Hot Chili Limited · ASX:HCH
Hot Chili — LADU Conference (May 2019)
33 slides from Hot Chili's conference presentation, May 15, 2019
Slide 1: Cortadera Unlocks a New Global Copper Contender
Cortadera Productora Big Copper Cortadera Unlocks a New Global Copper Contender HG Satellites ASX code: HCH May 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 1. The Game Changer – Large Discovery Next to Productora 2. Drilling & Funding – Gathering Momentum 3. Corporate Overview – One of Few Large ASX Cu Developers 4. Recent Big Copper Discovery Comparison 5. Cortadera – Private Copper-Gold Discovery Unveiled 6. High Grade Sat
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 ▪ Details
Slide 5: Consolidation of a Copper Super-hub in Coastal Chile
Consolidation of a Copper “Super-hub” in Coastal Chile Huasco Maintencillo Pan Freirina Power Substation American Highway Seawater Pipeline Los Losas Easement Vallenar Regional Port (CAP) Granitoids Power Transmission Line Easement 20km Radius Valentina Productora Copper Development PFS Complete 10
Slide 6: Major Cu-Au Porphyry Discovery Drill Results
Major Cu-Au Porphyry Discovery Drill Results 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 gold), 268m
Slide 7: Option to Consolidate the Entire Cortadera Copper-Gold Discovery
Option to Consolidate the Entire Cortadera Copper-Gold Discovery 1. Option Agreement executed with SCM Carola to acquire 100% interest in Cortadera (1.5km of the 2km long discovery zone) Purchase price of US$30 million, over a 30 month term as follows: ▪ US$5 million within 6 months from execution o
Slide 8: Confirmation Drilling Underway
2. Drilling & Funding Confirmation Drilling Underway ▪ First Shallow RC Results Validate Cortadera Discovery 122m grading 0.6% copper and 0.3g/t gold from surface incl 20m grading 1.2% copper and 0.5g/t gold from 40m depth 118m grading 0.5% copper and 0.3g/t gold from surface incl 22m grading 0.7% c
Slide 9: Deal Funding Process Underway
Deal Funding Process Underway ▪ Strong in-bound domestic and international funding interest ▪ Sternship Advisors appointed to manage funding discussions Deep RC drilling at Cortadera, May 14th 2019 Deep diamond drilling at Cortadera, May 14th 2019 Refer to“Near-Surface Enrichment & Extensive Copper-
Slide 10: One of Few Large ASX Cu Developers
3. Corporate Overview One of Few Large ASX Cu Developers Board of Directors Capital Structure Murray Black Non Exec Chairman Issued Shares 1,112,805,932 Christian Easterday Managing Director Share Price A$0.029 (14th May 2019) Michael Anderson Non Exec Director Mkt Capitalisation A$32 M Allan Trench
Slide 11: Building Hot Chili into a Premier ASX Copper Developer
Building Hot Chili into a Premier ASX Copper Developer Huasco Maintencillo Power Substation Pan Freirina American Power Transmission Highway Line Easement Seawater Pipeline Los Losas Vallenar Easement Port (CAP) Regional Productora Granitoids Copper Development 10km Radius Combining Cortadera and Pr
Slide 12: 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 Mine Life PFS Complete ▪ 66kt Cu and 25koz Au production Bulk Tonnage annually over first 8 Yrs Cortadera ▪ Major porphyry Cu-Au discovery ▪ Extending from s
Slide 13: Recent Big Copper Discovery Comparison
4. 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 14: 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 15: Top Drill Intersections (Cu, Au only)
Top 3 Drill Intersections (Cu, Au only) Cortadera (Early Stage) 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 198m grading 0.6% copper and 0.2g/t gold from 652m down-hole depth Winu (Early Stage) 741m grading 0.4%
Slide 16: 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 due shortly complete DEPOSIT INVENTORY 2 x Tier 2 Cu Deposits & 1 x Tier 2 Cu Deposit & 1 x Tier 1 Cu Deposit Sma
