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LATIN AMERICA

Hot Chili rebirth runs along

Christian Easterday

heer persistence, deal capability, good “We pulled off somewhat of a circuit years).
Sgeoscience and a touch of luck were the breaker for the market, the stock had re- “The [Australian] discoveries have really
key ingredients in Hot Chili Ltd’s “stunning” rated quite significantly already from Febru- highlighted that the world has a lot of hun-
turnaround in fortunes this year, according ary, but we were able to be supported really ger for trying to find the next wave of stand-
to chairman Murray Black. strongly from the raising that has allowed us out copper discoveries and developments.
Starting the ball rolling for Hot Chili in to keep absolutely 100% control over Cor- There is a real lack of them, so if anything,
2019 was a deal to acquire Cortadera from tadera and go after a big initial resource on that stands out from a grade perspective
SCM Carola and while the company knew Cortadera in the new year,” Easterday said with Stavely and obviously from an abso-
there was a host of world-class drilling re- in light of the institutional placement backed lute scale perspective with Hot Chili, then
sults from the 23,000m of diamond drilling by new investors from Australia and North we are certainly all getting attention,” East-
completed on the project, it hadn’t banked America, plus major shareholders Taurus erday said.
on making a major discovery open in multi- Funds and chairman Black. “The clear game-changer for Hot Chili
ple directions. “We announced the raising at 3.6c/share has been the discovery of this bulk tonnage
Better still was the intersection in hole and I think we were quickly trading at 4.6c- high-grade zone on the main porphyry [at
CRP0013D: 750m @ 0.6% copper and 0.2 4.7c within days of that occurring, so it has Cortadera] and we starting to expand the
g/t gold from 204m depth, including a new been a great catalyst with the near-term strong results we have delivered.”
high-grade zone of 188m @ 0.9% copper financing and support from some very big At the time of print there were a wave of
and 0.4 g/t gold to a depth of 516m which groups. Now the market can fully appreci- results expected to come from Cortadera,
also included silver and molybdenum sig- ate what is transpiring at Cortadera, we are as Hot Chili focussed on delineating the na-
nificance. seeing something that we never thought ture of the high-grade core at its disposal.
CRP0013D stands out as Hot Chili’s was possible when we acquired it and it is “Towards the end of year we will start
greatest ever hit – and the best struck at very exciting times.” stepping out and expanding on that main
Cortadera to date – while it is recognised The market may now fully appreciate the porphyry and starting to expand the other
as one of the most significant copper-gold significance of Cortadera, given the first three porphyries as part of the discovery.
porphyry intercepts ever recorded. instalment to private group SCM Carola is There are some really exciting step chang-
Following on from instant success during fully satisfied and Hot Chili can fund “very es in growth that we have got in front of us,”
phase one diamond drilling at Cortadera, aggressive deep diamond drilling”. Easterday said.
phase two started impressively – 848m @ “The announcements [from Cortadera] “Immediately in front of us is the high-
0.4% copper and 0.2 g/t gold from 112m were muffled because the market knew the grade zone and there is dramatic value
downhole, with a high-grade zone of 184m company needed money to have all of the to be had quickly, but after that it is really
@ 0.7% and 0.3 g/t, about 100m east of capital to make the next payment to Carola, starting to look whether we can close this
the bulk tonnage zone discovered at CR- but that is done now,” Easterday said. deposit out. With each step out we will see
P0013D. Clarity on Cortadera, 14km from Hot how large Cortadera will grow in the coming
Hot Chili managing director Christian Chili’s Productora copper project on the 6-9 months.”
Easterday told Paydirt the company was Chilean coast, comes at an apt time given At the time of print, Hot Chili was trading
eager to drill a second diamond hole in the level of excitement surrounding copper at 4.1c/share and had a market cap of $67
phase two. plays on the ASX. million.
Such is the company’s conviction at Cor- The much talked about discoveries by Meanwhile, a third record result from
tadera, a $12.1 million capital raising was Alkane Resources Ltd in New South Wales Cortadera of 596m @ 0.5% copper and 0.2
triggered in September for an expanded and Stavely Minerals Ltd in Victoria, only g/t gold from 328m (down-hole depth), in-
programme during phase two, while the reinforced Hot Chili’s strategy of building a cluding a higher grade zone 184m @ 0.7%
funding also means the first instalment to copper “super hub” in Chile underpinned by and 0.3 g/t from 430m down-hole depth (in-
SCM Carola can be fulfilled and Hot Chili’s Cortadera and Productora (10-year open cluding significant silver and molybdenum
shareholders maintain the ability to control pit mine life forecast to produce 66,000 tpa credits) was announced.
the project. copper and 25,000 ozpa gold in first eight
– Mark Andrews

aUSTRaLIa’S PaYDIRT NOVeMBeR 2019 Page 81