Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project Increases to 798 Mt
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Mineral Resource at
coastal-range, Costa Fuego copper-gold project inHot Chili 'sChile has seen a 6% increase in copper-equivalent (CuEq) contained metal for the total Indicated Resource1,2 and a 9% increase in CuEq contained metal for the higher-grade component of the Indicated Resource1,2 -
Total Mineral Resource1,2
- Indicated - 798 Mt grading 0.45% CuEq for 2.9 Mt Cu, 2.6
Moz Au , 12.9Moz Ag & 68 kt Mo - Inferred - 203 Mt grading 0.31% CuEq for 0.5 Mt Cu, 0.4
Moz Au , 2.4Moz Ag & 12 kt Mo
- Indicated - 798 Mt grading 0.45% CuEq for 2.9 Mt Cu, 2.6
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High Grade Mineral Resource1,2
(Reported +0.6% CuEq)
- Indicated - 173 Mt grading 0.78% CuEq for 1.1 Mt Cu, 1.0
Moz Au , 4.3Moz Ag & 25 kt Mo - Inferred - 7 Mt grading 0.74% CuEq for 0.04 Mt Cu, 0.03
Moz Au , 0.1Moz Ag & 1 kt Mo
- Indicated - 173 Mt grading 0.78% CuEq for 1.1 Mt Cu, 1.0
- Over 85% of Costa Fuego's Mineral Resource Estimate is now Classified as Indicated
- Strong platform to deliver a maiden Mineral Reserve for Costa Fuego Pre-feasibility study (PFS) expected to be completed in H2 2024
- Further updates expected (development, drilling, exploration, and commercial activities)
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1 Reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, |
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2 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= |
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3 See announcement dated |
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4 See announcement dated |
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5 See announcement dated |
Costa Fuego comprises the Cortadera, Productora (including
The MRE update follows 24 months of material investment, totalling 24.5 km of drilling across Costa Fuego; a mix of development, metallurgical, geotechnical, resource expansion and exploration drilling, designed to progress the Costa Fuego project towards its Pre-feasibility Study (PFS) expected in H2 2024.
At Cortadera, the Company completed 43 Reverse Circulation (RC) and Diamond Drillhole tails (DD) for 17,000 metres of additional exploration and Resource extension drilling at Cortadera, including six development drillholes. The Cortadera MRE (porphyry copper-gold deposit) has again delivered the majority of Resource growth for Costa Fuego. Cortadera is defined by over 108,000 metres of drilling and now contains an Indicated Resource of
Cortadera's Indicated Resource tonnage has grown by a further 13%, further supporting the Company's
The Productora MRE (breccia hosted copper-gold deposit) has been re-estimated following an additional 16 RC and DD exploration drillholes for 5,000 metres (including four metallurgical drillholes), a large pulp resampling campaign for silver and soluble copper assays, and a new approach to estimating the oxide and transition weathering domains. The MRE was reported using RPEEE constraints, similar to those used at Cortadera. Immaterial positive changes were reported for the Productora Indicated MRE copper and gold contained metal, as well as an additional 2.8 Moz of silver metal at 0.35 g/t, which has now been incorporated into the CuEq contained metal, in line with the approach at Cortadera.
The porphyry deposit
A San Antonio MRE update included an additional 16 drillholes (2,500 metres), including three DD metallurgical drillholes, designed to upgrade the Inferred Resource to Indicated Classification. Additional mapping and sampling were also completed to validate the higher-grade copper mineralisation exposed at surface. This additional information resulted in 3 Mt grading 0.71% CuEq being converted to Indicated Classification, from the previously Inferred 4 Mt grading 1.15% CuEq.
The Company is encouraged by the further conversion of Inferred material to Indicated Classification, now standing at 85% of the total CuEq contained metal, following focused development drilling (metallurgical and geotechnical) designed to support a Pre-Feasibility Study (PFS) and targeted exploration and Resource extension drill programs. The expansion of Costa Fuego Indicated Resources, without material impact to reported metal grades, increases confidence in the reliability of the MRE and its ability to inform the Company's planned PFS.
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1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, |
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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 |
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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 |
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4 The |
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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 |
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6 All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both |
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7 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: |
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Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t) |
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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, |
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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. |
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10 The effective date of the estimate of Mineral Resources is |
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Following release of the Company's PEA in
The long-term consensus copper price assumption changed from
The revised COGs reflect these changes in assumptions and have been set appropriately higher than the calculated breakeven grade.
