HCH - Hot Chili

[Sean K]

More wide intercepts here at decent Cu porphyry grades which can be anywhere from 0.2 to 0.7% and mineable if the tonnage is there. Not sure what tonnage they will need here. A billion maybe?

Perhaps the Santiago Z discovery will be enough down the track.

 

[jbocker]

Good results keep coming. Which is good reason for SP to drop 6%. ? Go figure.

 

[Garpal Gumnut]

Good results keep coming. Which is good reason for SP to drop 6%. ? Go figure.

I very nearly had a punt on this hot rocket this am. but got distracted.

gg

 

[Sean K]

Good results keep coming. Which is good reason for SP to drop 6%. ? Go figure.

Yeah, I thought these would have been of interest. Maybe already factored into the SP, or punters expecting better results like the 900m @ .5% type hits. I'm not sure if they're trying to, but linking these three loads up would be nice. Looks like they've drilled between them a bit, so maybe this is the structure they are left with.

Talking about tonnage, I forgot to include the Productora deposit, which has 270Mt @.5% so that's up to 720Mt @ around .5%. And growing.

Having a billion tons at .5% cu is up there with many porthyry mines around the World that I can find.

They've had some of the best drill holes in the world over the past three years.

Not sure why it's not getting some love.

 

[Sean K]

OZ Minerals came out with their quarterly this am and a presentation outlining their deposits. I thought it an opportunity to compare their operating mines to what HCH are developing. And, the tonnage and grades look pretty comparable to Carrapateena and West Musgrave. Not sure why HCH is so undervalued. Maybe it's the location of the deposits, the capex that will be required, or, dunno. This really should turn into a project similar to Carrapateena.

 

[Sean K]

This intercept will certainly add significantly to a resource upgrade. Potentially working towards the 1Bt @ 0.5% Cu range now which puts it on the map. Well, that's about the same as many other working porphyry mines around the World, and it still has some room to grow. Could be a very long life mine. Market not caring too much. Not many people like Hot Chillies. I'm happy to chomp on Birds Eyes and Jelapenos.

Seems to have found a floor at 0.035 ish.

 

[tinhat]

 

[tinhat]

Dear God, everything is nothing, a dry crust, I've given you johnny come lately incandescent superb kingfisher, a burrowed hollow. Death to all of you. Death and fire. I will persists. I will survive. I will slay you with my sword.

 

[Sean K]

This looks very positive on the surface of it but the share price is asleep. Looks like they might have to find something else through exploration to get any interest. Maybe the Santiago Z thing has some copper in it but they're not planning on drilling that till later this year.

zzzzzzzzzzzzz

 

[Garpal Gumnut]

This looks very positive on the surface of it but the share price is asleep. Looks like they might have to find something else through exploration to get any interest. Maybe the Santiago Z thing has some copper in it but they're not planning on drilling that till later this year.

zzzzzzzzzzzzz

View attachment 124946

HCH still sleepeth atm.

Very low volume.

gg

 

[Sean K]

HCH still sleepeth atm.

Very low volume.

gg

Yeah, it's comatose. A zombi in the Andes. Couldn't even say anyone is accumulating under the covers.

I did happen to find this interesting copper discussion today and a very well known spec investor mentioned HCH as a potential spec junior play. But he did note the low grades. I'm sure he knows what a porphyry is, but I think it means HCH needs something better than what they're uncovering, or the tonnage needs to be in the billion tn region. It's not far off that really. And if Santiago Z is a go, then might change the scene. That's a long way off though.

Skip to 2.45 for comment on HCH. Watch the whole thing for context.

 

[peter2]

Read a comment (forget where) that HCH has to pay for something next year. Raise more money? Until then, price has no reason to go higher unless it's manipulated to go higher before the cap raise.

 

[Sean K]

Looks like the high grade area within Cuerpo 3 is firming to be quite a sweet spot for any future mining priority. The resource upgrade due this year should see overall tonnage and grades increase substantially. Might put it on the radar of a major.

 

[peter2]

Today's news gave the price a boost but didn't create enough demand to offset the supply. Price drifted lower all day. This is partly due to the huge number of shares on issue and partly due to the lengthy time it's going to take to delineate the resource.

I'm cautiously optimistic on the company but won't be buying on the spikes. I think there's a better R:R buying in the dips and holding for much longer. I'd be disappointed if HCH can't hold the support line at 0.034.

