PERTH,
Australia, Oct. 31, 2023 /CNW/ -
Highlights
Hot Chili Files NI 43-101 Technical Report for the Costa
Fuego Copper-Gold Project in Chile
- The Company filed the report titled "Costa Fuego Copper Project
NI 43–101 Technical Report Preliminary Economic Assessment"
1 and dated August
2023, with an effective date of June
28, 2023 (the "Technical Report"), prepared pursuant to CIM
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101")
- The Technical Report supported the Costa Fuego PEA news release
dated 28 June 2023, outlining Costa
Fuego as one of world's lowest capital intensity, major copper
developments, not controlled by a major miner
1
Closing of US$15 Million
Investment Agreement with Osisko Gold Royalties
- Closing of an Investment Agreement (see announcement dated
28th July 2023) and the
receipt of US$15 million in funds in
late July 2023
- Strong endorsement from a leading North American
royalty-streaming group with funds being used to advance the growth
and development of Costa Fuego
Water Business
Conceptual Study Underway
- Potential to monetise water assets while securing water for
Costa Fuego adds further non-dilutive funding optionality for Hot
Chili
Drilling Programme
Underway at Costa Fuego
- Drilling operations re-commenced, initially focused on
extensional targets to the Cortadera porphyry resource
- First drilling underway at the Corroteo target, located 5km SE
of Cortadera
Further Regional Consolidation Steps
- Binding letter of intent executed for an Option to acquire the
Cometa Project, lying contiguous to the Company's Costa Fuego
landholding (see announcement dated 28th August 2023)
- Further opportunities being pursued to expand the scale of the
Costa Fuego copper hub
Strong Cash Position of A$21.8 million
|
1 The PEA is preliminary in nature and includes 3% of production feed from Inferred
Mineral Resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorised as Mineral Reserves (NI 43-101) or
Ore Reserves (JORC 2012), and there is no certainty that the PEA
will be realised. Mineral Resources that are not Mineral
Reserves or Ore Reserves do not have demonstrated economic
viability. References to "Mineral Reserves" in this announcement
include Ore Reserves (JORC 2012). See page 18 for additional
cautionary language.
|
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 97% are classified as Indicated and
3% 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. Inferred Mineral Resources comprise 2.5% of the
production schedule in the first four years of operation. 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 exploration.
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. Hot Chili
confirms that it is not aware of any new information or data that
materially affects the information included in that release and
that all material assumptions and technical parameters underpinning
the estimate continue to apply and have not been
changed.
To achieve the
outcomes indicated in the PEA, including reaching
Definitive Feasibility Study
("DFS") stage, 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. 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, 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
Hot Chili Files NI 43-101 Technical
Report for the Costa Fuego Copper-Gold
Project in Chile
The Company filed the report titled "Costa Fuego Copper Project
NI 43–101 Technical Report Preliminary Economic
Assessment"1 dated August
2023, with an effective date of June
28, 2023 (the "Technical Report"), prepared pursuant to
CIM National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43- 101").
As outlined in the announcement dated Wednesday 28 June 2023 titled "Hot Chili Announces PEA for Costa
Fuego", highlights from the Technical Report include:
- Strong Economics: Costa Fuego PEA delivers using an 8%
discount rate and long-term metal price assumptions of US$3.85/lb copper (Cu) and US$1,750/oz gold (Au)
- Base-case post-tax Net Present Value
(NPV8%) of US$1.10
Billion (approximately, within a range of US$733 Million to US$1.46
Billion) and Internal Rate of Return (IRR) of 21%
(approximately, within a range of 17% to 25%)
- Low Start-up Capital: US$1.05
Billion estimated, resulting in fast 3.5-year payback.
Initial phases of open pit mining fully fund development of a bulk
underground operation
- Low Capital Intensity: One of the lowest capital
intensities of global copper development projects
- Approximately 112 ktpa Average CuEq2 Production
Rate: Including 95 kt Cu and 49 koz Au during primary
production (first 14 years) at C1 Cash Cost3 of
US$1.33/lb (estimated, net of by-
product credits)
- Initial Mine Life:
16-years with 1.41 Mt Cu and 718 koz Au produced for total revenue
of approximately US$13.52 Billion and
total free cash flow of approximately US$3.28 Billion (post-tax, after operating costs,
capital costs, and royalties)
Key Development Study Workstreams Advancing
Approximately 80% of Pre-feasibility Study (PFS) workstreams for Costa Fuego are already
complete. Since completion of the PEA in late June 2023, the Company's development expenditure
has been focused on advancing key long lead-time study items, such
as:
- Hydrogeology Drilling and Water Monitoring Programme:
Eleven water monitoring wells for a total of 557m of drilling have been completed at Cortadera
and Productora over the past month. Water and groundwater
monitoring data is a key input requirement for the Company's
Environmental Impact Assessment (EIA), which requires a minimum of
one year of water monitoring data from down-stream water
catchments. The data from this programme is one of the few
remaining inputs required in advance of submission of an EIA for
Costa Fuego.
-
Low-grade Leach Metallurgy Programme: Bulk samples,
including 19 tonnes of underground ore from
Productora and 3 tonnes of drill core from Cortadera, have been
collected and sent to Nova Mineralis in Chile for preparation and long-duration column
leach testwork using intermediate bulk containers. In
addition, a further 1.5 tonne of drill core was collected for
variability leach testwork using 1m
columns. Long lead-time, leach recovery testwork is now
underway to support PFS level metallurgy results for this component
of Costa Fuego's process flow sheet.
__________
|
1 The
PEA is preliminary in nature and includes 3% of production feed
from Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorised as Mineral
Reserves (NI 43-101)
or Ore Reserves (JORC 2012),
and there is no certainty
that the PEA will be realised. Mineral
Resources that are not Mineral Reserves or Ore Reserves
do not have demonstrated economic viability. References to "Mineral
Reserves" in this announcement include Ore Reserves (JORC 2012).
See page 18 for additional cautionary language.
|
2
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$3.85/lb, Gold US$1,750/oz,
Molybdenum US$17/lb, and Silver US$21/oz; and estimated
metallurgical recoveries
for the production feed to the
following processes: Concentrator (87% Cu,
56% Au, 37% Ag, 58% Mo), Oxide Leach (55%
Cu only), & Low-grade Sulphide Leach (40% Cu only).
|
3
See page 19 for full non-IFRS
measures disclaimer.
|
Water Business
Conceptual Study Underway
Hot Chili has initiated a conceptual study of the Company's
water assets (water easements, maritime concession and associated
coastal land access rights) and their potential to underpin a
future water utility business for the Huasco region of the Atacama,
Chile.
