Highlights
Hot Chili Files NI 43-101 Technical Report for the
- The Company filed the report titled "Costa Fuego Copper Project NI 43–101 Technical Report Preliminary Economic Assessment" 1and dated
August 2023 , with an effective date ofJune 28, 2023 (the "Technical Report"), prepared pursuant to CIM National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") - The Technical Report supported the Costa Fuego PEA news release dated
28 June 2023 , outlining Costa Fuego as one of world's lowest capital intensity, major copper developments, not controlled by a major miner 1
Closing of US$15 Million Investment Agreement with Osisko Gold Royalties
- Closing of an Investment Agreement (see announcement dated 28th
July 2023 ) and the receipt ofUS$15 million in funds in lateJuly 2023 - Strong endorsement from a leading North American royalty-streaming group with funds being used to advance the growth and development of Costa Fuego
Water Business Conceptual Study Underway
- Potential to monetise water assets while securing water for Costa Fuego adds further non-dilutive funding optionality for
Hot Chili
Drilling Programme Underway at Costa Fuego
- Drilling operations re-commenced, initially focused on extensional targets to the Cortadera porphyry resource
- First drilling underway at the Corroteo target, located 5km SE of Cortadera
Further Regional Consolidation Steps
- Binding letter of intent executed for an Option to acquire the
Cometa Project , lying contiguous to the Company's Costa Fuego landholding (see announcement dated 28thAugust 2023 ) - Further opportunities being pursued to expand the scale of the Costa Fuego copper hub
Strong Cash Position of A$21.8 million
1 The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves (NI 43-101) or Ore Reserves (JORC 2012), and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves or Ore Reserves do not have demonstrated economic viability. References to "Mineral Reserves" in this announcement include Ore Reserves (JORC 2012). See page 18 for additional cautionary language. |
Cautionary Statement – JORC Code (2012)
The Preliminary Economic Assessment referred to in this report is equivalent to a Scoping Study under JORC Code (2012) reporting guidelines. It has been undertaken for the purpose of initial evaluation of a potential development of the
To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study ("DFS") stage, funding in the order of
This report contains forward-looking statements. |
SUMMARY OF OPERATIONAL ACTIVITIES
Hot Chili Files NI 43-101 Technical Report for the Costa Fuego Copper-Gold Project in
The Company filed the report titled "Costa Fuego Copper Project NI 43–101 Technical Report Preliminary Economic Assessment"1 dated
As outlined in the announcement dated Wednesday 28 June 2023 titled "Hot Chili Announces PEA for Costa Fuego", highlights from the Technical Report include:
- Strong Economics: Costa Fuego PEA delivers using an 8% discount rate and long-term metal price assumptions of
US$3.85 /lb copper (Cu) andUS$1,750 /oz gold (Au) - Base-case post-tax Net Present Value (NPV8%) of
US$1.10 Billion (approximately, within a range ofUS$733 Million toUS$1.46 Billion ) and Internal Rate of Return (IRR) of 21% (approximately, within a range of 17% to 25%) Low Start-up Capital :US$1.05 Billion estimated, resulting in fast 3.5-year payback. Initial phases of open pit mining fully fund development of a bulk underground operation- Low Capital Intensity: One of the lowest capital intensities of global copper development projects
- Approximately 112 ktpa Average CuEq2 Production Rate: Including 95 kt Cu and 49 koz Au during primary production (first 14 years) at C1 Cash Cost3 of
US$1.33 /lb (estimated, net of by- product credits) - Initial
Mine Life : 16-years with 1.41 Mt Cu and 718 koz Au produced for total revenue of approximatelyUS$13.52 Billion and total free cash flow of approximatelyUS$3.28 Billion (post-tax, after operating costs, capital costs, and royalties)
Key Development Study Workstreams Advancing
Approximately 80% of Pre-feasibility Study (PFS) workstreams for Costa Fuego are already complete. Since completion of the PEA in late
- Hydrogeology Drilling and Water Monitoring Programme: Eleven water monitoring wells for a total of 557m of drilling have been completed at Cortadera and Productora over the past month. Water and groundwater monitoring data is a key input requirement for the Company's Environmental Impact Assessment (EIA), which requires a minimum of one year of water monitoring data from down-stream water catchments. The data from this programme is one of the few remaining inputs required in advance of submission of an EIA for Costa Fuego.
- Low-grade Leach Metallurgy Programme: Bulk samples, including 19 tonnes of underground ore from Productora and 3 tonnes of drill core from Cortadera, have been collected and sent to Nova Mineralis in
Chile for preparation and long-duration column leach testwork using intermediate bulk containers. In addition, a further 1.5 tonne of drill core was collected for variability leach testwork using 1m columns. Long lead-time, leach recovery testwork is now underway to support PFS level metallurgy results for this component of Costa Fuego's process flow sheet.
__________ |
1 The PEA is preliminary in nature and includes 3% of production feed from Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves (NI 43-101) or Ore Reserves (JORC 2012), and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves or Ore Reserves do not have demonstrated economic viability. References to "Mineral Reserves" in this announcement include Ore Reserves (JORC 2012). See page 18 for additional cautionary language. |
2 The copper-equivalent (CuEq) annual production rate was based on the combined processing feed (across all sources) and used long- term commodity prices of: Copper |
3 See page 19 for full non-IFRS measures disclaimer. |
Water Business Conceptual Study Underway
Based on the Technical Report, Costa Fuego is estimated to require approximately 600 litres per second of sea water at its current study scale of future annual metal production (95ktpa Cu & 49koz Au).
A large new water supplier could help to unlock multiple undeveloped mining projects in the
The opportunity to potentially monetise a portion of the Company's Chilean water assets, while also securing future seawater supply for the Costa Fuego Projects, may add further non-dilutive funding optionality for Hot Chili.
Exploration Drilling Underway at Costa Fuego
Drilling re-commenced at Costa Fuego in late July 2023 with one Reverse Circulation (RC) drill rig in operation for the majority of the quarter. In addition, four diamond drill holes were completed over a four-week period (two completed during the quarter). Drilling expenditure is being prudently managed to maximize the impact of invested dollars, with only one RC drill rig planned to be operating for the remainder of this year.
A total of 26 holes for 6,442m of drilling was completed during the quarter with numerous low-grade significant intersections recorded. Tables 1 and 2 summarise details of drilling undertaken during the quarter and significant drill results received to date, respectively.
