Hot Chili Limited · ASX:HCH
Hot Chili — Diggers and Dealers 2020
30 slides from Hot Chili's conference presentation, Oct 12, 2020
Slide 1: Cortadera Arrives
Cortadera Arrives Leading Global Copper Development Emerges Gold Copper 6th October, 2020 I ASX code: HCH
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: Vision: Building an ASX Copper Major in the home of Big Copper
Vision Building an ASX Copper Major in the home of Big Copper 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
Slide 4: Explorer Developer Producer
Leading Copper-Gold Developer on the ASX Explorer • Cortadera – World Class Copper- Gold Discovery growing rapidly • 451Mt Maiden Resource just announced Developer • Costa Fuego Combined Resource Head Chile Costa Fuego • 724Mt @ 0.48% CuEq* for Office 2.9Mt Cu, 2.7Moz Au & 9.9Moz Ag & 64kt Mo** (rep
Slide 5: Corporate Overview
Corporate Overview Capital Structure 18 Month Share Price Performance Issued Shares 2,403,178,877 Share Price A$0.037 (8th Oct 2020) 3.7c Mkt A$89 M Capitalisation Mkt Capitalisation A$113 M (fully diluted) (incl Con Notes, Options) Cash A$6.2 M (30th June 2020) 1.0c Cash Flow A$1.5M to A$2.0M pa Co
Slide 6: Experienced Board
Experienced Board Roberto Andraca Murray Black Christian Easterday Allan Trench Michael Anderson Adriasol Randal Nickson Executive Chairman Managing Director NED NED NED NED Over 35 years’ Geologist and Geologist/Geophys Over 20 years’ Business manager Geologist/Geophys experience in the mineral eco
Slide 7: Dedicated Management
Dedicated Management Lloyd Flint Grant King Melanie Leighton Jose Ignacio Silva Anrea Aravena Steve Garwin Company Secretary Chief Operating Officer Tech Services Manager Country Manager Geology Manager Chile Lead Consultant Chartered Engineer and Geologist with Lawyer with more Geologist with Dr St
Slide 8: Right Time - In-Demand Commodities
Right Time- In-Demand Commodities 5 Year Price COVID Slump Performance Feb 2020 US$2.96/lb +41% Copper Price July 2016 2017 2018 2019 2020 US$1,919/oz 5 Year Price Performance +30% Gold Price July 2016 2017 2018 2019 2020 Source: KITCO, 6th Oct 2020 Hot Chili Presentation 8
Slide 9: Costa Fuego – Major Copper Development
Costa Fuego – Major Copper Development Combined Development • Chilean costal range • 600km north of Santiago • 800-1,000m elevation • Compatible metallurgy, good recovery • Clean Cu-Au concentrate (no arsenic) Refer to ASX Announcement “Positive Results from Initial Metallurgical Test Work ” (4 th A
Slide 10: Rare Development Setting Low-Altitude Infrastructure Access & 50km to Port
Rare Development Setting Low-Altitude Infrastructure Access & 50km to Port Huasco Pan American Maintencillo Power Substation Highway Freirina Los Losas Port (CAP) Seawater Pipeline Easement Vallenar Power Transmission Line Easement Costa Fuego Copper Project 2.9Mt Cu, 2.7Moz Au, 9.9Moz Ag, 64kt Mo P
Slide 11: A World Class Copper-Gold Discovery
A World Class CORTADERA Copper-Gold • Deal to acquire 100% of Discovery Cortadera in Feb 2019 • Delivering world-class drill results by July 2019 • Maiden Resource Estimate announced Oct 2020 • Expansion drilling underway • Potential to grow toward a Tier 1 copper discovery Hot Chili Presentation 11
Slide 12: One of Just Two Major Copper Discoveries Recorded in the World since 2016
One of Just Two Major Copper Discoveries Recorded in the World since 2016 Hot Chili Presentation 12
Slide 13: Leading Global Copper-Gold Discovery
Leading Global Copper-Gold Discovery Six of the World’s Best Cu-Au Drill Results Recorded Since Jan 2018 Project Name Company Country Hole ID From (m) To (m) Interval (m) Cu (%) Au% Altar Aldebaran Resources Inc Argentina ALD-18-209 482 1,537 1,055 0.5 0.2 Cascabel SolGold Plc Ecuador CSD-18-067 886
Slide 14: Maiden Cortadera Mineral Resource
Maiden Cortadera Mineral Resource • Independent JORC Code Mineral Resource estimate undertaken by leading consultancy firm Wood • Extending from surface, categorised as 41% Indicated and 59% Inferred • High grade component of 104Mt grading 0.74%Cu Eq (0.6% Cu, 0.22g/t Au) • Utilising 82 holes for 40
Slide 15: Maiden Cortadera Mineral Resource
Maiden Cortadera Mineral Resource • 2.3 km long porphyry deposit displaying over 1km vertical ore column from surface and open in key directions Note: Outer halo of resource model displayed, high grade cores not displayed Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project
