Hot Chili Limited · ASX:HCH
Hot Chili — Vancouver Resource Investment Conference (January 2023)
42 slides from Hot Chili's conference presentation, January 2023
Slide 1: Costa Fuego - Senior Copper, Growth Focused
Senior Copper www.hotchili.net.au Growth Focused COSTA FUEGO ASX: HCH I TSXV: HCH I OTCQX: HHLKF Vancouver Resource Investment Conference
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements Disclaimer Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be This presentation (the "Presentation") is to be used by the recipient
Slide 3: Copper – The Key Critical Metal
Copper – The Key Critical Metal Copper price set to drive higher, similar mkt fundamentals to lithium in 2019 ✓ Global decarbonisation set to produce step-change in copper demand over next 10 years ✓ Advanced-stage, senior copper developments are rare and critical ✓ World requires 10 Escondida’s or
Slide 4: Standout Senior Copper Developer
Standout Senior Copper Developer Near-term Growth Potential & Low Risk Development Meaningful Scale ✓ 2.8 Mt Cu & 2.6 Moz Au (Ind) & 0.6 Mt Cu & 0.4 Moz Au (Inf) resource ✓ Largest undeveloped copper resource on ASX (not controlled by a major miner) ✓ One of only two +100ktpa copper developers in th
Slide 5: Corporate Overview
Corporate Overview Tight Capital Structure, Fully Funded, Ready for Re-rate ASX: HCH I TSXV: HCH I OTCQX: HHLKF Capital Structure Investor by Type Issued Shares 119.4 M Glencore 9% Blue Spec Share Price A$1.03 (13 Jan 23) Group 6% Mkt Capitalisation A$122 M (13 Jan 23) GS Group Options & Performance
Slide 6: Strong Leadership – Board
Strong Leadership – Board Negotiation, Exploration, Development, Financing, Construction and Operating Expertise Dr Nicole Adshead-Bell Mark Jamieson Chairman Director (Glencore Nominee)* Appointed March 2022 General Manager Resource Engineering for Geologist with >25 years combined technical, Glenc
Slide 7: Experienced Management Group
Experienced Management Group Talented and Fully Invested Management in Chile and Australia José Ignacio Silva Andrea Aravena Executive Vice President - Chile Geology Manager - Chile Chilean National and lawyer with >20 Chilean National and geologist >14 years Chilean years global legal and mining se
Slide 8: Costa Fuego is a Copper Hub
Costa Fuego is a Copper Hub Low Elevation, Proximal Infrastructure Decreases Economic Hurdle Top 10* Undeveloped Cu Resource (S&P) on coast of #1 Global Producer - Chile 2.8 Mt (Ind) 2.6 Moz (Ind) 0.6 Mt (Inf) 0.4 Moz (Inf) Copper Gold * Top 10 Cu Resource/Reserve (Active), at PFS level or above, wi
Slide 9: Chile – Home to Copper Giants
Chile – Home to Copper Giants 7 of the Top 20 Copper Mines by Annual Production Costa Fuego Grasberg PFS StageisDevelopment Copper a critical metal in the Current Study global Scale (per annum) electrification movement 100kt Cu & up that to 70koztoAudrive is forecast for +20Yrs Escondida 20Mtpacoppe
Slide 10: Costa Fuego
Valentina Costa Productora Fuego Central Processing Copper Hub Approach Delivers Scale San Antonio Cortadera 4th highest-grade of low-risk, Top 20 Grade largest undeveloped Cu projects (non-major) Two large-scale deposits, from surface, Geometry low strip-ratio (guidance approx. 1.5), primarily open
Slide 11: Advanced Permitting and Low Risk
Advanced Permitting and Low Risk Over a Decade to Secure Critical Infrastructure Access ✓ Maritime Concession Granted – coastal land access and right to extract sea water for processing (no de-salination plant required) ✓ Electrical Connection Secured to national power grid ✓ Easement Corridors Secu
Slide 12: Regional Consolidation & Growth Focus
Regional Consolidation & Growth Focus Low Altitude, Infrastructure and Access within 55km of Proposed Port(1) Resource Classification 82% Ind 18% Inf High Grade Ind Resource (+0.6% CuEq) 34% of Ind resource 156Mt @ 0.79% CuEq for 1Mt Cu & 0.85Moz Au (1) CuEq* takes into account assumed commodity pri
Slide 13: Cortadera - Open Pit & UG Resource
Cortadera - Open Pit & UG Resource Over 1km Vertical Copper-Gold Porphyry Extent Bulk tonnage open pit & UG cave development (1) CuEq* takes into account assumed commodity prices and average metallurgical recoveries from testwork. See slide 38 for complete Hot Chili Presentation 13 Resource disclosu
Slide 14: Productora Copper-Gold Resource
Productora Copper-Gold Resource Upgraded Resource Estimate for Front-End Mine Schedule Bulk tonnage open pit development (1) CuEq* takes into account assumed commodity prices and average metallurgical recoveries from testwork. See slide 39 for complete Hot Chili Presentation 14 Resource disclosure o
