Hot Chili (ASX: HCH) has taken a significant step forward in its strategy to establish a multi-project copper production hub in Chile, with the discovery of a major copper-gold porphyry at Frontera, just 70km from its flagship project, Productora. The first round of drilling at Frontera has returned extremely wide copper and gold intersections, including 256m at 0.5% copper and 0.3gpt gold. Hot Chili Managing Director Christian Easterday said the outstanding results showed Frontera was set to be the Company's second major copper-gold project. "These results highlight Frontera's potential to double Hot Chili's production profile, while its close proximity to Productora will enable the project to capitalise on existing infrastructure," Mr Easterday said.

Hot Chili is in the final stages of the maiden +7,000m Reverse Circulation (RC) and Diamond (DD) drilling programme at Frontera. At the same time, Hot Chili is continuing its extensive drilling program at Productora as part of its strategy to release a second major resource upgrade and deliver a Pre-feasibility Study in the second-half of this calendar year. The Company aims to make a decision to mine at Productora in late 2014.

First Drilling Results at Frontera- Large Copper-Gold Porphyry System Confirmed

The Frontera project lies 70km directly south of Productora at low altitude in Region IV of Chile.  Prior to being secured by Hot Chili in late 2012, the Frontera project had been identified in drilling by Noranda during the 1990's and more recently had been exploited by small-scale open pit mining. Broad zones of copper and gold mineralisation have been intersected from surface in several of the first 10 drill holes completed by Hot Chili.  Copper and gold grades recorded in the initial drill holes are higher than expected, confirming a potentially large future production source in the vicinity of the Company's flagship Productora copper project. 

Frontera exhibits classic copper-gold porphyry characteristics and is located within a linear trend of Porphyry intrusions which include the Dos Amigos copper-gold mine (approximately10km NNE of Frontera).  Mineralisation is hosted within an andesitic volcanic/volcaniclastic pile intruded by multiple phases of variably hornblende-rich Dioritic porphyry intrusions. Best drilling results at Frontera have been returned from a potassic alteration zone characterised by intense veining and biotite-magnetite alteration.  Copper is associated with finely disseminated chalcopyrite, vein-related chalcopyrite and bornite. Mineralisation at Frontera exhibits encouragingly high copper-gold ratios where bornite is locally present in higher grade zones within the deposit.  At present, mineralisation is open in all directions except to the south. Results from a further 27 deep RC and 2 DD holes are expected over the coming weeks.