Hot Chili (ASX: HCH) has major interests in three large, multi-commodity uranium projects in Chile. The company's projects target Iron-Oxide-Copper-Gold-Uranium (IOCGU) style deposits with additional potential major endowments of molybdenum, cobalt and rare earth minerals (REE).
Hot Chili spices up Productora copper-gold-molybdenum with strike length increase
Hot Chili (ASX:HCH) has expanded the known strike length of its flagship Productora copper-gold-molybdenum project in Chile by 2 kilometres to 5.7 kilometres and has flagged further increases to its known size.
The company said new drill results confirmed the presence of large-tonnage, at-surface, copper-gold-molybdenum mineralisation over a 5.7 kilometre strike length at Productora.
First-pass drilling was continuing over the entire 9.5 kilometre deposit footprint as part of the second phase drilling program of more than 70,000 metres and could further increase the strike length.
This is currently focused on the southern end of Productora.
The second phase program started in October last year and resumed a fortnight ago, following a one month break over the Christmas period.
A second rig will be dedicated to speed up work on extending the resource before the focus shifts to a staged resource conversion drilling program aimed at delivering a major resource upgrade in the third quarter of 2012.
Hot Chili also extended a previous reverse circulation drill hole within the southern extent of drill coverage that result in a final l intersection of 47 metres at 0.5% copper, 0.1 grams per tonne (g/t) gold, 192 parts per million molybdenum from 260 metres depth within breccia.
Drill results that resulted in strike length increase include:
47 metres at 0.5% copper, 0.1 gpt gold and 192 parts per million molybdenum
32 metres at 0.5% copper, 0.1 gpt gold and 18 parts per million molybdenum
29 metres at 0.5% copper, 0.1 gpt gold and 93 parts per million molybdenum
16 metres at 0.6% copper, 0.1 gpt gold and 175 parts per million molybdenum
13 metres at 0.8% copper, 0.3 gpt gold and 439 parts per million molybdenum
In September 2011 Hot Chili released a JORC Resource of 85.1 million tonnes at 0.6% copper, 0.1 gpt gold and 146 parts per million molybdenum for 483,000 tonnes of copper, 290,000 ounces of gold and 12,418 tonnes of molybdenum.
The company is targeting a significant resource base from an identified 280-320 million tonne target mineralisation at a similar grade.
The drilling program is underpinned by a A$22.3 million capital raising it carried out in December last year.
Productora is located 15 kilometres south of the township of Vallenar and 40 kilometres east of Huasco Port.
It is also near the Pan-American Highway and a railway to Huasco.
