Only scratched the surface at Cortadera says Hot Chili
Hot Chili Limited (ASX:HCH) has delivered further strong results from the third diamond drill hole of the company's phase 2 drill programme at the Cortadera copper-gold porphyry discovery, located along the Chilean coastal range, 600 kilometres north of Santiago.
It has predominately been news related to exploration at Cortadera that has led to a doubling in the company shares over the last two quarters, and interestingly these most recent results have seen the company shares open up 5.7% on Wednesday morning.
Initial drilling has focused on the definition of a recently discovered high grade core to Cuerpo 3, the largest of the four porphyry centres discovered to date at Cortadera.
New results from diamond (DD) drill hole CRP0018D have continued to confirm strong grade continuity across the high grade zone, recording a significant intercept of 82 metres grading 0.8% copper and 0.4 g/t gold within a broader result of 150 metres grading 0.6% copper and 0.3 g/t gold from 434m down-hole depth.
In addition, CRP0018D recorded a wide shallow drilling intersection from 52 metres down-hole depth comprising 264 metres grading 0.4% copper and 0.2 g/t gold.
Approximately 250 metres to the south-west of CRP0018D, another diamond drill hole (CRP0020D) has recorded a wide intersection of strongly mineralised porphyry from surface over a down-hole width of 313 metres with the potential for this to extend further.
The final hole is directed towards the definition of an initial high grade core to the main porphyry.
Results support potential open pit development
These results, in addition to pending results from CRP0019D, confirm mineralised porphyry extends from shallow depths across a large extent of the main porphyry which had not previously been drill tested.
Confirmation of large up-dip extensions to Cuerpo 3 adds significantly to the open pit growth potential of Cortadera - a key focus for Hot Chili that significantly de-risks any potential future, higher grade, underground development opportunity at Cortadera.
Cortadera's potential size and significance is only just beginning to be revealed, and management is of the view that further drilling could well position it as one of the most significant Chilean copper porphyry discoveries of the past decade.
Management is eagerly awaiting results from CRP0020D as they could point to a potentially large, up-dip extension to the main porphyry and once again confirm that the largest porphyry at Cortadera remains open and is extending.
Management has accelerated the exploration program, as double shift diamond drilling is scheduled to continue, with expansion drilling set to commence across Cuerpo 2 and 3 in the coming weeks (upon completion of CRP0020D).
Drill testing of the northern and southern extensions to the main porphyry (Cuerrpo 3) will be an initial focus of planned expansion drilling.
Consequently, management expects to be releasing the next set of diamond drill results in the near term, marking the commencement of a strong period of news flow over the coming months.