Hot Chili controls one of the few registered maritime
concessions in the region, and there is no other major water
utility provider in the Huasco Valley.
Hot Chili's water licence for the extraction of
2,000 litres per second of sea
water (maritime concession) can be expanded and is
transferable. The Company is also assessing the application
for the licence to be upgraded to include the supply of
de-salinated water.
Based on the Technical Report, Costa Fuego is estimated to
require approximately 600 litres per second of sea water at its
current study scale of future annual metal production (95ktpa Cu
& 49koz Au).
A large new water supplier could help to unlock multiple
undeveloped mining projects in the Huasco Valley that do not
currently have access to water supply. New mine developments
are driving a forecast water supply deficit, which has been
estimated at approximately 15,000 litres per second for the Atacama
region.
The opportunity to potentially monetise
a portion of the Company's Chilean water assets,
while also securing
future seawater supply for the Costa Fuego Projects,
may add further non-dilutive funding
optionality for Hot Chili.
Exploration Drilling
Underway at Costa Fuego
Drilling re-commenced at Costa Fuego in late July 2023 with one Reverse Circulation (RC) drill rig in operation
for the majority of the quarter. In addition, four diamond
drill holes were completed over a four-week period
(two completed during the quarter). Drilling
expenditure is being prudently managed
to maximize the impact of invested dollars, with
only one RC drill rig planned to be operating for the remainder of
this year.
A total of 26 holes for 6,442m
of drilling was completed during
the quarter with numerous low-grade significant
intersections recorded. Tables 1 and 2 summarise details of
drilling undertaken during the quarter and significant drill
results received to date, respectively.
Drilling initially focused on satisfying the Company's remaining
3,000m drill commitment with
Antofagasta Minerals (see announcement dated 28th November 2022) to acquire key leases lying
along the western
extension of Cortadera. In addition, numerous
drill holes have been completed across extensional targets
to the Cortadera resource, peripheral to Cuerpo 2 and Cuerpo 3.
Drill holes CRP0220 and CRP0222 have confirmed extensions to the
south and east of Cuerpo 2, and drill hole CRP0217D has confirmed
further extensions to the east at Cuerpo 3. These new results
will add to other potential additions to the Cortadera Mineral
Resource Estimate from drilling undertaken since March
2022. Further drill results from drilling undertaken during
the quarter at Cortadera are pending.
Following completion of a limited hydrogeology drilling
programme (11 RC holes for 557m)
during October, RC drilling operations commenced at the large-scale
Corroteo exploration target, located
approximately 5km SE
of Cortadera. A total of seven
deep RC holes for approximately 2,000m
are planned in the current first- pass exploration
drill programme at Corroteo.
Corroteo features a surface alteration footprint measuring approximately 2km in strike
length by 500m in width and has never
previously been drilled. Detailed mapping and surface
geochemical programmes confirm some similarities to the deposit
style and footprint of the Company's Productora copper-gold
resource.
Corroteo is one of several exploration targets being advanced
toward first drill testing over the coming
year.
SUMMARY OF CORPORATE ACTIVITIES
Closing of US$15 Million
Investment Agreement with Osisko Gold Royalties
In late July 2023, Hot Chili
closed its previously announced transaction with Osisko Gold
Royalties Ltd ("Osisko"), pursuant to which Hot Chili received
proceeds of US$15 million in exchange
for the sale of a 1.0% Net Smelter Return (NSR) royalty on copper
and a 3% NSR royalty on gold (the "Investment") across the
Company's Costa Fuego Copper-Gold Project.
The Investment by Osisko has strengthened the Company's current
cash position without the need for a dilutive equity capital raise,
demonstrated strong look-through value of the Project's economics.
It also provided another significant endorsement of Hot Chili's
Costa Fuego project from one of North
America's leading royalty-streaming groups (see the
Company's announcement dated 28th June
2023, entitled "Hot Chili Announces US$15 Million Investment Agreement with Osisko
Gold Royalties").
The Company is now well funded to deliver the next steps in its growth and development plan to advance
the Costa Fuego Pre-Feasibility Studies (PFS), resource
growth drilling programmes and general advancement
of the Project.
Further Regional Consolidation Steps
In late August, the Hot Chili executed a binding letter of
intent ("LOI") with Bastion Minerals Limited (ASX: BMO) ("Bastion")
for the grant to Hot Chili of an Option to acquire 100% of
Bastion's Cometa Project in Chile ("Cometa"),
located near Costa Fuego (see announcement dated 28th August).
Cometa consists of exploration and mining concessions covering
an area of approximately 56km2, located almost 15km SE of Costa
Fuego's planned operating centre and contiguous with Hot Chili's
landholdings in the region (see Figure 1 below).
The Option
is another step in Hot Chili's consolidation strategy for the Costa Fuego
copper project.
Cometa provides additional optionality for the discovery of
further mineral deposits in the Costa Fuego Project area, with the
potential to provide supplemental feed and/or a longer mine life to
the project laid out in the Company's PEA.
The material
terms of the LOI are as follows:
- Exclusivity period of 60 days for Hot Chili to conduct due
diligence and for Hot Chili's subsidiary Sociedad Minera La
Frontera SpA ("Frontera") to enter into a definitive Option
agreement with Bastion's subsidiary SCM Cornet Constelación, the
holder of a 100% interest in the concessions comprising Cometa, for
the grant to Frontera of an option to acquire a 100% interest in
the Cometa concessions ("Option").
- Non-refundable cash payment of US$100,000 to Bastion upon grant of the
Option.
- Non-refundable cash payment of US$200,000 within 12 months from the grant of the
Option to keep the Option in good standing.
- Option may be exercised within 30 months of the date of
grant.
- If the Option is exercised, the consideration payable to
Bastion to purchase the Cometa concessions is:
- US$2,400,000 if the Option is
exercised by Hot Chili within 18 months from the date of grant of
the Option; or
- US$3,000,000 if the Option is
exercised by Hot Chili within 30 months from the date of grant of
the Option.
- Hot Chili may elect to satisfy the purchase consideration in
cash (100%), or in cash (50%) and ordinary shares of Hot Chili
(50%) issued at a price per share equal to the 15-day VWAP at the
date of exercise of the Option, subject to applicable regulatory
approvals, including the approval of the TSX Venture Exchange
("TSXV").
The Company has recently
agreed to an extension of the Exclusivity period by 45 days to allow for
completion of due diligence in advance of exercise of the Option,
expected by mid-December 2023.
