Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (August 2021)
28 slides from Hot Chili's investor presentation, August 2021
Slide 1: Cortadera Rising: Big Vision in Big Copper
Cortadera Rising Big Vision in Big Copper
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: Copper: The Doctor is Back!
COPPER The Doctor is Back! Top Performing Metal of Past 12 months - Price at 10Yr High Strengthening Demand – Forefront of Green Revolution Supply Squeeze Tightening – Lack of Major Discoveries Continues 10 Year Copper Price US$4.53/lb Performance COVID Slump March 2020 +120% 2013 2015 2017 2019 202
Slide 4: Cortadera & Winu: One of Just Two Major Copper Discoveries Since 2016
One of Just Two Major Copper Discoveries Recorded in the World since 2016 Cortadera & Winu Hot Chili Presentation 4
Slide 5: World-Class Cortadera Porphyry Discovery
Leading ASX Copper Developer World-Class Cortadera Porphyry Discovery Largest ASX Copper Resource Chile Costa Fuego Head Outside of the control of a major mining company Cu-Au Resource Office 2.9 Mt 2.7 Moz Building an ASX Copper Gold Copper Major 9.9 Moz 64 kt Refer to ASX Announcement “Costa Fuego
Slide 6: Corporate Overview
Corporate Overview Capital Structure 30 Month Share Price Performance Issued Shares 3,108,196,315 Share Price A$0.037 (27th July 21) Mkt A$115 M 3.7c Capitalisation Share Mkt Capitalisation A$138 M Price (fully diluted) (incl Con Notes, Options, Cortadera Performance Rights) HG Core MRE1 Cash A$3.5
Slide 7: Costa Fuego – Major Copper Development
Costa Fuego – Major Copper Development Combined Development • Chilean coastal range • 600km north of Santiago • Low Altitude - 800-1,000m elevation • Compatible metallurgy, good recovery • Clean Cu-Au concentrate (no arsenic) Refer to ASX Announcement “Positive Results from Initial Metallurgical Tes
Slide 8: Rare Development Setting: Low-Altitude, Infrastructure Access & 50km to Port
Rare Development Setting Low-Altitude Infrastructure Access & 50km to Port Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-
Slide 9: Metal & Grade of Top Copper Resources
Metal & Grade of Top Copper Resources • Largest copper Mineral Resource controlled by an ASX-listed emerging company • One of the few low-altitude, no arsenic, tier-1 location, infrastructure- ready major copper resources – and it is new….not stalled! 0.48% Cu- Global Av Head grade of Production Av
Slide 10: North American Peers & Hot Chili (ASX)
North American Peers & Hot Chili (ASX) • HCH is one of a handful of Cu-Au porphyry companies focused in the Americas • Market Caps range from a low of $74M to a high of $1.4B • HCH (Mkt Cap $109M) is the only company in this space not listed on TSX/TSXV HCH- COPPER PORPHYRY PEER GROUP AuCu Copper Go
Slide 11: Significant Value Gap to ASX
Significant Value Gap to ASX • Hot Chili Limited (US$0.009/lb CuEq) • HCH trades at less than US$0.01/lb versus peer average of US$0.046/lb ENTERPRISE VALUE PER POUND CUEQ AuCu Total Mineral Inventory Consulting 1 Tonnes CuEQ Cu Au Ag Mo Copper Gold Silver Moly CuEQ EV/CuEQ Company Project / Locatio
Slide 12: Leading Project Development Attributes
Leading Project Development Attributes • Tier 1 Mining Jurisdiction – Chile • Low Altitude – 800m to 1,000m altitude (Coastal Range) • Clean Concentrate – No arsenic • Critical Infrastructure & Access – Easement for water/power & surface rights secured, 50km from port, Pan American Hwy, major power
Slide 13: A New World Class Cortadera Copper-Gold Discovery
A New World Class CORTADERA Copper-Gold • Deal to acquire 100% of Cortadera in Feb 2019 Discovery • Delivering world-class drill results by July 2019 • Maiden Resource Estimate announced Oct 2020 • 40,000m drilling underway • Major Resource Upgrade due in Q4 2021 DD Pre-collar drilling, Cortadera –
