Hot Chili Limited · ASX:HCH
Hot Chili — Latin America Downunder 2018
25 slides from Hot Chili's conference presentation, May 16, 2018
Slide 1: San Antonio Rising – Scale & Grade
For personal use only San Antonio Rising Scale & Grade ASX code: HCH 16th May 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 700.9M Christian Easterday Managing Director Unlisted Options 8.0M (10c, exp Sept 2018 Michael Anderson Non Exec Director 11.0 M (30c, exp Jun 2019) 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 Antonio ▪ Valentina ▪ Lulu ▪ Family owned mines for over 50 years with little/no modern exploration or resource drill
Slide 11: San Antonio – Scale & Grade
San Antonio- Scale & Grade 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 48
Slide 12: Initial Mine Model
Initial Mine Model For personal use only ▪ Only 9 historical surface drill holes and limited information available. ▪ Strike & depth potential untested and unknown – limited information initially Parallel Lode San Antonio Main Lode San Antonio Main Lode Historical Production 2Mt grading 2% Cu and 0.
Slide 13: Lease Miners Provide the Key
Lease Miners Provide the Key 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 14: 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) ▪ Detailed mapping and sampling by HCH ▪ Large-scale deposit setting recognised with over 1.
Slide 15: Main Lode Open & Untested
Main Lode Open & Untested For personal use only ▪ 30m wide Main Lode confirmed to Continue at depth – OPEN & UNTESTED ▪ Lease Miners currently developing direct extension of Main Lode, 110m from surface ▪ Multiple parallel Lodes confirmed on hangingwall and footwall Refer to ASX Announcement dated 2
Slide 16: San Antonio Level – Main Lode
San Antonio 60 Level- Main Lode For personal use only ▪ Strong continuity of grade and width in historical mine data ▪ 7m to 30m development widths Selected UG Face Channel Results 7.5m grading 10.4% Cu 8.5m grading 2.3% Cu 9m grading 2.0% Cu 6.1m grading 2.2% Cu Selected UG Drilling Results 12m gra
Slide 17: San Antonio Level – Main Lode
San Antonio 90 Level- Main Lode For personal use only ▪ Shallow development depth ▪ Sulphide orebody from near-surface (chalcopyrite, bornite association) Selected UG Face Channel Results 24.6m grading 2.2% Cu 24.7m grading 1.7% Cu 24.7m grading 1.8% Cu 12.3m grading 2.4% Cu Selected UG Drilling Res
Slide 18: San Antonio 110 Level – Main Lode
San Antonio110 Level- Main Lode For personal use only ▪ Historical development on 150 Level ineffective (30m too far east) ▪ Main Lode dimensions potentially over 700m strike extent, at 7-30m width and +2% copper grade (+Au and Ag credits) ▪ Co-ordinated UG face sampling to commence shortly with Lea
Slide 19: San Antonio – Rare Opportunity
San Antonio- Rare Opportunity For personal use only ▪ Brownfield high grade copper opportunity – Large Open Pit and Underground potential ▪ Initial drilling to target depth and strike extensions of San Antonio mine area Refer to ASX Announcement dated 23rd April 2018 for Table 1 Notes to historical
Slide 20: Expected News Flow
Expected News Flow For personal use only ▪ Commencement of first drilling programme to test multiple high grade targets across El Fuego in June ▪ Drilling to focus on San Antonio and Valentina high grade mine areas and extensions ▪ Results from second campaign of detailed mapping and sampling extend
Slide 21: 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 22: 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 23: 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 24: View Across San Antonio
View Across San Antonio For personal use only HOT CHILI Presentation 24
Slide 25: 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.net.au