Slide 16: Maiden Cortadera Mineral Resource
Maiden Cortadera Mineral Resource • Strong continuity of mineralisation and emergence of high grade cores High Grade Core 104Mt grading 0.74%Cu Eq (0.6% Cu, 0.22g/t Au) Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information re
Slide 17: Maiden Cortadera Mineral Resource
Maiden Cortadera Mineral Resource • Amenable to open cut and underground block cave extraction Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera Mineral Resource estimate and Reasonable Prospect o
Slide 18: Second Growth Phase Underway
Second Growth Phase Underway • Expansion drilling underway ahead of second resource estimate for Cortadera in 2021 • Cortadera remains open for continued growth in several key directions • How big will Cuerpo 3 grow? • Are there more high grade cores? • Do the porphyries join at depth? Cortadera – C
Slide 19: Big Picture Unfolding
Big Picture Unfolding • Big porphyry system recognized • Tier 1 growth potential being tested Cortadera North Target (+2 km strike extent) Cortadera Expansion Targets (+2.3 km strike extent) FJOD-0010 (52-54m), 1.3% Cu, 0.64g/t Au Refer to ASX Announcement “Drill Results Expand High Grade Copper-Gol
Slide 20: Two Drill Rigs Advancing
Two Drill Rigs Advancing Cortadera Expansion Drilling Cortadera North Drilling • Diamond drilling • RC drilling underway continuing • First deep RC hole near completion • Currently testing Cuerpo 2 at depth • 10 holes planned • 16 Holes planned Cortadera – Cuerpo 2, October 2020 Cortadera North, Oct
Slide 21: Costa Fuego Becomes a Leading Global Copper Mineral Resource
Costa Fuego Becomes a Leading Global Copper Mineral Resource 3.5 Mt 2.9 Mt 2.7 Moz 9.9 Moz 64 kt Copper Eq Metal Copper Gold Silver Molybdenum Costa Fuego Combined Resource Grade Contained Metal Deposit Classfication Tonnage CuEq Cu Au Ag Mo Copper Eq Copper Gold Silver Molybdenum (+0.25% CuEq*) (Mt
Slide 22: Benchmarking Costa Fuego
Benchmarking Costa Fuego Largest Copper Resources in the World not Controlled by a Major Mining Company (Other than Winu – Rio Tinto) Costa Fuego Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for qualifying statements related to the above figure
Slide 23: Top Global Copper Mineral Resources
Top Global Copper Mineral Resources (Not controlled by a major mining company) Contained Average Cut-off Surface CuEq Average Cu Cut-off Rank Project Company Country Stock Exchange CuEq Grade Elevation Metal Grade (%) Grade (%) Grade (%) Basis (m.a.s.l.) (Mt) 1 Pebble Northern Dynasty USA TSX 68.3 0
Slide 24: Metal and Grade of Leading Copper Resources
Metal and Grade of Leading Copper Resources • Costa Fuego is the largest copper Mineral Resource controlled by an ASX-listed emerging company Av CuEq% grade Av Cu% grade Reporting Cut-Off Grade (COG) All projects selected only include All projects selected only include those not controlled by a majo
Slide 25: Elevation of Leading Copper Resources
Elevation of Leading Copper Resources • Costa Fuego is one of few low-altitude (800-1,000m), clean concentrate (no arsenic) projects not controlled by a major mining company All projects selected only include All projects selected only include those not controlled by a major mining company (other th
Slide 26: Building Costa Fuego toward a Tier 1 Copper Resource
Building Costa Fuego toward a Tier 1 Copper Resource Tier-1 Copper Resource (5Mt Cu) 5 Hot Chili Mineral Resource Growth • New Growth Contained Copper Metal (Mt) 4 • Cortadera Contained Copper (Mt) Costa MRE2 3 Fuego • San Antonio Cortadera 2 MRE1 1 Productora Productora March 2016 Oct 2020 Forward
Slide 27: Next Steps Rapid Growth Focus
Next Steps Rapid Growth Focus HCH Current Market Cap of A$89M at 3.7c stock price • Ramp-up of lease mine production at Productora- Commercial cash flow expected to begin in November • Acceleration of drilling activities – Two drill rigs operating, further results from large growth target and resour
Slide 28: 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 Geoscient
Slide 29: Qualifying Statements
Qualifying Statements Reporting of Copper Equivalent * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × A
Slide 30: Cortadera Copper-Gold Porphyry Discovery
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 Cortadera Copper-Gold Porphyry Discovery Hot Chili Presentation 30