 69.7M (10
Slide 9: Productora: Critical Mass Arrives
3. Productora Critical Mass Arrives Huasco Maintencillo Power Substation Pan Freirina American Power Transmission Highway Line Easement Seawater Pipeline Los Losas Vallenar Easement Port (CAP) Regional Productora Granitoids Copper Development Combining Cortadera and Productora 10km ▪ Underpins new l
Slide 10: Combined Development Leveraging Central Processing & Infrastructure
Combined Development Leveraging Central Processing & Infrastructure Productora ▪ 1.5Mt Cu & 1Moz Au Resource base (80%HCH, 20% CMP) ▪ 10 Years Mine Life PFS Complete ▪ 66kt Cu and 25koz Au production Bulk Tonnage annually over first 8 Yrs Cortadera ▪ Major porphyry Cu-Au discovery ▪ Extending from s
Slide 11: Cortadera: Major Copper-Gold Discovery Unveiled
4. Cortadera Major Copper-Gold Discovery Unveiled HOT CHILI Presentation 11
Slide 12: World-Class Discovery Drill Results
World-Class Discovery Drill Results Cortadera Discovery (Cu-Au-Mo Porphyry) 23,231m of DD drilling 132m@ 0.4% Cu, 0.1 g/t Au (from 146m) Open along strike and at depth Incl 40m @ 0.6% Cu, 0.1 g/t Au 268m @ 0.4% Cu, 0.2 g/t Au (from 120m) 48m@ 0.5% Cu, 0.1 g/t Au (from 34m) Incl 42m @ 0.8% Cu, 0.4 g/
Slide 13: Open Along Strike And At Depth
Open Along Strike And At Depth A A’ 1000 RL Cross Section A Including ▪ Tonalite Porphyry Cluster 16m @ 0.7% Cu, Including 0.2g/t Au discovered 42m @ 0.6% Cu, 800 RL 0.2g/t Au 406m @ 0.4% Cu, ▪ Drill tested from surface to 150m @ 0.4% Cu, 0.2g/t Au 0.2g/t Au 1km depth 1km 600 RL Including ▪ Higher g
Slide 14: High-Grade Chalcocite Blanket Recognised
High-Grade Chalcocite Blanket Recognised B B’ 1000 RL Cross Section B Chalcocite blanket 800 RL (supergene enrichment) 158m @ 0.7% Cu, 0.3g/t Au 174m @ 0.4% Cu, Including 0.2g/t Au 52m @ 0.9% Cu, Including 0.4g/t Au 94m @ 1.0% Cu, 600 RL 900m 0.4g/t Au 254m @ 0.4% Cu, 0.2g/t Au 250m 400 RL ▪ Large h
Slide 15: Large Resource Potential From Surface
Large Resource Potential From Surface 200m C C’ Purisima Chalcocite blanket Including Cross Section C (supergene 76m @ 0.7% Cu, 900 RL enrichment) 0.1g/t Au ▪ Three porphyry centres discovered so far Including 800 RL 82m @ 0.7% Cu, ▪ Copper oxide to 100m depth 0.1g/t Au 148m @ 0.5% and associated wi
Slide 16: Solid Foundation for First Cortadera Resource Estimate
Solid Foundation for First Cortadera Resource Estimate ▪ US$15M in drilling and Surface sample –typical B vein array commonly found in outcropping exploration spent porphyry at Cortadera already (US$12M in drilling alone) ▪ 23,231m DD (HQ) half core remaining Refer to“Terms Secured to Acquire Major
Slide 17: High Grade Satellites: The Sweeteners
5. High Grade Satellites The Sweeteners • Historical Production of 2Mt grading San Antonio 2% Cu and 0.3g/t Au from surface Mine • 4,600m drilling complete in July 18 • Pre-Resource stage Valentina • Drill Success from first 3 holes Mine • 12m grading 1.5% copper from 28m (including 6m grading 2.7%
Slide 18: Strong Drill Results at San Antonio
Strong Drill Results at San Antonio First High Grade Satellite Confirmed ▪ 39 Reverse Circulation (RC) drill holes for approximately 4,600m completed across mine area over 700m in July 2018 ▪ Large Extensional Discovery Confirmed at San Antonio ▪ 19m grading 2.0% copper from 61m down-hole depth (inc
Slide 19: Attractive Satellite Pit Potential at San Antonio Remains Open
Attractive Satellite Pit Potential at San Antonio Remains Open ▪ Shallow-dipping high grade copper mineralisation ▪ Near true width drilling intersections ▪ Low indicative strip- ratios ▪ Attractive for shallow open-cut mining Refer to ASX Announcement dated 23rd April 2018 for Table 1 Notes to hist
Slide 20: Supply Crunch Coming
6. Copper Time Supply Crunch Coming Medium to Long Term – Upward Pressure ▪ Lack of quality new large supply (Expensive & long dated) ▪ Global average reserve grade now ~0.40% (~1.0% in 1995) ▪ Major discoveries drying-up (Discovery cost US 1c/lb in 1990, US 7c/lb now) 4.00 ▪ Increasing demand widel
Slide 21: Majors Positioning for New Large-Scale Copper Supply
Majors Positioning for New Large-Scale Copper Supply ▪ BHP increase stake in SolGold to 11% for a total investment of US$94.2 Million. Pre- emptive interest from BHP and Newcrest for the Cascabel Cu-Au deposit in Ecuador ▪ Zijin Minings $1.4 Billion offer trumps Lundin’s offer for Nevsun Resources w
Slide 22: Road Map for a Global Copper Contender
7. What’s Next Road Map for a Global Copper Contender 1. Strategic funding discussions with key stakeholders underway 2. Execution of formal Option Agreement with SCM Carola for Cortadera in coming weeks 3. Drill rig being mobilised to Cortadera in coming months Q2 2019 Commence resource drilling ac
Slide 23: 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 24: 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 25: 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 26: View Across Cortadera
View Across Cortadera HOT CHILI Presentation 26
Slide 27: View Across San Antonio
View Across San Antonio HOT CHILI Presentation 27
Slide 28: View Across Productora
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 View Across Productora