Further opportunities are being pursued to expand the scale of the Costa
Fuego copper hub, with multiple discussions
underway on prospective exploration targets in the area.
Sustainability
The Company has continued local community engagement, holding
several meetings with stakeholders and local indigenous
communities. Continued support programs in the Vallenar
municipality delivering water to irrigation, funding for social
programmes and the development of counselling programmes for mental
health support in partnership with the University of Chile.
A spring flora and vegetation survey was carried
out on the entire Costa Fuego Project footprint, focused
on strengthening the environmental baseline information for the EIA
submission.
As the Company advances the Costa Fuego Project, it continues to
focus on innovative techniques to minimise the environmental impact
of the development, including the use of renewable energy for the
delivery of power and the use of sea water for processing.
Cash Position
and Capital Structure Changes
As
of 30 September 2023, the company had cash of A$21.8 million
and no debt.
The Company issued 345,000 service
rights and 345,000
performance rights during the period to
employees and consultants.
The Company has the following securities on issue:
- 119,445,206 ordinary fully paid shares
- 10,900,000 warrants at CAD$2.50
expiring 31 January 2024
- 1,259,789 options at CAD$1.85
expiring 31 January 2025
- 1,850,001 AUD$2.25 options expiring 30
September 2024
- 5,996,728 unvested services and performance rights.
Table 1 – Significant Drill Results for Costa Fuego in
Quarter 3 2023
Hole_ID
|
Coordinates
|
Azim
|
Dip
|
Hole
Depth
|
Intersection
|
Interval
|
Copper
|
Gold
|
Silver
|
Moly¹
|
Cu
Eq*
|
North
|
East
|
RL
|
From
|
To
|
(m)
|
( %)
|
(g/t)
|
(ppm)
|
(ppm)
|
( %)
|
LCP0018
|
6815926
|
334600
|
863
|
270
|
-59
|
300
|
34
|
42
|
8
|
0.1
|
0.0
|
0.3
|
9
|
0.1
|
&
|
86
|
88
|
2
|
0.1
|
0.6
|
0.3
|
5
|
0.4
|
&
|
94
|
122
|
28
|
0.1
|
0.0
|
0.3
|
4
|
0.1
|
&
|
172
|
192
|
20
|
0.1
|
0.0
|
0.3
|
3
|
0.1
|
CRP0204
|
6816271
|
334840
|
937
|
91
|
-60
|
300
|
214
|
242
|
28
|
0.1
|
0.0
|
0.4
|
4
|
0.1
|
CRP0213
|
6813277
|
336232
|
1082
|
214
|
-73
|
270
|
226
|
246
|
20
|
0.1
|
0.0
|
0.3
|
14
|
0.1
|
CRP0214
|
6814012
|
335925
|
1007
|
94
|
-60
|
252
|
150
|
210
|
60
|
0.1
|
0.0
|
0.2
|
7
|
0.1
|
CRP0215
|
6813518
|
336053
|
1040
|
191
|
-60
|
270
|
0
|
96
|
96
|
0.2
|
0.1
|
0.3
|
15
|
0.2
|
|
|
|
|
|
|
Incl
|
18
|
30
|
12
|
0.2
|
0.2
|
0.3
|
12
|
0.3
|
CRP0216D
|
6813389
|
336312
|
1055
|
129
|
-70
|
546.4
|
6
|
78
|
72
|
0.2
|
0.0
|
0.3
|
15
|
0.2
|
&
|
100
|
120
|
20
|
0.2
|
0.1
|
0.3
|
6
|
0.2
|
&
|
130
|
190
|
60
|
0.2
|
0.0
|
0.3
|
13
|
0.2
|
&
|
208
|
234
|
26
|
0.2
|
0.0
|
0.3
|
24
|
0.2
|
&
|
304
|
458
|
154
|
0.2
|
0.1
|
0.3
|
99
|
0.2
|
CRP0217
|
6813454
|
336343
|
1060
|
79
|
-58
|
252
|
6
|
66
|
60
|
0.2
|
0.1
|
0.3
|
14
|
0.2
|
|
230
|
236
|
6
|
0.2
|
0.0
|
0.4
|
33
|
0.2
|
CRP0218
|
6813718
|
336358
|
1047
|
91
|
-80
|
173.5
|
164
|
168
|
4
|
0.2
|
0.0
|
0.3
|
65
|
0.3
|
CRP0220
|
6813844
|
335665
|
1003
|
199
|
-72
|
261
|
0
|
190
|
190
|
0.2
|
0.1
|
0.4
|
16
|
0.2
|
Including
|
0
|
88
|
88
|
0.2
|
0.1
|
0.5
|
15
|
0.3
|
&
including
|
142
|
170
|
28
|
0.2
|
0.1
|
0.3
|
24
|
0.3
|
CRP0221
|
6813914
|
335758
|
992
|
11
|
-80
|
204
|
42
|
46
|
4
|
0.3
|
0.1
|
0.3
|
23
|
0.4
|
CRP0222
|
6813850
|
335666
|
1003
|
111
|
-71
|
210
|
2
|
70
|
68
|
0.2
|
0.1
|
0.4
|
14
|
0.3
|
&
|
130
|
190
|
60
|
0.2
|
0.0
|
0.3
|
13
|
0.2
|
&
|
208
|
234
|
26
|
0.2
|
0.0
|
0.3
|
24
|
0.2
|
&
|
304
|
458
|
154
|
0.2
|
0.1
|
0.3
|
99
|
0.2
|
Notes to Table
1:
|
Significant
intercepts are calculated above a nominal cut-off grade of 0.1% Cu.
Where appropriate, significant intersections may contain up to 30m
down-hole distance of internal dilution (less than 0.1% Cu).
Significant intersections are separated where internal dilution is
greater than 30m down-hole distance. The selection of 0.1% Cu for
intersection cut-off grade above is selected on the basis of
exploration significance and is not meant to represent potential
marginal economic cut-off grade for bulk tonnage polymetallic
copper deposits of similar grade in Chile and elsewhere in the
world.
|
Down-hole significant intercept widths are estimated to be at or around
true-widths of mineralisation
|
|
|
¹ Molybdenum
|
* Copper Equivalent (CuEq) reported for the drillhole
intersections were calculated using the following
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
Metal Prices applied
in the calculation were: Cu=3.00 USD/lb,
Au=1,700 USD/oz, Mo=14 USD/lb, and Ag=20 USD/oz.
