Australia-based Hot Chili has unveiled a maiden resource of 50.5 million tonnes (Mt), grading at 0.4% copper and 0.2g per tonne of gold at its Frontera project in Chile.
The project is estimated to contain about 187,000t of copper and 356,000oz of gold, with 33% of the resource classified as indicated and the remaining 67% as inferred.
The company said that including its Productora project, it now has a total coastal copper resource inventory of 215.7Mt, grading at 0.5% copper and 0.1g per tonne of gold for 1.1Mt of copper metal and 936,000oz of gold.
Hot Chili is finalising the Productora maiden reserve and resource revision, which is scheduled to be released this quarter.
The company noted that it is negotiating with its project partner, Compania Minera de Pacifico (CMP), on the signing a of joint infrastructure agreement to develop the Productora copper project.
Hot Chili chairman Murray Black said the company was on-track to deliver the results of its 2013 exploration and resource development activities.
"The addition of Frontera into our coastal copper resource base is part of our strategy to build a multi-project copper production hub centred on Productora," Black said.
"As the Frontera results show, there are substantial resources in this region which are leveraged against our Productora copper project and the associated infrastructure Hot Chili intends to establish in partnership with CMP."
Hot Chili acquires and develops copper multi-commodity projects within Chile.
The company has major interests in four large, multi-commodity copper projects, which target iron-oxide-copper-gold and porphyry style deposits with additional potential major endowments of gold and molybdenum.
Image: Frontera copper project, adjacent to Pan American Hwy. Photo: courtesy of Hot Chili.