Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (April 2021)
26 slides from Hot Chili's investor presentation, April 2021
Slide 1: Cortadera Rising
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 9Yr High Strengthening Demand – Forefront of Green Revolution Supply Squeeze Tightening – Lack of Major Discoveries Continues 10 Year Copper Price US$4.28/lb Performance COVID Slump March 2020 +105% 2013 2015 2017 2019 2021
Slide 4: Cortadera & Winu
One of Just Two Major Copper Discoveries Recorded in the World since 2016 Cortadera & Winu Hot Chili Presentation 4
Slide 5: World-Class Cortadera Discovery
Leading ASX Copper Developer World-Class Cortadera 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 Becomes
Slide 6: Corporate Overview
Corporate Overview Capital Structure 2 Year Performance Issued Shares 3,058,876,990 Share Price +350% Mkt Capitalisation +1,350% Share Price A$0.045 (19th April 2021) Mkt A$138 M Capitalisation 4.5c Mkt Capitalisation A$168 M (fully diluted) (incl Con Notes, Options) Cash A$9.5 M (approx) Expected C
Slide 7: Costa Fuego – Major Copper Development
Costa Fuego – Major Copper Development Combined Development • Chilean costal 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 Test
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) Market Capitalisation (MC) & Enterprise Value (EV) Source- AuCu Consulting, 16th April 2021. AuCu Consulting has provided consent to Hot Chili to use this data. Hot Chili has not verified the key prices and assumptions used to determine CuEq estimations or fina
Slide 11: Significant Value Gap Open
Signficant Value Gap Open North American Peer Enterprise Value Range US 1.6c/lb to 11.7c/lb CuEq HCH - US 1.0c/lb CuEq Source- AuCu Consulting, 16th April 2021. AuCu Consulting has provided consent to Hot Chili to use this data. Hot Chili has not verified the key prices and assumptions used to deter
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 Six 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-18-06
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 • 2 Rigs operating, 3rd Rig commencing next week FJOD-0010 (52-54m), 1.3% Cu, 0.64g/t Au Refer to ASX Announcement “High Grade Copper-Gold Core Continues to E
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 “Cortadera Copper-Gold Update – More Copper, More Gold” (16th April 2021). Hot Chili Presentation 17
Slide 18: New Results High Grade Core Expansion
New Results High Grade Core Expansion Cuerpo 2 Cuerpo 3 1,000m RL CRP0061D 813m @ 0.4% Cu, 0.1g/t Au (from 54m to EOH) Incl 318m @ 0.6% Cu, 0.2g/t Au CRP0046D +0.4% Cu 500m RL 58m @ 0.5% Cu, 0.2g/t Au (from 262m) & 185m @ 0.5% Cu, 0.2g/t Au (from 568m) OPEN +0.1% Cu CRD0080D Results Pending 1km 0m R
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 an ASX Copper Major
Building an ASX Copper Major • Maiden Cortadera Resource (MR) October 2020 • Start Combined PFS – Q2/Q3, 21 • HG Satellite Resource – Q2/Q3, 21 (Productora & San Antonio) • Cortadera MR Upgrade – Q4, 21 • Dual listings in North America – 2H, 21 (subject to mkt conditions) • Final Cortadera 100% Acqu
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, Feb 2021
Cortadera Core Farm, Feb 2021 Hot Chili Presentation 25
Slide 26: 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 26