These key assumptions in relation to COG's are summarised in Table 2.
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*Refer to Table 1in Appendix for CuEq calculations |
The Cortadera MRE increase follows an additional 17,000 m of DD and RC drilling since the
Cortadera has maintained a proportion of 84% Indicated CuEq contained metal during this MRE update, with the spacing and location of drilling at Cortadera ranging from 80 m to 300 m. The selected drill spacing and orientation over the Resource area ensures that drilling is optimised where possible to intersect perpendicular to mineralisation.
The additional drilling enabled improved delineation of low-grade copper across Cortadera, but particularly at Cuerpo 3 where the porphyry mineralisation halo extends the furthest (Figure 2), following analysis during the Preliminary Economic Assessment (PEA). The economics of the low-grade sulphide leach presented in the PEA indicated processing material down to grades of 0.15% Cu at Costa Fuego would be profitable.
Drilling below Cuerpo 1 resulted in additional Resource material at depth, included largely within the underground RPEEE.
Continuity of grade and geology is controlled by the emplacement of mineralised porphyry intrusions into shallow dipping host stratigraphy. While these porphyry intrusions have a reasonably consistent pipe-like geometry, grade distribution also extends into the host stratigraphy.
Mineralisation models have been generated using over 109,000 m of drilling and continued increase in knowledge of the geological controls on mineralisation. Each metal has been independently optimised following the completion of extensional drilling, resulting in improved continuity of copper, gold, silver, and molybdenum within each of Cortadera's three porphyry bodies (Cuerpos). These models correlate well with higher A + B porphyry vein percentages and other key porphyry mineralisation metrics.
Review of the late-stage dyke model was also completed following infill drilling of six diamond development drillholes, which resulted in additional narrow dykes being added to the geology model, particularly beneath the dyke-eye at Cuerpo 3. This improved geology model reduced dilution of the estimated porphyry mineralisation and contributed to a 14% increase in Indicated CuEq contained metal above 0.6% CuEq.
Extensive test work was completed to determine an optimal estimation approach and ensure the model was representative of the underlying porphyry mineralisation controls. The updated Cortadera MRE continues to utilise a probabilistic estimation approach (Categorical Indicator Kriging or CIK) within each mineralisation domain. This approach enabled the spatial and chronological aspects of the multiple phases of mineralisation to be better represented.
Table 3, Figure 3, and Figure 4 below outline the upgraded Cortadera MRE.
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1 Mineral Resources are reported on a 100% Basis. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines ( |
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2 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 |
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3 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 |
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4 All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both |
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5 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). |
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6 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, |
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7 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. |
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8 The effective date of the estimate of Mineral Resources is |
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*Refer to Table 3 for CuEq calculation
*Refer to Table 3 for CuEq calculation
The Productora MRE has been updated following an additional 16 RC and DD exploration drillholes (~5,000 metres), including four metallurgical drillholes. The drilling increased confidence in the previously developed probabilistic CIK technique used for estimation, with the model able to predict high- and low-grade zones within the structurally complex, breccia-hosted Productora mineralisation. This increase in confidence allowed for the lateral expansion of classification boundaries, converting material from Inferred to Indicated, before subsequent application
Drillhole spacing at Productora varies from 40 m x 40 m to 160 m x 160 m and has provided a high level of support for the geological, mineralisation and resource estimation models, with both Indicated and Inferred Resource Classification at Productora. Samples used during the MRE update were obtained using both RC and DD and were analysed using ICP for 33-elements and fire-assay for gold.
A large pulp resampling campaign for silver, comprising approximately 3,000 samples, culminated in a maiden Indicated Resource of 2.8 Moz of silver at Productora. A smaller pulp resampling campaign (approximately 900 samples) was completed for soluble copper, which was also been included in the updated Productora MRE to allow for modelling of metallurgical recovery in the Company's planned PFS later this year.
An updated approach to the modelling of weathering surfaces was also developed, utilising a combination of quantitative (i.e. ratio of soluble copper to total copper) and qualitative (i.e. proximity to structures and logged regolith) data to model the oxide, transitional, and fresh weathering zones. This technique accounts for the impact of structural complexity on weathering at Productora and allows for the more accurate application of metal recoveries for calculation of CuEq%.
Table 4 and Figures 5 and 6 below show the upgraded Productora MRE.
