Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (July 2016)
24 slides from Hot Chili's investor presentation, Jul 1, 2016
Slide 1: Productora: A Golden Future in Chile
Productora Next Steps A Golden Future 1st July 2016 in Chile ACN 130 955 725 ASX:HCH
Slide 2: Disclaimer
Disclaimer View looking west over Productora central pit area 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 an
Slide 3: Company Strategy
Company Strategy Productora copper-gold project- US$90 million invested, advanced large-scale Chilean copper- gold asset being positioned for Decision to Mine in 2018. Hot Chili and project partner CMP advancing Productora through project level funding. Recent CMP transaction values HCH interest
Slide 4: Building a Long-term Chilean Copper Business
Building a Long-term Chilean Copper Business Productora Copper-Gold Project Robust Pre feasibility delivered1 against one of the best located and infrastructure-rich copper projects in Chile CMP move to 20% interest in Productora- purchase of a further 2.5% for US$1.5 Million Sprott loan reduc
Slide 5: High-Grade Gold Potential Revealed
High-Grade Gold Potential Revealed Sierra Zapallo Gold Deposit Sierra Zapallo- Significant historical gold production area located in southern extent of Productora project Near-term exciting high-grade gold deposit being advanced Exploration and resource development review and sampling program
Slide 6: Corporate Overview
Corporate Overview ASX code: HCH Board of Directors Placement Offer Murray Black Non Exec Chairman A$2.5 Million at A$0.05 per new share* (HCH reserve the right to accept up to A$4.4m through Christian Easterday Managing Director over-subscription) Michael Anderson Non Exec Director Sprott Loan Redu
Slide 7: Productora Chile's Next Coastal Copper Mine
Productora Chile’s Next Coastal Copper Mine Competitive Global Copper Development Low altitude location with significant infrastructure advantage Access rights secured to establish key infrastructure Large-scale porphyry growth potential adds further scale and mine life upside HOT CHILI [July
Slide 8: Productora Chile's Next Coastal Copper Mine: Strengthening Asset
Productora Chile’s Next Coastal Copper Mine Strengthening Asset Mineral Resource of 1.47Mt contained copper and 0.98Moz gold and growing Ore Reserve increased to 0.72Mt contained copper and 0.47Moz of gold1 10 year mine life with total production of 0.59Mt copper and 0.21Moz of gold1 First 8
Slide 9: Processing & Metal Production Profile
Processing & Metal Production Profile Average throughput of 14.7Mtpa sulphide & 2.8Mtpa oxide over first 8 years Average annual copper production of 66kt over first 8 years of production (60 kt of Cu in concentrate and 6 kt of Cu cathode) Peak copper and gold metal production occurs in year 4,
Slide 10: Financially Competitive Against Global Peers
Productora Chile’s Next Coastal Copper Mine Financially Competitive Against Global Peers Capital cost of US$725 million1,2 Project revenue of US$4.3 billion (Long term prices of US$3.00/lb Cu, US$1,250/oz Au & US$14/lb Mo) C1 cash cost of US$1.47/lb paid metal (including Au, Mo credits) Post
Slide 11: C1 Cost Benchmark
C1 Cost (Normal) Benchmark (Owner-Operator Mining) Productora PFS- current Productora PFS- target (Contractor Mining) (2015 dollar terms) Currently- Productora C1 Cost (Normal) is US$1.47/lb (Mid 3rd Quartile) Productora C1 Cost Target (Normal) is US$1.27/lb (Upper 2nd Quartile) Median C1 Cost
Slide 12: Large-scale Copper Porphyry Potential
Large-scale Copper Porphyry Potential Game changing resource growth potential confirmed Initial Alice Resource reveals future porphyry resource growth Four large porphyry targets identified New porphyry targets identified from cutting-edge IP/MT geophysical survey Productora IP chargeability
Slide 13: Porphyry Target IP2
Porphyry Target IP2 Large IP porphyry targets, immediately west of planned central pit Very strong chargeable haloes and advanced technical assessment by leading global porphyry experts Refer to ASX Announcement dated 12th October 2015 HOT CHILI [July 2016] 13
Slide 14: Sierra Zapallo Gold Deposit
Sierra Zapallo Gold Deposit Historical alluvial gold workings Productora Main Zone Sierra Zapallo Gold Deposit Strike extensive gold bearing vein swarms North Exciting new gold growth opportunity, immediately south of planned Productora central pit Potential to delineate a high-grade, open pitab
Slide 15: Previously Focused on Copper- Not Gold!
Previously Focused on Copper- Not Gold! During 2012, Hot Chili undertook copper focused mapping, surface sampling and first ever drilling at Sierra Zapallo. +13 major NW-trending high-grade gold reefs, with individual reef strike extents of ~300-400m. Small-scale extensive surface and undergro
Slide 16: High-grade Gold Drill Confirmed in 2012
High-grade Gold Drill Confirmed in 2012 First-pass drilling by Hot Chili in 2012, where limited gold analysis was undertaken, included: 1m grading 57.2g/t gold, 0.3% copper and 12g/t silver from 37m down-hole, and 1m grading 5.7g/t gold, 0.5% copper and 5g/t silver from 21m down-hole. A rece
Slide 17: Significant Density of Gold Reefs Exposed
Significant Density of Gold Reefs Exposed High-grade gold is associated with a swarm of narrow (0.5 - 2m true width), quartz-pyrite veins enriched in silver +/- copper, displaying strong along-strike continuity. The majority of gold reefs are densely clustered across a hill (Sierra) indicating p
Slide 18: Systematic Gold Exploration Set To Commence
Systematic Gold Exploration Set To Commence Hot Chili has commenced re-analysis of drilling pulp samples for gold (2012 drilling). A systematic sampling programme is planned for each gold reef at Sierra Zapallo. Drill testing of gold targets to follow receipt of results. Strike extensive gold
Slide 19: News Flow & Catalysts
News Flow & Catalysts A low-cost review and sampling programme at Sierra Zapallo is underway with a very strong pipeline of news flow over the coming 12 months July August September October Collect pulps and re-assay Pulps Re-assay for for Au, where not previously Drilling Results Gold analysed fo
Slide 20: Accelerating Value Generation
Accelerating Value Generation Productora already a robust copper-gold project being positioned for a rising future copper price Exciting catalysts immediately and over the coming 12 months Productora perfectly placed to substantially enhance value through the rapid addition and definition of a
Slide 21: Productora JORC Compliant Ore Reserve
Productora JORC Compliant Ore Reserve Productora Project Ore Reserve Statement, March 2016 1 HOT CHILI [July 2016] 21
Slide 22: 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 23: Competent Person's Statement
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 Geoscient
Slide 24: 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