Hot Chili Limited · ASX:HCH
Hot Chili — Sprott Natural Resource Symposium 2019
30 slides from Hot Chili's conference presentation, Jul 30, 2019
Slide 1: Big Copper: Cortadera Taking Centre Stage
BIG COPPER Cortadera Taking Centre Stage Sprott Natural Resource Symposium, Vancouver ASX code: HCH Pic: Thor Ragnarok (2017) Walt Disney 29th July – 2nd August 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: Building a Major Copper Hub
Building a Major Copper Hub Discovering a Potential Monster 1. The Game Changer – Large Discovery Next to Productora 2. Corporate Overview – One of the Last Large ASX Cu Developers 3. Cortadera – Private Copper-Gold Discovery Unveiled 4. Next Three-Month Catalysts– Drilling, Funding, Resources 5. Re
Slide 4: The Game Changer: Large Discovery Next to Productora
1. The Game Changer Large Discovery Next to Productora ▪ Option executed 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 ▪ Shaping
Slide 5: Consolidation of a Copper Super-hub in Coastal Chile
Consolidation of a Copper “Super-hub” in Coastal Chile Huasco Maintencillo Power Substation Pan Freirina American Power Transmission Highway Line Easement Seawater Pipeline Los Losas Vallenar Easement Port (CAP) Regional Granitoids 10km Productora Copper Development Radius PFS Complete 10 year open
Slide 6: 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 Open Pit Mine Life PFS Complete ▪ 66kt Cu and 25koz Au production Bulk Tonnage annually over first 8 Yrs Cortadera ▪ Major porphyry Cu-Au discovery ▪ Extendi
Slide 7: Large ASX Cu Developer, Re-rating
2. Corporate Overview Large ASX Cu Developer, Re-rating Board of Directors Capital Structure Murray Black Non Exec Chairman Issued Shares 1,276,173,541 Christian Easterday Managing Director Share Price A$0.035 (26th July 2019) Michael Anderson Non Exec Director Mkt Capitalisation A$44 M Allan Trench
Slide 8: Cortadera Private Copper-Gold Discovery Unveiled
3. Cortadera Private Copper-Gold Discovery Unveiled ▪ Private discovery between 2011 and 2013 ▪ US$15M in drilling and exploration spent already (US$12M in drilling alone) ▪ 23,231m DD (HQ) half core retained ▪ HCH has option to acquire 100% interest over 30 months for US$31.5M (first instalment of
Slide 9: Drill Results – Left Open!
Major Cu-Au Porphyry Discovery Drill Results – Left Open! 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
Slide 10: Cortadera – First Months Delivers!
Cortadera – First 6 Months Delivers! ▪ February 2019 – Cortadera deal announced following two year negotiation ▪ April 2019 – Hot Chili drilling commences 5,500m RC and DD drilling programme ▪ June 2019 – Decision to test for increasing grade 1,185m vertical DD hole on main porphyry ▪ July 2019 – La
Slide 11: Hot Chili Drill Results Open Up Growth
Hot Chili Drill Results Open Up Growth CRP0013D 750m grading 0.6% copper and 0.2g/t gold from 204m depth including 188m grading 0.9% copper and 0.4g/t gold 200m grading 0.4% copper and 0.2g/t gold from 378m depth (including 76m grading 0.5% copper and 0.2g/t gold 122m grading 0.6% copper and 0.3g/t
Slide 12: Four Porphyry Centres Discovered
Four Porphyry Centres Discovered Refer to ASX Announcement “Final Assays Deliver 750 Drill Result at Cortadera” (5 th July 2019) HOT CHILI Presentation 12
Slide 13: Larger Than First Recognised
Larger Than First Recognised Refer to ASX Announcement “Final Assays Deliver 750 Drill Result at Cortadera” (5 th July 2019) HOT CHILI Presentation 13
Slide 14: Large High Grade Zone Discovered
Large High Grade Zone Discovered Cross Section A ▪ Previous drilling indicated potential for increasing grade with depth ▪ CRP0013D - New high grade zone discovered at Cuerpo 3 the main porphyry – Jul 2019 ▪ Bulk tonnage grades toward 1% Cu and 0.5g/t Au ▪ Higher grade copper and gold drilling inter
Slide 15: Controls on High Grade Cu-Au
