STOCKHEAD
- HCH doubles footprint of La Verde copper-gold discovery
- Prospect sits within Costa Fuego project in Chile’s Atacama region
- Company planning deeper drilling to expand discovery further
Special Report: Hot Chili has doubled its porphyry discovery footprint at its Chilean project, with a third round of strong assay results at the La Verde copper-gold discovery at its Costa Fuego project.
La Verde is around 30km south of the Costa Fuego planned central processing hub at low elevation in the coastal range of the Atacama region.
The phase one reverse circulation (RC) drilling has now doubled the initial discovery footprint, confirming copper-gold mineralisation extends over 1km in length and up to 750m in width, from near surface.
Notable results include:
- 389m grading 0.4% copper and 0.1g/t gold from 4 m depth to end-of-hole (DKP030), including 46m at 0.6% copper and 0.2g/t gold from 238m, including 34m at 0.6% copper and 0.2g/t gold from 322m;
- 120m grading 0.4% copper and 0.1 /t gold from 6m depth (DKP028), including 48m at 0.5% copper and 0.1g/t gold from 26m and, 114m at 0.3% copper, 0.1g/t gold from 318m depth to end-of-hole, including 34m at 0.4% copper, 0.2g/t gold from 380m to end-of-hole;
- 114m grading 0.4% copper from 86m depth (DKP024), including 52m at 0.5% copper and 0.1 g/t gold from 96m;
- 286m grading 0.3% copper and 0.1g/t gold from 4m depth (DKP027), including 154m at 0.4% copper, 0.1g/t gold from 44m; and
- 228m grading 0.3% copper and 0.2g/t gold from 42m depth (DKP013), including 104m at 0.4% copper and 0.3g/t gold from 42m.
Hot Chili (ASX:HCH) has also confirmed higher-grade centres across the extent of the shallow oxide and sulphide discovery, indicating:
Importantly, multiple distinct higher-grade centres have been confirmed from near surface. Assessment of each of these higher-grade centres indicates:
- A North-East (NE) higher-grade centre, 180m strike by 280m width by 320m in vertical extent
- South-east (SE) higher-grade centre, 320m strike by 340m width by 400m in vertical extent
- South-west (SW) higher-grade centre, 90m strike by 120m width by 260m in vertical extent
Deeper diamond drilling planned
Since over half of the drill holes ending in significant mineralisation at the limit of RC drilling depth capability, HCH is on the hunt for a potentially larger porphyry cluster at La Verde.
The extent of the mineralisation beneath the open pit remains untested.
The company is now planning deeper diamond drilling for phase two to extend these higher-grade centres at depth.
This could potentially add to the open-pit mine life for the Costa Fuego hub, with further development study updates expected in the near-term.
Watch: Hot Chili adds mine-making credentials for Costa Fuego copper-gold
Regulatory application for phase-two drilling access is progressing, with drilling to commence once approved.
In the meantime, development study activities to optimise the recent Costa Fuego Pre-Feasibility Study (PFS) are underway, building on the recently released PFS, which highlighted impressive post-tax numbers for the asset including an NPV of US$1.2b and IRR of 19%.
All-in sustaining costs totalled US$1.85/lb from the production of 1.5Mt of copper and 780,000oz of gold over a 20-year mine life.