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1 Mineral Resources are reported on a 100% Basis. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines ( |
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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 |
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3 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 |
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4 All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both |
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5 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: |
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Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t). |
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6 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, |
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7 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. |
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8 The effective date of the estimate of Mineral Resources is |
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*Refer to Table 4 for CuEq calculation
*Refer to Table 4 for CuEq calculation
The Alice MRE has been updated following the addition of nine drillholes for 2,600 metres, including one DD metallurgical drillhole (800 m).
While the estimation updates did not result in a material change to the Alice MRE tonnes and grade, they did improve confidence in the local variability of the estimation, which has been reflected in the Resource Classification. Open-pit RPEEE constraints have been applied for Resource reporting at
Table 5 and Figure 7 below show the upgraded Alice MRE.
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1 Mineral Resources are reported on a 100% Basis. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines ( |
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2 The Productora deposit (including |
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3 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 |
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4 All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both |
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5 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: |
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6 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, |
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7 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. |
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8 The effective date of the estimate of Mineral Resources is |
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*Refer to Table 4 and 5 for CuEq calculation
The San Antonio MRE has also been updated with an additional 16 drillholes completed (2,500 metres), including four metallurgical drillholes. The aim of the drilling was to define along-strike and down-dip extents of the mineralisation and aid conversion of the maiden MRE from Inferred to Indicated Classification.
Drillhole spacing at
The
The reporting of an Indicated Resource at
The San Antonio Indicated Resource totals 3 Mt grading 0.71% CuEq and the Inferred Resource totals 2 Mt grading 0.41% CuEq. The previous 2022 MRE for
Table 6 and Figure 8 below outline the updated San Antonio MRE.
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1 Mineral Resources are reported on a 100% Basis. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. Mineral resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines ( |
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2 The |
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3 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 |
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4 All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both |
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5 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: |
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6 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, |
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7 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. |
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8 The effective date of the estimate of Mineral Resources is |
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*Refer to Table 6 for CuEq calculation
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
For more information please contact:
Managing Director – |
Tel: +61 8 9315 9009 Email: admin@hotchili.net.au |
Company Secretary – |
Tel: +61 8 9315 9009 Email: admin@hotchili.net.au |
Harbor Access Investor & Public Relations |
or visit
The information pertaining to the Mineral Resource Estimates included in this news release has been reviewed and approved by Ms.
A technical report prepared in accordance with NI 43-101 containing the full details with respect to the updated Mineral Resource Update Estimate will be filed with the applicable Canadian securities regulators on SEDAR+ (www.sedarplus.ca.com) within 45 days of
The information in this report that relates to Mineral Resources for Cortadera, Productora (including
Neither the
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 news release has been prepared in accordance with NI 43-101 and the
Classification System. These standards differ from the requirements of the
All amounts in this news release are in
This news release contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). 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", "projections", "should", "will", "would", variants of these words, and similar expressions are intended to identify forward-looking statements. The forward-looking statements within this news release are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.
In this news release, forward-looking statements relate to practices including (a) mineral resource estimation, (b) preliminary mine design, and (c) the undertaking of studies including the Preliminary Feasibility Study (PFS) , among other things. (a) Mineral resource estimation includes the results of completed, and potential impact of planned, programs of sampling, including drilling and pulp resampling in this news release, to convert inferred mineral resources to indicated, to extend mineral resources and to identify new deposits, and the Company's ability to convert mineral resources to mineral reserves. Assumptions and methodology employed within mineral resource estimation that have a material impact on the reported results include metal prices, forecast and modelled metal recoveries, mining, processing, and shipping methods and costs, and mineral resource estimation practices. (b) Preliminary mine design refers to the models for reasonable eventual economic extraction for the mineral resource and in this news release includes
The forward-looking statements within this news release are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.
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 news release, 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 news release 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 news release, 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'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 news release are expressly qualified by the foregoing cautionary statements and are made as of the date of this news release. 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 news release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Costa Fuego Combined Mineral Resource (Effective Date
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1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource estimates for the Cortadera, Productora, |
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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 |
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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 |
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4 The |
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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 |
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6 All Mineral Resource Estimates were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both |
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7 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphide flotation and oxide leaching performance. Process recoveries: |
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Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t) |
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Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t) Costa Fuego – Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t) |
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8 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, |
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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. |
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10 The effective date of the estimate of Mineral Resources is |
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