Name and Location
Productora copper/gold/molybdenum project, Chile.

Client
Hot Chili.

Project Description
The project is located 15 km south of the township of Vallenar, in Chile’s third region.

Productora hosts a resource of 165.2-million tons, grading 0.6% copper, 0.1 g/t gold and 132 g/t molybdenum, containing 920 000 t copper, 590 000 oz gold and 22 000 t molybdenum.
A scoping study completed on the project has assessed the viability of an 11-million-ton-a-year mining operation, with conventional openpit and blast-and-hauling mining methods proposed as suitable mining methods.

Value
Initial estimates for the Productora project have indicated a capital spend of between $500-million and $700-million, contingent on off-balance-sheet options for mining and certain infrastructure.

Duration
Hot Chili is planning to fast-track a decision to mine by late December 2013.

Latest Developments
Hot Chili has approved the start of the Productora prefeasibility study (PFS), following the favourable findings of the scoping study and a near-doubling of the Productora resource estimate from 85.1-million tons to 165.2-million tons.

The PFS will be based on the upgraded resource estimate and will benefit from a second major resource upgrade scheduled for completion in the second half of 2013.

Development studies at Productora will continue to assess the establishment of an opencut mining operation, a copper concentrator processing facility and other associated infrastructure.

The study will be managed by Ausenco, which will be supported by several specialised consultants in Chile and Australia.

The study is expected to be conducted in phases – a strategic optimisation phase, using outcomes from the concept/scoping studies; a project design phase, including option studies; and a realignment phase, incorporating any new resource information.

The first two phases will take place until the third quarter of 2013, while the third phase will take place based on resource drilling results.

Meanwhile, the environmental-impact (EIA) study has started. Environmental consultants MIMA and GAC have been engaged to support the programme. MIMA will be responsible for running the EIA process, while GAC will provide support through a peer review process.

Baseline studies have begun in the project area, including the flora and fauna summer campaigns. Work has also started on possible infrastructure corridors and maritime concessions. Social baseline studies are expected to start shortly.

Key Contracts and Suppliers
Ausenco (scoping study and PFS) and MIMA and GAC (EIA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Hot Chili, tel +61 8 9315 9009/5, fax +61 8 9315 5004 or email ally@hotchili.net.au.
Ausenco, tel +61 7 3169 7000, fax +61 7 3169 7001 or email investor.relaions@ausenco.com.