Hot Chili Limited · ASX:HCH
Hot Chili — Investor Presentation (July 2018)
28 slides from Hot Chili's investor presentation, Jul 19, 2018
Slide 1: San Antonio Rising
For personal use only San Antonio Rising • Scale & Grade • Strong First Drill Results ASX code: HCH July 2018 Hot Chili Presentation 1
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 For personal use only Hot Chili in 2013 ▪ HCH Market Capitalisation A$250M (Cu price US$3.00 – 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: Rising Momentum Copper Price
Rising Momentum Copper Price ▪ Set to test Bull Market conditions ahead of looming supply deficit expected in 2020 For personal use only ▪ Advanced large copper developments are rare 4.00 Copper Price Bull Market 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 Deliver Grade Major Upside For personal use only Major Chilean Copper Asset - Productora PFS Complete ▪ 10 Years Mine Life 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: Critical Mass Mine Life
Critical Mass Mine Life For personal use only Emerging Large Coastal Operating Centre Pan American Huasco Highway Maintencillo Feirina Sub Station ▪ Taking advantage of planned large-scale, Las Losas Port Vallenar low-cost processing facility (CAP) Seawater Pipeline Power Easement Transmission Easem
Slide 7: Strong First Drill Results for San Antonio
Strong First Drill Results for San Antonio For personal use only • First drill results released to ASX today confirm continuation of the San Antonio Main Lode. SAP0001 - 19m grading 2.0% copper from 61m down-hole depth (including 11m grading 2.4% copper) SAP0002 – 15m grading 1.7% copper from 80m do
Slide 8: Corporate Overview
Corporate Overview For personal use only Board of Directors Capital Structure Murray Black Non Exec Chairman Issued Shares 735.1M 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 9: 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 Valentina (4 Yr Options) ▪ San Antonio ▪ Valentina ▪ Lulu Hot
Slide 10: 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 11: 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 Valentina ▪ Valentina ▪ Lulu ▪ Family owned mines for over 50 years with little/ no modern exploration or resource dr
Slide 12: 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 ▪ Payment of US$0.3M in 36 months San Antonio Main Lode and US6.7M in 48 months Historical P
Slide 13: Initial Mine Model
Initial Mine Model For personal use only Parallel Lode ▪ Only 9 historical surface drill holes and limited information available San Antonio Main Lode ▪ Strike & depth potential untested and unknown San Antonio Main Lode Historical Production ▪ Limited information 2Mt grading 2% Cu and 0.3g/t Au ini
Slide 14: 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 15: 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 16: 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 17: San Antonio Level- Main Lode
San Antonio 110 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) ▪ Coordinated UG face sampling to commence shortly with Lea
Slide 18: San Antonio - Rare Opportunity
San Antonio - Rare Opportunity For personal use only ▪ Brownfield high grade copper opportunity – Large Open Pit and Underground potential Refer to ASX Announcement dated 23rd April 2018 for Table 1 Notes to historical mine information Hot Chili Presentation 18
Slide 19: San Antonio – First Drill Results Impress
San Antonio – First Drill Results Impress For personal use only ▪ 39 Reverse Circulation (RC) drill holes for approximately 4,600m completed across mine area over 700m ▪ Results released for first 16 holes ▪ Assays pending for 10 holes which have recorded strong visual copper intersection ▪ Drilling
Slide 20: Drilling Results San Antonio Copper Mine Long Section
342300mE 342500mE 6818800mN 6819200mN South DRILLING RESULTS San Antonio Copper Mine Long Section (El Fuego Copper Project, Chile) SAP0017 (7m incl 5m stope) SAP0016 SAP0020 North For personal use only Historical (7m incl 5m stope) (11m incl 7m stope) SAP0024 Stope 40 Level (10m incl 5m stope) 1,200
Slide 21: San Antonio – Shallow Depth, Shallow Dip
San Antonio – Shallow Depth, Shallow Dip For personal use only ▪ Shallow dipping high grade copper mineralisation ▪ Near true width drilling intersections ▪ High tonnage per vertical metre ▪ Attractive for shallow open-cut mining Refer to ASX Announcement dated 18th July 2018 for Table 1 Notes to ex
Slide 22: Large Targets Confirmed South of San Antonio
Large Targets Confirmed South of San Antonio For personal use only ▪ Follow-up confirmation of 6 large targets south of San Antonio ▪ Surface results up to 6.5% copper, 2g/t gold and 24g/t silver ▪ Geophysics and details surface work being planned Refer to ASX Announcement dated 18th July 2018 for T
Slide 23: Expected News Flow
Expected News Flow For personal use only ▪ Prioritised drill results pending for 10 strongly mineralised visual intersections at San Antonio ▪ Results for 24 RC drill holes expected over the coming weeks ▪ First drilling underway at Valentina - initial 3 confirmation holes ▪ Exploration work to kick
Slide 24: 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 25: 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 26: Qualifying Statements
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 27: View Across San Antonio
View Across San Antonio For personal use only Hot Chili Presentation 27
Slide 28: 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 Hot Chili Presentation 28