Drilling initially focused on satisfying the Company's remaining 3,000m drill commitment with
Drill holes CRP0220 and CRP0222 have confirmed extensions to the south and east of Cuerpo 2, and drill hole CRP0217D has confirmed further extensions to the east at Cuerpo 3. These new results will add to other potential additions to the Cortadera Mineral Resource Estimate from drilling undertaken since
Following completion of a limited hydrogeology drilling programme (11 RC holes for 557m) during October, RC drilling operations commenced at the large-scale Corroteo exploration target, located approximately 5km SE of Cortadera. A total of seven deep RC holes for approximately 2,000m are planned in the current first- pass exploration drill programme at Corroteo.
Corroteo features a surface alteration footprint measuring approximately 2km in strike length by 500m in width and has never previously been drilled. Detailed mapping and surface geochemical programmes confirm some similarities to the deposit style and footprint of the Company's Productora copper-gold resource.
Corroteo is one of several exploration targets being advanced toward first drill testing over the coming year.
SUMMARY OF CORPORATE ACTIVITIES
Closing of US$15 Million Investment Agreement with Osisko Gold Royalties
In late
The Investment by Osisko has strengthened the Company's current cash position without the need for a dilutive equity capital raise, demonstrated strong look-through value of the Project's economics. It also provided another significant endorsement of
The Company is now well funded to deliver the next steps in its growth and development plan to advance the Costa Fuego Pre-Feasibility Studies (PFS), resource growth drilling programmes and general advancement of the Project.
Further Regional Consolidation Steps
In late August, the
The Option is another step in Hot Chili's consolidation strategy for the Costa Fuego copper project.
The material terms of the LOI are as follows:
- Exclusivity period of 60 days for
Hot Chili to conduct due diligence and forHot Chili's subsidiary Sociedad Minera La Frontera SpA ("Frontera") to enter into a definitive Option agreement with Bastion's subsidiary SCM Cornet Constelación, the holder of a 100% interest in the concessions comprisingCometa , for the grant to Frontera of an option to acquire a 100% interest in theCometa concessions ("Option"). - Non-refundable cash payment of
US$100,000 to Bastion upon grant of the Option. - Non-refundable cash payment of
US$200,000 within 12 months from the grant of the Option to keep the Option in good standing. - Option may be exercised within 30 months of the date of grant.
- If the Option is exercised, the consideration payable to Bastion to purchase the
Cometa concessions is:US$2,400,000 if the Option is exercised byHot Chili within 18 months from the date of grant of the Option; orUS$3,000,000 if the Option is exercised byHot Chili within 30 months from the date of grant of the Option.
Hot Chili may elect to satisfy the purchase consideration in cash (100%), or in cash (50%) and ordinary shares ofHot Chili (50%) issued at a price per share equal to the 15-day VWAP at the date of exercise of the Option, subject to applicable regulatory approvals, including the approval of theTSX Venture Exchange ("TSXV").
The Company has recently agreed to an extension of the Exclusivity period by 45 days to allow for completion of due diligence in advance of exercise of the Option, expected by
Further opportunities are being pursued to expand the scale of the Costa Fuego copper hub, with multiple discussions underway on prospective exploration targets in the area.
Sustainability
The Company has continued local community engagement, holding several meetings with stakeholders and local indigenous communities. Continued support programs in the Vallenar municipality delivering water to irrigation, funding for social programmes and the development of counselling programmes for mental health support in partnership with the
A spring flora and vegetation survey was carried out on the entire Costa Fuego Project footprint, focused on strengthening the environmental baseline information for the EIA submission.
As the Company advances the
Cash Position and Capital Structure Changes
As of 30 September 2023, the company had cash of A$21.8 million and no debt.
The Company issued 345,000 service rights and 345,000 performance rights during the period to employees and consultants.
The Company has the following securities on issue:
- 119,445,206 ordinary fully paid shares
- 10,900,000 warrants at
CAD$2.50 expiring31 January 2024 - 1,259,789 options at
CAD$1.85 expiring31 January 2025 - 1,850,001 AUD$2.25 options expiring
30 September 2024 - 5,996,728 unvested services and performance rights.
Table 1 – Significant Drill Results for Costa Fuego in Quarter 3 2023
Hole_ID | Coordinates | Dip | Hole | Intersection | Interval | Copper | Gold | Silver | Moly¹ | Cu Eq* | ||||
North | East | RL | From | To | (m) | ( %) | (g/t) | (ppm) | (ppm) | ( %) | ||||
LCP0018 | 6815926 | 334600 | 863 | 270 | -59 | 300 | 34 | 42 | 8 | 0.1 | 0.0 | 0.3 | 9 | 0.1 |
& | 86 | 88 | 2 | 0.1 | 0.6 | 0.3 | 5 | 0.4 | ||||||
& | 94 | 122 | 28 | 0.1 | 0.0 | 0.3 | 4 | 0.1 | ||||||
& | 172 | 192 | 20 | 0.1 | 0.0 | 0.3 | 3 | 0.1 | ||||||
CRP0204 | 6816271 | 334840 | 937 | 91 | -60 | 300 | 214 | 242 | 28 | 0.1 | 0.0 | 0.4 | 4 | 0.1 |
CRP0213 | 6813277 | 336232 | 1082 | 214 | -73 | 270 | 226 | 246 | 20 | 0.1 | 0.0 | 0.3 | 14 | 0.1 |
