Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (March 2018)
30 slides from Hot Chili's investor presentation, Mar 28, 2018
Slide 1: Scale & Grade: Productora Gets High Grade Copper Production Options
For personal use only Scale & Grade Productora Gets High Grade Copper Production Options ASX code: HCH 28th March 2018
Slide 2: Disclaimer
For personal use only 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 Pr
Slide 3: Triggering a Major Re-rate
Triggering a Major Re-rate Hot Chili in 2013 For personal use only ▪ HCH Market Capitalisation A$250M (Cu price US$S3.00 – 3.30/lb) ▪ Half the current resource base, no completed PFS, no major partner or infrastructure access Hot Chili Now ▪ Current Market Capitalisation A$30M fully dilute (Cu price
Slide 4: Copper Price Rising Momentum
Copper Price Rising Momentum ▪ Set to test Bull Market conditions ahead of looming supply deficit expected in 2020 For personal use only ▪ Advanced large copper developments are rare Bull Market 4.00 Copper Price Conditions ▪ Increasing Demand 3.50 ▪ Supply Disruptions 3.00 ▪ Declining Global Head G
Slide 5: High Grade Growth to Deliver Major Upside
High Grade Growth to Grade Deliver Major Upside For personal use only Major Chilean Copper Asset - Productora ▪ 10 Years Mine Life PFS Complete 1.5Mt Cu & 1Moz Au Resource ▪ 66kt Cu and 25koz Au production annually over first 8 Yrs ▪ Extending to +17 Yrs Mine Life High Grade Options Drill Ready – El
Slide 6: Mine Life Critical Mass
Mine Life Critical Mass For personal use only Emerging Large Coastal Operating Centre Pan American Huasco Highway Maintencillo Feirina Sub Station ▪ Taking advantage of planned large- scale , low-cost processing facility Las Losas Port Vallenar (CAP) Seawater Pipeline Power Easement Transmission ▪ C
Slide 7: Corporate Overview
Corporate Overview For personal use only Board of Directors Capital Structure Murray Black Non Exec Chairman Issued Shares 596.4M Christian Easterday Managing Director Unlisted Options 11.0 M (30c, exp Jun 2019) Michael Anderson Non Exec Director 8.0M (10c, exp Sept 2018 20.0M (3.33c, exp Jun 2019)
Slide 8: Centre of Gravity
Centre of Gravity ▪ Low altitude coastal range copper operating centre For personal use only ▪ 700km north of Santiago Chile, significant infrastructure advantage secured Productora (Flagship JV) ▪ 80% HCH ▪ 20% CMP 20 km Radius El Fuego (4 Yr Options) Valentina ▪ San Antonio ▪ Valentina ▪ Lulu HOT
Slide 9: Productora – Value Springboard
Productora– Value Springboard For personal use only ▪ Asset highly leveraged to copper price ▪ Economics also highly leveraged to additional mine life and higher grade blend ▪ Confirming critical mass key to delivering standout economics and DFS green light Productora PFS Valuation (US$ NPV) against
Slide 10: El Fuego – High Grade Options
El Fuego – High Grade Options For personal use only ▪ Option deals to earn controlling interest in three high grade copper mines combined as the El Fuego copper project ▪ San Antonio ▪ Valentina ▪ Lulu ▪ Family owned mines for over 50 years with little/no modern exploration or resource drilling ▪ 2.
Slide 11: San Antonio - Grade and Scale
San Antonio- Grade and Scale For personal use only ▪ Privately owned and mined since 1964 ▪ JV Option Agreement executed 8th Nov 2017 ▪ 4 Yr term to earn 90% interest ▪ No payments/commitments in first 3 Yrs San Antonio Main Lode ▪ Payment of US$0.3M in 36 Historical Production months and US6.7M in
Slide 12: San Antonio - Mine Model
San Antonio- Mine Model For personal use only ▪ Only 9 historical surface drill holes and limited information available. ▪ Strike & depth potential untested and unknown Parallel Lode San Antonio Main Lode San Antonio Main Lode Historical Production 2Mt grading 2% Cu and 0.3g/t Au Historic Developmen
Slide 13: San Antonio - Attractive Scale
San Antonio- Attractive Scale San Antonio Main Lode For personal use only (Historical Level Plans & UG Drilling) ▪ Cu-Au-Ag orebody steeply dipping (60-70) towards the east ▪ Historical UG production levels demonstrate width potential (7- 30m production widths) ▪ Largely untested at depth and along
Slide 14: San Antonio - Being Mined Now
San Antonio- Being Mined Now For personal use only ▪ Lease mining allowed to continue under capped 50ktpa arrangement during Option period ▪ Sulphide copper being mined from near-surface and processing of ore through nearby ENAMI plant ▪ 2- 4% Cu ore grades being exploited from shallow depth along n
Slide 15: San Antonio - Bigger than First Recognised
San Antonio- Bigger than First Recognised For personal use only ▪ Miners extract 16 tonne ore parcel in exploratory drive 300m south of underground ▪ 5.2% Cu over 2m width from 12-15m depth (ENAMI certified) ▪ Large-scale deposit setting recognised with over 1km of mineralised strike extent Refer to
Slide 16: San Antonio - Not Alone
San Antonio- Not Alone For personal use only ▪ In-fill surface geochemical programme results ▪ Confirming multiple +1km surface copper anomalies south of San Antonio ▪ Peak rock chip result of 0.9% copper and 40g/t silver Refer to ASX Announcement dated 8th March 2018 “Miners Exploit Shallow High Gr
Slide 17: Valentina - Latest Addition
Valentina- Latest Addition For personal use only ▪ 5km north of San Antonio ▪ Non Binding LOI for JV Option executed 21st Feb 2018 ▪ 4 Yr term to earn 90% interest ▪ No payments in first 3 Yrs ▪ Payment of US$0.15M in 36 months and US$4.0M in 48 months Refer to ASX Announcement dated 21st Feb 2018 “
Slide 18: Valentina - Another San Antonio?
