Hot Chili Issues Quarterly Report for Q2 2024
Highlights
-
A$24.9 million private placement (Placement) to institutional and professional investors - An additional
A$7 million raised in Share Purchase Plan to all existing eligible shareholders at the same offer price as the Placement - Funding facilitates completion of the Costa Fuego Pre-Feasibility Study, completion of the Water Supply Business Case Study, completion of the Costa Fuego Environmental Impact Assessment, commencement of a bankable feasibility study and further exploration activities over the next 18 months
-
Hot Chili and its partner, Chilean iron ore company Compania Minera del Pacifico (CMP), have established a new water company called "HW Aguas paraEl Huasco SpA " (Huasco Water) -
Hot Chili holds an 80% interest in Huasco Water and CMP holds a 20% interest
Transfer of all critical water assets (maritime water extraction licence, water easements, costal land accesses and second maritime application) to Huasco Water has commenced
Business Case Study underway for a potential multi-user water business, supplying sea water and desalinated water to theHuasco Valley region ofChile , where Huasco Water has a first-mover advantageHot Chili set to be a foundation water off-taker for Huasco Water, and discussions with other potential water off-takers and potential infrastructure partners are progressing well
Costa Fuego Pre-Feasibility Study On-Track
- Advancement of multiple development study workstreams, including drilling operations in support of metallurgical and hydrogeological studies
- Pre-Feasibility Study (PFS) for Costa Fuego copper-gold project planned for completion in late 2024
Exploration Activities Underway in Advance of Growth Drilling
- Deep penetrating, high resolution MIMDAS and Ground Magnetics geophysical surveys completed at Productora and Cortadera
- Ground Magnetics geophysical survey, surface soil sampling and geological mapping underway across the recently consolidated Domeyko landholding (Domeyko), located 30km south of Costa Fuego
Cash Position of
For more information contact:
Mr. |
Tel: +61 8 9315 9009 |
Managing Director |
Email: admin@hotchili.net.au |
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
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. 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.
To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study ("DFS") and production stages, funding in the order of
This Report contains forward-looking statements.
SUMMARY OF OPERATIONAL ACTIVITIES
Costa Fuego Pre-feasibility Study On-Track
During the quarter, the Company has continued to focus on several development studies workstreams ahead of the planned delivery of the Pre-Feasibility Study (PFS) in late 2024.
Development study drilling during the quarter has focussed on metallurgical and hydrogeological drill programs at Productora and the planned Tailings Storage Facility (TSF) for Costa Fuego. Seven diamond drillholes (405m) were completed at Productora during the quarter for metallurgical purposes. The resulting samples have been collected for further testwork on oxide and transitional material. Pre-existing diamond core at Cortadera has also been utilised for this testwork, which will confirm the application of NovaMineralis leach technology for the planned heap leach component of ore processing.
Hydrogeological and environmental studies of the planned TSF footprint also advanced significantly during the quarter, with a shallowly penetrating seismic survey completed in June in tandem with a diamond drillhole for calibration, incorporating hydrogeological permeability tests and geotechnical logging. Detailed surface geological mapping to define key hydrogeological domains was also completed. A further four water-monitoring bores are planned to be completed in Q3 2024.
Open pit and underground cave mine design has progressed well with the economic limits at all deposits completed and pit staging being finalised. Mine designs are being independently reviewed for geotechnical stability and detailed mine designs have commenced.
On- and off-site infrastructure designs for the proposed material handling system (
Port engineering studies being managed by
Geophysical Surveys Completed at Productora and Cortadera
Twenty-nine Line-kilometres (Lkm) of MIMDAS1 was completed from May to June across the Productora (12Lkm) and Cortadera (17Lkm) projects. This deep penetrating electrical geophysical technique detects the chargeability, resistivity, and conductivity properties of underlying rocks. The results of the surveys are currently under review, in combination with geological mapping, drillhole logging and existing geochemical datasets. 3D inversion of the
__________________________ MIMDAS lines will also be completed, at Productora and Cortadera. |
The new geophysical datasets will provide additional resolution for assessing several high priority growth targets located proximal to both of
Exploration Activities Underway in Advance of Growth Drilling
On
The Domeyko mining centre hosts both porphyry and structurally controlled styles of mineralisation. Several significant historical copper-gold mines are present, which were previously exploited for oxide mineralisation with limited copper sulphide mineralisation exploration undertaken within the area.