Controls on High Grade Cu-Au ▪ High grade sulphide Cu- Au mineralisation associated with high vein abundance, high sulphide content and elevated magnetite ▪ Flat dipping veining increases in abundance in the higher grade sulphide zone discovered in CRP0013D ▪ Detailed analysis and modelling of key d
Slide 16: Large Footprint – Large System
Large Footprint – Large System ▪ Historical data (secured in June 2019) provides breakthrough in understanding ▪ Tonalite Porphyry Cluster discovered within a classic large alteration footprint (4km x 3km in size) ▪ Porphyry centres associated with discrete magnetic anomalies ▪ Type II magnetite ass
Slide 17: Growth Potential Lifting
Growth Potential Lifting ▪ Cortadera North target identified by historical work but never drill tested, similar signature and size to Cortadera Refer to“Cortadera Copper-Gold Discovery Growth Potential Lifting” (ASX Announcement 24th July 2019) for further detail on HOT CHILI Presentation 17 histori
Slide 18: Discovery Context Scale/Grade/Depth
Discovery Context Scale/Grade/Depth Cascabel (Ecuador) Long-section Cortadera (Chile) Long-section Vertical Depth 0m 500m 0.9% CuEq Very Limited drilling 1,000m No drilling + 0.25% Cu Alpala Bulk Resource (+0.3% CuEq) CRP0013D 1,500m 2.95Bt grading 0.52% CuEq High Grade Discovery Zone 0.3% CuEq 188m
Slide 19: Next Three-Month Catalysts
4. Next Three-Month Catalysts 1. Second phase drilling set to commence shortly Initial focus on new high grade zone at Cuerpo 3 2. Strategic funding discussions advancing well with several large groups Sternship Advisers appointed to manage strong in-bound interest in Cortadera funding 3. Initial re
Slide 20: Recent Big Copper Discovery Comparison
5. Recent Big Copper Discovery Comparison Cortadera Winu Cascabel Major Shareholders LOCATION Coastal range, Chile Patterson Province, WA Andes, Ecuador South America Australia South America DEPOSIT TYPE Porphyry Cu-Au Vein Swarm Cu-Au Porphyry Cu-Au (+ Mo & Ag credit) (+ Ag credit) DISCOVERY STAGE
Slide 21: Big Investment Focussed on Big Copper
Big Investment Focussed on Big Copper Cortadera Winu Cascabel Major Shareholders DISCOVERY SUMMARY Productora – HCH 2011 - 2016 Drilling in 2018 Hole 1 - Dec 2013 Confirmed Feb 2019 Hole 16 -Newcrest invest 2016 Cortadera – Private 2011 – 2013 First Resource - BHP invest 2018 HCH 2019 onwards Curren
Slide 22: Top Drill Intersections (Cu, Au only)
Top 3 Drill Intersections (Cu, Au only) Cortadera (Early Stage) 750m grading 0.6% copper and 0.2g/t gold from 204m down-hole depth 864m grading 0.4% copper and 0.1g/t gold from 62m down-hole depth 406m grading 0.4% copper and 0.2g/t gold from 276m down-hole depth Winu (Early Stage) 741m grading 0.4%
Slide 23: Existing Size & Potential Growth
Existing Size & Potential Growth Cortadera Winu Cascabel RESOURCE BASE 236Mt @ 0.48% Cu & None 2.95Bt @ 0.37% Cu 0.1g/t Au (Productora) & 0.2g/t Au DEV STUDIES PFS on Productora None PEA complete complete DEPOSIT INVENTORY 2 x Tier 2 Cu Deposits & 1 x Tier 2 Cu Deposit & 1 x Tier 1 Cu Deposit Smalle
Slide 24: Ease of Development
Ease of Development Cortadera Winu Cascabel MINING METHOD Block Cave Shallow Open Pit Shallow Open Pit Underground DEPTH FOR MINING From surface 50-100m of cover Approx 500m vertical depth INFRASTRUCTURE Power, water access Remote location Power, water access & sealed roads & sealed roads DISTANCE T
Slide 25: Qualifying Statements
Qualifying Statements Mineral Resource and Ore Reserve Confirmation The information in this presentation that relates to Mineral Resources, Ore Reserve estimates and Production Targets on the Productora copper project was previously reported in the ASX announcement “Hot Chili Delivers PFS and Near D
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 Cortadera
View Across Cortadera HOT CHILI Presentation 28
Slide 29: View Across San Antonio
View Across San Antonio HOT CHILI Presentation 29
Slide 30: 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