Hot Chili Quarterly Report
PR Newswire
PERTH, Australia, April 24, 2025
Period Ending 31 March 2025
PERTH, Australia, April 24, 2025 /PRNewswire/ -
Highlights
Hot Chili Announces Preliminary Feasibility Study $(PFS)$ & Maiden(1) Ore Reserve(2) for the Costa Fuego Cu-Au Project
-- Low-risk, Chilean coastal copper development with advanced permitting -
multi-decade mine life, top quartile copper production scale3 and lowest
quartile capital intensity
-- Strong economics and leverage to rising copper price:
-- Post-tax Net Present Value (NPV8%) of US$1.2 billion
(approximately, within a range of US$786 million to US$1.62
billion) and post-tax Internal Rate of Return $(IRR)$ of 19%
(approximately, within a range of 15% to 22%)
-- Maiden ore reserve for Costa Fuego Copper-Gold Project (Costa Fuego)
lowers operational risk1,2:
-- Probable Ore Reserves of 502 Mt at 0.37% Cu, 0.10 g/t Au, 0.49 g/t
Ag and 97 ppm Mo: Across sulphide concentrator, oxide leach and
low-grade sulphide leach processing streams
Hot Chili Announces PFS for Huasco Water & MOU for Seawater Supply to Costa Fuego
-- Strong economics for a large, multi-user, water business opportunity
-- Stage 1 PFS4 for 500L/s of potential seawater supply to Costa Fuego
-- Post-tax NPV8% of US$122 million and IRR of 19%
-- Staged approach for regional, desalinated water supply with large 4,000
L/s catchment of potential off-takers
-- Stage 2 PFS for 1,300 L/s of potential desalinated water supply
-- Post-tax NPV8% of US$977 million and IRR of 19%
-- First-Mover Advantage, only active maritime licence in the Huasco Valley
region of Chile
Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde
-- Multiple new significant drill intersections underpin rapidly growing
oxide and sulphide discovery, located 30km south of Costa Fuego,
providing significant potential for front-end, open pit, mine life growth
-- Phase 1 drill programme completed on 10 April 2025, phase 2 planned and
awaiting regulatory approval
-- Assay results for nineteen holes pending and second Environmental Impact
Assessment $(EIA)$ commenced to integrate La Verde into Costa Fuego and
materially enhance project economics
A$7.5M Cash and A$5.0M in Returns Expected (VAT and JV recoup)
-- Expenditure reduced by 60% to 65% over next six months during Definitive
Feasibility Study $(DFS)$ planning & PFS optimisation phases
Potential Strategic Funding Discussions Advancing
-- Strong interest in asset-level investment opportunities for Costa Fuego
and Huasco Water
__________
(1) Hot Chili previously released Ore Reserves for Productora, a component of
Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles
Reserves at Productora' 2 March 2016. Maiden Ore Reserve for Cortadera and San
Antonio and Alice deposits, and updated Ore Reserve for Productora and as a
whole Costa Fuego.
(2) Hot Chili is a dual listed entity and complies with the JORC 2012 code for
the ASX for the reporting of Exploration Results, Mineral Resources and Ore
Reserves. The company complies with CIM Definition Standards for Mineral
Resources and Mineral Reserves (10 May 2014) that are incorporated by
reference into NI 43-101 for the TSXV. Terminology of Ore Reserves and Mineral
Reserves are interchangeable and have the same meaning within this
announcement.
(3) S&P Market Intelligence. The Global Developer Peer Group of project
studies were selected on the following basis: Global primary copper projects
(not controlled by a major miner), with net by-product credits where
applicable, reporting studies of average annual life-of-mine copper production
of greater than 40 kt, which have been published within the last 5 years.
(4) The Huasco Water Supply PFS has been aligned with the preliminary
feasibility study for the Company's Costa Fuego project (the "Costa Fuego
PFS") and shares the same assumptions for Costa Fuego in stage 1. See
announcement dated 27(th) March 2025 "Hot Chili Announces PFS & Maiden Mineral
Reserve for the Costa Fuego Cu-Au Project" outlining the results of the Costa
Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared
in accordance with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects ("NI 43-101") and JORC Code 20212 within 45 days thereof.
Cautionary Statement -- JORC Code (2012)
The Preliminary Economic Assessment referred to in this Report is equivalent
to a Scoping Study under JORC Code (2012) reporting guidelines. It has been
undertaken for the purpose of initial evaluation of a potential development of
the Costa Fuego Copper Project in Chile. It is a preliminary technical and
economic study of the potential viability of the Costa Fuego Copper Project.
The PEA outcomes, production target and forecast financial information
referred to in the Report are based on low level technical and economic
assessments that are insufficient to support estimation of Ore Reserves. The
PEA is presented in US dollars to an accuracy level of +/- 35%. While each of
the modifying factors was considered and applied, there is no certainty of
eventual conversion to Ore Reserves or that the production target itself will
be realised. Further exploration and evaluation and appropriate studies are
required before Hot Chili will be in a position to estimate any Ore Reserves
or to provide any assurance of any economic development case. Given the
uncertainties involved, investors should not make any investment decisions
based solely on the results of the PEA.
Of the Mineral Resources scheduled for extraction in the PEA production plan,
approximately 99% are classified as Indicated and 1% as Inferred. The Company
has concluded that it has reasonable grounds for disclosing a production
target which includes a small amount of Inferred Mineral Resources, as
permitted under the JORC Code. There is a low level of geological confidence
associated with Inferred Mineral Resources and there is no certainty that
further exploration work will result in the determination of Indicated Mineral
Resources or that the production target itself will be realised. The viability
of the development scenario envisaged in the PEA does not depend on the
inclusion of Inferred Mineral Resources. However, it is reasonably expected
that the majority of Inferred Mineral Resources could be upgraded to Measured
or Indicated Mineral Resource with continued drilling.
The Mineral Resources underpinning the production target in the PEA have been
prepared by a competent person in accordance with the requirements of the JORC
2012. For full details on the Mineral Resource estimate, please refer to the
ASX announcement of 31 March 2022. The Mineral Resource Estimate update
released in February 2024 does not materially change the Mineral Resource
inventory that formed the basis of the 2023 PEA, and no new scientific or
technical information has been developed that would materially affect the
outcome of the 2023 PEA and, therefore, the results and conclusions of the
2023 PEA are considered current and have been restated for this Report.
To achieve the outcomes indicated in the PEA, including reaching Definitive
Feasibility Study ("DFS"), mine construction and production stages, funding in
the order of US$1.10 Billion will be required, including pre-production and
working capital and assumed financing charges. Investors should note that that
there is no certainty that Hot Chili will be able to raise that amount of
funding when needed. One of the key assumptions is that the funding for the
Project will be available when required and on acceptable terms. It is also
possible that such funding may only be available on terms that may be dilutive
to, or otherwise affect the value of, Hot Chili's existing shares. It is also
possible that Hot Chili could pursue other value realisation strategies such
as debt financing, a sale or partial sale of its interest in the Costa Fuego
Copper Project and/or Huasco Water, sale of further royalties and/or streaming
rights, sale of non-committed offtake rights, and sale of non-core assets.
This Report contains forward-looking statements. Hot Chili has concluded that
it has a reasonable basis for providing these forward-looking statements and
believes it has a reasonable basis to expect it will be able to fund
development of the Costa Fuego Copper Project. However, a number of factors
could cause actual results or expectations to differ materially from the
results expressed or implied in the forward-looking statements. Given the
uncertainties involved, investors should not make any investment decisions
based solely of the results of the PEA.
------------------------------------------------------------------------------
SUMMARY OF OPERATIONAL ACTIVITIES
Costa Fuego PFS Delivered On-Time & Within Guidance
The Costa Fuego PFS was announced on 27th March 2025. The PFS delivered globally meaningful scale and a multi-decade project life for Costa Fuego. Highlights included:
Globally Meaningful Scale & Multi-Decade Mine Life
-- Project Life Extended to 20 Years
-- Average Annual Production Increased 116 ktpa Average CuEq1 Production
Rate: Including 95 kt Cu and 48 koz Au during primary production (first
14 years)
-- Competitive Cost Position: Life of mine $(LOM.AU)$ average C1 Cash Cost2 of
US$ 1.38/lb and All-in-Sustaining Cost of US$1.85/lb (both estimated net
of by-product credits)
-- Increase in Total Copper and Gold Production: 1.5 Mt Cu (3.31 Blb Cu) and
780 koz Au produced over the LOM
-- Robust Financial Profile: Total LOM revenue of approximately US$17.3
billion and total LOM free cash flow of approximately US$3.86 billion
(post-tax, after operating costs, capital costs, and royalties)
-- Significant Risk Reduction: PFS prepared assuming +/- 25% accuracy. An
additional US$442 million of capital costs applied to significantly
reduce key areas of risk, including changes in project scope and
inflationary pressures
Strong Economics and Leverage to Rising Copper Price
-- Post-tax NPV8% of US$1.2 billion (approximately, within a range of US$786
million to US$1.62 billion) and post-tax IRR of 19% (approximately,
within a range of 15% to 22%)
-- First Quartile Capital Intensity: Start-up Capital Cost of US$ 1.27
billion delivers a capital intensity of US$ 14,079/t of average annual
CuEq. metal produced
-- Highly Leveraged to Copper Price: At spot copper price of US$5.30/lb3,
post-tax NPV8% increases to US$2.2 billion and post-tax IRR to 30%,
respectively
Low-Risk, Coastal Copper Development with Advanced Permitting
-- Low Elevation and Over a Decade of Permitting Advance Provides a
Foundation for Development: One of only a few global copper development
projects at low elevation with a water permit, and grid power
-- Preparing to submit Environmental Impact Assessment (EIA): Costa Fuego
Stage-1 (EIA-1) based on current PFS-scale and definition
Maiden Ore Reserve for Costa Fuego Lowers Operational Risk
-- Maiden4 Ore Reserve5 for Costa Fuego. Probable Ore Reserves of 502 Mt at
0.37% Cu, 0.10 g/t Au, 0.49 g/t Ag and 97 ppm Mo: Across sulphide
concentrator, oxide leach and low-grade sulphide leach processing streams
__________
(1) The copper-equivalent (CuEq) annual production rate was based on the
combined processing feed (across all sources) and used long-term commodity
prices of: Copper US$ 4.30/lb, Gold US$ 2,280/oz, Molybdenum US$ 20/lb, and
Silver US$25/oz; and estimated metallurgical recoveries for the production
feed to the following processes: Concentrator (86% Cu, 54% Au, 37% Ag, 70%
Mo), Oxide Leach (65% Cu only), & Low-grade Sulphide Leach (39% Cu only).