During the quarter, the Company's exploration team kicked-off several significant exploration programmes, including soil geochemistry, geophysics and surface mapping over this large area. An extensive Ground Magnetics survey comprised of 1755Lkm (on 100m spaced north-south oriented lines) is currently underway. The survey data collection is expected to be finalised early Q3 and will aid in targeting across this most recent addition to the
SUMMARY OF CORPORATE ACTIVITIES
Hot Chili Closes
On the 6th of
In addition to the Placement, the Company offered a fully underwritten Share Purchase Plan ("SPP") to all existing eligible shareholders at the same offer price as the Placement,
Proceeds from the Placement and SPP, in addition to existing treasury, will provide up to 18 months funding to be used for the completion of the Costa Fuego Pre-Feasibility Study, completion of the Water Supply Business Case Study, completion of the Costa Fuego Environmental Impact Assessment, ongoing exploration, drilling and consolidation activities, and for general working capital purposes.
Following the conceptual study completed by
HCH also submitted a second maritime concession application for the Huasco valley in April, which includes brine discharge for potential seawater desalination operations on the coastline, so that both raw seawater and desalinated water could be provided by a potential water network.
Huasco Water provides water supply security for
Recent third-party transactions in
Importantly,
Huasco Water provides
Cash Position and Capital Structure Changes
As of
On
On
The following securities on issue:
- 151,345,206 ordinary fully paid shares
- 1,850,001 AUD$2.25 options expiring
30 September 2024 - 1,259,789 options at
CAD$1.85 expiring31 January 2025 - 5,996,728 unvested services and performance rights. Conditions have been met for the vesting of 938,953 Service Rights and 290,480 Performance Rights.
Table 1 - Drill Holes Completed for Costa Fuego in Quarter 2 2024
Prospect |
Hole ID |
North |
East |
RL |
Depth |
Azimuth |
Dip |
Results |
Productora Hydrogeology |
PROMW05 |
6827019 |
323359 |
531 |
100.8 |
0 |
-90 |
Results Pending |
Productora Metallurgy |
MET029 |
6820934 |
323026 |
881 |
75 |
91 |
-59 |
Results Pending |
Productora Metallurgy |
MET030 |
6821494 |
323186 |
851 |
55 |
107 |
-59 |
Results Pending |
Productora Metallurgy |
MET031 |
6822450 |
323456 |
802 |
50.1 |
115 |
-56 |
Results Pending |
Productora Metallurgy |
MET032 |
6822710 |
323580 |
782 |
75 |
90 |
-60 |
Results Pending |
Productora Metallurgy |
MET033 |
6824261 |
323557 |
684 |
30 |
90 |
-57 |
Results Pending |
Productora Metallurgy |
MET034 |
6821561 |
323282 |
899 |
60 |
95 |
-60 |
Results Pending |
Productora Metallurgy |
MET035 |
6819973 |
322787 |
1007 |
60 |
91 |
-60 |
Results Pending |
Note: No significant drill results have been returned in Q2 2024, all metallurgical holes completed within the Productora Mineral Resource and within close proximity (twinned holes) to existing drill holes previously reported. |
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
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
Field operations during the period included geological reconnaissance activities, reverse-circulation drilling, diamond drilling, core-testing and logging, field mapping, and sampling exercises across the major Cortadera and Productora landholdings, as well as new tenements at Domeyko. 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 was one Lost Time Injury (LTI) in the Quarter. Significantly, a leg fracture incident occurred during a soil sampling field programme. The LTI triggered an incident review and a refresher training on field safety protocols for all appropriate exploration field staff. Terrain assessment vs data coverage during planning was identified as one opportunity to mitigate potential future reoccurrence.
Table 2.