CRP0214 | 6814012 | 335925 | 1007 | 94 | -60 | 252 | 150 | 210 | 60 | 0.1 | 0.0 | 0.2 | 7 | 0.1 |
CRP0215 | 6813518 | 336053 | 1040 | 191 | -60 | 270 | 0 | 96 | 96 | 0.2 | 0.1 | 0.3 | 15 | 0.2 |
Incl | 18 | 30 | 12 | 0.2 | 0.2 | 0.3 | 12 | 0.3 | ||||||
CRP0216D | 6813389 | 336312 | 1055 | 129 | -70 | 546.4 | 6 | 78 | 72 | 0.2 | 0.0 | 0.3 | 15 | 0.2 |
& | 100 | 120 | 20 | 0.2 | 0.1 | 0.3 | 6 | 0.2 | ||||||
& | 130 | 190 | 60 | 0.2 | 0.0 | 0.3 | 13 | 0.2 | ||||||
& | 208 | 234 | 26 | 0.2 | 0.0 | 0.3 | 24 | 0.2 | ||||||
& | 304 | 458 | 154 | 0.2 | 0.1 | 0.3 | 99 | 0.2 | ||||||
CRP0217 | 6813454 | 336343 | 1060 | 79 | -58 | 252 | 6 | 66 | 60 | 0.2 | 0.1 | 0.3 | 14 | 0.2 |
230 | 236 | 6 | 0.2 | 0.0 | 0.4 | 33 | 0.2 | |||||||
CRP0218 | 6813718 | 336358 | 1047 | 91 | -80 | 173.5 | 164 | 168 | 4 | 0.2 | 0.0 | 0.3 | 65 | 0.3 |
CRP0220 | 6813844 | 335665 | 1003 | 199 | -72 | 261 | 0 | 190 | 190 | 0.2 | 0.1 | 0.4 | 16 | 0.2 |
Including | 0 | 88 | 88 | 0.2 | 0.1 | 0.5 | 15 | 0.3 | ||||||
& including | 142 | 170 | 28 | 0.2 | 0.1 | 0.3 | 24 | 0.3 | ||||||
CRP0221 | 6813914 | 335758 | 992 | 11 | -80 | 204 | 42 | 46 | 4 | 0.3 | 0.1 | 0.3 | 23 | 0.4 |
CRP0222 | 6813850 | 335666 | 1003 | 111 | -71 | 210 | 2 | 70 | 68 | 0.2 | 0.1 | 0.4 | 14 | 0.3 |
& | 130 | 190 | 60 | 0.2 | 0.0 | 0.3 | 13 | 0.2 | ||||||
& | 208 | 234 | 26 | 0.2 | 0.0 | 0.3 | 24 | 0.2 | ||||||
& | 304 | 458 | 154 | 0.2 | 0.1 | 0.3 | 99 | 0.2 |
Notes to Table 1: | |
Significant intercepts are calculated above a nominal cut-off grade of 0.1% Cu. Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.1% Cu). Significant intersections are separated where internal dilution is greater than 30m down-hole distance. The selection of 0.1% Cu for intersection cut-off grade above is selected on the basis of exploration significance and is not meant to represent potential marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in | |
Down-hole significant intercept widths are estimated to be at or around true-widths of mineralisation | |
¹ Molybdenum | |
* Copper Equivalent (CuEq) reported for the drillhole intersections 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 price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for each deposit is: | |
Cortadera – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. | |
Cortadera CuEq(%) = Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t) | |
Productora CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00026 x Mo(ppm) | |
Table 2 - Drill Holes Completed for Costa Fuego in Quarter 3 2023
Prospect |
Hole_ID |
North |
East |
RL |
Depth |
Azimuth |
Dip |
Results |
Cuerpo 4 | LCP0017 | 6816113 | 334616 | 859 | 300 | 88 | -60 | NSR |
Cuerpo 4 | LCP0018 | 6815926 | 334600 | 863 | 300 | 270 | -59 | NSR |
Cuerpo 4 | LCP0019 | 6816163 | 334587 | 857 | 246 | 269 | -59 | NSR |
Cuerpo 4 | LCP0020D | 6815842 | 334867 | 927 | 755 | 245 | -60 | Results pending |
Cortadera North | CRP0204 | 6816271 | 334840 | 937 | 300 | 91 | -60 | NSR |
Cuerpo 3 | CRP0205 | 6813247 | 335815 | 1184 | 300 | 2 | -74 | NSR |
Cuerpo 3 | CRP0206 | 6813249 | 335817 | 1184 | 300 | 59 | -75 | NSR |
Cuerpo 3 | CRP0207 | 6813031 | 336070 | 1174 | 54 | 36 | -71 | NSR |
Cuerpo 3 | CRP0208 | 6813030 | 336070 | 1174 | 84 | 31 | -74 | NSR |
Cuerpo 3 | CRP0209 | 6813502 | 336655 | 1088 | 228 | 205 | -69 | NSR |
Cuerpo 3 | CRP0210 | 6813502 | 336657 | 1088 | 90 | 359 | -77 | NSR |
Cuerpo 3 North | CRP0211 | 6814125 | 336261 | 1090 | 174 | 98 | -57 | NSR |
Cuerpo 2 | CRP0212 | 6813753 | 335463 | 1004 | 150 | 25 | -85 | NSR |
Cuerpo 3 | CRP0213 | 6813277 | 336232 | 1082 | 270 | 214 | -73 | NSR |
Cuerpo 3 | CRP0214 | 6814012 | 335925 | 1007 | 252 | 94 | -60 | NSR |
Cuerpo 3 | CRP0215 | 6813518 | 336053 | 1040 | 270 | 191 | -60 | Significant result returned Q2 |
Cuerpo 3 | CRP0216D | 6813389 | 336312 | 1055 | 546 | 129 | -70 | Significant result returned Q2 |
Cuerpo 3 | CRP0217 | 6813454 | 336343 | 1060 | 252 | 79 | -58 | Significant result returned Q2 |
Cuerpo 3 | CRP0218 | 6813718 | 336358 | 1047 | 174 | 91 | -80 | Significant result returned Q2 |
Cuerpo 3 | CRP0219 | 6813591 | 336365 | 1045 | 84 | 87 | -66 | NSR |
Cuerpo 2 | CRP0220 | 6813844 | 335665 | 1003 | 261 | 199 | -72 | Significant result returned Q2 |
Cuerpo 2 | CRP0221 | 6813914 | 335758 | 992 | 204 | 11 | -80 | Significant result returned Q2 |
Cuerpo 2 | CRP0222 | 6813850 | 335666 | 1003 | 210 | 111 | -71 | Results pending |
Cuerpo 3 North | CRP0223 | 6814534 | 336075 | 1174 | 360 | 76 | -58 | Results pending |
Cuerpo 2 North | CRP0224 | 6814227 | 335625 | 1058 | 198 | 65 | -58 | Results pending |
Cortadera Hydro | CORMW01 | 6814879 | 334509 | 883 | 80 | 0 | -90 | Results pending |
Note 1: NSR – no significant intersection recorded. |
Additional ASX Disclosure Information
ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.
ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of
The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.
ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.
ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totaled
Health, Safety, Environment and Quality
Field operations during the period included geological reconnaissance activities, core-testing and logging, field mapping, and sampling exercises across the Cortadera, El Fuego and Productora landholdings. El Fuego field activities are run from the Cortadera operations centre and safety statistics are combined for reporting.
No safety incidents were recorded during the quarter. The Company's HSEQ quarterly performance is summarised in Table 3 below.