(2) See page Announcement page 3 for full non-IFRS measures disclaimer.
(3) Copper price -- Fast markets quote 26/03/2025. High of $5.37/lb closing
price $5.24/lb
(4) Hot Chili previously released Ore Reserves for Productora, a component of
Costa Fuego, in the ASX announcement 'Hot Chili Delivers PFS and Near Doubles
Reserves at Productora' 2 March 2016. Maiden Ore Reserve for Cortadera and San
Antonio and Alice deposits, and updated Ore Reserve for Productora and as a
whole Costa Fuego.
(5) Hot Chili is a dual listed entity and complies with the JORC 2012 code for
the ASX for the reporting of Exploration Results, Mineral Resources and Ore
Reserves. The company complies with CIM Definition Standards for Mineral
Resources and Mineral Reserves (10 May 2014) that are incorporated by
reference into NI 43-101 for the TSXV. Terminology of Ore Reserves and Mineral
Reserves are interchangeable and have the same meaning within this
announcement.
Sphere size represents Leverage Index -- which was calculated as the ratio of % increase in Cu price to % increase in NPV8%.
The Global Developer Peer Group of project studies were selected on the following basis: Global primary copper projects (not controlled by a major miner), with net by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years. Projects with older studies were considered to be on hold. Significant projects such as Pebble and King-king were excluded by Hot Chili due to high perceived geopolitical risk, limiting the probability of development. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes. References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results.
Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a US$4.30/lb Cu price. Published sensitivity data provided results that bracketed an US$4.30/lb Cu price, which was then calculated. Details of the adjustment are provided in the reference table on Benchmarking Data in the appendix (see slides 55-59 of presentation "Costa Fuego Copper-Gold Project Preliminary Feasibility Study & Maiden Ore Reserve" Dated 27th March 2025 ).
Sphere size represents projected Life of Mine Average Annual CuEq* Production. (1) PFS CuEq considers long-term commodity prices and PFS metallurgical recoveries for the production feed from testwork. The CuEq metal was determined as the equivalent copper metal with equal value to all saleable production. See slide 37 for PFS commodity prices and slides 33 & 34 for PFS metallurgical recoveries.
The South American Developer Peer Group of project studies were selected on the following basis: South American primary copper projects (not controlled by a major miner), net of by-product credits where applicable, reporting studies of average annual life-of-mine copper production of greater than 40 kt, which have been published within the last 5 years. Projects with older studies were considered to be on hold. Projects controlled by mid-tier mining companies near Costa Fuego were also included (Josemaría, Santa Domingo, Mantos Blanco and Mantoverde) for comparison purposes. References to active mines and other mineral projects is for illustration purposes only. There can be no assurances the Company will achieve comparable results.
Source: Published Company reports on studies undertaken on projects that were not in production at the time of the studies. Information from projects has been sourced from publicly available data that has been provided under differing economic assumptions. Public information for projects has been adjusted to provide a standardised data set under a US$4.30/lb Cu price. Published sensitivity data provided results that bracketed an US$4.30/lb Cu price, which was then calculated.
Details of the adjustment are provided in the reference table on Benchmarking Data in the appendix (see slides 55-59 of presentation "Costa Fuego Copper-Gold Project Preliminary Feasibility Study & Maiden Ore Reserve" Dated 27th March 2025 ).
Huasco Water PFS Outlines Valuable Strategic Asset
The Huasco Water(1) PFS was announced on 31 March 2025. The Huasco Water PFS presented a robust business case for both Stage 1 and Stage 2 of its proposed regional scale seawater and desalinated water business, with a conceptual level study for Stage 3 desalinated water supply expansion. Highlights included:
Strong Economics for a Large, Multi-User, Water Business
-- Stage 12 Water Supply PFS for 500L/s of Potential Seawater Supply:
Post-tax NPV8% of US$122 million and IRR of 19%. Construction capital
cost for seawater supply estimated at US$151 million with a 4.5-year
payback
-- Stage 2 Water Supply PFS for 1,300 L/s of Potential Desalinated Water
Supply: Post-tax NPV8% of US$977 million and IRR of 19%. Construction
capital cost for desalinated water supply estimated at US$1.4 billion
with a 4-year payback. Stage 2 financial outcomes include Stage 1 capital
and operating cashflows
-- Stage 3 Conceptual Study for Expansion to 2,300 L/s of Potential
Desalinated Water Supply
Stage 1- Multi-Decade Seawater Supply to Costa Fuego
-- 20 Year Seawater Supply with Foundation Off-taker: Memorandum of
Understanding (MOU) executed for water supply of up to 500 L/s to Costa
Fuego
-- Long Lead-times Permits Secured: Granted maritime water concession to
extract seawater, permit for coastal land access, Stage 1 pipeline
easements and connection to the electrical grid secured
-- Near-Term Development Decision Tied to Costa Fuego: First water supply
planned for end of decade
Stage 2 and 3 -- Regional, Desalinated Water Supply Opportunity
-- Large Catchment of Potential Off-takers: Over 4,000 L/s of desalinated
water demand identified, including six undeveloped mining projects
without secured access to desalinated water supply. No offtake agreements
have been secured for stage 2 or 3 and discussions with potential
customers are ongoing
-- Staged Growth Approach: Establishment of seawater supply infrastructure
toward the end of the decade, followed by the commencement of initial
desalinated water supply shortly thereafter, and subsequent staged
expansion. The staged approach enables long term scalable water supply to
support mining, community, and agriculture in the Huasco Valley region
with potential to extend well beyond the initial project horizons
First-Mover Advantage
-- Only Active Maritime License: HW Aguas para El Huasco SpA (Huasco Water),
a joint venture between Hot Chili (80% interest) and Compañia Minera
Del Pacifico "CMP" (20% interest), is the only company with permitted
access to supply seawater in the Huasco Valley region following a
ten-year regulatory approval process
-- Desalination Permitting Advancing: Over a year advanced on regulatory
applications to enable the supply of desalinated water from the existing
maritime concession and a second maritime concession application by
Huasco Water
-- Long Permitting Timelines Continue: No regulatory changes have been made
to Chile's maritime permitting process since Huasco Water was granted its
concession. Hot Chili maintains a competitive advantage as the first
mover in the area for a water distribution business
-- EIA Advanced: Stage 1 seawater supply is included within the Costa Fuego
EIA, baseline studies complete.
__________
(1) HW Aguas para El Huasco SpA ("Huasco Water"), a joint venture between Hot
Chili (80% interest) and Compañia Minera Del Pacifico ""CMP" (20%
interest)
(2) The Huasco Water Supply PFS has been aligned with the preliminary
feasibility study for the Company's Costa Fuego project (the "Costa Fuego
PFS") and shares the same assumptions for Costa Fuego in stage 1. See
announcement dated 27(th) March 2025 "Hot Chili Announces PFS & Maiden Mineral
Reserve for the Costa Fuego Cu-Au Project" outlining the results of the Costa
Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared
in accordance with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects ("NI 43-101") and JORC Code 20212 within 45 days thereof.
Huasco Water PFS Key Outcomes
Key
Performance
Stage Indicator IRR
------------------------ ------------- ---------- ---------------------------
19% (Base
12 % 15.5 % case)
------------------------------------------------- ----- ------ ------------
Stage 1
PFS
Engineering Fixed Water
(Seawater) Tariff US$M/year 23 28 33
------------------------ ------------- ---------- ----- ------ ------------
Variable
Water
Tariff US$/m(3) 0.48 0.58 0.69
------------- ----------------------------------- ----- ------ ------------
Average
Annual Price
of Water(1) US$/m(3) 2.31 2.80 3.32
------------- ----------------------------------- ----- ------ ------------
Nominal
Seawater
Water
Demand L/s 500 500 500
------------- ----------------------------------- ----- ------ ------------
Costa Fuego
PFS Total
Cash Costs US$/lb Cu 1.31 1.35 1.38
------------- ----------------------------------- ----- ------ ------------
Impact on
Costa Fuego
PFS Total
Cash Cost US$/lb Cu -0.07 -0.04 0
------------- ----------------------------------- ----- ------ ------------
Post-tax NPV8 US$M 41 80 122
------------- ----------------------------------- ----- ------ ------------
Levelized
Cost of
Water to
Huasco Water
(8%) US $/m(3) 1.66 1.66 1.66
------------- ----------------------------------- ----- ------ ------------
Construction
Capital US$M 151 151 151
------------- ----------------------------------- ----- ------ ------------
Sustaining
Capital US$M 26 26 26
------------- ----------------------------------- ----- ------ ------------
Stage 1 & 2 PFS
Engineering (Seawater & Fixed Water
Desalinated Water) Tariff US$M/year 243 283 327
------------------------ ------------- ---------- ----- ------ ------------
Variable
Water
Tariff US$/m(3) 1.47 1.71 1.98
------------- ----------------------------------- ----- ------ ------------
Average
Annual Price
of Water(2) US$/m(3) 6.39 7.44 8.59
------------- ----------------------------------- ----- ------ ------------
Nominal
Desalinated
Water
Demand L/s 1,300 1,300 1,300
------------- ----------------------------------- ----- ------ ------------
Post-tax NPV8 US$M 328 640 977
------------- ----------------------------------- ----- ------ ------------
Levelized
Cost of
Water to
Huasco Water
(8%) US $/m(3) 4.85 4.85 4.85
------------- ----------------------------------- ----- ------ ------------
Construction
Capital US$M 1,430 1,430 1,430
------------- ----------------------------------- ----- ------ ------------
Sustaining
Capital US$M 1,170 1,170 1,170
------------- ----------------------------------- ----- ------ ------------
Stage 3(3) Conceptual
Study (Desalinated Fixed Water
Water Expansion) Tariff US$M/year 312 359 410
------------------------ ------------- ---------- ----- ------ ------------
Variable
Water
Tariff US$/m(3) 1.78 2.04 2.33
------------- ----------------------------------- ----- ------ ------------
Average
Annual Price
of Water(4) US$/m(3) 6.93 7.97 9.11
------------- ----------------------------------- ----- ------ ------------
Nominal
Desalinated
Water
Demand L/s 2,300 2,300 2,300
------------- ----------------------------------- ----- ------ ------------
Expansion
Capital US$M 1,900 1,900 1,900
------------- ----------------------------------- ----- ------ ------------
Sustaining
Capital US$M 2,380 2,380 2,380
------------- ----------------------------------- ----- ------ ------------
_________
(1) Average Annual Price of Water for Costa Fuego. Price is calculated subject
to each project's location and requirements.