Slide 14: Leading Global Copper-Gold Discovery
Leading Global Copper-Gold Discovery Eight of the World’s Best Cu-Au Drill Results Recorded Since Jan 2018 Project Name Company Country Hole ID From (m) To (m) Interval (m) Cu (%) Au (g/t) Altar Aldebaran Resources Inc Argentina ALD-18-209 482 1,537 1,055 0.5 0.2 Cascabel SolGold Plc Ecuador CSD-18-
Slide 15: Getting Big Quickly
Getting Big Quickly • Big porphyry system being unlocked • Tier 1 growth potential confirmed • 40,000m drill programme commenced 11th January 2021 • 3 drill rigs operating, 5 shifts per day FJOD-10 (52-54m), 1.3% Cu, 0.64g/t Au Refer to ASX Announcement “High Grade Copper-Gold Core Continues to Expa
Slide 16: Maiden Cortadera Mineral Resource
Maiden Cortadera Mineral Resource • 2.3 km long porphyry deposit, over 1km vertical ore column from surface, open in key directions, and emergence of high grade cores Cuerpo 1 Cuerpo 2 Cuerpo 3 1,000m RL +0.1% Cu +0.4% Cu Model Model 500m RL +1km 0m RL JORC Resource (Oct, 2020) High Grade Core Repor
Slide 17: Resource Expansion - Two DD Rigs 24/7
Resource Expansion- Two DD rigs 24/7 Refer to ASX Announcement “Hot Chili Reports 144m at 1.0% CuEq” (16th June 2021). Hot Chili Presentation 17
Slide 18: New Results High Grade Core Expansion
New Results High Grade Core Expansion Refer to ASX Announcement “Hot Chili Reports 144m at 1.0% CuEq” (16th June 2021). Hot Chili Presentation 18
Slide 19: Why Test Deep? Follow the Grade & Veins
Why Test Deep? - Follow the Grade & Veins Cortadera Cu-Au Discovery (HCH) Alpala Cu-Au Discovery (SOLG) Cuerpo 3 Vertical Cuerpo 2 Depth Cu % 600m +0.4% Cu Alpala High Grade Zone (+0.9% CuEq) Cu Eq% +0.1% Cu 442Mt grading 1.4% CuEq (0.9% Cu, 0.9g/t Au) Limited/ no drilling 1,300m CRP0013D 43,000m Dr
Slide 20: Open Pit & Block Cave Kings of Cu-Au
Open Pit & Block Cave Kings of Cu-Au 1km Cortadera 2.3km Cadia East Underground (Newcrest) Cuerpo 1 Cuerpo 2 Cuerpo 3 Cu % Ore Reserve - 1.4Bt grading 0.45g/t Au & 0.29% Cu Annual Production – 843koz Au & 96kt Cu (Sept 20) AISC – A$136/oz Mining Method - Block Cave 1km Source: Newcrest Briefing Book
Slide 21: Large New Targets Being Advanced
Large New Targets Being Advanced • Cortadera North First-pass drilling underway • Santiago Z Geochem, Mapping & Geophysics First-pass drilling planned in 2H, 21 Refer to ASX Announcement “Second Large Copper Porphyry System Confirmed 5km South of Cortadera” (9th April 2021). Hot Chili Presentation 2
Slide 22: Building a Copper Major & Dual Listing on TSXV
Building a Copper Major & Dual Listing on TSXV Maiden Cortadera Resource (MR) – October 2020 Start Combined PFS – Q2/Q3, 21 TSXV Dual listing – 2H, 21 HG Satellite Resource –Q4, 21 Cortadera MR Upgrade – Q4, 21 Final Cortadera 100% Acquisition Payment – Before July 2022 CRP0061D Core, Cortadera – Fe
Slide 23: 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 Geoscient
Slide 24: Qualifying Statements
Qualifying Statements Reporting of Copper Equivalent Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag
Slide 25: Cortadera Core Farm, June 2021
Cortadera Core Farm, June 2021 Hot Chili Presentation 25
Slide 26: Drilling at Cortadera, July 2021
Drilling at Cortadera, July 2021 Hot Chili Presentation 26
Slide 27: Cortadera Field Operations, July 2021
Cortadera Field Operations July 2021 Hot Chili Presentation 27
Slide 28: Hot Chili Limited – Cortadera Copper-Gold Porphyry
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 Cortadera Copper-Gold Porphyry Discovery Hot Chili Presentation 28