Valentina- Another San Antonio? For personal use only ▪ Historical small-scale underground mine, with 1 – 5m development widths exposed at surface ▪ Certified mine grades of 3.4% to 4.8% Cu (Average 4% Cu) from 1997 ▪ Detailed mapping and surface sampling by HCH confirm over 700m strike potential Re
Slide 19: Valentina - Historical Drilling
Valentina- Historical Drilling For personal use only ▪ End of Hole 11m @ 2% Cu not followed up ▪ 7 historical drill holes completed in 1993 ▪ Wide zones of chalcopyrite logged and not sampled HOT CHILI Presentation 19
Slide 20: Valentina - Mine Area Focus
Valentina- Mine Area Focus For personal use only ▪ Shallow high grade copper sulphide potential ▪ Currently 230m strike extent across mine area ▪ Open along strike and at depth HOT CHILI Presentation 20
Slide 21: Lulu - Extension of a Trophy Mine
Lulu- Extension of a Trophy Mine For personal use only Sucovon Mine Reportedly Developed to 600m depth Mine widths of 1.5m to 2m Average grade of 6% Cu and 3g/t Au Lulu High Grade Cu-Au Vein Refer to ASX Announcement dated 7th Nov 2017 “Lulu high Grade Copper Satellite Copper Project Secured” HOT CH
Slide 22: Lulu - Third High Grade Option
Lulu- Third High Grade Option For personal use only ▪ 30km west of Productora ▪ JV Option Agreement executed 7th Nov 2017 ▪ 4 Yr term to earn 70% interest ▪ US$ 2.45M payment schedule US$75k execution US$75k Yr 1 US$150k Yr 2 US$150k Yr 3 US$2M Yr 4 Refer to ASX Announcement dated 7th Nov 2017 “Lulu
Slide 23: Lulu - Outstanding Potential
Lulu- Outstanding Potential For personal use only ▪ Sucovon is one of the highest grade historical mines in the region, commenced by British in 1860’s ▪ Exploited vein widths up to 7m with grades Lulu Rock Chip averaging 12% copper and 5g/t gold Sample Results ▪ Lulu is the 800m direct strike extens
Slide 24: Lulu - Impressive Results
Lulu- Impressive Results ▪ Detailed mapping and sampling over 800m strike length of main ore hosting vein For personal use only ▪ Confirmed high grade Cu & Au at surface over widths ranging from 70cm to 4.1m Refer to ASX Announcement dated 7th Dec 2017 “Impressive Surface Results Returned from Lulu”
Slide 25: Expected News Flow
Expected News Flow For personal use only ▪ Over 400 surface sample results pending from detailed mapping campaign across San Antonio and Valentina ▪ Expanded regional soil sampling programme underway over San Antonio and Valentina landholdings ▪ Commencement of first drilling programme to test multi
Slide 26: Qualifying Statements
Qualifying Statements For personal use only Mineral Resource and Ore Reserve Confirmation The information in this presentation that relates to Mineral Resources and Ore Reserve estimates on the Productora copper project was previously reported in the ASX announcement “Hot Chili Delivers PFS and Near
Slide 27: Productora JORC Compliant Mineral Resource
Productora JORC Compliant Mineral Resource Productora Project Higher Grade Resource, March 2016 For personal use only 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,
Slide 28: Qualifying Statements: Competent Person's Statement
Qualifying Statements Competent Person’s Statement For personal use only 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
Slide 29: View Across San Antonio
View Across San Antonio For personal use only HOT CHILI Presentation 29
Slide 30: Hot Chili Limited
Hot Chili Limited ACN 130 955 725 ASX: HCH Level 1, 768 Canning Highway, Applecross, Western Australia 6153 For personal use only P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.com.au