Table 3 HSEQ Quarter 3 2023 Performance and Statistics
Deposit | Productora | Cortadera | ||||
Timeframe | Q2 2023 | Cum.² | Q2 2023 | Cum.² | Q2 2023 | Cum.² |
LTI events | 0 | 0 | 0 | 6 | 0 | 7 |
NLTI events | 0 | 2 | 0 | 5 | 0 | 8 |
Days lost | 0 | 0 | 0 | 152 | 0 | 175 |
LTIFR index | 0 | 0 | 0 | 22 | 0 | 20 |
ISR index | 0 | 0 | 0 | 568 | 0 | 492 |
IFR Index | 0 | 36 | 0 | 41 | 0 | 42 |
Thousands of manhours | 4.7 | 56 | 10.5 | 268 | 17.4 | 356 |
Incidents on materials and assets | 0 | 0 | 0 | 0 | 0 | 0 |
Environmentalincidents | 0 | 0 | 0 | 0 | 0 | 0 |
Headcount¹ | 13 | 8 | 34 | 35 | 73 | 48 |
Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million-manhours. Safety performance is reported on a monthly basis to the |
Tenement Changes During the Quarter
During the Quarter, the Company has claimed the exploitation concession Chilis 12 1/60 in use of the preferential right held by virtue of exploration concession Chilis 12 and renewed the following mining exploration concessions:
- Chilis 13 replaces Chilis 13, which expired on
August 9th, 2023 , - Chilis 14 replaces Chilis 14, which expired on
August 19th, 2023 , - Chilis 15 replaces Chilis 15, which expired on
July 29th, 2023 , - Chilis 16 replaces Chilis 16, which expired on
August 17th, 2023 , - Chilis 17 replaces Chilis 17, which expired on
July 29th, 2023 , - Chilis 18 replaces Chilis 18, which expired on
August 25th, 2023 , - Porfiada G replaces Porfiada G, which expired on
August 23rd, 2023 , - Porfiada V replaces Porfiada V, which expires on
October 26th, 2023 and - Porfiada VI replaces Porfiada VI, which expires on
November 19th, 2023 .
The Company's existing tenements are detailed in the table below.
Table 4 Current Tenement (Patente) Holdings in Chile as of
License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
MAGDALENITA 1/20 | 100% Frontera SpA | 100 | ||
ATACAMITA 1/82 | 100% Frontera SpA | 82 | ||
AMALIA 942 A 1/6 | 100% Frontera SpA | 53 | ||
PAULINA 10 B 1/16 | 100% Frontera SpA | 136 | ||
PAULINA 11 B 1/30 | 100% Frontera SpA | 249 | ||
PAULINA 12 B 1/30 | 100% Frontera SpA | 294 | ||
PAULINA 13 B 1/30 | 100% Frontera SpA | 264 | ||
PAULINA 14 B 1/30 | 100% Frontera SpA | 265 | ||
PAULINA 15 B 1/30 | 100% Frontera SpA | 200 | ||
PAULINA 22 A 1/30 | 100% Frontera SpA | 300 | ||
PAULINA 24 1/24 | 100% Frontera SpA | 183 | ||
PAULINA 25 A 1/19 | 100% Frontera SpA | 156 | ||
PAULINA 26 A 1/30 | 100% Frontera SpA | 294 | ||
PAULINA 27A 1/30 | 100% Frontera SpA | 300 | ||
CORTADERA 1 1/200 | 100% Frontera SpA | 200 | ||
CORTADERA 2 1/200 | 100% Frontera SpA | 200 | ||
CORTADERA 41 | 100% Frontera SpA | 1 | ||
CORTADERA 42 | 100% Frontera SpA | 1 | ||
LAS CANAS 16 | 100% Frontera SpA | 1 | ||
LAS CANAS 1/15 | 100% Frontera SpA | 146 | ||
CORTADERA 1/40 | 100% Frontera SpA | 374 | ||
LAS CANAS ESTE 2003 1/30 | 100% Frontera SpA | 300 | ||
CORROTEO 1 1/260 | 100% Frontera SpA | 260 | ||
CORROTEO 5 1/261 | 100% Frontera SpA | 261 | ||
ROMERO 1 AL 31 | 100% Frontera SpA | 31 | ||
PURISIMA | 100% Frontera SpA | 20 | NSR 1.5% |
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited |
License ID | HCH % Held | HCH % Earning | Area (ha) | Agreement Details |
FRAN 1, 1-60 | 80% SMEA SpA | 220 | ||
FRAN 2, 1-20 | 80% SMEA SpA | 100 | ||
FRAN 3, 1-20 | 80% SMEA SpA | 100 | ||
FRAN 4, 1-20 | 80% SMEA SpA | 100 | ||
FRAN 5, 1-20 | 80% SMEA SpA | 100 | ||
FRAN 6, 1-26 | 80% SMEA SpA | 130 | ||
FRAN 7, 1-37 | 80% SMEA SpA | 176 | ||
FRAN 8, 1-30 | 80% SMEA SpA | 120 | ||
FRAN 12, 1-40 | 80% SMEA SpA | 200 | ||
FRAN 13, 1-40 | 80% SMEA SpA | 200 | ||
FRAN 14, 1-40 | 80% SMEA SpA | 200 | ||
FRAN 15, 1-60 | 80% SMEA SpA | 300 | ||
FRAN 18, 1-60 | 80% SMEA SpA | 273 | ||
FRAN 21, 1-46 | 80% SMEA SpA | 226 | ||
ALGA 7A, 1-32 | 80% SMEA SpA | 89 | ||
ALGA VI, 5-24 | 80% SMEA SpA | 66 | ||
MONTOSA 1-4 | 80% SMEA SpA | 35 | NSR 3% | |
CHICA | 80% SMEA SpA | 1 | ||
ESPERANZA 1-5 | 80% SMEA SpA | 11 | ||
LEONA 2A 1-4 | 80% SMEA SpA | 10 | ||
CARMEN I, 1-50 | 80% SMEA SpA | 222 | ||
CARMEN II, 1-60 | 80% SMEA SpA | 274 | ||
ZAPA 1, 1-10 | 80% SMEA SpA | 100 | ||
ZAPA 3, 1-23 | 80% SMEA SpA | 92 | ||
ZAPA 5A, 1-16 | 80% SMEA SpA | 80 | ||
ZAPA 7, 1-24 | 80% SMEA SpA | 120 | ||
CABRITO, CABRITO 1-9 | 80% SMEA SpA | 50 | ||
CUENCA A, 1-51 | 80% SMEA SpA | 255 | ||
CUENCA B, 1-28 | 80% SMEA SpA | 139 | ||
CUENCA C, 1-51 | 80% SMEA SpA | 255 | ||