Slide 17: 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 18: Cortadera: Private Copper-Gold Discovery Unveiled
5. Cortadera Private Copper-Gold Discovery Unveiled HOT CHILI Presentation 18
Slide 19: Three Porphyry Centres Discovered
Three Porphyry Centres Discovered Refer to“Terms Secured to Acquire Major Copper-Gold Discovery next to Productora” (ASX Announcement 4th February 2019) HOT CHILI Presentation 19 for further detail on drill results
Slide 20: First Four Confirmation Holes
First Four Confirmation Holes Cuerpo 2 - Cortadera CRP0004 Porphyry Discovery 74m @ 0.5% Cu, 0.2 g/t Au (from 2m) Incl 6m @ 1.1% Cu, 0.4 g/t Au B2 CRP0003 122m @ 0.6% Cu, 0.3 g/t Au (from surface) Incl 20m @ 1.2% Cu, 0.5g/t Au CRP0002 72m @ 0.5% Cu, 0.3 g/t Au (from surface) B2’ CRP0001 118m @ 0.5%
Slide 21: Open Along Strike And At Depth
Open Along Strike And At Depth A Cuerpo 1 A’ 1000 RL Base of oxidation Cross Section A ▪ Tonalite Porphyry Cluster Including Including discovered 42m @ 0.6% Cu, 16m @ 0.7% Cu, 800 RL 0.2g/t Au 0.2g/t Au 406m @ 0.4% Cu, 150m @ 0.4% Cu, 0.2g/t Au ▪ Drill tested from surface to 0.2g/t Au 1km depth 1km
Slide 22: Chalcocite Enrichment Confirmed
Chalcocite Enrichment Confirmed Cross Section B B B’ Cuerpo 2 1000 RL CRP0003 74m @ 0.5% Cu, CRP0004 CRP0002 CRP0001 0.2g/t Au 122m @ 0.6% Cu, 0.3 g/t Au 72m @ 0.5% Cu, Copper oxide 0.3 g/t Au 118m @ 0.5% Cu, Base of 0.3 g/t Au mineralisation oxidation 800 RL 950 RL 158m @ 0.7% Cu, 0.3g/t Au 174m @
Slide 23: Large Resource Potential From Surface
Large Resource Potential From Surface Cuerpo 3 Purisima Cross Section C ▪ Three porphyry centres discovered so far ▪ Copper oxide to 100m depth and associated with malachite and chalcocite ▪ Copper sulphide associated with Chalcopyrite ▪ Amenable to low-strip ratio open pit mining Refer to“ “Option
Slide 24: Solid Foundation for First Cortadera Resource Estimate
Solid Foundation for First Cortadera Resource Estimate ▪ US$15M in drilling and Surface sample –typical A vein array commonly found in outcropping exploration spent porphyry at Cortadera already (US$12M in drilling alone) ▪ 23,231m DD (HQ) half core remaining Refer to“Terms Secured to Acquire Major
Slide 25: High Grade Satellites: The Sweeteners
6. High Grade Satellites The Sweeteners • Historical Production of 2Mt grading San Antonio 2% Cu and 0.3g/t Au from surface Mine • 4,600m drilling complete in July 18 • Pre-Resource stage Valentina • Drill Success from first 3 holes Mine • 12m grading 1.5% copper from 28m (including 6m grading 2.7%
Slide 26: San Antonio – Resource-Ready High Grade Satellite
San Antonio – Resource-Ready High Grade Satellite 4km from Cortadera ▪ 39 Reverse Circulation (RC) drill holes for approximately 4,600m completed across mine area over 700m in July 2018 ▪ Large Extensional Discovery Confirmed at San Antonio ▪ 19m grading 2.0% copper from 61m down-hole depth (includi
Slide 27: What's Next
7. What’s Next 1. Deep RC confirmation drill results expected in the coming weeks 2. First DD drill results across main porphyry expected early June 3. Strategic funding discussions with multiple groups underway 2019 Deliver first Mineral Resource estimate for Cortadera and high grade satellites int
Slide 28: Qualifying Statements
Qualifying Statements 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 Doubles Reserves at P
Slide 29: 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 30: 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 31: View Across Cortadera
View Across Cortadera HOT CHILI Presentation 31
Slide 32: View Across San Antonio
View Across San Antonio HOT CHILI Presentation 32
Slide 33: Hot Chili Limited contact details
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