(2) Average Annual Price of Water for customers supplied in the Stage 2. Price
is calculated subject to each customers location and requirements.
(3) Stage 3 tariffs are the average for all customers for Stage 1, 2 and 3
(4) Average Annual Price of Water for customers supplied in the Stage 3. Price
is calculated subject to each customers location and requirements.
La Verde Exploration Update
On 11 February 2025, Hot Chili reported a second round of strong assay results from its La Verde copper-gold discovery, located approximately 30km south of Costa Fuego. Highlights included:
Rapidly Emerging Major Copper-Gold Porphyry Discovery
-- New drill results from an additional ten Reverse Circulation $(RC)$ drill holes confirm La Verde as a major copper-gold porphyry discovery in low elevation coastal Chile, with broad, consistently mineralised intersections extending over 300 m vertically, commencing at shallow depths. -- Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery: -- 320 m grading 0.3% Cu and 0.1 g/t Au from 34 m to end-of-hole (DKP009) -- including 134 m at 0.4% Cu and 0.2 g/t Au from 180 m depth -- including 56 m at 0.5% Cu and 0.2 g/t Au from 258 m depth -- 200 m grading 0.4% Cu and 0.1 g/t Au from 48 m to end-of-hole (DKP005) -- including 38 m at 0.5% Cu and 0.2 g/t Au from 68 m depth -- 172 m grading 0.4% Cu and 0.2 g/t Au from 48 m (DKP012) -- including 20 m at 0.5% Cu and 0.2 g/t Au from 62 m depth
and 78 m grading 0.5% Cu and 0.1 g/t Au from 228 m to end-of-hole
-- including 32 m at 0.6% Cu and 0.2 g/t Au from 232 m depth
-- 135.5 m grading 0.3% Cu and 0.1 g/t Au from 64 m to end-of-hole (DKP006)
-- including 62 m at 0.4% Cu and 0.2 g/t Au from 124 m depth
-- which included 26 m at 0.5% Cu and 0.3g/t Au from 124 m depth
-- 32 m grading 0.4% Cu from surface (DKP011)
-- 80 m grading 0.3% Cu and 0.1 g/t Au from 8 m depth (DKP004)
-- including 34 m at 0.4% Cu from 8 m depth
La Verde Discovery Keeps Growing -- Large Scale Appeal
-- New drill results reinforce La Verde's potential scale, adding to the
strong results reported on 18 December 2024:
-- 308 m grading 0.5% Cu, 0.3 g/t Au from 46 m to end-of-hole (DKP002)
--
-- including 202 m at 0.6% Cu, 0.3g/t Au from 70 m depth
-- which included 100 m at 0.7% Cu and 0.3g/t Au from 118 m depth
-- 362 m grading 0.3% Cu, 0.1g/t Au from 28m to end-of-hole (DKP001)
-- including 174 m at 0.4% Cu and 0.1 g/t Au from 36 m depth
-- which included 22 m at 0.6% Cu, 0.2g/t Au from 144 m depth
Drilling Coverage at La Verde Doubled & Porphyry Mineralisation Remains Open
-- First-pass drill coverage now extends across an area measuring 1,000 m by
550 m: 30 reverse circulation (RC) holes for 9,352 m drilled.
-- Assay results pending for nineteen drill holes: Assay turnaround time
from laboratories slower than usual due to peak summer drilling season in
the high Andes
-- Shallow porphyry mineralisation remains open in all directions
-- Phase 1 drill programme completed on 10th April 2025
Next Steps
-- Regulatory application for further clearing access being advanced
-- Phase 2 drill programme (RC and diamond drilling) planned to commence
following regulatory approval
-- Deeper diamond drill testing being planned: 8 of 12 RC drill holes
reported to date recorded significant mineralisation to end-of-hole
-- Advanced four-dimensional geological modelling underway in addition to
regional scale exploration activities across the La Verde discovery area
and Domeyko landholdings
-- Second EIA commenced to integrate La Verde into Costa Fuego
Table 1 - Drill Holes Completed for Costa Fuego in Quarter 1 2025
Prospect Hole ID North East RL Depth Azimuth Dip Results --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP014 6785852 324747 1,147 444 300 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP015 6786096 324434 1,159 313 132 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP016 6785947 324416 1,110 360 110 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP017 6786094 324685 1,185 336 100 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP018 6785835 324428 1,108 145 100 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP019 6785720 324718 1,145 279.5 255 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP020 6785748 324586 1,141 144 270 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP021 6785619 324324 1,197 402 75 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP022 6785527 324414 1,200 288 75 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP023 6785421 324320 1,197 402 90 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP024 6785424 324417 1,203 402 110 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP025 6785313 324415 1,187 276 270 -75 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP026 6785870 324312 1,110 147 105 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP027 6785755 324906 1,139 402 300 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP028 6785617 324758 1,136 432 300 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP029 6785615 324758 1,175 366 265 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- ------- La Verde DKP030 6785770 324774 1,133 393 275 -60 Pending --------- -------- ------- ------ ----- ----- ------- --- -------
Table 2 -- Significant Intersections returned for Costa Fuego in Quarter 1 2025
Hole
Hole ID Coordinates Azim. Dip Depth Intersection Interval Copper Gold Silver Molybdenum
--------------------- ----- -------------- -------- ------ -------- -------- ----------
North East RL From To (m) (% Cu) (g/t Au) (ppm Ag) (ppm Mo)
----- ----------
DKP003 6785971 324840 1192 117 -59 282 36 246 210 0.2 0.1 0.4 5
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
110 128 18 0.2 0.2 0.3 7
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
140 160 20 0.3 0.1 0.4 7
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
188 196 8 0.3 0.1 0.5 4
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP004 6785836 324423 1093 90 -60 120 8 88 80 0.3 0.1 0.5 19
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 8 42 34 0.4 0.0 0.6 16
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or
Incl 26 36 10 0.6 0.1 0.5 18
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP005 6785789 324564 1124 91 -60 248 8 247.5 239.5 0.3 0.1 0.9 18
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or 48 247.5 199.5 0.4 0.1 1.0 21
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 32 40 8 0.5 0.1 0.5 8
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 68 106 38 0.5 0.2 1.1 9
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or
Incl 70 82 12 0.6 0.2 1.0 8
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP006 6785721 324727 1130 110 -60 199.5 64 199.5 135.5 0.3 0.1 0.8 6
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 124 186 62 0.4 0.2 1.1 7
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or
Incl 124 150 26 0.5 0.3 1.2 7
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 170 174 4 0.6 0.2 2.2 7
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP007 6785854 324742 1149 270 -60 204 0 204 204 0.2 0.1 0.4 32
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 80 88 8 0.3 0.1 0.7 23
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 160 204 44 0.3 0.1 0.5 84
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or
Incl 186 194 8 0.4 0.1 0.7 91
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP008 6785855 324748 1150 5 -60 324 0 324 324 0.2 0.1 0.5 12
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 0 16 16 0.3 0.1 0.3 6
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 144 154 10 0.3 0.1 1.4 20
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 174 218 44 0.3 0.1 0.5 7
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP009 6786075 324552 1152 131 -60 354 34 354 320 0.3 0.1 0.7 13
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 46 66 20 0.5 0.1 0.9 8
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 124 140 16 0.5 0.2 0.7 21
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 180 314 134 0.4 0.2 0.8 8
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or
Incl 258 314 56 0.5 0.2 1.1 6
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or
Incl 260 274 14 0.5 0.3 1.7 4
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP010 6785851 324742 1148 209 -60 276 0 92 92 0.2 0.1 0.3 10
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 0 10 10 0.4 0.2 0.3 4
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
136 220 84 0.3 0.1 0.8 15
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 190 206 16 0.4 0.1 1.2 20
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
252 274 22 0.3 0.1 0.6 14
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP011 6786096 324429 1159 91 -60 326 0 32 32 0.4 0.0 0.8 23
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
228 252 24 0.2 0.0 0.5 72
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 232 234 2 0.4 0.0 2.1 44
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
274 310 36 0.2 0.0 0.3 31
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
DKP012 6785977 324839 1193 300 -60 306 48 220 172 0.4 0.2 0.5 14
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Incl 62 82 20 0.5 0.2 0.3 6
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 192 202 10 0.5 0.2 0.6 94
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
And
Incl 228 306 78 0.5 0.1 0.8 24
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
Or
Incl 232 264 32 0.6 0.2 1.0 16
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
248 260 12 0.7 0.2 0.8 21
------- ------- ------ ---- ----- --- ----- ----- ------- -------- ------ -------- -------- ----------
SUMMARY OF CORPORATE ACTIVITIES
Cash Position and Capital Structure Changes
As of 31 March 2025, the Company had cash of A$7.5 million and no debt. The Company expects to receive approximately A$5 million in funds from VAT repayments and joint venture recoup from its partner CMP.
The operating expenditure for quarter ended 31 March 2025 included payments for exploration and evaluation of A$7.9 million. Included in this amount was A$4.0 million related to the completion of the two PFS for Costa Fuego and Huasco Water, and the advancement of the EIA. A total of A$3.9 million was spent on exploration activities across the La Verde copper-gold porphyry discovery and southern landholdings included in the Domeyko project.
The investing expenditure for quarter ended 31 March 2025 related to payments for patentes (annual rent) for the Company's mining tenements.
The Company expects monthly expenditure to be materially reduced by approximately 60% to 65% over the coming six months compared to this quarter, due to the completion and release of both the Costa Fuego and Huasco Water PFS, with only planning and optimisation activities expected during the next two quarters. Exploration expenditure will also be significantly reduced, with phase 1 drilling activities at La Verde having been completed on 10 April 2025.
In addition, the Company is engaged in discussions related to potential renegotiation of forthcoming Option payments later in 2025 to maximise funds, while Hot Chili engages in potential future strategic funding discussions.
The following summarises the Company's securities on issue:
-- 151,596,149 ordinary fully paid shares -- 1,914,000 options at AUD $1.50 expiring 24 July 2026 -- 5,938,248 service and performance rights
Board Changes
With the release of the Company's Pre-feasibility Studies for its Chilean Costa Fuego copper-gold project and Huasco Water project, Hot Chili commenced preparation in its next steps toward a final phase of development.
