Hot Chili Announces PFS & Maiden(1) Mineral Reserve(2) for the Costa Fuego Cu-Au Project
1. Hot Chili's PFS indicates strong economics for Costa Fuego copper-gold project.
2. The project boasts a 20-year mine life and 90 kt annual copper equivalent production.
3. Copper and gold prices are at record highs, benefiting Hot Chili significantly.
4. Strategic partnerships for funding will enhance project development and exploration.
5. Recent exploration successes may lead to further growth opportunities for the company.
The PFS results highlight strong profitability and growth potential, reminiscent of other successful mining projects that saw stock surges, such as First Quantum Minerals following its production expansions.
How important is it?
The comprehensive PFS indicates a promising cash flow, low capital intensity, and resource potential, making it crucial for investor sentiment and stock evaluations.
Why Long Term?
The project's long-term mine life and copper demand will positively influence HHLKF's stock over years, similar to trends seen in companies like Southern Copper Corp during favorable market conditions.
Top Quartile Copper Production Scale3, Lowest Quartile Capital Intensity Located on the Coastal Range in Chile
PERTH, Australia, March 27, 2025 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce the results of a Pre-Feasibility Study ("PFS"), prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators, for its Costa Fuego copper-gold project (the "Costa Fuego Project" or "Costa Fuego"). All monetary amounts are expressed in United States dollars unless otherwise indicated.
PFS Highlights
Globally Meaningful Scale & Multi-Decade Mine Life
Strong Economics and Leverage to Rising Copper Price
Low-Risk, Coastal Copper Development with Advanced Permitting
Maiden Mineral Reserve for Costa Fuego Lowers Operational Risk 1,2
Poised for Up-Scale Opportunity
1Hot Chili previously released Ore Reserves for Productora declared according to JORC Code 2012, a component of Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles Reserves at Productora' 2 March 2016. The mineral reserves disclosed in this news release represent the maiden Mineral Reserve estimates for the Cortadera, San Antonio and Alice deposits, and the first Mineral Reserve Estimates for the Productora and as a whole Costa Fuego that are reported in accordance with NI 43-101.
2Hot Chili is a dual listed entity and complies with the JORC 2012 code for the ASX for the reporting of Exploration Results, Mineral Resources and Ore Reserves. The company complies with CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101 for the its reporting obligations in Canada as a result of having its shares listed on the TSX Venture Exchange. The terminology of Mineral Reserves (within the meaning of NI 43-101) and Ore Reserves (within the meaning of the JORC Code 2012) have equivalent meanings, and references to the Mineral Reserves within this announcement refer to Ore Reserves within the meaning of the JORC Code 2012.
Hot Chili's Managing Director Mr. Christian Easterday commented
"We are very pleased to deliver our PFS for Costa Fuego on time and within guidance. The study provides a strong basis for our final stage of development and places Costa Fuego within an elite grouping of copper developments globally."
Pre-Feasibility Study Overview
The Costa Fuego PFS outlines a copper-gold project delivering an annual copper equivalent metal production profile of 90 kt for the 20-year processing life (including over 116 kt for the first 14 years). Project economics are strongly leveraged to further resource growth and copper price appreciation.
The Costa Fuego Project combines four mineral deposits within three discrete mining areas comprising porphyry-hosted copper-gold-molybdenum, iron-oxide copper-gold-molybdenum and high-grade skarn-hosted copper mineralisations. The current Mineral Resource for Costa Fuego with an effective date of February 26, 2024 is reported as 2.76 Mt of contained copper1 and all mining areas are contained within a tight 20 km radius. Costa Fuego benefits from a favourable elevation at 740 m above sea level, is proximal to port facilities (~60 km) and has access to existing infrastructure.
Mining and Processing
Mining of oxide and sulphide processing feed utilises both open-pit and underground (block cave) bulk mining methodologies. Early mining is concentrated at the Productora open-pit, where high-grade, near-surface feed is front-ended to aid in the payback of construction capital and to fund development of the underground block cave at Cortadera.
Permitting and Stakeholder Engagement
Environmental surveys and other studies required for project permitting are well advanced, with submission of an environmental impact assessment for the Costa Fuego Project planned for 2025.
Growth and Opportunity
Significant opportunity still exists to add to the Costa Fuego Project, with the recent discovery of copper-gold porphyry mineralisation at La Verde located 50 km by road from the processing facility at Productora. Additional growth opportunities are being investigated at the recently consolidated Domeyko tenement package, with field reconnaissance completed at a number of priority targets.
Mineral Resource Estimate
The Costa Fuego Mineral Resource ("MRE") is reported in accordance with the Joint Ore Reserves Committee Code (2012) and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definition, as required by NI 43-101.
Contact Information
For more information please contact:
Christian Easterday
Managing Director – Hot Chili
Tel: +61 8 9315 9009
Email: [email protected]
Carol Marinkovich
Company Secretary – Hot Chili
Tel: +61 8 9315 9009
Email: [email protected]
