Hot Chili Ltd (ASX:HCH, TSX-V:HCH, OTCQX:HHLKF) is advancing the pre-development Costa Fuego copper-gold project in Chile, a project poised for success due to its unique attributes, exploration upside and experienced management team.
Board member Stephen Quin joined Proactive on the floor at PDAC 2024 to discuss recent milestone achievements at the project, including the completion of a preliminary economic assessment and an updated resource estimate.
Proactive: I love the name, but you are actually mining in Chile. So tell us about the Costa Fuego project.
SQ: Costa Fuego is a large-scale pre-development project on the coast of Chile, with several unique attributes. It's only at about 800 metres elevation, has highway access, secured water and power rights, and we've got permits for some key infrastructure already in place. We also released a preliminary economic assessment last year and provided a resource update last week.
That sounds like a significant milestone. Could you tell us more about the resource update?
This update incorporates all the drilling from the last couple of years, bringing the project to a position ready to start a pre-feasibility study. It's converted most of the resource to indicated, with just under 800 million tonnes of resource indicated at this point.
What's the next goal for Costa Fuego?
The main milestone is to get to a pre-feasibility study. We continue to do land consolidation and exploration in parallel with that activity.
And you've gained more ground initially?
Yes, we've acquired some additional rights in the area, aiming for a centralized milling facility, and continue to evaluate other sites in the area as we consolidate land tenure.
Can you share more about the team behind the project?
The management team is led by Christian Easterday, but we have a strong technical team in Chile and Perth, Australia. The board includes myself, Nikki Adshead-Bell, Roberto de Andraca Adriasola, and Mark Jamieson, who's the Glencore (LON:GLEN) representative.
Is there anything else you'd like to add?
Just that it's a large-scale pre-development project in Chile with good exploration upside, advancing towards further studies.
Quotes have been edited for clarity and style