Name of the Project
Costa Fuego copper project.

Location
Coastal range of the Atacama region, Chile.

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

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 a 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 results of the preliminary economic assessment (PEA) on Costa Fuego outline a low-risk, long-life copper project benefiting from low startup capital and a high copper equivalent metal production profile of more than 112 000 t/y, copper metal production of 95 000 t/y and gold metal production of 49 000 oz/y over a 16-year life-of-mine (LoM).

The PEA proposes a combined openpit truck-and-shovel and an underground block cave using centralised processing for a conventional large-scale copper mine producing concentrate and copper cathode.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case ($3.85/lb), the project has a pretax net present value, at an 8% discount rate, of $1.54-billion and an internal rate of return of 24%, with a payback from first production of 3.5 years.

Capital Expenditure
$1.05-billion.

Planned Start/End Date
Not stated.

Latest Developments
The PEA indicates a strong investment case for advancing Costa Fuego to a prefeasibility study, which is planned to be released in the second half of 2024.

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

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