Hot Chili Limited · ASX:HCH
Hot Chili — Diggers and Dealers Conference 2013
24 slides from Hot Chili's conference presentation, August 2013
Slide 1: Productora Copper Project Chile
ACN130 955 725 PRODUCTORA COPPER PROJECT CHILE Diggers and Dealers Conference Kalgoorlie, August 2013
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: Strong Performance & Fundamentals
Strong Performance & Fundamentals A 2013 Financial Year- ASX Resources Top Performers Ranked 7th by Mkt Cap One of the leading emerging copper producers on ASX Advanced, large, high quality assets located in the infrastructure-rich Chilean coastal range Ranked 12th by Strategic partnersh
Slide 4: Growth & Development Milestones
Growth & Development Milestones Already achieved in 2013 Resource at Productora near doubled in size in first major resource upgrade Productora Pre-feasibility gets go-ahead following successful Scoping Study indicating highly favorable project economics Purchase of central lease finalises las
Slide 5: Strategic Support and Funding
Strategic Support and Funding Successful A$11.7 million capital raising announced in Cash at Hand early July 2013 Approx. A$ 11.1 million (30th June) Prior to July capital raising Strongly supported by Chilean resources major CAP S.A. and affiliates of Sprott Inc Capital Structure 323.6 Million
Slide 6: Delivering Growth & Leverage
Delivering Growth & Leverage Drill coverage over planned central pit area at Productora- 3km field of view, July 2013 Near-term value catalysts and leverage: Deliver second major resource upgrade at Productora- +50,000m already complete Completion of Productora infrastructure and oxide agreement
Slide 7: Productora Resource Growth
Productora Resource Growth Shallow, at-surface resources growing Resource currently 165Mt grading 0.6% copper, 0.1g/t gold and 132g/t molybdenum High grade component now stands at 53Mt grading 0.8% copper and 0.2g/t gold 100,000m drilling programme underway to deliver second resource upgrade i
Slide 8: Productora Resource Upgrade
Productora Resource Upgrade In-pit focused extensional drilling Productora Resource- Section 6820920mN Block model, preliminary pit design, east and western flank waste area West East Eastern Flank- previously considered waste in scoping study Preliminary pit design Western Flank- parallel magnetite
Slide 9: Productora Resource Upgrade
Productora Copper Project Preliminary Pit Design & Extensional Drill Results Eastern Flank Significant Intersections 149m@ 0.7% Cu, 0.2g/t Au, 259ppm Mo Productora 36m@ 0.8% Cu, 0.1g/t Au, 61ppm Mo Incl 12m@ 1.2% Cu, 0.1g/t Au, 109ppm Mo Incl 51m@ 1.0% Cu, 0.2g/t Au, 381ppm Mo Resource Upgrade 80m@
Slide 10: Productora Resource Upside
Productora Resource Upside High-grade accessible from surface Resource open at depth, deeper targeting of higher grade copper zones planned for 2014 North South Central High Northern High Grade Zone Grade Zones CCHEN South High Grade Zone (Productora Mine area) Surface Copper Grade % 0.3-0.4 0.4-0
Slide 11: Productora Infrastructure Leverage
Productora Infrastructure Leverage Reduce time and cost of development and operations Huasco Port Vallenar Infrastructure Located in the heart of Major projects/mines Power substations CAP/CMP’s northern iron Major town operations Port/Maritime Concession Productora Fe Pellet Plant Rail Power Transm
Slide 12: Productora Infrastructure Agreements
Productora Infrastructure Agreements Partnership with Chilean Resource Major CAP/CMP CAP’s Huasco port operations adjacent to Productora Technical committee of HCH and CMP advancing with study of infrastructure agreements Water extraction regulatory application underway- submitted in early 2013
Slide 13: Productora Oxide Option
Productora Oxide Option Leverage to Win-Win Outcome LOI signed with government corporation ENAMI in June, negotiating oxide option for Productora ENAMI plant 15km from Productora is planned to be significantly expanded Oxide ore previously treated as pre-strip in scoping study Potential to r
Slide 14: Scoping Study Completed & Pre-Feasibility Advanced
Scoping Study Completed & Pre-Feasibility Advanced Concept/Scoping Study Parameters – Delivered in February 2013 Processing Rate ~11Mtpa (Open pit- copper and gold only) Strip Ratio 3.5-4.5 : 1 (Target strip ration of 4:1) Metallurgical Recovery >90% Cu, ~80% Au, ~75% Mo (coarse 180um grind size) Fl
Slide 15: Productora Growth & Development Timeline
Productora Growth & Development Timeline Delivering a rapid large-scale copper development Deliver PFS & Decision to Mine & Procurement & Potential Start Start DFS Project Financing Construction of mining 2013 2014 2015 2016 2017 1st Cu-Au-Mo 2nd Cu-Au-Mo First Iron Ore Potential Cu-Au-Mo Resource U
Slide 16: Drilling Discovers Second Major Copper-Gold Project
Drilling Discovers Second Major Copper-Gold Project 12,000m RC drilling complete at Frontera copper-gold project 70km south of Productora and connected via sealed road and rail Large copper-gold porphyry drill confirmed from surface Resource modelling underway to increase production hub reso
Slide 17: Frontera Set to be Second Growth Project
Frontera Set to be Second Growth Project 17
Slide 18: Banderas Exploration Identifies Significant Copper Potential
Banderas Exploration Identifies Significant Copper Potential Banderas Project Copper Surface Geochemistry and Structure Consolidated early stage copper project, 50km north of Productora <0.5% Cu >0.5% Cu >2.5% Cu Several high-grade, small-scale copper UG mines Significant exploration undertake
Slide 19: Projects and Growth Pipeline
Projects and Growth Pipeline Building a Large-Scale Copper Business Production Hub Strategy for Region III and IV of Chile’s coastal range Leverage off existing infrastructure advantage at Productora Potential future production target of 120-150ktpa of copper Construction/ Production Productio
Slide 20: Streamlining & Strong News Flow
Streamlining & Strong News Flow Core Business Focus Streamlining business activities- 12 month activity plan fully funded by cash, 20c option conversion and July capital raising Cost reduction programme implemented- +50% reduction in monthly company expenditure rate achieved Drilling results a
Slide 21: Qualifying Statements
Qualifying Statements Copper Equivalent Calculation (Cu Eq*) Copper Equivalent (also Cu Eq*) Calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allow
Slide 22: Qualifying Statements
Qualifying Statements JORC Compliant Resource Statement- Reported 13th February 2013 Classification Resource Series Tonnage Grade Contained Metal Molybdenu (+0.3% Cu) Cu Au Mo Cu Eq* Copper Gold m Copper Eq* % g/t g/t % (Tonnes) (Oz) (Tonnes) (Tonnes) Res Upgrade 1 39,400,000 0.6 0.1 124 0.8 230,000
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Slide 24: Company positioned as one of leading ASX emerging copper producers
“ the company is positioned as one of leading ASX emerging copper producers” Hot Chili Limited ACN 130 955 725 Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au ASX: HCH 24