Hot Chili Limited · ASX:HCH
Hot Chili — Diggers & Dealers, Kalgoorlie 2014
29 slides from Hot Chili's conference presentation, Aug 6, 2014
Slide 1: Production Path
Production Path Digger & Dealers, Kalgoorlie ACN130 955 725 6th August, 2014 PRODUCTORA COPPER PROJECT CHILE
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: Growth & Development Delivered
Growth & Development Delivered Maiden Ore Reserve at Productora First 9 years of mine life secured, significant growth to come Mineral Resource upgrade at Productora now over 1Mt of copper metal and 675,000oz of gold First Resource at Frontera 50km south of Productora delivers starter resource
Slide 4: 2014-2015 Finance Secured - Drilling and PFS Underway
2014-2015 Finance Secured- Drilling and PFS Underway US$ 25 million debt facility in place with Canadian resources financier Sprott Lending Partnership Funds dedicated to advance Productora into DFS stage 25,000m RC and 8,000m DD drilling programme underway targeting significant reserve/resour
Slide 5: Joint Infrastructure Deal Executed Today
Joint Infrastructure Deal Executed Today Project partner CMP and HCH execute joint infrastructure MOU for Productora Productora located in the heart of CMP’s Huasco and Vallenar iron ore operations CMP is a subsidiary of CAP SA- Chile’s largest iron ore producer and vertically integrated steel
Slide 6: Joint Infrastructure Deal Landmark
Joint Infrastructure Deal Landmark Conversion of CMP assets into 17.5% stake in Productora CMP free-carried to end of PFS Reduces time and cost to develop Productora 6
Slide 7: Joint Infrastructure Deal The Beginning
Joint Infrastructure Deal The Beginning Additional Purchase Option for CMP to move to 50.1% stake in Productora A further 32.6% interest in Productora for minimum US$80 million at completion of Guacolda PFS Power Plant Huasco Port Los Losas Port CMP to pay HCH US$1.5 million for grant of optio
Slide 8: Corporate Overview
Corporate Overview ASX-listed, leading emerging copper producer Cash at Hand Approx. A$ 20 million (6th August 2014) Focused on developing and leveraging a new Sprott Lending Debt Facility large-scale, copper production hub along the Chilean coastal range US$10 million drawn (included in cash) U
Slide 9: Productora Maiden Reserve
Productora Maiden Reserve Underpins Initial 9 Year Mine Life Open pit Ore Reserve of 90.5Mt grading 0.48% copper, 0.11g/t gold and 172ppm molybdenum Conservative Ore Reserve estimate- conservative recoveries applied to transitional ore Central pit only- No oxide and no transitional ore used to
Slide 10: Pit Design and Mine Schedule
Pit Design and Mine Schedule Reserve Growth Expected from PFS Completion Mining summary N 716 764 668 824 872 Waste dump (192.3Mm3) 27 Mt of pre-stripping required (with oxide ore treated as waste) 30kt per day plant feed (11Mtpa) Oxides Stockpile 4:1 strip ratio (waste:ore), 3.5:1 strip ratio
Slide 11: Productora Oxide Opportunity
Productora Oxide Opportunity Not Previously Considered Large scaleable copper oxide project identified with study underway In-pit oxide resource of 15.4Mt grading 0.58% copper currently treated as waste Potential to reduce strip ratio, pre-strip capital expenditure and add another front-end re
Slide 12: Productora Resource Upgrade
Productora Resource Upgrade Bulk Tonnage Resource Grows to Over 1Mt Copper Over 95,000m of additional drilling incorporated from 2013 Robust definition- 78% Indicated and 22% Inferred classification Global WA Reserve Grade 0.5% Cu 12 Note 1. Global weighted average reserve grade of 0.51% Note 2.