Deposit |
Productora |
Cortadera |
All Projects |
|||
Timeframe |
Q2 2024 |
Cum.² |
Q2 2024 |
Cum.² |
Q2 2024 |
Cum.² |
LTI events |
0 |
0 |
0 |
6 |
1 |
8 |
NLTI events |
0 |
4 |
1 |
6 |
1 |
11 |
Days lost |
0 |
0 |
0 |
152 |
88 |
263 |
LTIFR index |
0 |
0 |
0 |
21 |
127 |
20 |
ISR index |
0 |
0 |
0 |
527 |
6 |
647 |
IFR Index |
0 |
54 |
0 |
42 |
0 |
47 |
Thousands of manhours |
8.4 |
74 |
5.0 |
288 |
15.9 |
407 |
Incidents on materials and assets |
0 |
1 |
0 |
0 |
0 |
1 |
Environmental incidents |
0 |
0 |
0 |
0 |
0 |
0 |
Headcount¹ |
24 |
10 |
16 |
33 |
15 |
51 |
|
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 |
During the Quarter,
The other parties to the Option Agreement are Sociedad Legal
Further details of the transaction are outlined in the Announcement dated
Table 5. Current Tenement ('Patente') Holdings in
License ID |
HCH % Held |
HCH % |
Area |
Agreement Details |
MAGDALENITA 1/20 |
100% Frontera SpA |
|
100 |
|
ATACAMITA 1/82 |
100% Frontera SpA |
|
82 |
|
AMALIA 942 A 1/6 |
100% Frontera SpA |
|
53 |
|
PAULINA 10 B 1/16 |
100% Frontera SpA |
|
136 |
|
PAULINA 11 B 1/30 |
100% Frontera SpA |
|
249 |
|
PAULINA 12 B 1/30 |
100% Frontera SpA |
|
294 |
|
PAULINA 13 B 1/30 |
100% Frontera SpA |
|
264 |
|
PAULINA 14 B 1/30 |
100% Frontera SpA |
|
265 |
|
PAULINA 15 B 1/30 |
100% Frontera SpA |
|
200 |
|
PAULINA 22 A 1/30 |
100% Frontera SpA |
|
300 |
|
PAULINA 24 1/24 |
100% Frontera SpA |
|
183 |
|
PAULINA 25 A 1/19 |
100% Frontera SpA |
|
156 |
|
PAULINA 26 A 1/30 |
100% Frontera SpA |
|
294 |
|
PAULINA 27A 1/30 |
100% Frontera SpA |
|
300 |
|
CORTADERA 1 1/200 |
100% Frontera SpA |
|
200 |
|
CORTADERA 2 1/200 |
100% Frontera SpA |
|
200 |
|
CORTADERA 41 |
100% Frontera SpA |
|
1 |
|
CORTADERA 42 |
100% Frontera SpA |
|
1 |
|
LAS CANAS 16 |
100% Frontera SpA |
|
1 |
|
LAS CANAS 1/15 |
100% Frontera SpA |
|
146 |
|
CORTADERA 1/40 |
100% Frontera SpA |
|
374 |
|
LAS |
100% Frontera SpA |
|
300 |
|
CORROTEO 1 1/260 |
100% Frontera SpA |
|
260 |
|
CORROTEO 5 1/261 |
100% Frontera SpA |
|
261 |
|
PURISIMA |
100% Frontera SpA |
|
20 |
1.5% NSR |
MAGDALENITA 1/20 |
100% Frontera SpA |
|
100 |
|
Note. Frontera
SpA is a 100% owned subsidiary company of |
Productora Project Tenements
License ID |
HCH % Held |
HCH % Earning |
Area (ha) |
Agreement Details |
FRAN 1, 1-60 |
80% SMEA SpA |
|
220 |
|
FRAN 2, 1-20 |
80% SMEA SpA |
|
100 |
|
FRAN 3, 1-20 |
80% SMEA SpA |
|
100 |
|
FRAN 4, 1-20 |
80% SMEA SpA |
|
100 |
|
FRAN 5, 1-20 |
80% SMEA SpA |
|
100 |
|
FRAN 6, 1-26 |
80% SMEA SpA |
|
130 |
|
FRAN 7, 1-37 |
80% SMEA SpA |
|
176 |
|
FRAN 8, 1-30 |
80% SMEA SpA |
|
120 |
|
FRAN 12, 1-40 |
80% SMEA SpA |
|
200 |
|
FRAN 13, 1-40 |
80% SMEA SpA |
|
200 |
|
FRAN 14, 1-40 |
80% SMEA SpA |
|
200 |
|
FRAN 15, 1-60 |
80% SMEA SpA |
|
300 |
|
FRAN 18, 1-60 |
80% SMEA SpA |
|
273 |
|
FRAN 21, 1-46 |
80% SMEA SpA |
|
226 |
|
ALGA 7A, 1-32 |
80% SMEA SpA |
|
89 |
|
ALGA VI, 5-24 |
80% SMEA SpA |
|
66 |
|
MONTOSA 1-4 |
80% SMEA SpA |
|
35 |
NSR 3% |
CHICA |
80% SMEA SpA |
|
1 |
|
ESPERANZA 1-5 |
80% SMEA SpA |
|
11 |
|
LEONA 2A 1-4 |
80% SMEA SpA |
|
10 |
|
CARMEN I, 1-50 |
80% SMEA SpA |
|
222 |
|
|
80% SMEA SpA |
|
274 |
|
ZAPA 1, 1-10 |
80% SMEA SpA |
|
100 |
|
ZAPA 3, 1-23 |
80% SMEA SpA |
|
92 |
|
ZAPA 5A, 1-16 |