On 11 March 2025, Hot Chili advised that Dr Nicole Adshead-Bell, Non-Executive Chair and Mr Stephen Quin, Non-Executive Director had tendered their resignations as Directors of the Company, effective immediately.
On 17 March 2025, the Company announced the appointment of experienced and well-regarded Australian mining executive, Mrs Fiona Van Maanen, to the Board of Hot Chili as an Independent Non-Executive Director
Further board and key executive appointments are planned and aim to strengthen and align the Company's capability at an important inflection in the Company's growth.
Additional ASX Disclosure Information
ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter.
ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of 31 March 2025
The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report.
ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently.
ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totalled $126,000. This is comprised of directors' salaries and superannuation of $126,000
Health, Safety, Environment and Quality
Field operations during the period included geological reconnaissance activities, reverse-circulation drilling, field mapping, and sampling exercises across the major Cortadera and Productora landholdings, as well as new project at La Verde. Activities on new tenements are run from the Productora or Cortadera operations centres and their safety statistics are included under the figures for all projects.
There were no Lost Time Injuries $(LTI.UK)$ during the quarter.
Hot Chili's sustainability framework ensures an emphasis on business processes that target long-term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families.
Table 4. HSEQ Quarter 1 2025 Performance and Statistics
Deposit Productora Cortadera All Projects
---------------------------------- ------------- ------------- -------------
Q1 Q1 Q1
Timeframe 2025 Cum.(2) 2025 Cum.(2) 2025 Cum.(2)
---------------------------------- ---- ------- ---- ------- ---- -------
LTI events 0 0 0 6 0 8
---------------------------------- ---- ------- ---- ------- ---- -------
NLTI events 0 4 0 6 0 11
---------------------------------- ---- ------- ---- ------- ---- -------
Days lost 0 0 0 152 0 263
---------------------------------- ---- ------- ---- ------- ---- -------
LTIFR index 0 0 0 20 0 18
---------------------------------- ---- ------- ---- ------- ---- -------
ISR index 0 0 0 510 0 599
---------------------------------- ---- ------- ---- ------- ---- -------
IFR Index 0 44 0 40 0 43
---------------------------------- ---- ------- ---- ------- ---- -------
Thousands of man-hours 3.6 92 2.5 298 21.4 439
---------------------------------- ---- ------- ---- ------- ---- -------
Incidents on materials and assets 0 1 0 0 0 1
---------------------------------- ---- ------- ---- ------- ---- -------
Environmental incidents 0 0 0 0 0 0
---------------------------------- ---- ------- ---- ------- ---- -------
Headcount(1) 10 11 8 31 57 50
---------------------------------- ---- ------- ---- ------- ---- -------
Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR
per million-manhours. Safety performance is reported on a monthly basis to the
National Mine Safety Authority on a standard E-100 form; (1) Average monthly
headcount (2) Cumulative statistics since April 2019.
Tenement Changes During the Quarter
During the Quarter, Sociedad Minera La Frontera SpA ("La Frontera") has abandoned the Marsellesa option agreement and the Cometa option agreement and the mining rights have been returned to the respective owners. Furthermore, the Domeyko Option Agreement Offeror has claimed the exploitation concessions "Cazurro 3 1/60", "Cazurro 4 1/60" and "Cazurro 7 1/40" in use of the preferential right held by virtue of exploration concessions "Cazurro 3", "Cazurro 4" and "Cazurro 7" respectively. Consequently, the Domeyko Option Agreement has been amended, including the mentioned concessions and the exploitation concession called "Antonio 36 1/15".
During the same period, Sociedad Minera El Águila has claimed 2 mining exploitation concessions "Suerte 1/7" and "Suerte II 1/15", which are in process to be constituted.
The Company's existing tenements are detailed in the table below.
Table 4 Current Tenement (Patente) Holdings in Chile as of 31 March 2025
Cortadera Project Tenements
Cortadera Project
------------------------------------------------------------------------------
Agreement
Ndeg License ID HCH % Held HCH % Earning Area (ha) Details
---- -------------- -------------- ------------- --------- --------------
100% Frontera
1 ALCENIA 1/10 SpA 50
---- -------------- -------------- ------------- --------- --------------
AMALIA 942 A 100% Frontera
2 1/6 SpA 53
---- -------------- -------------- ------------- --------- --------------
100% Frontera
3 ATACAMITA 1/82 SpA 82
---- -------------- -------------- ------------- --------- --------------
CORROTEO 1 100% Frontera
4 1/260 SpA 260
---- -------------- -------------- ------------- --------- --------------
CORROTEO 5 100% Frontera
5 1/261 SpA 261
---- -------------- -------------- ------------- --------- --------------
CORTADERA 1 100% Frontera
6 1/200 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
7 CORTADERA 1/40 SpA 374
---- -------------- -------------- ------------- --------- --------------
CORTADERA 2 100% Frontera
8 1/200 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
9 CORTADERA 41 SpA 1
---- -------------- -------------- ------------- --------- --------------
100% Frontera
10 CORTADERA 42 SpA 1
---- -------------- -------------- ------------- --------- --------------
100% Frontera
11 LAS CANAS 1/15 SpA 146
---- -------------- -------------- ------------- --------- --------------
100% Frontera
12 LAS CANAS 16 SpA 1
---- -------------- -------------- ------------- --------- --------------
LAS CANAS ESTE 100% Frontera
13 2003 1/30 SpA 300
---- -------------- -------------- ------------- --------- --------------
MAGDALENITA 100% Frontera
14 1/20 SpA 100
---- -------------- -------------- ------------- --------- --------------
PAULINA 10 B 100% Frontera
15 1/16 SpA 136
---- -------------- -------------- ------------- --------- --------------
PAULINA 11 B 100% Frontera
16 1/30 SpA 249
---- -------------- -------------- ------------- --------- --------------
PAULINA 12 B 100% Frontera
17 1/30 SpA 294
---- -------------- -------------- ------------- --------- --------------
PAULINA 13 B 100% Frontera
18 1/30 SpA 264
---- -------------- -------------- ------------- --------- --------------
PAULINA 14 B 100% Frontera
19 1/30 SpA 265
---- -------------- -------------- ------------- --------- --------------
PAULINA 15 B 100% Frontera
20 1/30 SpA 200
---- -------------- -------------- ------------- --------- --------------
PAULINA 22 A 100% Frontera
21 1/30 SpA 300
---- -------------- -------------- ------------- --------- --------------
PAULINA 24 100% Frontera
22 1/24 SpA 183
---- -------------- -------------- ------------- --------- --------------
PAULINA 25 A 100% Frontera
23 1/19 SpA 156
---- -------------- -------------- ------------- --------- --------------
PAULINA 26 A 100% Frontera
24 1/30 SpA 294
---- -------------- -------------- ------------- --------- --------------
PAULINA 27A 100% Frontera
25 1/30 SpA 300
---- -------------- -------------- ------------- --------- --------------
PURISIMA 1/8 100% Frontera
26 (1/2 Y 5/6) SpA 20 NSR 1.5%
---- -------------- -------------- ------------- --------- --------------
100% Frontera
27 CF 1 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
28 CF 2 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
29 CF 3 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
30 CF 4 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
31 CF 5 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
32 CF 6 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
33 CF 7 SpA 100
---- -------------- -------------- ------------- --------- --------------
100% Frontera
34 CF 8 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
35 CF 9 SpA 100
---- -------------- -------------- ------------- --------- --------------
100% Frontera
36 CF 10 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
37 CF 11 SpA 200
---- -------------- -------------- ------------- --------- --------------
CHAPULIN 100% Frontera
38 COLORADO 1/3 SpA 3
---- -------------- -------------- ------------- --------- --------------
100% Frontera
39 CHILIS 1 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
40 CHILIS 3 SpA 100
---- -------------- -------------- ------------- --------- --------------
100% Frontera
41 CHILIS 4 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
42 CHILIS 5 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
43 CHILIS 6 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
44 CHILIS 7 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
45 CHILIS 8 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
46 CHILIS 9 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
47 CHILIS 10 1/38 SpA 190
---- -------------- -------------- ------------- --------- --------------
100% Frontera
48 CHILIS 11 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
49 CHILIS 12 1/60 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
50 CHILIS 13 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
51 CHILIS 14 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
52 CHILIS 15 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
53 CHILIS 16 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
54 CHILIS 17 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
55 CHILIS 18 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
56 CORTADERA 1 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
57 CORTADERA 2 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
58 CORTADERA 3 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
59 CORTADERA 4 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
60 CORTADERA 5 SpA 200
---- -------------- -------------- ------------- --------- --------------
CORTADERA 6 100% Frontera
61 1/60 SpA 265
---- -------------- -------------- ------------- --------- --------------
CORTADERA 7 100% Frontera
62 1/20 SpA 93
---- -------------- -------------- ------------- --------- --------------
63 CRISTINA 1/40 100% SMEA SpA 40
---- -------------- -------------- ------------- --------- --------------
64 DIABLITO 1/5 100% SMEA SpA 25
---- -------------- -------------- ------------- --------- --------------
DONA FELIPA 100% Frontera
65 1/10 SpA 50
---- -------------- -------------- ------------- --------- --------------
100% Frontera
66 DORO 1 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
67 DORO 2 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
68 DORO 3 SpA 300
---- -------------- -------------- ------------- --------- --------------
FALLA MAIPO 2 100% Frontera
69 1/10 SpA 99
---- -------------- -------------- ------------- --------- --------------
FALLA MAIPO 3 100% Frontera
70 1/8 SpA 72
---- -------------- -------------- ------------- --------- --------------
FALLA MAIPO 4 100% Frontera
71 1/26 SpA 26
---- -------------- -------------- ------------- --------- --------------
72 MINORI 1 100% SMEA SpA 300
---- -------------- -------------- ------------- --------- --------------
73 MINORI 2 100% SMEA SpA 300
---- -------------- -------------- ------------- --------- --------------
74 MINORI 3 100% SMEA SpA 300
---- -------------- -------------- ------------- --------- --------------
75 MINORI 4 100% SMEA SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
76 PORFIADA B SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
77 PORFIADA D SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
78 PORFIADA G SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