CUENCA D | 80% SMEA SpA | 3 | ||
CUENCA E | 80% SMEA SpA | 1 | ||
CHOAPA 1-10 | 80% SMEA SpA | 50 | ||
ELQUI 1-14 | 80% SMEA SpA | 61 | ||
LIMARÍ 1-15 | 80% SMEA SpA | 66 | ||
LOA 1-6 | 80% SMEA SpA | 30 | ||
MAIPO 1-10 | 80% SMEA SpA | 50 | ||
TOLTÉN 1-14 | 80% SMEA SpA | 70 | ||
CACHIYUYITO 1, 1-20 | 80% SMEA SpA | 100 | ||
CACHIYUYITO 2, 1-60 | 80% SMEA SpA | 300 | ||
CACHIYUYITO 3, 1-60 | 80% SMEA SpA | 300 | ||
LA PRODUCTORA 1-16 | 80% SMEA SpA | 75 | ||
ORO INDIO 1A, 1-20 | 80% SMEA SpA | 82 | ||
AURO HUASCO I, 1-8 | 80% SMEA SpA | 35 | ||
URANIO, 1-70 |
0 % |
0 % |
350 | 25-year Lease Agreement year term); plus 2% NSR all but gold; 4% |
JULI 9, 1-60 | 80% SMEA SpA | 300 | ||
JULI 10, 1-60 | 80% SMEA SpA | 300 | ||
JULI 11 1/60 | 80% SMEA SpA | 300 | ||
JULI 12 1/42 | 80% SMEA SpA | 210 | ||
JULI 13 1/20 | 80% SMEA SpA | 100 | ||
JULI 14 1/50 | 80% SMEA SpA | 250 | ||
JULI 15 1/55 | 80% SMEA SpA | 275 | ||
JULI 16, 1-60 | 80% SMEA SpA | 300 | ||
JULI 17, 1-20 | 80% SMEA SpA | 100 | ||
JULI 19 | 80% SMEA SpA | 300 | ||
JULI 20 | 80% SMEA SpA | 300 | ||
JULI 21 1/60 | 80% SMEA SpA | 300 | ||
JULI 22 | 80% SMEA SpA | 300 | ||
JULI 23 1/60 | 80% SMEA SpA | 300 | ||
JULI 24, 1-60 | 80% SMEA SpA | 300 | ||
JULI 25 | 80% SMEA SpA | 300 | ||
JULI 27 1/30 | 80% SMEA SpA | 150 | ||
JULI 27 B 1/10 | 80% SMEA SpA | 50 | ||
JULI 28 1/60 | 80% SMEA SpA | 300 | ||
JULIETA 5 | 80% SMEA SpA | 200 | ||
JULIETA 6 | 80% SMEA SpA | 200 | ||
JULIETA 7 | 80% SMEA SpA | 100 | ||
JULIETA 8 | 80% SMEA SpA | 100 | ||
JULIETA 9 | 80% SMEA SpA | 100 | ||
JULIETA 10 1/60 | 80% SMEA SpA | 300 | ||
JULIETA 11 | 80% SMEA SpA | 300 | ||
JULIETA 12 | 80% SMEA SpA | 300 | ||
JULIETA 13, 1-60 | 80% SMEA SpA | 298 | ||
JULIETA 14, 1-60 | 80% SMEA SpA | 269 | ||
JULIETA 15, 1-40 | 80% SMEA SpA | 200 | ||
JULIETA 16 | 80% SMEA SpA | 200 | ||
JULIETA 17 | 80% SMEA SpA | 200 | ||
JULIETA 18, 1-40 | 80% SMEA SpA | 200 | ||
ARENA 1 1-6 | 80% SMEA SpA | 40 | ||
ARENA 2 1-17 | 80% SMEA SpA | 113 | ||
ZAPA 1 – 6 | 80% SMEA SpA | 6 | GSR 1% | |
JULIETA 1-4 | 80% SMEA SpA | 4 |
Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili Limited, 20% owned by CMP (Compañía Minera del Pacífico) |
Licence ID | HCH % Held | HCH % Earning | Area (ha) | Exploration and Expenditure Commitment- |
Santiago 21 al 36 | 90% Frontera SpA | 76 | 90% (HCH)-10% (Arnaldo del Campo) JV.
6-year term.
USD 600,000 already paid.
| |
Santiago 37 al 43 | 90% Frontera SpA | 26 | ||
Santiago A, 1 al 26 | 90% Frontera SpA | 236 | ||
Santiago B, 1 al 20 | 90% Frontera SpA | 200 | ||
Santiago C, 1 al 30 | 90% Frontera SpA | 300 | ||
Santiago D, 1 al 30 | 90% Frontera SpA | 300 | ||
Santiago E, 1 al 30 | 90% Frontera SpA | 300 | ||
Prima Uno | 90% Frontera SpA | 1 | ||
Prima Dos | 90% Frontera SpA | 2 | ||
Santiago 15 al 19 | 90% Frontera SpA | 25 | ||
San Antonio 1 al 5 | 90% Frontera SpA | 25 | ||
Santiago 1 AL 14 Y 20 | 90% Frontera SpA | 75 | ||
Mercedes 1 al 3 | 90% Frontera SpA | 50 | ||
Kreta 1 al 4 | 90% Frontera SpA | 16 | ||
Mari 1 al 12 | 90% Frontera SpA | 64 | ||
PORFIADA VII 1 al 60 | 90% Frontera SpA | 300 | ||
PORFIADA VIII 1 al 60 | 90% Frontera SpA | 300 | ||
PORFIADA IX 1 al 60 | 90% Frontera SpA | 300 | ||
PORFIADA X | 90% Frontera SpA | 200 | ||
PORFIADA A 1 al 40 | 90% Frontera SpA | 200 | ||
PORFIADA B | 90% Frontera SpA | 200 | ||
PORFIADA C 1 al 60 | 90% Frontera SpA | 300 | ||
PORFIADA D | 90% Frontera SpA | 300 | ||
PORFIADA E 1 al 20 | 90% Frontera SpA | 100 | ||
PORFIADA F 1 al 60 | 90% Frontera SpA | 300 | ||
PORFIADA G | 90% Frontera SpA | 200 | ||
CORTADERA 1 | 100% Frontera SpA | 200 | ||
CORTADERA 2 | 100% Frontera SpA | 200 | ||
CORTADERA 3 | 100% Frontera SpA | 200 | ||
CORTADERA 4 | 100% Frontera SpA | 200 | ||
CORTADERA 5 | 100% Frontera SpA | 200 | ||
CORTADERA 6 | 100% Frontera SpA | 300 | ||
CORTADERA 7, 1-20 | 100% Frontera SpA | 93 | ||
SAN ANTONIO 1 | 100% Frontera SpA | 200 | ||
SAN ANTONIO 2 | 100% Frontera SpA | 200 | ||
SAN ANTONIO 3 | 100% Frontera SpA | 300 | ||
SAN ANTONIO 4 | 100% Frontera SpA | 300 | ||
SAN ANTONIO 5 | 100% Frontera SpA | 300 | ||
DORO 1 | 100% Frontera SpA | 200 | ||
DORO 2 | 100% Frontera SpA | 200 | ||
DORO 3 | 100% Frontera SpA | 300 | ||
SANTIAGO Z 1/30 | 100% Frontera SpA | 300 | 100% HCH Purchase Option Agreement
USD 400,000 to be paid by January 22, 2024.
