Hot Chili Limited (ASX: HCH) has entered into Option Agreements to acquire 100% interest in two historical copper mine areas; Marsellesa and Cordillera, located near Hot Chili’s Costa Fuego Copper- Gold Project I the coastal range of the Atacama Region, Chile
Marsellesa and Cordillera are located approximately 10km southwest of Costa Fuego’s planned central processing hub.
Both mine areas have been privately held and historically exploited for shallow copper oxide and copper sulphide material but have never previously been drill tested.
The Marsellesa mine area is laterally extensive, measuring 400m in length and 200m in width, with mine workings exposing multiple zones of shallowly-dipping, strata-bound (manto-style), copper mineralisation.
Lying approximately 1km west of Marsellesa, the smaller Cordillera mine workings expose outcropping porphyry copper mineralisation with well-developed stockwork and sheeted A and B style porphyry veining.
First-pass Reverse Circulation (RC) drilling is planned to commence at Marsellesa and Cordillera in the coming week, following completion of drilling at the company’s Corroteo exploration target, located 5km southeast of the Cortadera porphyry copper-gold deposit.
These latest project additions, including the Cometa project, provide a pipeline of opportunities and additional optionality for the discovery of new mineral resources for the company’s Costa Fuego copper hub.
Hot Chili continues to pursue further regional consolidation as the company advances its growth strategy for Costa Fuego.
Hot Chili is focussed on up-scaling Costa Fuego’s resource base and potential study scale towards a 150,000 tpa copper production profile, in order to further enhance project returns ahead of the delivery of the Costa Fuego Pre-Feasibility Study (PFS).
Option.
- Option may be exercised within 48 months of the date of grant of the Cordillera Option for a final non-refundable cash payment of US$3,700,000.
- Within the Cordillera concessions, ADC will also be granted a 1% NSR royalty over any material extracted from underground operations, and a 1.5% NSR royalty over any material extracted from open pit operations, on exercise of the Cordillera Option. Frontera will have a right of first refusal to buy-back the NSR royalties.
Hot Chili is well positioned with A$21.8 million in cash (as of 30th September 2023), and a near-term focus on regional land consolidation and rapid definition of additional high grade and bulk tonnage copper resources for Costa Fuego.