79 PORFIADA I SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
80 PORFIADA II SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
81 PORFIADA III SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
82 PORFIADA IV SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
83 PORFIADA V SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
84 PORFIADA VI SpA 100
---- -------------- -------------- ------------- --------- --------------
100% Frontera
85 PORFIADA X SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
86 SAN ANTONIO 1 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
87 SAN ANTONIO 2 SpA 200
---- -------------- -------------- ------------- --------- --------------
100% Frontera
88 SAN ANTONIO 3 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
89 SAN ANTONIO 4 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
90 SAN ANTONIO 5 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
91 SOLAR 1 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
92 SOLAR 2 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
93 SOLAR 3 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
94 SOLAR 4 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
95 SOLAR 5 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
96 SOLAR 6 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
97 SOLAR 7 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
98 SOLAR 8 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
99 SOLAR 9 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
100 SOLAR 10 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
101 SOLEDAD 1 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
102 SOLEDAD 2 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
103 SOLEDAD 3 SpA 300
---- -------------- -------------- ------------- --------- --------------
100% Frontera
104 SOLEDAD 4 SpA 300
---- -------------- -------------- ------------- --------- --------------
TOTAL 22.653
---- -------------- -------------- ------------- --------- --------------
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
Productora Project Tenements
Productora Project
------------------------------------------------------------------------------
Area Agreement
Ndeg License ID HCH % Held HCH % Earning (ha) Details
---- --------------- ------------- ------------- ------- ----------------
1 ALGA 7 A 1/32 80% SMEA SpA 89
---- --------------- ------------- ------------- ------- ----------------
2 ALGA VI 4 100% SMEA SpA 2
---- --------------- ------------- ------------- ------- ----------------
3 ALGA VI 5/24 80% SMEA SpA 66
---- --------------- ------------- ------------- ------- ----------------
4 ARENA 1 1/6 80% SMEA SpA 40
---- --------------- ------------- ------------- ------- ----------------
5 ARENA 2 1/17 80% SMEA SpA 113
---- --------------- ------------- ------------- ------- ----------------
AURO HUASCO 1A
6 1/8 80% SMEA SpA 35
---- --------------- ------------- ------------- ------- ----------------
CABRITO-CABRITO
7 1/9 80% SMEA SpA 50
---- --------------- ------------- ------------- ------- ----------------
CACHIYUYITO 1
8 1/20 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
CACHIYUYITO 2
9 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
CACHIYUYITO 3
10 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
11 CARMEN I, 1/50 80% SMEA SpA 222
---- --------------- ------------- ------------- ------- ----------------
12 CARMEN II, 1/60 80% SMEA SpA 274
---- --------------- ------------- ------------- ------- ----------------
100% Frontera
13 CF 12 SpA 100
---- --------------- ------------- ------------- ------- ----------------
100% Frontera
14 CF 13 SpA 200
---- --------------- ------------- ------------- ------- ----------------
100% Frontera
15 CF 14 SpA 300
---- --------------- ------------- ------------- ------- ----------------
16 CHICA 80% SMEA SpA 1
---- --------------- ------------- ------------- ------- ----------------
17 CHOAPA 1/10 80% SMEA SpA 50
---- --------------- ------------- ------------- ------- ----------------
18 CUENCA A 1/51 80% SMEA SpA 255
---- --------------- ------------- ------------- ------- ----------------
19 CUENCA B 1/28 80% SMEA SpA 139
---- --------------- ------------- ------------- ------- ----------------
20 CUENCA C 1/51 80% SMEA SpA 255
---- --------------- ------------- ------------- ------- ----------------
21 CUENCA D 80% SMEA SpA 3
---- --------------- ------------- ------------- ------- ----------------
22 CUENCA E 80% SMEA SpA 1
---- --------------- ------------- ------------- ------- ----------------
ELEONOR RIGBY 100% Frontera
23 1/10 SpA 100
---- --------------- ------------- ------------- ------- ----------------
24 ELQUI 1/14 80% SMEA SpA 61
---- --------------- ------------- ------------- ------- ----------------
25 ESPERANZA 1/5 80% SMEA SpA 11
---- --------------- ------------- ------------- ------- ----------------
26 FRAN 1 1/60 80% SMEA SpA 220
---- --------------- ------------- ------------- ------- ----------------
27 FRAN 12 1/40 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
28 FRAN 13 1/40 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
29 FRAN 14 1/40 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
30 FRAN 15 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
31 FRAN 18, 1/60 80% SMEA SpA 273
---- --------------- ------------- ------------- ------- ----------------
32 FRAN 2 1/20 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
33 FRAN 21, 1/46 80% SMEA SpA 226
---- --------------- ------------- ------------- ------- ----------------
34 FRAN 3 1/20 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
35 FRAN 4 1/20 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
36 FRAN 5 1/20 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
37 FRAN 6 1/26 80% SMEA SpA 130
---- --------------- ------------- ------------- ------- ----------------
38 FRAN 7 1/37 80% SMEA SpA 176
---- --------------- ------------- ------------- ------- ----------------
39 FRAN 8 1/30 80% SMEA SpA 120
---- --------------- ------------- ------------- ------- ----------------
40 JULI 10, 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
41 JULI 11, 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
42 JULI 12, 1/42 80% SMEA SpA 210
---- --------------- ------------- ------------- ------- ----------------
43 JULI 13, 1/20 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
44 JULI 14, 1/50 80% SMEA SpA 250
---- --------------- ------------- ------------- ------- ----------------
45 JULI 15, 1/55 80% SMEA SpA 275
---- --------------- ------------- ------------- ------- ----------------
46 JULI 16 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
47 JULI 17 1/20 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
48 JULI 19 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
49 JULI 20 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
50 JULI 21 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
51 JULI 22 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
52 JULI 23 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
53 JULI 24 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
54 JULI 25 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
55 JULI 27 B, 1/10 80% SMEA SpA 48
---- --------------- ------------- ------------- ------- ----------------
56 JULI 27, 1/30 80% SMEA SpA 146
---- --------------- ------------- ------------- ------- ----------------
57 JULI 28, 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
58 JULI 9, 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
JULIETA 10,
59 1/60 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
60 JULIETA 11 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
61 JULIETA 12 80% SMEA SpA 300
---- --------------- ------------- ------------- ------- ----------------
62 JULIETA 13 1/60 80% SMEA SpA 298
---- --------------- ------------- ------------- ------- ----------------
63 JULIETA 14 1/60 80% SMEA SpA 269
---- --------------- ------------- ------------- ------- ----------------
64 JULIETA 15 1/40 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
65 JULIETA 16 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
66 JULIETA 17 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
67 JULIETA 18 1/40 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
68 JULIETA 5 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
69 JULIETA 6 80% SMEA SpA 200
---- --------------- ------------- ------------- ------- ----------------
70 JULIETA 7 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
71 JULIETA 8 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
72 JULIETA 9 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
73 JULITA 1/4 80% SMEA SpA 4
---- --------------- ------------- ------------- ------- ----------------
74 LEONA 2A 1/4 80% SMEA SpA 10
---- --------------- ------------- ------------- ------- ----------------
75 LIMARI 1/15 80% SMEA SpA 66
---- --------------- ------------- ------------- ------- ----------------
76 LOA 1/6 80% SMEA SpA 30
---- --------------- ------------- ------------- ------- ----------------
77 MAIPO 1/10 80% SMEA SpA 50
---- --------------- ------------- ------------- ------- ----------------
78 MONTOSA 1/4 80% SMEA SpA 35 NSR 3%
---- --------------- ------------- ------------- -------
ORO INDIO 1A
79 1/20 80% SMEA SpA 82
---- --------------- ------------- ------------- ------- ----------------
100% Frontera
80 PEGGY SUE 1/10 SpA 100
---- --------------- ------------- ------------- ------- ----------------
81 PRODUCTORA 1/16 80% SMEA SpA 75
---- --------------- ------------- ------------- ------- ----------------
82 SUERTE 1/7 100% SMEA SpA 21
---- --------------- ------------- ------------- ------- ----------------
83 SUERTE II 1/15 100% SMEA SpA 15
---- --------------- ------------- ------------- ------- ----------------
84 TOLTEN 1/14 80% SMEA SpA 70
---- --------------- ------------- ------------- ------- ----------------
25-year Lease
Agreement
US$250,000 per
year (average
for the 25 year
term); plus 2%
NSR all but
gold; 4% NSR
gold; 5% NSR
85 URANIO 1/70 0 % 350 non-metallic
---- --------------- ------------- ------------- ------- ----------------
86 ZAPA 1 1/10 80% SMEA SpA 100
---- --------------- ------------- ------------- ------- ----------------
87 ZAPA 1/6 80% SMEA SpA 6 GSR 1%
---- --------------- ------------- ------------- ------- ----------------
88 ZAPA 3 1/23 80% SMEA SpA 92
---- --------------- ------------- ------------- ------- ----------------
89 ZAPA 5A 1/16 80% SMEA SpA 80
---- --------------- ------------- ------------- ------- ----------------
90 ZAPA 7 1/24 80% SMEA SpA 120
---- --------------- ------------- ------------- ------- ----------------
TOTAL 14.514
---- --------------- ------------- ------------- ------- ----------------
Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili Limited, 20%
owned by CMP (Compañía Minera del Pacífico)
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
El Fuego Project Tenements
Domeyko Project
------------------------------------------------------------------------------
Area
Ndeg License ID HCH % Held HCH % Earning (ha) Agreement Details
---- ----------- ------------- ------------- ------- --------------------
100% HCH Domeyko
Purchase Option
Agreement US$120,000
(already satisfied)
US$100,000 payable
by April 19th 2025
US$100,000 payable
by April 19th 2026
US$200,000 payable
by April 19th 2027
US$3.480,000 payable
ANTONIO 1 100% Frontera by April 19th 2028
1 1/56 SpA 280 NSR 1%
---- ----------- ------------- ------------- ------- --------------------
ANTONIO 100% Frontera
2 1/40 SpA 200
---- ----------- ------------- ------------- ------- --------------------
ANTONIO 10 100% Frontera
3 1/21 SpA 63
---- ----------- ------------- ------------- -------
ANTONIO 19 100% Frontera
4 1/30 SpA 128
---- ----------- ------------- ------------- -------