NSR 1.5% | |
PORFIADA I | 100% Frontera SpA | 300 | ||
PORFIADA II | 100% Frontera SpA | 300 | ||
PORFIADA III | 100% Frontera SpA | 300 | ||
PORFIADA IV | 100% Frontera SpA | 300 | ||
PORFIADA V | 100% Frontera SpA | 200 | ||
PORFIADA VI | 100% Frontera SpA | 100 | ||
SAN JUAN SUR 1/5 | 90% Frontera SpA | 10 | 90% (HCH) Option Agreement
USD 4,000,000 by June 1, 2024. | |
SAN JUAN SUR 6/23 |
90% Frontera SpA |
90 | ||
CHILIS 1 | 100% Frontera SpA | 200 | ||
CHILIS 2 | 100% Frontera SpA | 200 | ||
CHILIS 3 | 100% Frontera SpA | 100 | ||
CHILIS 4 | 100% Frontera SpA | 200 | ||
CHILIS 5 | 100% Frontera SpA | 200 | ||
CHILIS 6 | 100% Frontera SpA | 200 | ||
CHILIS 7 | 100% Frontera SpA | 200 | ||
CHILIS 8 | 100% Frontera SpA | 200 | ||
CHILIS 9 | 100% Frontera SpA | 300 | ||
CHILIS 10 1 al 40 | 100% Frontera SpA | 200 | ||
CHILIS 11 | 100% Frontera SpA | 200 | ||
CHILIS 12 | 100% Frontera SpA | 300 | ||
CHILIS 13 | 100% Frontera SpA | 300 | ||
CHILIS 14 | 100% Frontera SpA | 300 | ||
CHILIS 15 | 100% Frontera SpA | 300 | ||
CHILIS 16 | 100% Frontera SpA | 300 | ||
CHILIS 17 | 100% Frontera SpA | 300 | ||
CHILIS 18 | 100% Frontera SpA | 300 | ||
SOLAR 1 | 100% Frontera SpA | 300 | ||
SOLAR 2 | 100% Frontera SpA | 300 | ||
SOLAR 3 | 100% Frontera SpA | 300 | ||
SOLAR 4 | 100% Frontera SpA | 300 | ||
SOLAR 5 | 100% Frontera SpA | 300 | ||
SOLAR 6 | 100% Frontera SpA | 300 | ||
SOLAR 7 | 100% Frontera SpA | 300 | ||
SOLAR 8 | 100% Frontera SpA | 300 | ||
SOLAR 9 | 100% Frontera SpA | 300 | ||
SOLAR 10 | 100% Frontera SpA | 300 | ||
SOLEDAD 1 | 100% Frontera SpA | 300 | ||
SOLEDAD 2 | 100% Frontera SpA | 300 | ||
SOLEDAD 3 | 100% Frontera SpA | 300 | ||
SOLEDAD 4 | 100% Frontera SpA | 300 | ||
CF 1 | 100% Frontera SpA | 300 | ||
CF 2 | 100% Frontera SpA | 300 | ||
CF 3 | 100% Frontera SpA | 300 | ||
CF 4 | 100% Frontera SpA | 300 | ||
CF 5 | 100% Frontera SpA | 300 | ||
CHAPULIN COLORADO 1/3 | 100% Frontera SpA | 3 | ||
PEGGY SUE 1/10 | 100% Frontera SpA | 100 | ||
DONA FELIPA 1 al 10 | 100% Frontera SpA | 50 | ||
ELEANOR RIGBY 1/10 | 100% Frontera SpA | 100 | ||
CF 6 | 100% Frontera SpA | 200 | ||
CF 7 | 100% Frontera SpA | 100 | ||
CF 8 | 100% Frontera SpA | 200 | ||
CF 9 | 100% Frontera SpA | 100 | ||
MARI 1 | 100% Frontera SpA | 300 | ||
MARI 6 | 100% Frontera SpA | 300 | ||
MARI 8 | 100% Frontera SpA | 300 | ||
FALLA MAIPO 2 1/10 | 100% Frontera SpA | 99 | ||
FALLA MAIPO 3 1/8 | 100% Frontera SpA | 72 | ||
FALLA MAIPO 4 1/26 | 100% Frontera SpA | 26 | ||
ARBOLEDA 7 1/2 | Option AMSA | 234 | 100% HCH Purchase Option Agreement USD 1,500,000 to be paid by November 15, 2024 | |
Option AMSA | 81 | |||
Option AMSA | 78 | |||
MONICA 21/40 | Option AMSA | 85 | ||
MONICA 41/52 | Option AMSA | 39 |
Note. Frontera SpA is a 100% owned subsidiary company of |
Qualifying Statements
Costa Fuego Combined Mineral Resource (Effective Date 31st March 2022)
1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora and |
2 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón Limitada (a 100% subsidiary of Hot Chili Limited), and 20% owned by CMP Productora (a 100% subsidiary of Compañía |
3 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón Limitada, which is a 100% subsidiary of |
4 The |
5 The Mineral Resource estimates in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper |
6 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera and |
7 Resource Copper Equivalent (CuEq) grades are calculated based on the 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 price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu recovery). The base case cut-off grade for mineral resources considered amenable to open pit extraction methods at the Cortadera, Productora and San Antonio deposits is 0.21% CuEq while the cut-off grade for mineral resources considered amenable to underground extraction methods at the Cortadera deposit is 0.3% CuEq. |
8 Mineral resources are not mineral reserves and do not have demonstrated economic viability. These Mineral Resource estimates include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration. |
9 The effective date of the estimate of Mineral Resources is |
10 |
Competent Person's Statement - Exploration Results
Exploration information in this Report is based upon work compiled by Mr
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this report.