Slide 15: San Antonio Maiden Resource
San Antonio Maiden Resource First of the High Grade Satellite Deposits for Costa Fuego Satellite open pit development (+1% Cu) (1) CuEq* takes into account assumed commodity prices and average metallurgical recoveries from testwork. See slide 39 for complete Hot Chili Presentation 15 Resource disclo
Slide 16: Next Phase of Growth Begins
Next Phase of Growth Begins Potential to Up-scale Costa Fuego Consolidation of West Cortadera • 28th Nov 2022 - Option Agreement with Antofagasta Minerals (AMSA) to secure major extension to Cortadera • Further consolidation through auction Drilling Underway 11th Jan • 1 DD rig (double shift) & 1 RC
Slide 17: Larger Porphyry Cluster Potential
Larger Porphyry Cluster Potential Recent Cortadera Consolidation Expands Deposit Footprint (1) Refer to Announcement “Further Consolidation of Cortadera” dated 30th Nov 2022. CuEq* takes into account assumed commodity prices and average metallurgical recoveries from testwork. See slide 37, 38 and 39
Slide 18: AMSA Agreement Adds Fourth Porphyry
AMSA Agreement Adds Fourth Porphyry Outcropping with Near-surface Enrichment 1% Cu & 0.5g/t Au AMSA Terms • 6,000m drilling commitment • US$ 1.5M exercise payment • 120 day 55% buy-back right • Five times payout ratio of expenditure (1) Refer to Announcement “Hot Chili Executes Option to Secure Majo
Slide 19: Cortadera's Prospective Strike Length
Cortadera’s Prospective Strike Length More Than Doubled From 2.3km to 5.2km Strike Extent Auction • 7 new leases for US$100k • Direct extension of Cortadera trend • Additional target secured (Target 4) (1) Refer to Announcement “Further Consolidation of Cortadera” dated 30th Nov 2022 Hot Chili Prese
Slide 20: Exploration Growth Pipeline
Exploration Growth Pipeline Exploration Accelerating, Multiple Large Untested Targets Set For Drill Testing, Regional Consolidation Efforts Continuing Other Targets in 2023 Drill Plan 1. Cortadera North 2. Corroteo 3. Valentina Clearing Permits Submitted (1) CuEq* takes into account assumed commodit
Slide 21: Costa Fuego Growth & Dev Timetable
Costa Fuego Growth & Dev Timetable Planning for Senior-scale Copper Production in 2028 • Resource growth focused in 2023 • Potential to lift Costa Fuego study-scale from +20yr 100ktpa Copper Project toward 150ktpa Copper Project • Targeting First Quartile Position for Total Cash Costs and Capital In
Slide 22: Positioned for Development
Positioned for Development Ranked 8th Highest Grade Amongst Top 20 Largest Undeveloped Copper Projects in the World (not controlled by a major miner) • One of the few low-altitude, no arsenic, infrastructure-rich, major copper developments with no infrastructure or permitting impediments to timely p
Slide 23: New Material Copper Supply by Major Miners
New Material Copper Supply by Major Miners over Next 10 years Four Material Projects Being Ramped-up by Major Mining Companies +700 kt/a New Copper Supply Stated timeframes and average life-of-mine annual copper production for projects (bubble sized) based on the most current public company document
Slide 24: New Material Copper Supply by ASX Copper Developers
New Material Copper Supply by ASX Copper Developers over Next 10 years Hot Chili is the Only Potential +100ktpa Copper Developer Listed on ASX (not controlled by a major mining company) +280 kt/a New Copper Supply Stated timeframes and average life-of-mine annual copper production for projects (bubb
Slide 25: New Material Copper Supply by TSX Copper Developers
New Material Copper Supply by TSX Copper Developers over Next 10 years Front-runner Amongst Potential Near-term +100ktpa Copper Producers (not controlled by a major mining company) +600 kt/a Copper Supply (not incl HCH) Stated timeframes and average life-of-mine annual copper production for projects
Slide 26: Low Valuation, Strong Growth Platform
Low Valuation, Strong Growth Platform One of the Most Advanced, Low-Risk, Senior Copper Developers in the World, With One of the Lowest Valuations Average Market Cap. / lb M&I CuEq 0.116 US$/lb Stated timeframes and average life-of-mine annual copper production for projects (bubble sized) based on t
Slide 27: ESG
ESG Responsible and Respectful - Building Trust with All Stakeholders Environmental ✓ Leveraging existing infrastructure (port, power, roads) ✓ Aim to use high percentage of solar power ✓ Sea water for future processing (water license granted) Social ✓ Chilean focused goods and services and local em
Slide 28: Why Invest?