The entirety of the intersection is assumed as
fresh. The recovery and copper equivalent formula for each
deposit is:
|
|
|
|
Cortadera – Recoveries of 83% Cu, 56% Au, 83% Mo and 37%
Ag.
|
|
Cortadera CuEq(%)
= Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t)
Productora – Recoveries of 84% Cu, 47% Au, 47% Mo and 0% Ag (not
reported).
|
|
Productora CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00026 x
Mo(ppm)
|
|
San Antonio and
Valentina – Recoveries of 88% Cu, 72% Au, 88% Mo and 69% Ag.
San Antonio CuEq(%) = Cu(%)
+ 0.68 x Au(g/t) + 0.00047 x Mo(ppm) + 0.0076 x Ag(g/t)
|
Table 2 - Drill
Holes Completed for Costa Fuego in Quarter
3 2023
Prospect
|
Hole_ID
|
North
|
East
|
RL
|
Depth
|
Azimuth
|
Dip
|
Results
|
Cuerpo 4
|
LCP0017
|
6816113
|
334616
|
859
|
300
|
88
|
-60
|
NSR
|
Cuerpo 4
|
LCP0018
|
6815926
|
334600
|
863
|
300
|
270
|
-59
|
NSR
|
Cuerpo 4
|
LCP0019
|
6816163
|
334587
|
857
|
246
|
269
|
-59
|
NSR
|
Cuerpo 4
|
LCP0020D
|
6815842
|
334867
|
927
|
755
|
245
|
-60
|
Results
pending
|
Cortadera
North
|
CRP0204
|
6816271
|
334840
|
937
|
300
|
91
|
-60
|
NSR
|
Cuerpo 3
|
CRP0205
|
6813247
|
335815
|
1184
|
300
|
2
|
-74
|
NSR
|
Cuerpo 3
|
CRP0206
|
6813249
|
335817
|
1184
|
300
|
59
|
-75
|
NSR
|
Cuerpo 3
|
CRP0207
|
6813031
|
336070
|
1174
|
54
|
36
|
-71
|
NSR
|
Cuerpo 3
|
CRP0208
|
6813030
|
336070
|
1174
|
84
|
31
|
-74
|
NSR
|
Cuerpo 3
|
CRP0209
|
6813502
|
336655
|
1088
|
228
|
205
|
-69
|
NSR
|
Cuerpo 3
|
CRP0210
|
6813502
|
336657
|
1088
|
90
|
359
|
-77
|
NSR
|
Cuerpo 3 North
|
CRP0211
|
6814125
|
336261
|
1090
|
174
|
98
|
-57
|
NSR
|
Cuerpo 2
|
CRP0212
|
6813753
|
335463
|
1004
|
150
|
25
|
-85
|
NSR
|
Cuerpo 3
|
CRP0213
|
6813277
|
336232
|
1082
|
270
|
214
|
-73
|
NSR
|
Cuerpo 3
|
CRP0214
|
6814012
|
335925
|
1007
|
252
|
94
|
-60
|
NSR
|
Cuerpo 3
|
CRP0215
|
6813518
|
336053
|
1040
|
270
|
191
|
-60
|
Significant result returned Q2
|
Cuerpo 3
|
CRP0216D
|
6813389
|
336312
|
1055
|
546
|
129
|
-70
|
Significant result returned Q2
|
Cuerpo 3
|
CRP0217
|
6813454
|
336343
|
1060
|
252
|
79
|
-58
|
Significant result returned Q2
|
Cuerpo 3
|
CRP0218
|
6813718
|
336358
|
1047
|
174
|
91
|
-80
|
Significant result returned Q2
|
Cuerpo 3
|
CRP0219
|
6813591
|
336365
|
1045
|
84
|
87
|
-66
|
NSR
|
Cuerpo 2
|
CRP0220
|
6813844
|
335665
|
1003
|
261
|
199
|
-72
|
Significant result returned Q2
|
Cuerpo 2
|
CRP0221
|
6813914
|
335758
|
992
|
204
|
11
|
-80
|
Significant result returned Q2
|
Cuerpo 2
|
CRP0222
|
6813850
|
335666
|
1003
|
210
|
111
|
-71
|
Results
pending
|
Cuerpo 3 North
|
CRP0223
|
6814534
|
336075
|
1174
|
360
|
76
|
-58
|
Results
pending
|
Cuerpo 2 North
|
CRP0224
|
6814227
|
335625
|
1058
|
198
|
65
|
-58
|
Results
pending
|
Cortadera
Hydro
|
CORMW01
|
6814879
|
334509
|
883
|
80
|
0
|
-90
|
Results
pending
|
|
Note 1: NSR – no significant intersection recorded.
|
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
30 September 2023
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 totaled
$166,458. This is comprised of
directors' salaries and superannuation of $166,458.
Health, Safety,
Environment and Quality
Field operations during the period included geological reconnaissance activities, core-testing and logging,
field mapping, and sampling exercises across the Cortadera, El
Fuego and Productora landholdings. El Fuego field activities are
run from the Cortadera operations centre and safety statistics are
combined for reporting.
No safety incidents were recorded during the quarter. The
Company's HSEQ quarterly performance is summarised in Table 3
below.
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 3 HSEQ
Quarter 3 2023 Performance and Statistics
Deposit
|
Productora
|
|
Cortadera
|
Timeframe
|
Q2 2023
|
Cum.²
|
Q2 2023
|
Cum.²
|
Q2 2023
|
Cum.²
|
LTI events
|
0
|
0
|
0
|
6
|
0
|
7
|
NLTI events
|
0
|
2
|
0
|
5
|
0
|
8
|
Days lost
|
0
|
0
|
0
|
152
|
0
|
175
|
LTIFR index
|
0
|
0
|
0
|
22
|
0
|
20
|
ISR index
|
0
|
0
|
0
|
568
|
0
|
492
|
IFR Index
|
0
|
36
|
0
|
41
|
0
|
42
|
Thousands
of manhours
|
4.7
|
56
|
10.5
|
268
|
17.4
|
356
|
Incidents
on materials and assets
|
0
|
0
|
0
|
0
|
0
|
0
|
Environmental
incidents
|
0
|
0
|
0
|
0
|
0
|
0
|
Headcount¹
|
13
|
8
|
34
|
35
|
73
|
48
|
|
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, the Company has claimed the exploitation
concession Chilis 12 1/60 in use of the preferential right held by
virtue of exploration concession Chilis 12 and renewed the
following mining exploration concessions:
- Chilis 13 replaces Chilis 13, which expired on August 9th, 2023,
- Chilis 14 replaces Chilis 14, which expired on August 19th, 2023,
- Chilis 15 replaces Chilis 15, which expired on July 29th, 2023,
- Chilis 16 replaces Chilis 16, which expired on August 17th, 2023,
- Chilis 17 replaces Chilis 17, which expired on July 29th, 2023,
- Chilis 18 replaces Chilis 18, which expired on August 25th, 2023,
- Porfiada G replaces Porfiada G, which expired on August 23rd, 2023,
- Porfiada V replaces Porfiada V, which expires on October 26th, 2023 and
- Porfiada VI replaces Porfiada VI, which expires on November 19th, 2023.
