Hot Chili adds more value to Costa Fuego with identification of low-cost transport solution
Hot Chili says the low-cost rope conveyor option cements its plan to establish the processing hub at Productora.
A materials handling scoping study has identified a lower-cost solution for Hot Chili (ASX: HCH) to transport ore from its proposed Cortadera mine to the nearby Productora deposit for processing.
According to Hot Chili, the scoping study has highlighted the potential for a low-cost rope conveyor to transport ore 15km downhill from Cortadera to Productora.
The study evaluated four ore transport options including trucking, conveyors, aerial ropeway and rope conveyor.
Rope conveyor was identified as the lowest cost option to transport ore from the proposed Cortadera open pit and block cave.
It can handle up to 25,000 tonnes of ore per hour across difficult terrain with a minimal structural footprint.
Compared to a conventional conveyor, the rope solution is estimated to be a quarter of the cost.
The identification of roper conveyor as the lowest-cost transport solution has “cemented” Hot Chili’s plans to establish the central processing infrastructure for the wider Costa Fuego copper-gold operation at Productora.
This will allow Hot Chili to take advantage of existing project definition and permitting rights already secured in the 2016 Productora pre-feasibility study.
Costa Fuego project
Cortadera and Productora are the primary copper-gold deposits that make up the wider Costa Fuego project in Chile.
Costa Fuego has a global resource of 724 million tonnes at 0.48% copper equivalent for 2.9Mt copper, 2.7 million ounces gold, 9.9Moz silver and 64,000t of molybdenum.
Productora contributes to this with a resource of 273Mt at 0.52% copper equivalent for 1.2Mt copper, 800,000oz gold and 36,000t molybdenum, while Cortadera hosts 451Mt at 0.46% copper equivalent for 1.7Mt copper, 1.9Moz gold, 9.9Moz silver and 27,000t molybdenum.
The rope conveyor transport option identified in the scoping study will be included in the pre-feasibility study into developing Cortadera and Productora.
Hot Chili says the pre-feasibility study is making “good progress” at Costa Fuego. A major resource upgrade is also planned.
The company is well-funded to pursue its plans at Costa Fuego after a recent $40 million capital raising that saw Glencore taking a 9.99% stake in the company.