ANTONIO 21 100% Frontera
5 1/20 SpA 60
---- ----------- ------------- ------------- -------
ANTONIO 36 100% Frontera
6 1/15 SpA 74
---- ----------- ------------- ------------- -------
ANTONIO 5 100% Frontera
7 1/40 SpA 200
---- ----------- ------------- ------------- -------
ANTONIO 9 100% Frontera
8 1/40 SpA 193
---- ----------- ------------- ------------- -------
100% Frontera
9 CAZURRO 1 SpA 200
---- ----------- ------------- ------------- -------
100% Frontera
10 CAZURRO 2 SpA 200
---- ----------- ------------- ------------- -------
100% Frontera
11 CAZURRO 3 SpA 300
---- ----------- ------------- ------------- -------
100% Frontera
12 CAZURRO 4 SpA 300
---- ----------- ------------- ------------- -------
100% Frontera
13 CAZURRO 5 SpA 100
---- ----------- ------------- ------------- -------
100% Frontera
14 CAZURRO 6 SpA 200
---- ----------- ------------- ------------- -------
100% Frontera
15 CAZURRO 7 SpA 200
---- ----------- ------------- ------------- -------
100% Frontera
16 CAZURRO 8 SpA 200
---- ----------- ------------- ------------- -------
CERRO MOLY 100% Frontera
17 1 SpA 300
---- ----------- ------------- ------------- -------
CERRO MOLY 100% Frontera
18 2 SpA 300
---- ----------- ------------- ------------- -------
CERRO MOLY 100% Frontera
19 3 SpA 300
---- ----------- ------------- ------------- -------
CERRO MOLY 100% Frontera
20 4 SpA 300
---- ----------- ------------- ------------- -------
CAZURRO 3 100% Frontera
21 1/60 SpA 300
---- ----------- ------------- ------------- -------
CAZURRO 4 100% Frontera
22 1/60 SpA 300
---- ----------- ------------- ------------- -------
CAZURRO 7 100% Frontera
23 1/40 SpA 200
---- ----------- ------------- ------------- -------
EMILIO 1 100% Frontera
24 1/8 SpA 38
---- ----------- ------------- ------------- -------
EMILIO 3 100% Frontera
25 1/9 SpA 45
---- ----------- ------------- ------------- -------
100% Frontera
26 INES 1/40 SpA 200
---- ----------- ------------- ------------- -------
100% Frontera
27 LORENA 1/2 SpA 2
---- ----------- ------------- ------------- -------
MERCEDITA 100% Frontera
28 1/7 SpA 22
---- ----------- ------------- ------------- -------
100% Frontera
29 PRIMO 1 1/6 SpA 36
---- ----------- ------------- ------------- -------
SANTIAGUITO 100% Frontera
30 5 1/24 SpA 114
---- --------------------
100% HCH Dominoceros
Purchase Option
Agreement US$320,000
(already satisfied)
US$680,000 payable
by October 25th 2025
US$1000,000 payable
by October 25th 2026
US$6.890,000 payable
DOMINOCEROS 100% Frontera by October 25th
31 1/20 (1/4) SpA 20 2027
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
32 CF SUR 1 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
33 CF SUR 2 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
34 CF SUR 3 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
35 CF SUR 4 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
36 CF SUR 5 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
37 CF SUR 6 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
38 CF SUR 7 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
39 CF SUR 8 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
40 CF SUR 9 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
41 CF SUR 10 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
42 CF SUR 11 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
43 CF SUR 12 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
44 CF SUR 13 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
45 CF SUR 14 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
46 CF SUR 15 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
47 CF SUR 16 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
48 CF SUR 17 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
49 CF SUR 18 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
50 CF SUR 19 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
51 CF SUR 20 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
52 CF SUR 21 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
53 CF SUR 22 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
54 CF SUR 23 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
55 CF SUR 24 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
56 CF SUR 25 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
57 CF SUR 26 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
58 CF SUR 27 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
59 CF SUR 28 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
60 CF SUR 29 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
61 CF SUR 30 SpA 200
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
62 CF SUR 31 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
63 CF SUR 32 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
64 CF SUR 33 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
65 CF SUR 34 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
66 CF SUR 35 SpA 300
---- ----------- ------------- ------------- ------- --------------------
The mining
concession is
included in San
100% Frontera Antonio Purchase
67 KRETA 1/4 SpA Option Agreement
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
68 MARI 1 SpA 300
---- ----------- ------------- ------------- ------- --------------------
The mining
concession is
included in San
100% Frontera Antonio Purchase
69 MARI 1/12 SpA 64 Option Agreement
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
70 MARI 6 SpA 300
---- ----------- ------------- ------------- ------- --------------------
100% Frontera
71 MARI 8 SpA 300
---- ----------- ------------- ------------- ------- --------------------
TOTAL 16.055
---- ----------- ------------- ------------- ------- --------------------
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
San Antonio Project
------------------------------------------------------------------------------
Agreement
Ndeg License ID HCH % Held HCH % Earning Area (ha) Details
---- --------------- ---------- --------------- --------- ---------------
100% HCH San
Antonio
Purchase Option
Agreement USD
300,000 already
paid.
US$1,000,000
payable
September 30th
2024
US$1,000,000
payable
September 30th
2025
US$2,000,000
payable by
September 30th
2026 to
exercise the El
Fuego Option.
(2 additional
and conditional
payments of USD
2,000,000, each
one, to be paid
by December 31,
2030 under
certain
conditions
detailed at
title
"Tenement
Changes During
the Quarter" of
100% Frontera this quarterly
1 MERCEDES 1/3 SpA 50 report.)
---- --------------- ---------- --------- ---------------
100% Frontera
2 PORFIADA A 1/33 SpA 160
---- --------------- ---------- --------- ---------------
100% Frontera
3 PORFIADA C 1/60 SpA 300
---- --------------- ---------- ---------
100% Frontera
4 PORFIADA E 1/20 SpA 100
---- --------------- ---------- ---------
100% Frontera
5 PORFIADA F 1/50 SpA 240
---- --------------- ---------- ---------
PORFIADA IX 100% Frontera
6 1/60 SpA 300
---- --------------- ---------- ---------
PORFIADA VII 100% Frontera
7 1/60 SpA 270
---- --------------- ---------- ---------
PORFIADA VIII 100% Frontera
8 1/60 SpA 300
---- --------------- ---------- ---------
100% Frontera
9 PRIMA 1 SpA 1
---- --------------- ---------- ---------
100% Frontera
10 PRIMA 2 SpA 2
---- --------------- ---------- ---------
100% Frontera
11 ROMERO 1/31 SpA 31
---- --------------- ---------- ---------
100% Frontera
12 SAN ANTONIO 1/5 SpA 25
---- --------------- ---------- ---------
SAN JUAN SUR 100% Frontera
13 1/5 SpA 10
---- --------------- ---------- ---------
SAN JUAN SUR 100% Frontera
14 6/23 SpA 90
---- --------------- ---------- ---------
100% Frontera
15 SANTIAGO Z 1/30 SpA 300
---- --------------- ---------- ---------
SANTIAGO 1/4 Y 100% Frontera
16 20 SpA 75
---- --------------- ---------- ---------
100% Frontera
17 SANTIAGO 15/19 SpA 25
---- --------------- ---------- ---------
100% Frontera
18 SANTIAGO 21/36 SpA 76
---- --------------- ---------- ---------
100% Frontera
19 SANTIAGO 37/43 SpA 26
---- --------------- ---------- ---------
SANTIAGO A, 100% Frontera
20 1/26 SpA 244
---- --------------- ---------- ---------
SANTIAGO B, 100% Frontera
21 1/20 SpA 200
---- --------------- ---------- ---------
SANTIAGO C, 100% Frontera
22 1/30 SpA 300
---- --------------- ---------- ---------
SANTIAGO D, 100% Frontera
23 1/30 SpA 300
---- --------------- ---------- ---------
SANTIAGO E, 100% Frontera
24 1/30 SpA 300
---- --------------- ---------- --------- ---------------
TOTAL 3.725
---- --------------- ---------- --------------- --------- ---------------
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Cordillera Project
------------------------------------------------------------------------------
Agreement
Ndeg License ID HCH % Held HCH % Earning Area (ha) Details
---- --------------- ---------- --------------- --------- ---------------
100% HCH
Purchase Option
Agreement USD
100,000 already
paid US$200,000
payable by
November 14th
2025
US$3,700,000
payable by
November 14th
2027 NSR 1% for
underground
mining and 1,5%
ALBORADA III 100% Frontera for open-pit
1 1/35 SpA 162 mining
---- --------------- ---------- --------------- --------- ---------------
ALBORADA IV 100% Frontera
2 1/20 SpA 54
---- --------------- ---------- --------------- --------- ---------------
ALBORADA VII 100% Frontera
3 1/25 SpA 95
---- --------------- ---------- --------------- ---------
100% Frontera
4 CAT IX 1/30 SpA 150
---- --------------- ---------- --------------- ---------
100% Frontera
5 CATITA IX 1/20 SpA 100
---- --------------- ---------- --------------- ---------
100% Frontera
6 CATITA XII 1/13 SpA 61
---- --------------- ---------- --------------- ---------
100% Frontera
7 CORDILLERA 1/5 SpA 20
---- --------------- ---------- --------------- ---------
100% Frontera
8 HERREROS 1/14 SpA 28
---- --------------- ---------- --------------- ---------
MINA HERREROS 100% Frontera
9 III 1/6 SpA 18
---- --------------- ---------- --------------- ---------
MINA HERREROS 100% Frontera
10 IV 1/10 SpA 23
---- --------------- ---------- --------------- ---------
100% Frontera
11 PORSIACA 1/20 SpA 20
---- --------------- ---------- --------------- ---------
100% Frontera
12 QUEBRADA 1/10 SpA 28
---- --------------- ---------- --------------- ---------
100% Frontera
13 VETA 1/17 SpA 17
---- --------------- ---------- --------------- --------- ---------------
TOTAL 776
---- --------------- ---------- --------------- --------- ---------------
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Qualifying Statements
The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ( "NI 43-101" ) and Joint Ore Reserves Committee of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the "JORC Code") and has been reviewed and approved by the "Qualified Persons" as defined under NI 43-101 and "Competent Persons" as defined under the JORC Code as set out below.
The Costa Fuego Copper project pre-feasibility study (the "PFS") was compiled by the Qualified Persons and Competent Persons listed below based on information available up to the effective date of the PFS. Additional details of responsibilities are provided at page 23 of this presentation and will be provided in the PFS technical report (to be available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au within 45 days of March 27, 2025 (the "PFS Technical Report").
PFS Technical Report
For readers to fully understand the information in this presentation, they should read the PFS Technical Report in its entirety when it is available, including all qualifications, assumptions, limitations and exclusions that relate to the information to be set out in the PFS Technical Report. The PFS Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this presentation is subject to the assumptions and qualifications to be contained in the PFS Technical Report.