The Company's existing tenements are detailed in the table below.
Table 4 Current
Tenement (Patente) Holdings in Chile as of
30 September 2023
Cortadera Project
License
ID
|
HCH % Held
|
HCH %
Earning
|
Area (ha)
|
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 CANAS ESTE 2003 1/30
|
100%
Frontera SpA
|
|
300
|
CORROTEO 1 1/260
|
100% Frontera SpA
|
|
260
|
CORROTEO 5 1/261
|
100% Frontera SpA
|
|
261
|
ROMERO 1 AL 31
|
100% Frontera SpA
|
|
31
|
PURISIMA
|
100% Frontera SpA
|
|
20
|
NSR 1.5%
|
|
Note. Frontera
SpA is a 100% owned subsidiary company
of Hot Chili Limited
|
Productora Project
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
|
|
CARMEN II, 1-60
|
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
|
|
CUENCA A, 1-51
|
80% SMEA SpA
|
|
255
|
|
CUENCA B, 1-28
|
80% SMEA SpA
|
|
139
|
|
CUENCA C, 1-51
|
80% SMEA SpA
|
|
255
|
|
CUENCA D
|
80% SMEA SpA
|
|
3
|
|
CUENCA E
|
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
|
|
ORO INDIO 1A, 1-20
|
80% SMEA SpA
|
|
82
|
|
AURO HUASCO I, 1-8
|
80% SMEA SpA
|
|
35
|
|
URANIO, 1-70
|
0 %
|
0 %
|
350
|
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 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
|
|
150
|
|
JULI 27 B 1/10
|
80% SMEA SpA
|
|
50
|
|
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 Hot Chili Limited,
20% owned by CMP (Compañía Minera del Pacífico)
|
El Fuego Project
Licence ID
|
HCH % Held
|
HCH % Earning
|
Area (ha)
|
Exploration and Expenditure Commitment-
Payments
|
Santiago 21 al 36
|
|
90% Frontera SpA
|
76
|
90%
(HCH)-10% (Arnaldo del Campo) JV.
6-year term.
USD 600,000 already paid.
USD 6,600,000 final
exercise payment to be paid
by September 7, 2024.
|
Santiago 37 al 43
|
|
90% Frontera SpA
|
26
|
Santiago A, 1 al 26
|
|
90% Frontera SpA
|
236
|
Santiago B, 1 al 20
|
|
90% Frontera SpA
|
200
|
Santiago C, 1 al 30
|
|
90% Frontera SpA
|
300
|
Santiago D, 1 al 30
|
|
90% Frontera SpA
|
300
|
Santiago E, 1 al 30
|
|
90% Frontera SpA
|
300
|
Prima Uno
|
|
90% Frontera SpA
|
1
|
Prima Dos
|
|
90% Frontera SpA
|
2
|
Santiago 15 al 19
|
|
90% Frontera SpA
|
25
|
San Antonio 1 al 5
|
|
90% Frontera SpA
|
25
|
Santiago 1 AL 14 Y 20
|
|
90% Frontera SpA
|
75
|
Mercedes 1 al 3
|
|
90% Frontera SpA
|
50
|
Kreta 1 al
4
|
|
90% Frontera SpA
|
16
|
Mari
1 al 12
|
|
90% Frontera SpA
|
64
|
PORFIADA VII 1 al 60
|
|
90% Frontera SpA
|
300
|
PORFIADA VIII 1 al 60
|
|
90% Frontera SpA
|
300
|
PORFIADA IX 1 al 60
|
|
90% Frontera SpA
|
300
|
PORFIADA X
|
|
90% Frontera SpA
|
200
|
PORFIADA A 1 al 40
|
|
90% Frontera SpA
|
200
|
PORFIADA B
|
|
90% Frontera SpA
|
200
|
PORFIADA C 1 al 60
|
|
90% Frontera SpA
|
300
|
PORFIADA D
|
|
90% Frontera SpA
|
300
|
PORFIADA E 1 al 20
|
|
90% Frontera SpA
|
100
|
PORFIADA F 1 al 60
|
|
90% Frontera SpA
|
300
|
PORFIADA G
|
|
90% 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
|
|
SAN ANTONIO 1
|
100% Frontera SpA
|
|
200
|
|
SAN ANTONIO 2
|
100% Frontera SpA
|
|
200
|
|
SAN ANTONIO 3
|
100% Frontera SpA
|
|
300
|
|
SAN ANTONIO 4
|
100% Frontera SpA
|
|
300
|
|
SAN ANTONIO 5
|
100% Frontera SpA
|
|
300
|
|
DORO 1
|
100% Frontera SpA
|
|
200
|
|
DORO 2
|
100% Frontera SpA
|
|
200
|
|
DORO 3
|
100% Frontera SpA
|
|
300
|
|
SANTIAGO Z 1/30
|
|
100% Frontera SpA
|
300
|
100% HCH Purchase Option
Agreement
USD 200,000 already
paid.
USD 400,000 to be paid
by January 22, 2024.