80% SMEA SpA |
|
80 |
|
ZAPA 7, 1-24 |
80% SMEA SpA |
|
120 |
|
CABRITO, CABRITO 1-9 |
80% SMEA SpA |
|
50 |
|
|
80% SMEA SpA |
|
255 |
|
|
80% SMEA SpA |
|
139 |
|
|
80% SMEA SpA |
|
255 |
|
|
80% SMEA SpA |
|
3 |
|
|
80% SMEA SpA |
|
1 |
|
CHOAPA 1-10 |
80% SMEA SpA |
|
50 |
|
ELQUI 1-14 |
80% SMEA SpA |
|
61 |
|
LIMARÍ 1-15 |
80% SMEA SpA |
|
66 |
|
LOA 1-6 |
80% SMEA SpA |
|
30 |
|
MAIPO 1-10 |
80% SMEA SpA |
|
50 |
|
TOLTÉN 1-14 |
80% SMEA SpA |
|
70 |
|
CACHIYUYITO 1, 1-20 |
80% SMEA SpA |
|
100 |
|
CACHIYUYITO 2, 1-60 |
80% SMEA SpA |
|
300 |
|
CACHIYUYITO 3, 1-60 |
80% SMEA SpA |
|
300 |
|
LA PRODUCTORA 1-16 |
80% SMEA SpA |
|
75 |
|
|
80% SMEA SpA |
|
82 |
|
|
80% SMEA SpA |
|
35 |
|
URANIO, 1-70 |
0 % |
0 % |
350 |
25-year Lease Agreement
all but gold; 4% NSR gold; 5% NSR non-metallic |
JULI 9, 1-60 |
80% SMEA SpA |
|
300 |
|
JULI 10, 1-60 |
80% SMEA SpA |
|
300 |
|
JULI 11 1/60 |
80% SMEA SpA |
|
300 |
|
JULI 12 1/42 |
80% SMEA SpA |
|
210 |
|
JULI 13 1/20 |
80% SMEA SpA |
|
100 |
|
JULI 14 1/50 |
80% SMEA SpA |
|
250 |
|
JULI 15 1/55 |
80% SMEA SpA |
|
275 |
|
JULI 16, 1-60 |
80% SMEA SpA |
|
300 |
|
JULI 17, 1-20 |
80% SMEA SpA |
|
100 |
|
JULI 19 |
80% SMEA SpA |
|
300 |
|
JULI 20 |
80% SMEA SpA |
|
300 |
|
JULI 21 1/60 |
80% SMEA SpA |
|
300 |
|
JULI 22 |
80% SMEA SpA |
|
300 |
|
JULI 23 1/60 |
80% SMEA SpA |
|
300 |
|
JULI 24, 1-60 |
80% SMEA SpA |
|
300 |
|
JULI 25 |
80% SMEA SpA |
|
300 |
|
JULI 27 1/30 |
80% SMEA SpA |
|
146 |
|
Productora Project Tenements
License ID |
HCH % Held |
HCH % |
Area (ha) |
Agreement Details |
JULI 27 B 1/10 |
80% SMEA SpA |
|
48 |
|
JULI 28 1/60 |
80% SMEA SpA |
|
300 |
|
JULIETA 5 |
80% SMEA SpA |
|
200 |
|
JULIETA 6 |
80% SMEA SpA |
|
200 |
|
JULIETA 7 |
80% SMEA SpA |
|
100 |
|
JULIETA 8 |
80% SMEA SpA |
|
100 |
|
JULIETA 9 |
80% SMEA SpA |
|
100 |
|
JULIETA 10 1/60 |
80% SMEA SpA |
|
300 |
|
JULIETA 11 |
80% SMEA SpA |
|
300 |
|
JULIETA 12 |
80% SMEA SpA |
|
300 |
|
JULIETA 13, 1-60 |
80% SMEA SpA |
|
298 |
|
JULIETA 14, 1-60 |
80% SMEA SpA |
|
269 |
|
JULIETA 15, 1-40 |
80% SMEA SpA |
|
200 |
|
JULIETA 16 |
80% SMEA SpA |
|
200 |
|
JULIETA 17 |
80% SMEA SpA |
|
200 |
|
JULIETA 18, 1-40 |
80% SMEA SpA |
|
200 |
|
ARENA 1 1-6 |
80% SMEA SpA |
|
40 |
|
ARENA 2 1-17 |
80% SMEA SpA |
|
113 |
|
ZAPA 1 – 6 |
80% SMEA SpA |
|
6 |
GSR 1% |
JULIETA 1-4 |
80% SMEA SpA |
|
4 |
|
Note. SMEA SpA is subsidiary company - 80% owned by |
El Fuego Project Tenements
License ID |
HCH % Held |
HCH % Earning |
Area (ha) |
Agreement Details |
|
|
10% Frontera SpA |
76 |
100% HCH Purchase Option Agreement
(2 additional and conditional payments of US |
|
|
100% Frontera SpA |
26 |
|
Santiago A, 1 al 26 |
|
100% Frontera SpA |
236 |
|
Santiago B, 1 al 20 |
|
100% Frontera SpA |
200 |
|
Santiago C, 1 al 30 |
|
100% Frontera SpA |
300 |
|
Santiago D, 1 al 30 |
|
100% Frontera SpA |
300 |
|
Santiago E, 1 al 30 |
|
100% Frontera SpA |
300 |
|
Prima Uno |
|
100% Frontera SpA |
1 |
|
Prima Dos |
|
100% Frontera SpA |
2 |
|
|
|
100% Frontera SpA |
25 |
|
|
|
100% Frontera SpA |
25 |
|
|
|
100% Frontera SpA |
75 |
|
Romero 1 AL 31 |
|
100% Frontera SpA |
31 |
|
Mercedes 1 al 3 |
|
100% Frontera SpA |
50 |
|
Kreta 1 al 4 |
|
100% Frontera SpA |
16 |
|
Mari 1 al 12 |
|
100% Frontera SpA |
64 |
|