Slide 13: Productora Mineral Resource
Productora Mineral Resource Intensive Drilling and Leading-Edge Technical Approach Oblique View of Copper Mineralisation and Central Pit Design Further growth targeted in-pit and along strike Central Pit Design A Block Model Cross Section- CCHEN South +0.3% Copper A B Mineralisation oxide B Centra
Slide 14: Resource Summary
Resource Summary Drilling Focus in Central Pit Area to Date Southern Oxide Satellite Northern Oxide Pit Potential Satellite Pit Potential South Central Pit Design North 800RL 400RL Copper 800RL 400RL Gold 800RL 400RL Molybdenum 6,820,000N 6,821,000N 6,822,000N 6,823,000N 6,824,000N 1 km Contained
Slide 15: Resource and Reserve Growth
Resource and Reserve Growth New Phase of Discovery at Productora Advanced targeting techniques developed- predictive model Discovery of high-grade Habanero and Rocoto zones during late 2013 Rate of discovery increasing Reserve growth targets being prioritised to support targeted PFS mine lif
Slide 16: Resource and Reserve Growth
Resource and Reserve Growth Unlocking Productora’s Potential 3D alteration indices & predictive exploration targeting model developed for Productora 2 significant new exploration discoveries attributed to new targeting model (Habanero & Rocoto) 9 reserve growth targets ranked for priority dril
Slide 17: Resource and Reserve Growth
Resource and Reserve Growth Alteration and Copper Distribution Habanero Discovery Alteration Model 750mRL Level Slice • Previously considered waste • Not closed off to NE, dips East- not West! • Best Intercept: 181m@ 1.0% Cu, 0.3g/t Au, including: 71m@ 1.6% Cu, 0.4g/t Au Initial Rocoto Discovery • A
Slide 18: Resource and Reserve Growth
Resource and Reserve Growth Rocoto Resource Definition Commenced Note. See ASX announcement 3rd Feb 2014 18
Slide 19: Resource and Reserve Growth
Resource and Reserve Growth Growth from Two Fronts Over Coming 12 months 1. PFS remaining study work- capture and optimisation of oxide and transitional ore 2. 33,000m drilling programme- focused on high-value, reserve growth targets Approach to growth- “Smarter not Harder” Outcome targeted- PFS
Slide 20: Productora Development
Productora Development Targeted Timeline Current Mine Life Mine Life Target Mine Life Target 9 Years 12-15 Years 15-20 Years Pre-Feasibility Definitive Procurement & Production Resource/Reserve Feasibility Construction Growth Development Project Finance Mine Growth Phase Finance 1H 2014 1H 2015 1H 2
Slide 21: News Flow
News Flow Strong News Aligned with Strengthening Copper Market Joint Infrastructure MOU with CMP- EXECUTED Drill result announcements ongoing over the coming 9 months 2H 2014 PFS study announcements ongoing over the coming 12 months Exploration at growth projects- Frontera, Banderas and Los
Slide 22: Chilean Copper Sector
Chilean Copper Sector Largest Global Copper Producer Chilean share of world copper production Key Chilean Copper Mines- 2013 Production (concentrate and SXEW) Mined copper production and World Share 22
Slide 23: Chilean Copper Sector
Chilean Copper Sector Grades and Costs Copper reserve grade by mine in Chile Copper production cost curve - 2013 23
Slide 24: Chilean Copper Sector
Chilean Copper Sector Capital Intensity and Cu Eq Grade Chilean copper development projects (bubble size represents projected copper production) 24
Slide 25: Qualifying Statements
Qualifying Statements Ore Reserves Productora Ore Reserve Statement, 31st March 2014 Ore Category Tonnage Grade Contained Metal Payable Metal Type (Mt) Copper Gold Molybdenum Copper Gold Molybdenum Copper Gold Molybdenum (%) (g/t) (ppm) (tonnes) (ounces) (tonnes) (tonnes) (ounces) (tonnes) Transitio
Slide 26: Qualifying Statements
Qualifying Statements Mineral Resources Productora Mineral Resource Statement, 31st March 2014 Classification Tonnage Grade Contained Metal (+0.25% Cu) (Mt) Copper Gold Molybdenum Copper Gold Molybdenum (%) (g/t) (ppm) (tonnes) (ounces) (tonnes) Indicated 158.6 0.50 0.11 152 799,000 540,000 24,000 I
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: Corporate Register
Corporate Register Hot Chili Limited ACN 130 955 725 www.hotchili.net.au ASX code: HCH Lead Broker Financial Advisor Legal Advisors 28
Slide 29: The company is positioned as one of the leading ASX emerging copper producers
“ the company is positioned as one of the leading ASX emerging copper producers” Hot Chili Limited ACN 130 955 725 Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au ASX: HCH