This report is to be used by the recipient for informational purposes only and does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of
Certain information contained herein is based on, or derived from, information provided by independent third-party sources.
This report should not be considered as a recommendation from any person to purchase any securities. Each person for whom this report is made available should consult its own professional advisors in making its own independent investigations and assessment and, after making such independent investigations and assessments, as it deems necessary, in determining whether to proceed with any investment in the Company.
Technical Report
For readers to fully understand the information in this report, they should read the PEA Technical Report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") (available on www.sedar.com or at www.hotchili.net.au) in its entirety, including all qualifications, assumptions, limitations and exclusions that relate to the information set out in this report that qualifies the technical information contained in the Technical Report. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this report is subject to the assumptions and qualifications contained in the Technical Report.
Qualified Persons – NI 43-101
The Technical Report was compiled by
- Ms
Elizabeth Haren (MAUSIMM (CP) & MAIG) ofHaren Consulting – Mineral Resource Estimate - Mr
Dean David (FAUSIMM (CP)) ofWood Pty Ltd – Metallurgy - Mr
Piers Wendlandt (PE) ofWood Pty Ltd – Market Studies and Contracts, Economic Analysis - Mr
Jeffrey Steven (PE) ofWood Pty Ltd – Capital and Operating Costs - Mr
Anton von Wielligh (FAUSIMM) ofABGM Consulting Pty Ltd – Mine Planning and Scheduling - Mr
Edmundo Laporte (PE) of GAC – Environmental Studies, Permitting and Social or Community Impact - Mr
Dave Morgan (PE) of Knight Piésold – Project Infrastructure (TSF)
The independent qualified persons have verified the information in the Technical Report, including the sampling, preparation, security, and analytical procedures underlying such information.
Disclosure regarding mine planning and infrastructure has been reviewed and approved by Mr
Competent Persons – JORC
The information in the Technical Report that relates to Mineral Resources for the Costa Fuego Project is based on information compiled by:
- Ms
Elizabeth Haren (MAUSIMM (CP) & MAIG) ofHaren Consulting – Mineral Resource Estimate - Mr
Dean David (FAUSIMM (CP)) ofWood Pty Ltd – Metallurgy - Mr
Piers Wendlandt (PE) ofWood Pty Ltd – Market Studies and Contracts, and Economic Analysis - Mr
Jeffrey Steven (PE) ofWood Pty Ltd – Capital and Operating Costs - Mr
Anton von Wielligh (FAUSIMM) ofABGM Consulting Pty Ltd – Mine Planning and Scheduling - Mr
Edmundo Laporte (PE) of GAC – Environmental Studies, Permitting and Social or Community Impact - Mr
Dave Morgan (PE) of Knight Piésold – Project Infrastructure (TSF)
Ms Haren, Mr David, Mr Wendlandt, Mr Steven, Mr von Wielligh, Mr Laporte and
For further information on the
Cautionary Note for U.S. Investors Concerning Mineral Resources
National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Technical disclosure contained in this report has been prepared in accordance with NI 43-101 and the
All amounts in this report are in U.S. dollars unless otherwise noted.
Non IFRS Financial Performance Measures
"C1 cash cost" is not performance measures reported in accordance with International Financial Reporting Standards ("IFRS"). These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the
Scientific and Technical Information
The scientific and technical information contained in this document was reviewed and approved by Ms
Sampling, Analysis and Data Verification
A fixed cone splitter was used to create two nominal 12.5% samples (Sample "A" and "B"), along with the large bulk reject sample. The "A" sample is always taken from the same sampling chute, and comprises the primary sample submitted to the laboratory. The "B" samples were retained for use as the field duplicate sample. The coarse residues were collected into large plastic bags and were retained on the ground near the drillhole collar, generally in rows of 50 bags.
All RC drillhole sampling was executed at two metre intervals for Costa Fuego. Within logged mineralisation zones, the 2-metre sample ("A" sample) was submitted. Outside the main mineralised zones (as determined by the logging geologist), 4-metre composites were created from scoops of 2-metre sample residues over this interval. The composited 4-metre samples were analysed first and, if required, the individual and original 2-metre "A" samples comprising this 4-metre interval were sent for analysis. This ensured that no mineralisation was missed while minimising analytical costs. The same procedure was applied to RC drilling undertaken across Productora, however, drillhole sampling was executed at 1-metre intervals.
At Costa Fuego, the majority of diamond core has had systematic half-core sampled at 2-metre intervals. Half-core was chosen as the preferred sampling method to ensure a representative sample was submitted for analysis, while also retaining half-core for review of lithology and mineralisation, and for further test work as required.
Prior to the cutting and sample process, two additional samples are also taken for Costa Fuego being Density and Geotechnical samples.
- Density samples are selected based on the deposit type. For Productora this was completed every 5m on drill core, for Cortadera it was every 30 metres, and for
San Antonio a total of 107 measurements across 44 drillholes, if the geological conditions allowed it and wereprovided to the laboratory for testwork. - Geotechnical samples are taken for tests including triaxial (one sample per 250 m) and uniaxial tests (one sample per 50 m).
Once assigned a sample number, individual samples to be sent to ALS laboratories were sealed using a staple gun and accompanied by three identical sample tickets (one stapled to plastic bag to identify any tampering/breakage of seal prior to opening at the laboratory in preparation and another placed in the bag). Any broken staple seals on samples were to be notified by ALS to
For both RC and diamond samples, sample bags were placed inside larger plastic bags and delivered by a dedicated truck to the ALS analytical laboratory in Coquimbo and Copiapó (
Following analysis at ALS, the RC and diamond drilling coarse rejects were returned to site and stored in sequence in plastic bags under shade cloth at
Hot Chili has strict chain of custody security procedures for all samples sent to and from the analytical laboratories.
The ALS analytical laboratory in Coquimbo (
Samples have been analysed by certified laboratories in Chile and Lima, Peru by standard analytical techniques including:
- Copper, silver and molybdenum were analysed by 4-acid digestion (Hydrochloric-Nitric- Perchloric-Hydrofluoric) followed by evaluation using Inductively Coupled Plasma - Optical Emission Spectrometry ("ICP-OES") or Atomic Absorption Spectrometry ("AAS");
- Copper results > 10,000 ppm were analysed by "ore grade" method Cu-AA62 (upper limit 40% Cu);
- Samples within the oxide and transitional weathering domains (as determined by geologists' logging) were analysed for "soluble copper" (upper limit 10% Cu) to detect the leachability of copper oxide minerals within these domains; and
- Gold was analysed by 30 or 50 g lead-collection Fire Assay, followed by ICP-OES or AAS.
