## Hot Chili Reports Strong Progress on Costa Fuego Copper-Gold Project in Q3 2024
Hot Chili Limited, a leading copper-gold exploration and development company, has released its quarterly report for Q3 2024, highlighting significant advancements in its Costa Fuego Copper-Gold Project in Chile. The report details progress on the Pre-Feasibility Study (PFS), Environmental Impact Assessment (EIA), exploration activities, and the development of a strategic water supply business, Huasco Water.
### Costa Fuego Project Update
The Costa Fuego PFS is progressing well, with all workstreams scheduled for completion by the end of 2024. Key highlights from the quarter include:
*
Metallurgical improvements:
Final PFS metallurgical work indicates potential improvements for both molybdenum flotation and copper oxide leach recoveries, exceeding the 2023 Preliminary Economic Assessment (PEA). This suggests a potential increase in the value of molybdenum as a by-product credit and a higher annual output of molybdenum concentrate.*
Reduced long-term costs:
Concentrate market studies confirm a reduction in long-term treatment costs (TC) and refining charges (RC) assumptions compared to the 2023 PEA, a positive sign for the project’s economics.*
Favorable commodity price forecasts:
Long-term consensus commodity price forecasts for copper, gold, molybdenum, and silver have increased since the 2023 PEA, signaling a favorable market environment for the project.*
Environmental impact assessment advancing:
Hot Chili is progressing with its EIA for Costa Fuego, with planned submission in mid-2025. The company completed additional environmental baseline studies and commenced a formal community engagement program with local stakeholders and indigenous groups.### Huasco Water – A Growing Strategic Asset for Hot Chili
Hot Chili and its partner, Compania Minera del Pacifico (CMP), continue to advance plans for a regional, multi-user, seawater and desalinated water supply business through their newly established company, “HW Aguas para El Huasco SpA” (Huasco Water). Key highlights include:
*
Water Supply Business Case Study:
International engineering firm, ILF Group, has been appointed to complete a regional Water Supply Business Case Study (PFS equivalent) for Huasco Water, scheduled for completion in the first half of 2025.*
Potential foundation customer:
Hot Chili is positioned as a potential foundation customer for Huasco Water, with negotiations for a water off-take agreement planned to commence in late 2024.*
Scalable desalinated water supply:
Huasco Water aims to provide scalable, desalinated water supply for third parties in the Huasco Valley region, including projects like CMP’s Las Colorados and other community, industrial, and non-mining projects.*
Strong permitting position:
Huasco Water controls the only active granted maritime water concession and most of the necessary permits to provide non-continental water supply to the Huasco Valley, built upon over a decade of permitting efforts for the Costa Fuego project.### Exploration Activities Underway in Advance of Growth Drilling
Hot Chili has completed several exploration activities across its Domeyko landholding, a recently secured 18,000-hectare area, including:
*
Ground magnetic geophysical survey:
An extensive ground magnetics survey covering 1,755-line km has been completed, aiding in targeting across the vast landholding.*
Surface soil sampling and mapping:
The company’s exploration team has completed a major regional soil sampling and surface litho-structural mapping campaign at Domeyko, collecting over 1,181 soil samples and 76 rock chip samples.*
Encouraging results:
Initial results from the soil and rock chip sampling have yielded encouraging indications of copper, gold, and silver mineralization, with some rock chip samples returning grades of up to 3.5% copper, +10g/t gold, and +100g/t silver. Further results are pending.### Strong Financial Position
As of September 30, 2024, Hot Chili had a cash balance of A$25.7 million and no debt. The company’s operating expenditures for the period ending September 30, 2024, included payments for exploration and evaluation of $4.1M, with $3M related to the PFS and EIA advancements, and $1.1M spent on exploration activities at Domeyko.
### Tenement Changes
The report details several changes to the company’s tenement holdings, including the claim of two new exploration concessions by Sociedad Minera La Frontera SpA (La Frontera) and the standardization of mining right names. The report provides a detailed list of the company’s current tenement holdings in Chile.
### Committed to Sustainability
Hot Chili is committed to advancing sustainable mining practices and supporting the local community. The company’s sustainability framework emphasizes long-term economic, environmental, and social value creation. The report details the company’s commitment to health, safety, environment, and quality (HSEQ) performance, highlighting the company’s commitment to preventing lost-time injuries and continuously improving its HSEQ systems.
Hot Chili’s Q3 2024 report demonstrates the company’s strong progress on the development of its Costa Fuego Copper-Gold Project. The report provides a comprehensive overview of the company’s activities and highlights the company’s commitment to sustainable mining practices, community engagement, and the development of a strategic water supply business. With its strong financial position and ongoing exploration activities, Hot Chili is well-positioned for continued success in the future.