PORFIADA VII 1 al 60 |
|
100% Frontera SpA |
300 |
|
PORFIADA VIII 1 al 60 |
|
100% Frontera SpA |
300 |
|
|
|
100% Frontera SpA |
300 |
|
PORFIADA IX 1 al 60 |
|
100% Frontera SpA |
300 |
|
PORFIADA A 1 al 40 |
|
100% Frontera SpA |
200 |
|
PORFIADA C 1 al 60 |
|
100% Frontera SpA |
300 |
|
PORFIADA E 1 al 20 |
|
100% Frontera SpA |
100 |
|
PORFIADA F 1 al 60 |
|
100% Frontera SpA |
300 |
|
|
|
100% Frontera SpA |
10 |
|
|
|
100% Frontera SpA |
90 |
|
PORFIADA G |
100% Frontera SpA |
|
200 |
|
CORTADERA 1 |
100% Frontera SpA |
|
200 |
|
CORTADERA 2 |
100% Frontera SpA |
|
200 |
|
CORTADERA 3 |
100% Frontera SpA |
|
200 |
|
CORTADERA 4 |
100% Frontera SpA |
|
200 |
|
CORTADERA 5 |
100% Frontera SpA |
|
200 |
|
CORTADERA 6 |
100% Frontera SpA |
|
300 |
|
CORTADERA 7, 1-20 |
100% Frontera SpA |
|
93 |
|
|
100% Frontera SpA |
|
200 |
|
|
100% Frontera SpA |
|
200 |
|
|
100% Frontera SpA |
|
300 |
|
El Fuego Project Tenements
License ID |
HCH % Held |
HCH % Earning |
Area (ha) |
Agreement Details |
|
100% Frontera SpA |
|
300 |
|
|
100% Frontera SpA |
|
300 |
|
DORO 1 |
100% Frontera SpA |
|
200 |
|
DORO 2 |
100% Frontera SpA |
|
200 |
|
DORO 3 |
100% Frontera SpA |
|
300 |
|
PORFIADA I |
100% Frontera SpA |
|
300 |
|
PORFIADA I |
100% Frontera SpA |
|
300 |
|
PORFIADA II |
100% Frontera SpA |
|
300 |
|
PORFIADA III |
100% Frontera SpA |
|
300 |
|
PORFIADA IV |
100% Frontera SpA |
|
300 |
|
PORFIADA V |
100% Frontera SpA |
|
200 |
|
PORFIADA X |
100% Frontera SpA |
|
200 |
|
PORFIADA VI |
100% Frontera SpA |
|
100 |
|
PORFIADA B |
100% Frontera SpA |
|
200 |
|
PORFIADA D |
100% Frontera SpA |
|
300 |
|
CHILIS 1 |
100% Frontera SpA |
|
200 |
|
CHILIS 3 |
100% Frontera SpA |
|
100 |
|
CHILIS 4 |
100% Frontera SpA |
|
200 |
|
CHILIS 5 |
100% Frontera SpA |
|
200 |
|
CHILIS 6 |
100% Frontera SpA |
|
200 |
|
CHILIS 7 |
100% Frontera SpA |
|
200 |
|
CHILIS 8 |
100% Frontera SpA |
|
200 |
|
CHILIS 9 |
100% Frontera SpA |
|
300 |
|
CHILIS 10 1/ 40 |
100% Frontera SpA |
|
200 |
|
CHILIS 11 |
100% Frontera SpA |
|
200 |
|
CHILIS 12 1/60 |
100% Frontera SpA |
|
300 |
|
CHILIS 13 |
100% Frontera SpA |
|
300 |
|
CHILIS 14 |
100% Frontera SpA |
|
300 |
|
CHILIS 15 |
100% Frontera SpA |
|
300 |
|
CHILIS 16 |
100% Frontera SpA |
|
300 |
|
CHILIS 17 |
100% Frontera SpA |
|
300 |
|
CHILIS 18 |
100% Frontera SpA |
|
300 |
|
SOLAR 1 |
100% Frontera SpA |
|
300 |
|
SOLAR 2 |
100% Frontera SpA |
|
300 |
|
SOLAR 3 |
100% Frontera SpA |
|
300 |
|
SOLAR 4 |
100% Frontera SpA |
|
300 |
|
SOLAR 5 |
100% Frontera SpA |
|
300 |
|
SOLAR 6 |
100% Frontera SpA |
|
300 |
|
SOLAR 7 |
100% Frontera SpA |
|
300 |
|
SOLAR 8 |
100% Frontera SpA |
|
300 |
|
SOLAR 9 |
100% Frontera SpA |
|
300 |
|
SOLAR 10 |
100% Frontera SpA |
|
300 |
|
SOLEDAD 1 |
100% Frontera SpA |
|
300 |
|
SOLEDAD 2 |
100% Frontera SpA |
|
300 |
|
SOLEDAD 3 |
100% Frontera SpA |
|
300 |
|
SOLEDAD 4 |
100% Frontera SpA |
|
300 |
|
CF 1 |
100% Frontera SpA |
|
300 |
|
CF 2 |
100% Frontera SpA |
|
300 |
|
CF 3 |
100% Frontera SpA |
|
300 |
|
CF 4 |
100% Frontera SpA |
|
300 |
|
CF 5 |
100% Frontera SpA |
|
200 |
|
CHAPULIN 1/3 |
100% Frontera SpA |
|
3 |
|
|
100% Frontera SpA |
|
100 |
|
|
100% Frontera SpA |
|
50 |
|
|
100% Frontera SpA |
|
100 |
|
CF 6 |
100% Frontera SpA |
|
200 |
|
