The anxious wait for shareholders of Hot Chili Limited (ASX:HCH) (OTCMKTS:HHLKF) for the latest mineral resource estimate (MRE) on the Cortadera Copper-Gold Project is over.
What resulted was an anti-climax and the much-praised rising of the share price did not eventuate. The MRE was actually pretty good, however, the retail market just did not like it.
Why the market did not like the MRE
I spoke to Christian Easterday about the lack of interest in the share price and what the numbers mean for the future of the company.
As a shareholder of the company, I must admit that there was a sense of disappointment, but I cannot see how this company can stay at a market capitalisation so far from what it has in asset value.
This episode of Coffee with Samso delves into all these questions.
At the conclusion of the conversation, I cannot help but think that this company has so much more value than what the market is valuing it at the moment.
Christian shares with us what is happening in the background and the potential corporate activities that may happen in the coming months.
About Hot Chili
Hot Chili is an ASX-listed copper explorer and developer with an exciting portfolio of projects at low altitude in Region III on the coastal range of Chile.
The company is developing a central copper hub named Costa Fuego, which combines all three of its projects (Cortadera, Productora and San Antonio) into what is considered to be one of the most desirable copper development locations in the world.
With a combined mineral resource base of 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64Kt molybdenum, the addition of the maiden Cortadera mineral resource ranks Costa Fuego amongst the largest copper mineral resources along the Chilean coastal range.
Cortadera Copper Project
Cortadera’s maiden resource positions Hot Chili with the largest copper mineral resource and one of the largest gold mineral resources for an ASX-listed emerging company.
The Cortadera maiden resource of 451Mt at 0.46% copper equivalent (CuEq) takes the total MRE for Costa Fuego (Cortadera, Productora & El Fuego) to 724Mt at 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz Silver and 64kt molybdenum. Cortadera also contains a higher-grade component of 104Mt at 0.74% CuEq, and this has strong potential to continue growing rapidly with further drilling.
Hot Chili’s combined Costa Fuego project now ranks as one of the world’s largest low-altitude, clean concentrate (no arsenic), copper-gold mineral resources not controlled by a major mining company, in what is considered to be one of the most desirable copper development locations in the world.
Importantly, Cortadera lies 14km from the Company’s large-scale Productora copper development and adjacent to the high-grade El Fuego satellite copper projects.
In February 2019, Hot Chili announced the execution of a formal option agreement to acquire a 100% interest in Cortadera. Since announcing the deal, Hot Chili has delivered six of the world’s best copper-gold porphyry drill results from Cuerpo 3 (the largest of the four porphyries discovered to date), confirming Cortadera as one of the most significant copper-gold discoveries of the past decade in Chile.
Productora Copper Project
Productora is one of the best located large-scale copper developments globally (coastal range of Chile, low altitude, infrastructure rich, low capital intensity). Mineral resources already stand at 1.5Mt copper and 1Moz gold, with an ore reserve of 167Mt established which underpins long life, bulk open-pit production, over a 10-year mine life, with first eight years production averaging 66kt copper and 25koz gold annually.
Productora is 100% owned by a Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture company, 80% owned by Sociedad Minera El Corazón Limitada (a 100% subsidiary of Hot Chili Limited), and 20%-owned by CMP Productora (a 100% subsidiary of Compañía Minera del Pacífico SA (CMP).
El Fuego Copper Project
To achieve the company’s expanded growth strategy, Hot Chili has executed agreements to secure majority interest in two of the region’s highest grade and most substantial underground mines – San Antonio and Valentina, collectively known as El Fuego.
El Fuego is 20km east of Productora, where the company has completed a first-pass 5,000m drilling program across two consolidated high-grade copper mines (San Antonio and Valentina), which had seen little previous modern exploration owing to their private ownership for over 50 years.
The majority of drilling was directed towards San Antonio which had reportedly produced approximately 2M tonnes grading 2% copper and 0.3 g/t gold and 17 g/t silver from shallow depths since mining commenced in 1964.
Selected significant results:
- 9m grading 2.0% copper from 132m down-hole depth,
- 6m grading 2.1% copper from 65m down-hole depth,
- 19m grading 2.0% copper from 61m down-hole depth (including 11m grading 2.4% copper),
- 15m grading 1.7% copper from 80m down-hole depth,
- 10m grading 1.6% copper from 58m down-hole depth (including 4m grading 2.7% copper),
- 5m grading 2.5% copper from 31m down-hole depth (including 2m grading 4.3% copper).
Successful first-pass drilling at El Fuego has highlighted a shallow copper deposit which will add further scale to Hot Chili’s targeted high-grade resource inventory.
About Christian Easterday
Christian Easterday is a geologist with more than 20 years of experience in the mineral exploration and mining industry. He holds an honours degree in geology from the University of Western Australia, a Masters degree in Mineral Economics from Curtin University of Technology and a Masters degree in Business Administration from Curtin’s Graduate School of Business.
Easterday has held several senior positions and exploration management roles with top-tier gold companies including Placer Dome, Hill 50 Gold and Harmony Gold, specialising in structural geology, resource development and mineral economic valuation.
For the past eight years, he has been involved in various aspects of project negotiation. This work has involved negotiations and valuations covering gold, copper, uranium, iron ore, nickel and tantalum resource projects in Australia and overseas. Easterday is a member of The AustralRead More – Source
Covid: Brisbane to enter three-day lockdown over single infection
The Australian city of Brisbane has begun a snap three-day lockdown after a cleaner in its hotel quarantine system became infected with coronavirus.
Health officials said the cleaner had the highly transmissible UK variant and they were afraid it could spread.
Brisbane has seen very few cases of the virus beyond quarantined travellers since Australia’s first wave last year.
