Name of the Project
Costa Fuego copper/gold project.

Location
Coastal range of the Atacama region, Chile.

Project Owner/s
Costa Fuego comprises the Productora, Cortadera and San Antonio mineral resources, situated within a 10 km radius.

The Productora deposit is 100%-owned by 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) and 20% owned by CMP Productora (a 100% subsidiary of Compañía Minera del Pacífico).

The Cortadera deposit is controlled by Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera) – a subsidiary company 100% owned by Sociedad Minera El Corazón Limitada, which, in turn, is a 100% subsidiary of Hot Chili.

The San Antonio deposit is controlled by Frontera and has an option agreement with a private party to earn a 90% interest.

Project Description
The projects mine life has increased from 16 years in the preliminary economic assessment (PEA) to 20 years in the prefeasibility study (PFS).

The PFS describes a robust project, expected to produce 95 000 t/y of copper during primary production from four mining areas across concentrate and cathode processing streams.

The PFS proposes average production of 116 000 t/y copper equivalent, comprising 95 000 t copper, 48 000 oz gold, 158 000 oz silver and 4.4-million pounds molybdenum over a 14-year primary production period. Total life-of-mine processed ore is estimated at 502-million tonnes, producing 1.6-million tonnes of copper, 780 000 oz gold, 2.7-million ounces of silver, and 33 000 t molybdenum.

Potential Job Creation
Up to 2 000 jobs are expected to be created during construction and up to 800 jobs ongoing during the operations phase.

Net Present Value/Internal Rate of Return
In the base case ($4.30/lb), the project has a pretax net present value, at an 8% discount rate, of $1.71-billion and an internal rate of return of 22%, with a payback from first production of 4.5 years.

Capital Expenditure
The PFS estimates startup capital of $1.27-billion (PEA – $1.95-billion) and expansion capital at $1.35-billion up from $710-million in the PEA.

Planned Start/End Date
Not stated.

Latest Developments
The project has been formally registered with Chile’s Office for Sustainable Project Management (GPS Division), under the Ministry of Economy. The designation places the development on a fast track for permitting and administrative approvals.

The GPS designation is reserved for projects that are expected to contribute meaningfully to Chile’s long-term sustainable growth.

Key Contracts, Suppliers and Consultants
Wood Australia (PEA and PFS).

Contact Details for Project Information
Hot Chilli, tel +61 8 9315 9009 or email admin@hotchili.net.au.