CF 7 |
100% Frontera SpA |
|
100 |
|
CF 8 |
100% Frontera SpA |
|
200 |
|
CF 9 |
100% Frontera SpA |
|
100 |
|
MARI 1 |
100% Frontera SpA |
|
300 |
|
MARI 6 |
100% Frontera SpA |
|
300 |
|
El Fuego Project Tenements
License ID |
HCH % Held |
HCH % Earning |
Area (ha) |
Agreement Details |
MARI 8 |
100% Frontera SpA |
|
300 |
|
FALLA MAIPO 2 1/10 |
100% Frontera SpA |
|
99 |
|
FALLA MAIPO 3 1/8 |
100% Frontera SpA |
|
72 |
|
FALLA MAIPO 4 1/26 |
100% Frontera SpA |
|
26 |
|
ARBOLEDA 7 1/25 |
Option AMSA |
100% Frontera SpA |
234 |
100% HCH Purchase Option Agreement |
|
Option AMSA |
100% Frontera SpA |
81 |
|
|
Option AMSA |
100% Frontera SpA |
78 |
|
MONICA 21/40 |
Option AMSA |
100% Frontera SpA |
85 |
|
MONICA 41/52 |
Option AMSA |
100% Frontera SpA |
39 |
|
CORDILLERA 1/5 |
|
100% Frontera SpA |
20 |
100% HCH Purchase Option Agreement
NSR 1% for underground mining and 1,5% for open-pit mining |
QUEBRADA 1/10 |
|
100% Frontera SpA |
28 |
|
ALBORADA III 1/35 |
|
100% Frontera SpA |
162 |
|
ALBORADA IV 1/20 |
|
100% Frontera SpA |
54 |
|
ALBORADA VII 1/25 |
|
100% Frontera SpA |
95 |
|
|
|
100% Frontera SpA |
150 |
|
|
|
100% Frontera SpA |
100 |
|
CATITA XII 1/13 |
|
100% Frontera SpA |
61 |
|
1/6 |
|
100% Frontera SpA |
18 |
|
1/10 |
|
100% Frontera SpA |
23 |
|
HERREROS 1/14 |
|
100% Frontera SpA |
28 |
|
VETA 1/28 |
|
100% Frontera SpA |
17 |
|
PORSIACA 1/20 |
|
100% Frontera SpA |
20 |
|
MARSELLESA 1/5 |
|
100% Frontera SpA |
50 |
100% HCH Purchase Option Agreement NSR 1% |
COMETA 1 1/60 |
|
100% Frontera SpA |
300 |
100% HCH Purchase Option Agreement
18-month Option terms:
30-month Option terms:
Final payment may be cash or cash plus shares (up to 50%) |
COMETA 2 1/60 |
|
100% Frontera SpA |
300 |
|
COMETA 3 1/60 |
|
100% Frontera SpA |
300 |
|
1/40 |
|
100% Frontera SpA |
200 |
|
1/40 |
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
300 |
|
|
|
100% Frontera SpA |
300 |
|
COMETA 4B |
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
200 |
|
COMETA 4A |
|
100% Frontera SpA |
300 |
|
COMETA 3D |
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
300 |
|
COMETA V D |
|
100% Frontera SpA |
300 |
|
COMETA VI D |
|
100% Frontera SpA |
300 |
|
|
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
300 |
|
|
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
100 |
|
|
|
100% Frontera SpA |
200 |
|
|
|
100% Frontera SpA |
200 |
|
HIGUERA 1 |
100% Frontera SpA |
|
300 |
|
HIGUERA 2 |
100% Frontera SpA |
|
300 |
|
HIGUERA 3 |
100% Frontera SpA |
|
200 |
|
HIGUERA 4 |
100% Frontera SpA |
|
300 |
|
HIGUERA 5 |
100% Frontera SpA |
|
300 |
|
HIGUERA 6 |
100% Frontera SpA |
|
200 |
|
Note. Frontera
SpA is a 100% owned subsidiary company of |
Qualified Persons – NI 43-101
The information pertaining to the Mineral Resource Estimates included in this Report has been reviewed and approved by Ms.
Competent Persons – JORC
The information in this Report that relates to Mineral Resources for Cortadera, Productora (including
The information in this announcement that relates to Exploration Results for the Cortadera projects is based upon information compiled by Mr
Production targets and forecast financial information comprised in PEA
