Hot Chili promotes Cortadera at Perth conference
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Hot Chili Ltd’s (ASX:HCH) managing director Christian Easterday described the group’s Cortadera project as ‘one of the most significant copper-gold porphyry discoveries of the past decade in Chile.’
It is a message he will reiterate at today’s New World Metals Conference.
Cortadera is part of a larger copper super-hub that Hot Chili is looking to develop with the other potential prominent sources of ore being Productora , Valentina and San Antonio.
One drill hole recorded close to a one kilometre intersection from surface, confirming extensive high grade copper and gold across the core of the largest porphyry discovered to date at Cortadera.
Highlighting the global significance of this drill result and suggesting this could become the world’s next Tier 1 copper-gold discovery, Hot Chili's managing director Christian Easterday said that it is stunning and stands as one of the best discovery drill results recorded across the world in 2019, and more specifically within the coastal copper belt of Chile.
In highlighting the group’s achievements in 2019, Easterday said, "In little over nine months we have transformed the growth trajectory for our company and outlined what could become the world’s next Tier-1 copper-gold discovery.’’
Easterday has let the figures do the talking when it comes to supporting his belief that Cortadera is one of Chile’s standout copper-gold porphyry discoveries, as well as being competitive on a global basis as evidenced by the following data.
Exploration news flow has been instrumental in driving the company’s shares 250% higher in 2019 as the following chart shows.
Hot Chili moving to 100% ownership of Cortadera
Hot Chili announced the staged acquisition of Cortadera in February whereby it has the option to acquire 100% of the project through the payment of US$31.5 million over 30 months.
The first instalment of US$5 million has already been satisfied.
However, it could be argued that the value Hot Chili has added to Cortadera through its active drilling program well exceeds the progress payments made to date.
The following outlines the four porphyry centres discovered.
The star performer among the four areas under exploration is Cuerpo 3 which boasts a strike length of more than 600 metres, a width of 250 metres and a depth of 1000 metres.
It is also open to the north and south, as well as at depth.
Drilling has been successful in defining a high-grade core at Cuerpo 3, and this is growing vertically.
Based on the mineralisation delineated to date, management is of the view that there is the potential to develop a large tonnage underground mine.
Drilling is still underway, suggesting there could be further share price catalysts on the horizon.
Of particular note is the fact that the high grade zone remains open, suggesting the possibility of extending across the entire section of Cuerpo 3.
Potential for Cortadera to join at depth
Hot Chili has released the first model of Cortadera, and as the following graphic demonstrates, there is the potential for the four areas of focus which span a length of two kilometres to join at depth.
The icing on the cake could be Cortadera North, a target identified by historical work but never drill tested.
It has a similar signature and size to Cortadera and is located only two kilometres to the north.
Similarities can be seen in the following graphic with key features being the elevated molybdenum in soil geochemistry and the large induced polarisation (IP) highs.
On the exploration front, Easterday highlighted five key developments that could drive the company’s share price higher over the next six months.
Another catalyst could well be the initial resource estimate for Cortadera which is planned to be undertaken in the June half of 2020.
On the corporate front, management is already in discussions regarding funding which would be particularly significant given the scope of the project.)
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