Special Report: With drilling back underway at its Cortadera project in Chile, Hot Chili is also looking like the odds on favourite to keep delivering ultra-wide copper-gold hits.
Strongly mineralised porphyry has been observed over a broad 220m zone in the recently completed drill hole CRP0016D, the second of seven holes it is drilling initially to expand the extent of high-grade copper-gold mineralisation at the project.
Hot Chili (ASX:HCH) says the hole was designed to test the potential for a significant up-dip extension to the southern flank of the high grade copper-gold core.
Results from CRP0016D are being prioritised for analysis and are expected to be reported within the coming fortnight.
The company also noted that while the first hole CRP0042D recorded about 330m of mineralisation, it was terminated early due to significant deviation from its intended target and will be re-entered for a wedge hole at a later date.
Drilling has also started on the third diamond hole, which is designed to test a major up-dip extension to the northern flank of the high grade copper-gold core.
Hot Chili added that it is on track to deliver the first resource estimate for Cortadera and then San Antonio in late July.
The estimate for Cortadera will include all previous drilling though the company will also consider the implications of the new holes on the result.
Fund raising and cash flow
The company completed a $3.9m entitlement offer of three shares for every 20 shares held priced at 1.5c each late last month.
Along with an earlier $5m private placement that was overbid, it is well-funded to continue drilling at Cortadera, define resources and complete metallurgical test work.
The company has also executed a formal agreement for Chilean government agency Empresa Nacional de Mineria to carry out lease mining and processing of ore from the Productora copper-gold project.
First revenue from the lease mining is expected in the fourth quarter of 2020.
Hot Chili and its partner CMP (20 per cent) will be paid $US2 ($2.95) per tonne of ore processed and a 10 per cent royalty on the sale value of extracted minerals.