The information in this report relating to any production targets and forecast financial information derived from the production targets comprised in the statements in this report about the Preliminary Economic Assessment (PEA) for the
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, that all material assumptions and technical parameters underpinning the production targets and forecast financial information derived from the production targets contained in the original market announcement continue to apply and have not materially changed.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
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 mineral projects. Technical disclosure contained in this report has been prepared in accordance with NI 43-101 and the
All amounts in this report are in
Forward Looking Statements
This report contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this report should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "believe", "could", "estimate", "expect", "may", "plan", "potential", "project", "should", "toward", "will", "would" and similar expressions are intended to identify forward-looking statements.
The forward-looking statements within this Report are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this report. In addition, this report may contain forward-looking statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.
In this report, forward-looking statements relate, among other things, to: prospects, projections and success of the Company and its projects; the ability of the Company to expand mineral resources beyond current mineral resource estimates; the results of current and planned geophysical programs, including MIMDAS and Mag; the results and impacts of current and planned drilling to extend mineral resources and to identify new deposits; the Company's ability to convert mineral resources to mineral reserves; the timing and outcomes of current and future planned economic studies including the planned PFS and DFS; the potential to develop a water business in the Huasco valley and the future economics thereof; the timing and results of the Water Supply Business Case Study; whether or not a second maritime water extraction permit will be granted; whether or not water offtake agreements and/or infrastructure partner agreements will be entered into and, if so, on what terms; the timing and outcomes of regulatory processes required to obtain permits for the development and operation of the
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 Report, including, but not limited to, the following material factors: operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in
Although the forward-looking statements contained in this Report are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this Report, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this Report to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward- looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The forward-looking statements contained in this report are expressly qualified by the foregoing cautionary statements and are made as of the date of this Report. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this Report or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire report and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.