NSR 1.5%
|
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 VI
|
|
100% Frontera SpA
|
100
|
|
SAN JUAN SUR
1/5
|
|
90% Frontera SpA
|
10
|
90%
(HCH) Option Agreement
USD 150,000 already
paid
USD 4,000,000 by June 1, 2024.
|
SAN JUAN SUR
6/23
|
|
90% Frontera SpA
|
90
|
CHILIS 1
|
100% Frontera SpA
|
|
200
|
|
CHILIS 2
|
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 al 40
|
100% Frontera SpA
|
|
200
|
|
CHILIS 11
|
100% Frontera SpA
|
|
200
|
|
CHILIS 12
|
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
|
|
300
|
|
CHAPULIN COLORADO 1/3
|
100% Frontera SpA
|
|
3
|
|
PEGGY SUE 1/10
|
100% Frontera SpA
|
|
100
|
|
DONA FELIPA 1 al 10
|
100% Frontera SpA
|
|
50
|
|
ELEANOR RIGBY 1/10
|
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
|
|
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 1/2
|
Option AMSA
|
|
234
|
100% HCH Purchase Option
Agreement
USD 1,500,000 to be paid by November 15, 2024
|
NAVARRO 1
41/60
|
Option
AMSA
|
|
81
|
NAVARRO 2
21/37
|
Option
AMSA
|
|
78
|
MONICA 21/40
|
Option
AMSA
|
|
85
|
MONICA 41/52
|
Option
AMSA
|
|
39
|
|
Note. Frontera SpA is a
100% owned subsidiary company of Hot Chili Limited
|
Qualifying Statements
Costa Fuego Combined Mineral Resource
(Effective Date 31st March 2022)
1 Mineral Resources are reported on a
100% Basis - combining Mineral Resource estimates for the
Cortadera, Productora 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 the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards on Mineral Resources and Reserves,
Definitions (2014) and Guidelines (2019) prepared by the
CIM Standing Committee
on Reserve Definition, as required by National
Instrument 43-101.
|
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
Limitada (a 100% subsidiary of Hot Chili Limited), and 20% owned
by CMP Productora (a 100% subsidiary of Compañía Minera del
Pacífico S.A (CMP)).
|
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
Limitada, which is a 100% subsidiary of Hot Chili
Limited.
|
4 The
San Antonio deposit is controlled through Frontera (100% owned by
Sociedad Minera El Corazón Limitada, which is a 100% subsidiary of
Hot Chili Limited) and has an Option Agreement with a private party
to earn a 90% interest.
|
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
US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver
US$20/oz.
|
6 Metallurgical recovery averages
for each deposit
consider Indicated + Inferred material
and are weighted to combine sulphide flotation
and oxide leaching performance. Process recoveries: Cortadera and
San Antonio – Weighted recoveries of 82% Cu, 55% Au, 82% Mo
and 37% Ag. CuEq(%)
= Cu(%) + 0.56 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). Productora
– Weighted recoveries of 84% Cu, 47% Au,
47% Mo and 0% Ag (not reported). CuEq(%) = Cu(%) + 0.46 x
Au(g/t) + 0.00026 x Mo(ppm). Costa Fuego – Recoveries of 83%
Cu, 53% Au, 69% Mo and 23% Ag. CuEq(%) = Cu(%) + 0.52 x
Au(g/t) + 0.00039 x Mo(ppm) + 0.0027 x Ag(g/t).
|
7 Resource 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 and San Antonio
deposits is 0.21% CuEq while the cut-off
grade for mineral resources considered amenable to
underground extraction methods at the Cortadera deposit is 0.3%
CuEq.
|
8 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.
|
9 The
effective date of the estimate of Mineral Resources is March 31st,
2022. Refer to ASX Announcement "Hot Chili Delivers Next Level of
Growth" ("Resource Announcement") for JORC Code Table 1
information related to the Costa Fuego Resource Estimate (MRE)
by Competent Person Elizabeth Haren, constituting the MREs of Cortadera, Productora
and San Antonio (which combine to form Costa Fuego). Hot Chili
confirms it is not aware of any new information or data that
materially affects the information included in the Resource
Announcement and all material assumptions and technical parameters
stated for the Mineral Resource Estimates in the Resource
Announcement continue to apply and have not materially
changed.
|
10 Hot
Chili Limited is not aware of political, environmental or other
risks that could materially affect the potential development of the
Mineral Resources
|
Competent Person's Statement - Exploration Results
Exploration information in this Report is based upon work
compiled by Mr Christian Easterday,
the Managing Director and a full-time employee of Hot Chili Limited
whom is a Member of the Australasian Institute of Geoscientists
(AIG). Mr Easterday has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
'Competent Person' as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'
(JORC Code). Mr Easterday consents to the inclusion
in the report of the matters based on their information in the form
and context in which it appears.
Disclaimer
Neither the TSX Venture
Exchange nor its Regulation Services
Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this report.
This report is to be used by the recipient for informational
purposes only and 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" or the "Company"). Each recipient should
perform its own independent investigation and analysis of Hot
Chili, and the information contained in this report is not a
substitute therefore. Hot Chili makes no representation or
warranty, express or implied, as to the accuracy or completeness of
the information contained in this report or in any other written or
oral communication transmitted to any recipient by any party.
Except for liability that cannot be disclaimed by law, by accepting
this Document, the recipient agrees that neither Hot Chili nor any
of its officers, directors, employees, or representatives has any
liability for any representations or warranties, express or
implied, contained in, or for any omissions from, this report or
any such other written or oral communication from any person.
Certain information contained herein is based on, or derived
from, information provided by independent third-party 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.
This report should not be considered as a recommendation from any person
to purchase any securities. Each person for whom this report
is made available should consult its
own professional advisors in making its
own independent investigations
and assessment and, after making such independent
investigations and assessments, as it deems necessary, in
determining whether to proceed with any investment in the
Company.
Technical Report
For readers to fully understand the information in this report,
they should read the PEA Technical Report prepared in accordance
with National Instrument 43-101 – Standards of Disclosure for
Mineral Projects ("NI 43-101") (available on www.sedar.com or at
www.hotchili.net.au) in its entirety, including all qualifications,
assumptions, limitations and exclusions that relate to the
information set out in this report that qualifies the technical
information contained in the Technical Report. The 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
report is subject to the assumptions and qualifications contained
in the Technical Report.
Qualified Persons – NI 43-101
The Technical Report was compiled by Wood Australia Pty Ltd with
contributions from a team of independent Qualified Persons within
the meaning of Canadian Securities Administrators' National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43 - 101"). The scientific and technical information contained in
the Technical Report pertaining to Coast Fuego was reviewed and
verified by the following independent qualified persons within the
meaning of NI 43-101:
- Ms Elizabeth Haren (MAUSIMM (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 Jeffrey Steven (PE) of Wood
Pty Ltd – Capital and Operating Costs
- Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd –
Mine Planning and Scheduling
- Mr Edmundo Laporte (PE) of GAC –
Environmental Studies, Permitting and Social or Community
Impact
- Mr Dave Morgan (PE) of Knight
Piésold – Project Infrastructure (TSF)
The independent qualified persons have verified the information
in the Technical Report, including the sampling, preparation,
security, and analytical procedures underlying such
information.
Disclosure regarding mine planning and infrastructure has been
reviewed and approved by Mr Grant
King, FAUSIMM, Hot Chili's Chief Operations Officer, and a
Qualified Person within the meaning of NI43-101.