The PFS Technical Report will replace and supersede the technical report titled "Costa Fuego Copper Project -- NI 43-101 Technical Report Mineral Resource Estimate Update" dated April 8, 2024, with an effective date of February 26, 2024 (the "2024 PEA").
Qualified Persons -- NI 43-101
The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent "Qualified Persons" within the meaning of NI 43 -101. The scientific and technical information contained in this presentation pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101:
-- Ms Elizabeth Haren (FAUSIMM $(CP)$ & MAIG) of Haren Consulting -- Mineral Resource Estimate -- Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd -- Metallurgy -- Mr Piers Wendlandt (PE) of Wood Pty Ltd -- Market Studies and Contracts, Economic Analysis -- Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería -- Geotechnical -- Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd -- Infrastructure and Capital Cost -- Mr Luis Bernal (Comisión Minera $(PC)$ Registered Member) of Process Mineral Consulting -- Leaching -- Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd -- Mine Planning and Scheduling -- Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River Services - Environmental -- The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information.
Competent Persons -- JORC
The information in this presentation that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by:
-- Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) who is a full-time employee of
Haren Consulting -- Mineral Resource Estimate
-- Mr Dean David (FAUSIMM (CP)) who is a full-time employee of Wood Pty Ltd
-- Metallurgy
-- Mr Piers Wendlandt (PE) who is a full-time employee of Wood Pty Ltd --
Market Studies and Contracts, Economic Analysis
-- Mr David Cuello (MAUSIMM) who is a full-time employee of GMT Servicios de
Ingeniería -- Geotechnical
-- Mr Jeffrey Stevens (Pr. Eng, MSAIMM) who is a full-time employee of Wood
Pty Ltd -- Infrastructure and Capital Cost
-- Mr Luis Bernal (Comisión Minera (PC) Registered Member) who is a
full-time employee of Process Mineral Consulting -- Leaching
-- Mr Anton von Wielligh (FAUSIMM) who is a full-time employee of ABGM
Consulting Pty Ltd -- Mine Planning and Scheduling
-- Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) who is a
full-time employee of High River Services -- Environmental
-- Mr Christian Easterday (MAIG), who is the Managing Director and is a
full-time employee of Hot Chili Limited -- Exploration Results
Ms Haren, Mr David, Mr Wendlandt, Mr Cuello, Mr Stevens, Mr Bernal, Mr LaPorte, Mr Easterday, and Mr von Wielligh each have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the JORC Code and as Qualified Persons under NI43-101.
Production Targets Statement
The production targets and forecast financial information derived from the production targets for: (1) the Productora production mine site referred to in this release is based on 52% of material of the Probable Ore Reserves and 31% of the material from Indicated Mineral Resources. (2) Alice production mine site referred to in this release is based on 3% of the material from Probable Ore Reserves and 2% of the material from Indicated Mineral Resources; (3) the Cortadera production mine site referred to in this release is based on 45% of the material from Probable Ore Reserves and 67% of the material from Indicated Mineral Resources; and (4) San Antonio production mine site referred to in this release is based on 1% of the material from Probable Ore Reserves and 0% of the material from Indicated Mineral Resources. No portions of the production targets are based on Inferred Mineral Resources. The material assumptions used in the estimation of the production targets and associated forecast financial information are set out in Mineral Resource and Mineral Reserve pages 30-41, Mine Design and Scheduling Pages 43-47, Metallurgy and Mineral Processing Pages 48-50, and Basis of Economic Assumption pages 58-59. The Mineral Resource and Ore Reserve estimates underpinning the production targets were prepared by Competent Persons in accordance with the JORC Code 2012.
Disclaimer
This presentation does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili Limited (Hot Chili, HCH or the Company).
Certain information contained herein is based on, or derived from, information obtained from independent third-party sources, publicly available reports and other trade and industry sources. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information.
Cautionary Note for U.S. Investors Concerning Mineral Resources
NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning material mineral projects. Technical disclosure contained in this presentation has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission ("SEC") and technical information contained in this presentation may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.
All amounts in this presentation are in U.S. dollars unless otherwise noted.
Non IFRS Financial Performance Measures
"Total Cash Cost", "All-in Sustaining Cost", "All-in cost LOM", "C1", "EBITDA" and "Free Cashflow" are not performance measures reported in accordance with International Financial Reporting Standards ("IFRS"). These performance measures are included because these statistics are key performance measures that management uses to monitor performance. Management uses these statistics to assess how the Costa Fuego Project compares against its peer projects and to assess the overall effectiveness and efficiency of the contemplated mining operations. These performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
Forward Looking Statements
Statements in this presentation that are not historical facts are "forward-looking information" or "forward-looking statements" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). The use of any of the words "anticipate", "envisage", "forecast", "consider", "proposed", "conceptual", "opportunity", "designed to", "believe", "could", "estimate", "expect", "intended", "may", "might", "plan", "potential", "project", "should", "will", "would" and similar expressions are intended to identify forward-looking statements. Statements concerning mineral resource and mineral reserve estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that may be encountered if the Costa Fuego Project is developed.
In this presentation, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; the results of the PFS, including expected cash inflows; anticipated production, mine life, expected costs and other projections; metal price assumptions; metal recovery rate; the ability of the Company to expand mineral resources, and/or mineral reserves and/or ore reserves beyond current estimates; the impacts of the PFS including but not limited to economic and social outcomes; the timing and ability to complete an environmental impact assessment ( "EIA" ) study; the estimation of mineral resources and reserves; opportunities to add to the Costa Fuego Project; potential opportunities related to recent discoveries; derisking of certain development items; the anticipated production profile and mine life of the Costa Fuego Project; expected access to local workforce due to the Costa Fuego Project's proximity to the regional centre; the investigation of additional growth opportunities, high-value development optimisation, monetization of cobalt and increase to overall copper and gold recovery; projected, financial measures, capital costs, cooperating costs, mine life, metal production and revenue generation; comparisons to peers confidence levels of the PFS in comparison to the 2024 PEA; the optimal exploitation strategy and the mine design, scheduling and economic evaluation pertaining thereto; marginal and breakeven new smelter return cut-offs; project layout, mine design and scheduling; processing suitability based on metallurgical testwork conducted to date; anticipated infrastructure requirements, including power supply, water supply, processing and tailings storage facilities, concentrates storage and site layouts; economic assessments and evaluations; expectations relating to environmental impact assessments, ongoing relations with local communities, local, regional and national government and regulators; anticipated projects risks and mitigation thereof; potential opportunities for growth and other optimisations; timing of the Company to file the PFS Technical Report; plans for a definitive feasibility study; statements regarding the Company's water business; and future funding requirements..
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this presentation, including, but not limited to, the following material factors: industry-wide and project-specific risks identified in the PFS Technical Report and in this presentation; operational risks; risks related to the cost estimates of exploration and development; sovereign risks associated with the Company's operations in Chile; changes in mineral resource and mineral reserve estimates; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; the Company's lack of operating revenues; risks to employee health and safety or disruption to operations in the event of an outbreak of disease; estimates used in budgeting and economic analyses proving to be incorrect and other risks and uncertainties described elsewhere in this presentation and in the Company's public filings with the ASX and the Company's Canadian public disclosure record.
Although the forward-looking statements contained in this presentation are based upon assumptions which the Company believes to be reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this presentation, the Company has applied certain material assumptions including: the continuity of future commodity prices and demand; the availability of skilled labour; the timing and amount of capital expenditures; that future currency exchange and interest rates will be consistent with the Company's expectations; that increasing competition will not have a material adverse impact; that general conditions in economic and financial markets will be sustained or will improve; availability of drilling and related equipment; that regulation by governmental agencies and relations with local communities will not change in a materially adverse manner; that future tax rates operating costs will be as expected; availability of future sources of funding; that requisite financing will be available and can be obtained on reasonable terms; that the assumptions underlying estimates related to adjusted funds from operations will prove to be as anticipated and that current exploration, development, environmental and other objectives concerning the Costa Fuego Project can be achieved and that Company's other corporate activities will proceed as expected.
Although the Company has attempted to identify important factors that could cause actual results to vary materially from those projected in such forward-looking statements, there can be no assurance that forward- looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward- looking statements. The forward-looking statements in this presentation are based on plans, expectations, and estimates of management as at the date hereof and the Company undertakes no obligation to update such forward-looking statements, other than as required by applicable law.
Mineral Resource Statement
Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024)
1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral Resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101. 2 Mineral Resources are inclusive of the Mineral Reserve 3 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA $(SMEA.UK)$. SMEA is a joint venture (JV) company -- 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A $(CMP)$. 4 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company -- 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili.
5 The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili Liited) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property. 6 The Mineral Resource Estimates $(MRE.AU)$ in the tables above form coherent bodies of mineralisation that are considered amenable to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz. 7 All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave Extraction mining methods at Cortadera and Open Pit mining methods at the Productora, Alice and San Antonio deposits. 8 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera -- Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x Ag(g/t). Productora -- Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t). Costa Fuego -- Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t) 9 Copper Equivalent (CuEq) grades are calculated based on the formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu recovery). The base case cut-off grade for Mineral Resources considered amenable to open pit extraction methods at the Cortadera, Productora, Alice and San Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq. It is the Company's opinion that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold. 10 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration. 11 The effective date of the MRE is 26 February 2024. The MRE were previously reported in Hot Chili's technical report entitled "Costa Fuego Copper Project -- NI 43-101 Technical Report Mineral Resource Estimate Update" dated 8 April 2024 with an effective date of 26 February 2024 (the "2024 MRE"). Hot Chili confirms it is not aware of any new information or data that materially affects the information included in the 2024 PEA and all material assumptions and technical parameters stated for the MRE in the 2024 PEA continue to apply and have not materially changed. 12 Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in the 2024 PEA. A detailed list of Costa Fuego Project risks is included in Chapter 25.12 of the 2024 PEA. Costa Fuego Mineral Reserve Estimate (March 2025) ------------------------------------------------------------------------ Grade Contained Metal ------------------ ------------------------- ------------------------- Tonnes Cu Au Ag Mo Cu Au Ag Mo ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- (Mt) ( %) (g/t) (g/t) (ppm) (kt) (koz) (koz) (kt) ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Open Pit ------------------------------------------------------------------------ Concentrator ------------------------------------------------------------------------ Proven - - - - - - - - - ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Probable 293 0.36 0.08 0.37 113 1 043 728 3 517 33 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Total 293 0.36 0.08 0.37 113 1 043 728 3 517 33 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Heap Leach ------------------------------------------------------------------------ Proven - - - - - - - - - ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Probable 41 0.35 0.07 0.43 35 142 96 563 1 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Total 41 0.35 0.07 0.43 35 142 96 563 1 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Dump Leach ------------------------------------------------------------------------ Proven - - - - - - - - - ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Probable 22 0.13 0.03 0.23 41 29 20 168 1 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Total 22 0.13 0.03 0.23 41 29 20 168 1 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Combined ------------------------------------------------------------------------ Proven - - - - - - - - - ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Probable 356 0.34 0.07 0.37 98 1 213 844 4 248 35 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Total 356 0.34 0.07 0.37 98 1 213 844 4 248 35 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Underground ------------------------------------------------------------------------ Concentrator ------------------------------------------------------------------------ Proven - - - - - - - - - ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Probable 146 0.44 0.16 0.79 93 645 734 3 704 14 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Total 146 0.44 0.16 0.79 93 645 734 3 704 14 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Combined (Open Pit and Underground) ------------------------------------------------------------------------ Proven - - - - - - - - - ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Probable 502 0.37 0.10 0.49 97 1 858 1 578 7 951 49 ---------- ------ ---- ----- ----- ----- ----- ----- ----- ---- Total 502 0.37 0.10 0.49 97 1 858 1 578 7 951 49 (1) Mineral Reserves are reported on a 100% Basis - combining Mineral Reserve estimates for the Cortadera, Productora, Alice and San Antonio deposits, and have an effective date of 27 March 2025. (2) An Ore Reserve (declared in accordance with JORC Code 2012) was previously reported at Productora, a component of Costa Fuego, on 2nd March 2016 on the ASX. The Company was not subject to the requirements of NI 43-101 at that time. (3) Mineral Reserve estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101. Mineral Reserve estimates are in accordance with the JORC Code. References to "Mineral Reserves" mean "Ore Reserves" as defined in the JORC Code and references to "Proven Mineral Reserves" mean "Proved Ore Reserves" as defined in the JORC Code. (4) The Mineral Reserve reported above was not additive to the Mineral Resource. The Mineral Reserve is based on the 26 February 2024 Mineral Resource. (5) Tonnages and grades are rounded to two significant figures. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. As each number is rounded individually, the table may show apparent inconsistencies between the sum of rounded components and the corresponding rounded total. (6) Mineral Reserves are reported using long-term metal prices of US$4.30/lb Cu, US$2,280/oz Au, US$27/oz Ag, US$20/lb Mo. (7) The Mineral Reserve tonnages and grades are estimated and reported as delivered to plant (the point where material is delivered to the processing facility) and is therefore inclusive of ore loss and dilution. (8) The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company -- 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A $(CMP.AU)$. (9) The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company
-- 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili. (10) The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property. (11) The Mineral Reserve Estimate as of 27 March 2025 for Costa Fuego was prepared by Anton von Wielligh, Fellow with the AUSIMM (FAUSIMM). Mr. von Wielligh fulfils the requirements to be a "Qualified Person" within the meaning of NI 43-101 and is the Competent Person under JORC for the Mineral Reserve. (12) Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves other than those that will be disclosed in a technical report for the PFS. A detailed list of Costa Fuego Project risks is also included in Chapter 25.12 of the 2024 PEA.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
---------------------------------------------------
Hot Chili Limited
---------------------------------------------------
ABN Quarter ended ("current quarter")
-------------- ---------------------------------
91 130 955 725 31 March 2025
-------------- ---------------------------------
Year to date
Current quarter (9 months)
Consolidated statement of cash flows $A'000 $A'000
--------------- --------------
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation * (7,894) (16,751)
(a) development - -
(b) production - -
(c) staff costs (437) (1,566)
(d) administration and corporate costs (2,083) (4,571)
1.3 Dividends received (see note 3) - -
1.4 Interest received 88 444
Interest and other costs of finance
1.5 paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (provide details if material) - -
--------------- --------------
Net cash from / (used in) operating
1.9 activities (10,326) (22,444)
---- --------------------------------------- --------------- --------------
* Included in this amount was $4.0m related to the advancement of the Costa
Fuego and Huasco Water PFS and the Costa Fuego EIA. Approx $3.9m was spent on
exploration and drilling activities on the La Verde discovery and surrounding
Domeyko landholding.
2. Cash flows from investing activities
2.1 Payments to acquire or for:
(a) entities - -
(b) tenements (1,082) (3,554)
(c) property, plant and equipment (11) (70)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
---- --------------------------------------- --------------- --------------
2.2 Proceeds from the disposal of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other - -
--------------- --------------
Net cash from / (used in) investing
2.6 activities (1,093) (3,624)
---- --------------------------------------- --------------- --------------
3. Cash flows from financing activities
Proceeds from issues of equity
securities (excluding convertible debt
3.1 securities) - -
Proceeds from issue of convertible debt
3.2 securities - -
3.3 Proceeds from exercise of options - -
Transaction costs related to issues of
equity securities or convertible debt
3.4 securities - (117)
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
Transaction costs related to loans and
3.7 borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
--------------- --------------
3.10 Net cash from / (used in) financing - (117)
activities
---- --------------------------------------- --------------- --------------
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning 19,032 33,742
of period
4.2 Net cash from / (used in) operating (10,326) (22,444)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing (1,093) (3,624)
activities (item 2.6 above)
4.4 Net cash from / (used in) financing - (117)
activities (item 3.10 above)
---- --------------------------------------- --------------- --------------
4.5 Effect of movement in exchange rates on (100) (44)
cash held
--------------- --------------
4.6 Cash and cash equivalents at end of 7,513 7,513
period
---- --------------------------------------- --------------- --------------
Reconciliation of cash and cash
equivalents at the end of the quarter
(as shown in the consolidated
statement of cash flows) to the Current quarter Previous quarter
5. related items in the accounts $A'000 $A'000
--- -------------------------------------- --------------- ----------------
5.1 Bank balances 2,513 14,032
5.2 Call deposits 5,000 5,000
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
--------------- ----------------
Cash and cash equivalents at end of
5.5 quarter (should equal item 4.6 above) 7,513 19,032
--- -------------------------------------- --------------- ----------------
Payments to related parties of the entity and their Current quarter
6. associates $A'000
---- ------------------------------------------------------- ---------------
Aggregate amount of payments to related parties and
6.1 their associates included in item 1 126
---------------
6.2 Aggregate amount of payments to related parties and -
their associates included in item 2
---------------
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
------------------------------------------------------------------------------
Financing facilities
Note: the term
"facility' includes all
forms of financing
arrangements available
to the entity. Add
notes as necessary for
an understanding of the
sources of finance
available to the Total facility amount Amount drawn at quarter
7. entity. at quarter end $A'000 end $A'000
--- ----------------------- -----------------------
7.1 Loan facilities - -
----------------------- -----------------------
Credit standby
7.2 arrangements - -
----------------------- -----------------------
7.3 Other (please specify) - -
----------------------- -----------------------
Total financing
7.4 facilities - -
----------------------- -----------------------
7.5 Unused financing facilities available at quarter -
end
-----------------------
7.6 Include in the box below a description of each facility above, including
the lender, interest rate, maturity date and whether it is secured or
unsecured. If any additional financing facilities have been entered into
or are proposed to be entered into after quarter end, include a note
providing details of those facilities as well.
---
8. Estimated cash available for future operating activities $A'000
-------------------------------------------------------------- --------
8.1 Net cash from / (used in) operating activities (item 1.9) (10,326)
8.2 (Payments for exploration & evaluation classified as investing -
activities) (item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (10,326)
8.4 Cash and cash equivalents at quarter end (item 4.6) 7,513
8.5 Unused finance facilities available at quarter end (item 7.5) -
--------
8.6 Total available funding (item 8.4 + item 8.5) 7,513
--------
8.7 Estimated quarters of funding available (item 8.6 divided by 0.73
item 8.3)
--------
Note: if the entity has reported positive relevant outgoings (ie a net cash
inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the
estimated quarters of funding available must be included in item 8.7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the
following questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
-----------------------------------------------------------------------------
Significant reduction in cash outflows are expected due to the
release of both the Costa Fuego and Huasco Water PFS during the
quarter, with only optimisation activities expected during the
next two quarters. Exploration activities will also be
significantly reduced, with drilling activities at La Verde
having been completed on 10(th) April 2025. Future cash outflows
are expected to be reduced by 60-65% compared to this quarter.
-----------------------------------------------------------------------------
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are
those steps and how likely does it believe that they will be successful?
-----------------------------------------------------------------------------
The Company is expected to receive $5m in JV recoup and VAT refunds over
the coming months. The Company continues to advance potential strategic
funding discussions with asset level investment opportunities for Costa
Fuego and Huasco Water.
-----------------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its operations and to
meet its business objectives and, if so, on what basis?
-----------------------------------------------------------------------------
Any future drilling will be targeted and cost effective and
funded by working capital. Drilling can be postponed at any time
to ensure commitments in the next two quarters can be met.
-----------------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
-----------------------------------------------------------------------------
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed.
Date: 24(th) April 2025
Authorised by: By the Board
(Name of body or officer authorising release -- see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report
provide a basis for informing the market about the entity's activities for
the past quarter, how they have been financed and the effect this has had
on its cash position. An entity that wishes to disclose additional
information over and above the minimum required under the Listing Rules is
encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with
Australian Accounting Standards, the definitions in, and provisions of,
AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107:
Statement of Cash Flows apply to this report. If this quarterly cash flow
report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding
equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating
activities or cash flows from investing activities, depending on the
accounting policy of the entity.
4. If this report has been authorised for release to the market by your board
of directors, you can insert here: "By the board". If it has been
authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee -- eg
Audit and Risk Committee]". If it has been authorised for release to the
market by a disclosure committee, you can insert here: "By the Disclosure
Committee".
5. If this report has been authorised for release to the market by your board
of directors and you wish to hold yourself out as complying with
recommendation 4.2 of the ASX Corporate Governance Council's Corporate
Governance Principles and Recommendations, the board should have received
a declaration from its CEO and CFO that, in their opinion, the financial
records of the entity have been properly maintained, that this report
complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal
control which is operating effectively.
Contact:
Mr Christian Easterday,
Managing Director,
E: admin@hotchili.net.au
View original content to download multimedia:https://www.prnewswire.com/news-releases/hot-chili-quarterly-report-302437500.html
SOURCE Hot Chili Limited
(END) Dow Jones Newswires
April 24, 2025 11:03 ET (15:03 GMT)
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