Mineral Resource Statement
Costa Fuego Combined Mineral Resource (Effective Date
1. |
Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, |
2. |
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 |
3. |
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 |
4. |
The |
5. |
The Mineral Resource Estimates 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 |
6. |
All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both |
7. |
Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: |
8. |
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, |
9. |
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. These Mineral Resource estimates 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. |
10. |
The effective date of the estimate of Mineral Resources is |
11. |
|
Appendix 5B
|
|
|
|
||
ABN |
|
Quarter ended ("current quarter") |
91 130 955 725 |
|
|
Consolidated statement of cash flows |
Current quarter $A'000 |
Year to date $A'000 |
|
1. |
Cash flows from operating activities |
|
|
1.1 |
Receipts from customers |
- |
- |
1.2 |
Payments for |
|
|
|
(a) exploration & evaluation |
(2,392) |
(12,382) |
|
(b) development |
- |
- |
|
(c) production |
- |
- |
|
(d) staff costs |
(632) |
(1,885) |
|
(e) administration and corporate costs |
(976) |
(3,682) |
1.3 |
Dividends received (see note 3) |
- |
- |
1.4 |
Interest received |
7 |
225 |
1.5 |
Interest and other costs of finance paid |
- |
(1) |
1.6 |
Income taxes paid |
- |
- |
1.7 |
Government grants and tax incentives |
- |
- |
1.8 |
Other (provide details if material) |
- |
- |
1.9 |
Net cash from / (used in) operating |
(3,993) |
(17,725) |
|
|||
2. |
Cash flows from investing activities |
|
|
2.1 |
Payments to acquire or for: |
|
|
|
(a) entities |
- |
- |
|
(b) tenements |
(1,051) |
(2,571) |
|
(c) property, plant and equipment |
(26) |
(69) |
|
(d) exploration & evaluation |
- |
- |
|
(e) investments |
- |
- |
|
(f) other non-current assets |
- |
- |
Consolidated statement of cash flows |
Current quarter $A'000 |
Year to date $A'000 |
|
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 |
Osisko receipts (net of costs) |
- |
21,287 |
2.6 |
Net cash from / (used in) investing |
(1,077) |
18,647 |
|
|||
3. |
Cash flows from financing activities |
|
|
3.1 |
Proceeds from issues of equity securities |
31,900 |
31,900 |
3.2 |
Proceeds from issue of convertible debt |
- |
- |
3.3 |
Proceeds from exercise of options |
- |
- |
3.4 |
Transaction costs related to issues of equity |
(2,356) |
(2,356) |
3.5 |
Proceeds from borrowings |
- |
- |
3.6 |
Repayment of borrowings |
- |
- |
3.7 |
Transaction costs related to loans and |
- |
- |
3.8 |
Dividends paid |
- |
- |
3.9 |
Other (provide details if material) |
- |
- |
3.10 |
Net cash from / (used in) financing |
29,544 |
29,544 |
|
|||
4. |
Net increase / (decrease) in cash and |
|
|
4.1 |
Cash and cash equivalents at beginning of |
9,547 |
2,949 |
4.2 |
Net cash from / (used in) operating |
(3,993) |
(17,725) |
4.3 |
Net cash from / (used in) investing activities |
(1,077) |
18,647 |
4.4 |
Net cash from / (used in) financing activities |
29,544 |
29,544 |
Consolidated statement of cash flows |
Current quarter $A'000 |
Year to date $A'000 |
|
4.5 |
Effect of movement in exchange rates on |
(269) |
337 |
4.6 |
Cash and cash equivalents at end of |
33,752 |
33,752 |
5. |
Reconciliation of cash and cash
at the end of the quarter (as shown in the |
Current quarter $A'000 |
Previous quarter $A'000 |
5.1 |
Bank balances |
23,742 |
9,547 |
5.2 |
Call deposits |
10,010 |
- |
5.3 |
Bank overdrafts |
- |
- |
5.4 |
Other (provide details) |
- |
- |
5.5 |
Cash and cash equivalents at end of |
33,752 |
9,547 |
6. |
Payments to related parties of the entity and their |
Current quarter $A'000 |
6.1 |
Aggregate amount of payments to related parties and their |
163 |
6.2 |
Aggregate amount of payments to related parties and their |
- |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an |
7. |
Financing facilities
Note: the term "facility' includes all forms of financing
Add notes as necessary for an understanding of the |
Total facility $A'000 |
Amount drawn at $A'000 |
7.1 |
Loan facilities |
- |
- |
7.2 |
Credit standby arrangements |
- |
- |
7.3 |
Other (please specify) |
- |
- |
7.4 |
Total financing 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 |
||
|
|
8. |
Estimated cash available for future operating activities |
$A'000 |
8.1 |
Net cash from / (used in) operating activities (item 1.9) |
(3,993) |
8.2 |
(Payments for exploration & evaluation classified as |
- |
8.3 |
Total relevant outgoings (item 8.1 + item 8.2) |
(3,993) |
8.4 |
Cash and cash equivalents at quarter end (item 4.6) |
33,752 |
8.5 |
Unused finance facilities available at quarter end (item 7.5) |
- |
8.6 |
Total available funding (item 8.4 + item 8.5) |
33,752 |
|
||
8.7 |
Estimated quarters of funding available (item 8.6 divided by |
8.45 |
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". |
||
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 |
|
|
N/A |
|
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further |
||
|
N/A |
|
8.8.3 Does the entity expect to be able to continue its operations and to meet its business |
||
|
N/A |
|
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
- This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
- This statement gives a true and fair view of the matters disclosed.
Date: .................30 July 2024.........................................
Authorised by: ...........By the Board.....................................................
(
Notes
- 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.
- 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.
- 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.
- 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". - 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.
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