Competent Persons – JORC
The information in the Technical Report that relates
to Mineral Resources
for the Costa Fuego Project
is based on information compiled by:
- Ms Elizabeth Haren (MAUSIMM (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, and Economic Analysis
- Mr Jeffrey Steven (PE) of Wood
Pty Ltd – Capital and Operating Costs
- Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd –
Mine Planning and Scheduling
- Mr Edmundo Laporte (PE) of GAC –
Environmental Studies, Permitting and Social or Community
Impact
- Mr Dave Morgan (PE) of Knight
Piésold – Project Infrastructure (TSF)
Ms Haren, Mr David, Mr Wendlandt, Mr Steven, Mr von Wielligh, Mr Laporte
and Mr Morgan 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 2012 Edition of the
'Australasian Code of Reporting
of Exploration Results, Mineral
Resources and Ore Reserves' and as Qualified
Persons under NI43-101.
For further information on the Costa Fuego Project, refer to the
technical report titled "NI 43-101 Resource Report for the Costa
Fuego Copper Project Located in Atacama, Chile", dated May 13,
2022 with an effective date of March 31, 2022, which is
available for review on SEDAR (www.sedar.com) under Hot Chili's
issuer profile.
Cautionary Note for U.S. Investors Concerning Mineral Resources
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("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
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 resource
information contained in this press release 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 report are in U.S. dollars
unless otherwise noted.
Non IFRS
Financial Performance Measures
"C1 cash cost" is 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.
Scientific and Technical Information
The scientific and technical information contained in this
document was reviewed and approved by Ms Kirsty Sheerin, a Member of the Australian
Institute of Geoscientists, Hot Chili's Resource Development
Manager and a qualified person for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Ms Sheerin has undertaken extensive data verification and is
satisfied with the exploration, sampling, security, and QA/QC
procedures employed by Hot Chili for Costa Fuego and that
their results are sufficient to produce data suitable for the
purposes desc ribed in the Technical Report, as well as for
public reporting purposes subsequent to the technical report.
Sampling, Analysis
and Data Verification
A fixed cone splitter was used to create two nominal 12.5%
samples (Sample "A" and "B"), along with the large bulk reject
sample. The "A" sample is always taken from the same sampling
chute, and comprises the primary sample submitted to the
laboratory. The "B" samples were retained for use as the field
duplicate sample. The coarse residues were collected into large
plastic bags and were retained on the ground near
the drillhole collar, generally in rows of 50 bags.
All RC drillhole sampling was executed
at two metre intervals for Costa Fuego. Within logged mineralisation
zones, the 2-metre sample ("A" sample) was submitted. Outside the
main mineralised zones (as determined by the logging geologist),
4-metre composites were created from scoops of 2-metre sample
residues over this interval. The composited 4-metre
samples were analysed
first and, if required, the individual and original
2-metre "A" samples comprising this 4-metre interval were sent for
analysis. This ensured that no mineralisation was missed while
minimising analytical costs. The same procedure was applied to
RC drilling undertaken across Productora, however, drillhole
sampling was executed at 1-metre intervals.
At Costa Fuego, the majority of diamond core has had systematic
half-core sampled at 2-metre intervals. Half-core was chosen as the
preferred sampling method to ensure a representative sample was
submitted for analysis, while also retaining half-core for review
of lithology and mineralisation, and for further test work as
required.
Prior to the cutting and sample process,
two additional samples
are also taken for Costa Fuego being Density and Geotechnical samples.
- Density samples are selected based on the deposit type. For
Productora this was completed every 5m on drill core, for Cortadera it was every 30
metres, and for San Antonio a
total of 107 measurements across 44 drillholes, if the geological
conditions allowed it and wereprovided to the laboratory for
testwork.
- Geotechnical samples are taken for tests including triaxial
(one sample per 250 m) and uniaxial
tests (one sample per 50 m).
Once assigned a sample number, individual samples to be sent to
ALS laboratories were sealed using a staple gun and accompanied by
three identical sample tickets (one stapled to plastic bag to
identify any tampering/breakage of seal prior to opening at the
laboratory in preparation and another placed in the bag). Any
broken staple seals on samples were to be notified by ALS to
Hot Chili. No sealed bags were reported as being opened or broken
by ALS.
For both RC and diamond samples, sample bags were placed inside
larger plastic bags and delivered by a dedicated truck to the ALS
analytical laboratory in Coquimbo and Copiapó (Chile) for sample preparation and routine
analysis.
Following analysis at ALS, the RC and diamond
drilling coarse rejects were returned to site and stored in
sequence in plastic bags under shade cloth at Hot Chili's nearby
Productora core farm. The laboratory pulps were returned
and stored at the Productora
core farm where they are stored in organised, dry and
safe storage containers.
Hot Chili has strict chain of custody
security procedures for all samples
sent to and from the analytical laboratories.
The ALS analytical laboratory in Coquimbo (Chile) completed all sample preparation
and specific gravity test work, while ALS Santiago (Chile) completed all gold analysis, and
ALS Lima (Peru) completed
all other multielement analysis for the Cortadera
assays used in the resource estimate. Hot Chili has implemented
rigorous sample preparation and analytical procedures for both RC
and diamond core samples, following consultation with ALS in
Chile, to ensure that mineralised
assays were reported with a high degree of confidence and a wide
range of appropriate commodities were assessed.
Samples have been analysed by certified laboratories in Chile and Lima, Peru by standard
analytical techniques including:
- Copper, silver and molybdenum were analysed by 4-acid digestion
(Hydrochloric-Nitric- Perchloric-Hydrofluoric) followed by
evaluation using Inductively Coupled Plasma - Optical Emission
Spectrometry ("ICP-OES") or Atomic Absorption Spectrometry
("AAS");
- Copper results > 10,000 ppm were analysed by "ore grade"
method Cu-AA62 (upper limit 40% Cu);
- Samples within the oxide and transitional weathering domains
(as determined by geologists' logging) were analysed for "soluble
copper" (upper limit 10% Cu) to detect the leachability of copper
oxide minerals within these domains; and
- Gold was analysed by 30 or 50 g lead-collection Fire Assay,
followed by ICP-OES or AAS.
The verification of input data included the use of company QA/QC blanks and reference material, field and laboratory duplicates, umpire
laboratory checks and independent sample and assay
verification.
The Qualified Person
has assessed the drillhole database
validation work and QAQC undertaken by Hot Chili and was satisfied the input
data could be relied upon for the estimation of Indicated and
Inferred Classified Mineral Resources.
