Drill success at Hot Chili’s new high-grade copper play

Published at Sep 5, 2018, in Small Caps

Hot Chili (ASX:HCH) has announced drilling results for its Valentina high-grade copper mine, along with its strategy to accelerate confirmation and definition of multiple high-grade copper resource opportunities close to its flagship Productora copper project in Chile.

Valentina is the second high-grade copper mine to deliver successful extensional results from HCH’s recent first-pass 5,000m drilling program across its new El Fuego copper project in Chile.

Recent results already confirmed a large extensional discovery at the San Antonio copper mine, located ~5km south of Valentina, which provide further confidence in HCH’s ability to build a stable of high-grade additions to its bulk copper asset, Productora.

HCH’s recently completed 5,000m RC drilling program primarily focused on assessing the potential of the San Antonio copper mine area. However, three shallow drill holes were also completed across the southern extent of the shallowly developed Valentina copper mine, located 5km north of San Antonio.

Three Reverse Circulation (RC) drill holes have been completed at Valentina, with two recording strong copper drilling intersections from shallow depths:

  • VAP0001 – 12m grading 1.5% copper from 28m down-hole depth (including 6m grading 2.7% copper)
  • VAP0003 – 8m grading 2.0% copper from 124m down-hole depth (including 2m grading 4.8% copper)

Additional credits up to 22g/t silver were also recorded.

Importantly, the drill holes were located immediately south of the Valentina underground development and have successfully confirmed significant strike and depth extensional potential to high-grade copper mineralisation.

Of course, as with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

The below maps outline the location of significant intersections in relation to the Valentina mine area and surrounding potential.

Plan displaying the location of drill holes in relation to the Valentina underground mine area and surrounding geology, structure and surface rock chip results.Plan view displaying the location of significant intersections recorded in the three drill holes completed across the southern extent of the Valentina mine area.

Detailed compilation and exploration work by HCH in the lead up to drilling at Valentina had indicated:

  • Historical certified mine production data reported that the small-scale Valentina underground mine extracted sulphide ore parcels with grades ranging between 3.4% and 4.8% copper (weighted average grade of 4.0% copper) in 1997
  • Widths of mineralisation within the Valentina mine area range between 1 and 5 metres locally with surface and underground mine development centred across 230 metres of strike length
  • Seven historical drill holes across the mine area, which included an end-of-hole significant drill intersection of 11m grading 2.0% copper (including 7m grading 2.7% copper) from 120m down-hole, had not been followed-up
  • Surface rock chip results and mapping have defined over 700 metres of strike potential along the main Valentina trend in addition to a secondary high grade copper trend

The latest drilling has confirmed that high grade sulphide copper mineralisation extends from near-surface and is associated with chalcopyrite and bornite.

Mineralisation reportedly intersected in historical drilling has been successfully located and is interpreted to be fault-hosted, dipping steeply towards the east within a sequence of volcanic-sedimentary units, similar to the deposit setting of San Antonio located 5km to the south.

Now the company is undertaking follow-up and Resource definition drill planning is being finalised ahead of submission of regulatory applications to drill.

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