It is the first known instance of this variant entering the Australian community outside of hotel quarantine.
The lockdown is for five populous council areas in Queensland’s state capital.
Premier Annastacia Palaszczuk announced the measure on Friday morning local time, about 16 hours after the woman tested positive.
Ms Palaszczuk said the lockdown aimed to halt the virus as rapidly as possible, adding: “Doing three days now could avoid doing 30 days in the future.”
“I think everybody in Queensland… knows what we are seeing in the UK and other places around the world is high rates of infection from this particular strain,” she said.
“And we do not want to see that happening here in our great state.”
Australia has reported 28,500 coronavirus infections and 909 deaths since the pandemic began. By contrast, the US, which is the hardest-hit country, has recorded more than 21 million infections while nearly 362,000 people have died of the disease.The lockdown will begin at 18:00 on Friday (08:00 GMT) in the Brisbane city, Logan and the Ipswich, Moreton and Redlands local government areas.
Residents will only be allowed to leave home for certain reasons, such as buying essential items and seeking medical care.
For the first time, residents in those areas will also be required to wear masks outside of their homes.
Australia has faced sporadic outbreaks over the past year, with the most severe one in Melbourne triggering a lockdown for almost four months.
A pre-Christmas outbreak in Sydney caused fresh alarm, but aggressive testing and contact-tracing has kept infection numbers low. The city recorded four local cases on Friday.
Prime Minister Scott Morrison’s government has pledged to start mass vaccinations in February instead of March as was planned.
Lockdown interrupts ‘near normal’ life in Brisbane
Simon Atkinson, BBC News in Brisbane
At 8:00 today I popped to the local supermarket for some bread, milk – and because it’s summer here – a mango. I was pretty much the only customer.
When I went past the same shop a couple of hours later it was a different story – 50 people standing in the drizzle – queuing to get inside as others emerged with bulging shopping bags. “Heaps busier than Christmas,” a cheery trolley attendant told me. “It’s off the scale”.
Despite the “don’t panic” messages from authorities, pictures on social media show it’s a pattern being repeated across the city.
While shutdowns are common around the world, the tough and sudden stay-at-home order for Brisbane has caught people on the hop here after months of near normality.
But while such a rapid, hard lockdown off the back of just a single case of Covid-19 will seem crazy in some parts of the world, I’ve not come across too many people complaining.
And I don’t think that’s just because Aussies love to follow a rule. This is the first time the UK variant of the virus has been detected in the community in Australia.
And nobody here wants Brisbane to go through what Melbourne suffered last year. Even if it means going without mangoes.
Read from source: https://www.bbc.com/news/world-australia-55582836
Australia v India: Five touring players in isolation after restaurant visit
Five India players are isolating as a precaution after a video on social media showed them eating indoors at a Melbourne restaurant.
Rohit Sharma, Rishabh Pant, Shubman Gill, Prithvi Shaw and Navdeep Saini – all part of India’s Test squad to play Australia – will be isolated from other players but are still able to train.
Both teams are investigating to determine whether bio-secure protocols for the tour have been breached.
The third Test begins on 6 January.
The tour is being played with restrictions to help prevent the spread of coronavirus.
While in Melbourne, where the recent second Test was played, players and staff are allowed to leave their hotel but if they attend a restaurant they must remain outdoors.
An India supporter posted a video on social media of the five players eating indoors at a restaurant on New Year’s Day.
“The BCCI [Board of Control for Cricket in India] and CA [Cricket Australia] are investigating the matter and seeking to determine whether the outing constitutes a breach of biosecurity protocols,” a Cricket Australia statement said.
“In the interim, on the advice of the Australian and Indian medical teams, the aforementioned players have been placed in isolation as a precaution.
“This will include separating the group of players from the broader Indian and Australian squads when traveling and at the training venue.”
On Monday the teams are due to travel from Melbourne to Sydney for the third Test which will be played at the Sydney Cricket Ground.
No details were given on whether the five players would be able to play in Sydney.
Pant and Gill both played in the second Test, which India won to level the four-Test series, while vice-captain Rohit was expected to play in the third, having recently quarantined for 14 days to join the squad late after injury.
Read from source: https://www.bbc.com/sport/cricket/55514593
Covid: Sydney announces new restrictions ahead of New Year
Australia has announced new restrictions for Sydney ahead of New Year’s Eve celebrations.
The city is battling a worsening outbreak after months of next to no local cases. Officials reported it had grown to 147 cases on Wednesday.
The news comes amid anger over footage of young revellers seen on Sydney’s Bronte Beach on Christmas Day.
Immigration minister Alex Hawke said tourists caught flouting public health restrictions could be deported.
The virus’s re-appearance in Sydney a week before Christmas sparked a swift re-introduction of restrictions in the city, including clampdowns on holiday gatherings and a lockdown of the worst-affected region, the Northern Beaches.
On Wednesday, the New South Wales (NSW) state government announced further restrictions for New Year’s Eve following the discovery of a new cluster in a separate part of the city – believed to have spread during Christmas gatherings.
“We don’t want New Year’s Eve to be the cause of a super-spreader [event],” said NSW Premier Gladys Berejiklian.
Households will now be restricted to only five guests from Thursday, down from the previous 10-person limit. Outdoor gathering numbers have also been cut to 30 from 50.
Every other state and territory in Australia maintains a travel ban on people from Sydney.
Sydney’s traditional New Year’s Eve fireworks celebrations will still go ahead but authorities have already banned group gatherings at vantage points around the harbour.
Australia has recorded 909 deaths and about 28,300 cases since the pandemic began – a number far lower than many other rich nations.
Read from source: https://www.bbc.com/news/world-australia-55481851
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