All laboratories used are independent of Hot Chili
and the work is performed
under a commercial arrangement.
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
"anticipate", "believe", "could", "estimate", "expect", "may",
"plan", "potential", "project", "should", "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; expected cash inflows;
the ability of the Company
to expand mineral resources beyond current
mineral resource estimates; the
results and impacts
of current and planned drilling
to convert inferred
mineral resources to indicated, to extend mineral
resources and to identify new deposits; the timing and
results of the planned 30,000m drill
program; the results of planned updates to current mineral resource
estimates; the Company's ability to convert mineral resources to
mineral reserves; the Company's ability to secure additional
mineral rights as part of its consolidation strategy, and the
potential of such to host additional mineral resources; the timing
and results of the PFS; opportunities for growth in mineral
projects; the ability of the Company to secure necessary
infrastructure; the terms and conditions related to use of existing
port and electrical infrastructure; the timing and outcomes of this
current and future planned economic studies; the timing and
outcomes of regulatory processes required to obtain permits for the
development and operation of the Costa Fuego Project as
contemplated in this and future planned economic studies; whether
or not the Company will make a development decision and the timing
thereof; the ability of the Company to consolidate additional
landholdings around its project; estima tes of cost; and
estimates of planned exploration.
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 Chile; changes in
estimates of mineral resources of properties where the Company
holds interests; 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; and other risks
and uncertainties described elsewhere in this report and elsewhere
in the Company's public disclosure record.
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.sedar.com) 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.
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
|
|
30 September 2023
|
|
|
|
Consolidated statement of cash flows
|
Current quarter
$A'000
|
Year to date (3 months)
$A'000
|
1.
|
Cash flows from operating activities
|
|
|
1.1
|
Receipts from
customers
|
-
|
-
|
1.2
|
Payments for
|
|
|
|
(a)
exploration & evaluation
|
(1,522)
|
(1,522)
|
|
(b)
development
|
-
|
-
|
|
(c)
production
|
-
|
-
|
|
(d) staff
costs
|
(241)
|
(241)
|
|
(e)
administration and corporate costs
|
(922)
|
(922)
|
1.3
|
Dividends received (see note 3)
|
-
|
-
|
1.4
|
Interest received
|
17
|
17
|
1.5
|
Interest and other costs
of finance paid
|
-
|
-
|
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
activities
|
(2,668)
|
(2,668)
|
|
2.
|
Cash flows from investing activities
|
|
|
2.1
|
Payments to acquire or for:
|
|
|
|
(a)
entities
|
-
|
-
|
|
(b)
tenements
|
(824)
|
(824)
|
|
(c)
property, plant and equipment
|
-
|
-
|
|
(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
|
Osisko receipts (net of costs)
|
21,326
|
21,326
|
2.6
|
Net cash
from / (used in) investing activities
|
20,502
|
20,502
|
|
3.
|
Cash flows from financing activities
|
|
|
3.1
|
Proceeds from
issues of equity securities (excluding convertible debt
securities)
|
-
|
-
|
3.2
|
Proceeds from issue of convertible debt
securities
|
-
|
-
|
3.3
|
Proceeds from
exercise of options
|
-
|
-
|
3.4
|
Transaction costs
related to issues of equity securities or
convertible debt securities
|
-
|
-
|
3.5
|
Proceeds from
borrowings
|
-
|
-
|
3.6
|
Repayment of borrowings (CMP
option)
|
-
|
-
|
3.7
|
Transaction costs
related to loans and borrowings
|
-
|
-
|
3.8
|
Dividends paid
|
-
|
-
|
3.9
|
Other (provide details if material)
|
-
|
-
|
3.10
|
Net cash from / (used in) financing
activities
|
-
|
-
|
|
4.
|
Net increase / (decrease) in cash and
cash equivalents for the period
|
|
|
4.1
|
Cash and cash equivalents at beginning of
period
|
2,949
|
2,949
|
4.2
|
Net cash from / (used
in) operating activities (item 1.9 above)
|
(2,668)
|
(2,668)
|
4.3
|
Net cash
from / (used in) investing activities (item 2.6
above)
|
20,502
|
20,502
|
4.4
|
Net cash
from / (used in) financing activities (item
3.10 above)
|
-
|
-
|
4.5
|
Effect of movement in exchange rates
on cash held
|
1,034
|
1,034
|
4.6
|
Cash and cash equivalents at end of
period
|
21,817
|
21,817
|
|
|
|
|
5.
|
Reconciliation of cash and cash
equivalents
at the end of the
quarter (as shown in the
consolidated statement of cash flows)
to the related items in the accounts
|
Current quarter
$A'000
|
Previous quarter
$A'000
|
5.1
|
Bank balances
|
14,045
|
1,949
|
5.2
|
Call deposits
|
7,772
|
1,000
|
5.3
|
Bank overdrafts
|
|
|
5.4
|
Other (provide details)
|
|
|
5.5
|
Cash and cash
equivalents at end of quarter (should equal
item 4.6 above)
|
21,817
|
2,949
|
|
|
|
6.
|
Payments to related parties of the entity
and their associates
|
Current quarter
$A'000
|
6.1
|
Aggregate amount of payments to related parties
and their associates included in item 1
|
166
|
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.
|
|
|
|
|
7.
|
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 entity.
|
Total facility
amount at quarter
end
$A'000
|
Amount drawn at
quarter end
$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
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)
|
(2,668)
|
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)
|
(2,668)
|
8.4
|
Cash and cash equivalents at quarter end (item 4.6)
|
21,817
|
8.5
|
Unused finance facilities available at quarter end (item 7.5)
|
-
|
8.6
|
Total available funding (item 8.4 + item
8.5)
|
21,817
|
|
8.7
|
Estimated quarters of funding available (item
8.6 divided by item 8.3)
|
8.18
|
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?
|
|
N/A
|
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?
|
|
N/A
|
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?
|
|
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
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:
.................31 October 2023.........................................
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.
|
For more information please contact:
Christian
Easterday
|
Tel: +61 8 9315
9009
|
|
|
Managing Director – Hot
Chili
|
Email: admin@hotchili.net.au
|
|
|
Penelope
Beattie
|
Tel: +61 8 9315
9009
|
|
|
Company Secretary – Hot
Chili
|
Email: admin@hotchili.net.au
|
|
|
Harbor
Access
|
Email: graham.farrell@harbor-access.com
|
|
|
Investor & Public
Relations (Canada)
|
Email: jonathan.paterson@harbor-access.com
|
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SOURCE Hot Chili Limited