 

[Sean K]

Today's news gave the price a boost but didn't create enough demand to offset the supply. Price drifted lower all day. This is partly due to the huge number of shares on issue and partly due to the lengthy time it's going to take to delineate the resource.

I'm cautiously optimistic on the company but won't be buying on the spikes. I think there's a better R:R buying in the dips and holding for much longer. I'd be disappointed if HCH can't hold the support line at 0.034.

Yes, watched the drop off too. Punters taking profits or minimising losses.

I think a Tier 1 deposit is defined as $10b + in extractable resources.

What's this add up to, with the resource growing? I think it's already tier 1.

Maybe the Chile Gov tax plan on resources is holding this puppy back.

 

[Sean K]

Looking precarious at this support line.

MC at just over $100m with $billions in the ground. Doesn't add up. ?

I'm putting it down to the Chile politics.

 

[Sean K]

I'm putting it down to the Chile politics.

Definitely must be Chile politics and the potential tax/royalties increase that could not only destroy producers but make explorers unable to get funding. Especially porphyries that take quite a bit of capex to get up and running. I've seen quite a few comments from the likes of BHP saying that if the new legislation goes through mines may become uneconomical.

Chile is looking like Communista douche bags that want to eat the goose instead of just taking the eggs. Morons.

But, if the new taxes don't go through, this should be re-rated. Take your bets? Goose or eggs?

Having lived in Sth America for a few years, I'm afraid they'll go for the goose. So, I'm playing this very carefully.

 

[Sean K]

Nice ramping video from The Hot Chilie Peppers.

 

[The Triangle]

Moving along with the Canada listing now. Great idea. Pretty sure they've run out of Aussies . In my very humble opinion there is no need for a dual listing if you've got good project economics.

Mega mines are expensive and costs blow out. I've always put HCH in the 'too hard' basket. 5 years ago the feasibility was 700-800 million capex job with an NPV of just 230 million or so at $3 copper (which is still LT a good price). Yes, copper prices were depressed, but so were energy and machinery prices. Shovels, trucks, diesel, electricity have gone up substantially since then. A new feasibility will be interesting, just rehashing 5 year old numbers by plugging in the copper price of the day is bush league. The HCH boys have given it a good go over the past decade, but the fluff should stop.

Anyways, good luck to HCH managing to raise the billion or two likely needed. There are a tonne of marginal mega projects around the world searching for billions of capital. This one has to get bigger and bigger to make it actually attractive - which makes it even more difficult to secure funding.

As a side note the ASX recently put out new rules on putting out pumping announcements. I would like to see them take this further and stop companies from saying "high grade" when there is no high grade. 1% CuEq is not high grade.

 

[Sean K]

Moving along with the Canada listing now. Great idea. Pretty sure they've run out of Aussies . In my very humble opinion there is no need for a dual listing if you've got good project economics.

Mega mines are expensive and costs blow out. I've always put HCH in the 'too hard' basket. 5 years ago the feasibility was 700-800 million capex job with an NPV of just 230 million or so at $3 copper (which is still LT a good price). Yes, copper prices were depressed, but so were energy and machinery prices. Shovels, trucks, diesel, electricity have gone up substantially since then. A new feasibility will be interesting, just rehashing 5 year old numbers by plugging in the copper price of the day is bush league. The HCH boys have given it a good go over the past decade, but the fluff should stop.

Anyways, good luck to HCH managing to raise the billion or two likely needed. There are a tonne of marginal mega projects around the world searching for billions of capital. This one has to get bigger and bigger to make it actually attractive - which makes it even more difficult to secure funding.

As a side note the ASX recently put out new rules on putting out pumping announcements. I would like to see them take this further and stop companies from saying "high grade" when there is no high grade. 1% CuEq is not high grade.

This is only one of a couple of major discoveries in the World over the past 5 years, so it's worth considering even if Chile is about to eat the golden goose.

I think the previous PFS was only done on Productura and they've doubled the resource since then with another resource upgrade to come. I think they need 1B/t @ around 0.5% CuEq or around $10b extractable resources which they might get to.

They're not going to mine this themselves. A major will take it.

A porphyry Cu/Au deposit is good at .5% CuEq, with some high grade areas within. For eg, Cadia Global Resource is 0.5% CuEq.

Getting closer to 1% CuEq would be extraordinary for a porphyry.

World deposits: