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Hot Chili (ASX:HCH) teaming up with ENAMI over Chile copper-gold project

Mining
ASX:HCH      MCAP $149.3M
02 June 2020 15:00 (AEST)
Hot Chili (ASX:HCH) - Managing Director, Christian Easterday

Source: The Market Herald

Hot Chili (HCH) is teaming up with Chilean government agency Empresa Nacional de Mineria (ENAMI) for the Productora copper-gold project.

The Productora project is located in Chile and it has a mineral resource of 1.5 million tonnes of copper and one million ounces of gold and an ore reserve of 167 million tonnes.

Hot Chili has signed an agreement with ENAMI which will provide a low-risk pathway to propel first production from the project as well as providing certainty of ore supply at ENAMI’s processing facility.

ENAMI will start mining within three months of the granting of necessary exploitation permits. First revenue is then expected in the fourth quarter of 2020.

This two-year agreement with ENAMI involves concession for mining and processing of approximately 120,000 tonnes per annum (tpa) of ore through ENAMI’s Vallenar plant.

Both parties are now working together to outline higher grade areas that are able to be accessed.

Hot Chili has also announced that it is gearing up to restart diamond drilling at its Cortadera copper porphyry discovery.

Cortadera is located 600 kilometres south of Santiago and 14 kilometres from Productora and it is considered one of the largest copper-gold discoveries across the globe.

The upcoming drilling program will continue to expand the high-grade core at the Cuerpo 3 prospect and broader extents of the project that have returned six world-class results since July last year.

Hot Chili remains on track to deliver a significant increase in its copper-gold resource base at Cortadera and San Antonio which is expected in the upcoming months.

Company shares are up 6.67 per cent and are trading for 1.6 cents each at 1:52 pm AEST.

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