Why Invest? Undervalued, Unrecognised and Extremely Leveraged to Copper Price, and What Comes Next…..Drill Success and Tier-1 Resource Potential Next Significant Catalysts • Jan 23 Drilling Underway for larger porphyry cluster • Q1, 23 Start of Drilling News Flow • H1, 23 Complete Port Negotiation •
Slide 29: Appendix
APPENDIX Hot Chili Presentation 29
Slide 30: The Top 20 Copper Mines by Capacity
The Top 20 Copper Mines by Capacity Thousand metric tonnes copper Source: S&P Global Market Intelligence, 2022 References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results Hot Chili Presentation 30
Slide 31: HCH Peer Group
HCH Peer Group Junior companies with copper development projects in the Americas Western Marimaca Solaris Regulus Josemaria Los Andes Company Filo Mining Hot Chili SolGold Copper and Copper Resources Resources Resources Copper Gold Exchange TSX TSX TSX TSXV ASX/TSXV TSX TSXV TSX/LSE TSX Warintza/ Pr
Slide 32: Costa Fuego Benchmark Graph Detail
Costa Fuego Benchmark Graph Detail Project Ag Mo Average Processing Reported Level of Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo Mt Mo kt CuEq% CuEq Mt Report Source Moz ppm Recovery Study Date Preliminary Pebble MI 6,456 0.40 25.8 0.34 71 1.7 345 240 1.55 1,551 0.72 46.4 Cu=84%, Au=73%, Econ
Slide 33: Costa Fuego Benchmark Graph Detail Cont.
Costa Fuego Benchmark Graph Detail Cont. Project Ag Mo Average Processing Reported Level of Report Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Mo Mt Mo kt CuEq% CuEq Mt Report Source Moz ppm Recovery Study Date Class Mt Cu% Cu Mt Au g/t Au Moz Ag g/t Ag Moz CuEq% CuEq Mt MI 795 0.23 1.9 0.03 0.8 0.9 22
Slide 34: Qualifying Statements
QUALIFYING STATEMENTS Drilling at Cortadera Hot Chili Presentation 34
Slide 35: Qualifying Statements
Qualifying Statements Scientific & Technical Information (NI 43-101) QUALIFIED PERSON AND REPORTING STANDARD The Cortadera, Productora and San Antonio MRE’s are reported to the standard of the Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”, and as such have been c
Slide 36: Qualified Person
Qualified Person Scientific & Technical Information (NI 43-101) COMPETENT PERSON’S STATEMENT- EXPLORATION RESULTS & PRESENTATION Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited who
Slide 37: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure Costa Fuego Copper-Gold Project Mineral Resource Estimate, March 2022 (using +0.25% CuEq cut-off grade) and by open pit (top), underground (middle) and total (bottom), 1 Reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora
Slide 38: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure Cortadera Deposit Mineral Resource Estimate, March 2022 (open pit, using +0.21% CuEq cut-off grade & UG using 0.30% CuEq) 1 Reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora and San Antonio deposits. Figures are rounded
Slide 39: Notes to Mineral Resource Disclosure
Notes to Mineral Resource Disclosure Productora Deposit Mineral Resource Estimate, March 2022 - reported by classification (open pit, using +0.21% CuEq cut-off grade) San Antonio Deposit Mineral Resource Estimate, March 2022 - reported by classification (open pit, using +0.21% CuEq cut-off grade) 1
Slide 40: Sampling, Analysis & Data Verification
Sampling, Analysis & Data Verification A fixed cone splitter was used to create two nominal 12.5% samples (Sample "A" and "B"), along with the large bulk reject sample. The "A" sample is always taken from the same sampling chute, and comprises the primary sample submitted to the laboratory. The "B"
Slide 41: Sampling, Analysis & Data Verification Cont.
Sampling, Analysis & Data Verification Cont. Hot Chili has strict chain of custody security procedures for all samples sent to and from the analytical laboratories. The ALS analytical laboratory in Coquimbo (Chile) completed all sample preparation and specific gravity test work, while ALS Santiago (
Slide 42: Contact Details
Hot Chili Limited ACN 130 955 725 ASX Investor Investor & Public Email: eliza@asxinvestor.com.au First Floor, 768 Canning Highway, Applecross, Western Australia 6153 Relations (Australia) PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 Harbor Access Email: Graham.Farrell@harboracc
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