Hot Chili drilling extends Cortadera
Hot Chili Ltd (ASX:HCH) has released first results from drill hole CRP0017D, which confirms a 300 metre expansion to the known extent of high grade, bulk tonnage, copper-gold recently discovered at the Cortadera copper-gold porphyry discovery in Chile.
Pointing to the likelihood of further positive news, management said that the 350 metres drill intersection is expected to grow with the imminent return of assays for a further 90 metres of strongly mineralised porphyry, registering CRP0017D as a third stand-out drill result for Hot Chili at Cortadera.
Drilling is continuing to lift the status of Cortadera as one of the most significant global copper-gold porphyry discoveries of recent times.
As a backdrop, Cortadera is a privately-owned, major copper-gold porphyry discovery located along the Chilean coastal range, where historical world-class discovery drill results have only recently been publicly released by Hot Chili in February 2019.
On February 22, 2019, Hot Chili announced the execution of a formal Option Agreement to acquire a 100% interest in Cortadera.
Importantly, Cortadera lies 14 kilometres from the company’s large-scale Productora copper development and adjacent to the high grade El Fuego satellite copper projects, as displayed below.
Upcoming results likely to increase intersection width
Although results for a further 440 metres of diamond core are pending, CRP0017D has already delivered another stand-out drill result, recording 350 metres grading 0.6% copper and 0.2g/t gold from 344m down-hole depth.
Remaining results are expected to increase the width of the drilling intersection from CRP0017D with a further 90 metres of strongly mineralised porphyry, followed by poorly mineralised porphyry recorded to end of hole as previously reported.
Importantly, the CRP0017D intersection contains a high grade zone comprising 184 metres grading 0.7% copper and 0.3g/t gold from 430 metres down-hole depth.
The result confirms that the newly discovered, bulk tonnage, high grade zone extends from the northern to the southern flank of the main porphyry (Cuerpo 3), over 300 metres from the discovery diamond hole CRP0013D (188 metres grading 0.9% copper and 0.4g/t gold from 516 metres down-hole depth).
The following plan view of Cuerpo 3 shows the location and basic geology of the mineralised post porphyry in relation to the location of recent drill results.
As indicated above, the entire southern flank of the main porphyry is now open and demonstrates that high grade copper-gold could extend across the entire main porphyry at Cortadera.
Hot Chili reported earlier in the month that CRP0017D was terminated early owing to significant deviation from its intended target at depth (northern flank of high grade zone).
Management will investigate options to utilise CRP0017D as a potential wedge hole to target this area of the main porphyry in the future.
Third drill hole testing down to 1000 metres
A third deep diamond drill hole (CRP0018D) is already underway and the company is now fully funded to complete up to 15 additional deep drill holes as part of its phase 2 programme, aimed at rapidly expanding Cortadera ahead of an initial resource estimate.
CRP0018D is currently at a depth of approximately 360 metres and is planned as a vertical one kilometre deep drill hole.
The hole will test continuity of the northern flank high grade bulk tonnage zone at Cuerpo 3, Cortadera’s largest porphyry of the four porphyry centres discovered to date.
Definition of a high grade core to the discovery will be an early focus of drilling which will then transition into step-out drilling across the largest two porphyries at Cortadera.
The phase 2 drilling programme will also include future shallow drilling associated with near-surface high grade chalcocite zones intersected in drilling across Cortadera’s three other outcropping porphyry centres (Cuerpo 1, 2 and 4).
A strong flow of drilling updates and results is expected to continue into 2020 as the company advances through a very exciting discovery phase, which looks set to establish Cortadera as a potential stand-out, large-scale, global copper-gold development.
Having completed a $12 million institutional placement this month, the company is well-placed to continue its aggressive exploration program.
While exploration news has largely contributed to a doubling in Hot Chili’s share price over the last six months, including a surge of 60% in the last month, this could be the forerunner to further momentum that unfolds following the release of the initial resource estimate.