The verification of input data included the use of company QA/QC blanks and reference material, field and laboratory duplicates, umpire laboratory checks and independent sample and assay verification.
The Qualified Person has assessed the drillhole database validation work and QAQC undertaken by Hot Chili and was satisfied the input data could be relied upon for the estimation of Indicated and Inferred Classified Mineral Resources.
All laboratories used are independent of Hot Chili and the work is performed under a commercial arrangement.
Forward Looking Statements
This report contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this report should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "believe", "could", "estimate", "expect", "may", "plan", "potential", "project", "should", "will", "would" and similar expressions are intended to identify forward- looking statements.
The forward-looking statements within this report are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this report. In addition, this report may contain forward- looking statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.
In this report, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; expected cash inflows; the ability of the Company to expand mineral resources beyond current mineral resource estimates; the results and impacts of current and planned drilling to convert inferred mineral resources to indicated, to extend mineral resources and to identify new deposits; the timing and results of the planned 30,000m drill program; the results of planned updates to current mineral resource estimates; the Company's ability to convert mineral resources to mineral reserves; the Company's ability to secure additional mineral rights as part of its consolidation strategy, and the potential of such to host additional mineral resources; the timing and results of the PFS; opportunities for growth in mineral projects; the ability of the Company to secure necessary infrastructure; the terms and conditions related to use of existing port and electrical infrastructure; the timing and outcomes of this current and future planned economic studies; the timing and outcomes of regulatory processes required to obtain permits for the development and operation of the
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this report, including, but not limited to, the following material factors: operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in
Although the forward-looking statements contained in this report are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this report, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this report to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR (www.sedar.com) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward- looking statement.
The forward-looking statements contained in this report are expressly qualified by the foregoing cautionary statements and are made as of the date of this report. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire report and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity | ||
Hot Chili Limited | ||
ABN | Quarter ended ("current quarter") | |
91 130 955 725 |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (3 months) $A'000 | |
1. | Cash flows from operating activities | ||
1.1 | Receipts from customers | - | - |
1.2 | Payments for | ||
(a) exploration & evaluation | (1,522) | (1,522) | |
(b) development | - | - | |
(c) production | - | - | |
(d) staff costs | (241) | (241) | |
(e) administration and corporate costs | (922) | (922) | |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | 17 | 17 |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | - | - |
1.8 | Other (provide details if material) | - | - |
1.9 | Net cash from / (used in) operating activities | (2,668) | (2,668) |
2. | Cash flows from investing activities | ||
2.1 | Payments to acquire or for: | ||
(a) entities | - | - | |
(b) tenements | (824) | (824) | |
(c) property, plant and equipment | - | - | |
(d) exploration & evaluation | - | - | |
(e) investments | - | - | |
(f) other non-current assets | - | - | |
2.2 | Proceeds from the disposal of: | ||
(a) entities | - | - | |
(b) tenements | - | - | |
(c) property, plant and equipment | - | - | |
(d) investments | - | - | |
(e) other non-current assets | - | - | |
2.3 | Cash flows from loans to other entities | - | - |
2.4 | Dividends received (see note 3) | - | - |
2.5 | Osisko receipts (net of costs) | 21,326 | 21,326 |
2.6 | Net cash from / (used in) investing activities | 20,502 | 20,502 |
3. | Cash flows from financing activities | ||
3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) |
- |
- |
3.2 | Proceeds from issue of convertible debt securities | - | - |
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of equity securities or convertible debt securities | - | - |
3.5 | Proceeds from borrowings | - | - |
3.6 | Repayment of borrowings (CMP option) | - | - |
3.7 | Transaction costs related to loans and borrowings | - | - |
3.8 | Dividends paid | - | - |
3.9 | Other (provide details if material) | - | - |
3.10 | Net cash from / (used in) financing activities | - | - |
4. | Net increase / (decrease) in cash and cash equivalents for the period | ||
4.1 | Cash and cash equivalents at beginning of period | 2,949 | 2,949 |
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (2,668) | (2,668) |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | 20,502 | 20,502 |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | - | - |
4.5 | Effect of movement in exchange rates on cash held | 1,034 | 1,034 |
4.6 | Cash and cash equivalents at end of period | 21,817 | 21,817 |
5. | Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) | Current quarter $A'000 | Previous quarter $A'000 |
5.1 | Bank balances | 14,045 | 1,949 |
5.2 | Call deposits | 7,772 | 1,000 |
5.3 | Bank overdrafts | ||
5.4 | Other (provide details) | ||
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 21,817 | 2,949 |
6. | Payments to related parties of the entity and their associates | Current quarter $A'000 |
6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 166 |
6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. |
7. | Financing facilities Note: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility $A'000 | Amount drawn at $A'000 |
7.1 | Loan facilities | - | - |
7.2 | Credit standby arrangements | - | - |
7.3 | Other (please specify) | - | - |
7.4 | Total financing facilities | - | - |
7.5 | Unused financing facilities available at quarter end | ||
7.6 | Include in the box below a description of each facility above, including the lender, interest rate, | ||
8. | Estimated cash available for future operating activities | $A'000 |
8.1 | Net cash from / (used in) operating activities (item 1.9) | (2,668) |
8.2 | (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) | - |
8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (2,668) |
8.4 | Cash and cash equivalents at quarter end (item 4.6) | 21,817 |
8.5 | Unused finance facilities available at quarter end (item 7.5) | - |
8.6 | Total available funding (item 8.4 + item 8.5) | 21,817 |
8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) | 8.18 |
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". | ||
8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: | |
8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? | ||
N/A | ||
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? | ||
N/A | ||
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? | ||
N/A | ||
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
1 | This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. |
2 | This statement gives a true and fair view of the matters disclosed. |
Date: .................31 October 2023.........................................
Authorised by: ...........By the Board.....................................................
(
Notes | |
1. | This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. |
2. | If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. |
3. | Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. |
4. | If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee". |
5. | If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the |
For more information please contact:
Tel: +61 8 9315 9009 | |
Managing Director – | Email: admin@hotchili.net.au |
Tel: +61 8 9315 9009 | |
Company Secretary – | Email: admin@hotchili.net.au |
Harbor Access | Email: graham.farrell@harbor-access.com |
Investor & Public Relations ( | Email: jonathan.paterson@harbor-access.com |
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