Hot Chili (ASX: HCH) is pleased to announce that the next major resource upgrade for its Productora Copper Project in Chile is set to benefit from another round of strong drilling results. The latest results further increase the Company's confidence in several of the key zones which will play an important role in the resource upgrade scheduled for later this calendar year. The results include 190m grading 0.7% copper and 0.2g/t gold from 44m down-hole. Diamond drilling has been focussed on providing in-fill and QA/QC drilling coverage at Productora as part of Hot Chili's 100,000m drilling programme for 2013.

Diamond drilling, which is due to be completed shortly, has generated a host of outstanding results which have strengthened the definition of key areas of the resource. As well as underpinning the next resource upgrade, the results will increase the size of the reserve estimate due to be released with the completion of a Pre-feasibility for Productora in late 2013.

Progress of Major Resource Drilling Programme at Productora

Hot Chili has completed more than half of its planned 100,000m Reverse Circulation (RC) and Diamond (DD) Drilling programme at Productora for 2013 with four multi-purpose drill rigs in operation. While the majority of RC drilling at Productora during 2013 is focussed in achieving substantial resource growth from major extension areas of the deposit, a large component of the DD drilling has been aimed at increasing the Company's inventory of indicated category resources. DD drilling has focused on providing QA/QC and in-fill coverage across key areas of the planned central pit development area at Productora. To date, DD drilling at Productora has been successful in delivering several significant intersections and confirmed the size and grade of key areas within the resource.  In-particular, diamond drilling has validated the Company's grade shell models which have outlined that the majority of resources at Productora lie within the first 300m from surface and depth extensions generally relate to more discreet "feeder-fault" lodes. DD drilling is anticipated to be completed in coming weeks, when the focus will shift entirely towards the definition of shallow in-pit resource extensions.

Hot Chili Preparing to Assess Larger Potential of Productora in 2014

The Productora copper-gold-molybdenum resource remains open at depth over a strike length of approximately 7.5km with a further 2km of strike extensions remaining.Hot Chili is in the process of assembling a series of extensive datasets over Productora in order to undertake advanced targeting at the project during the second half of 2013.  A large focus for this exercise will be the construction of an integrated predictive targeting model to determine the potential for large-tonnage, higher grade extensions at depth and within the extents of Hot Chili's consolidated project position. Given the large sulphide metal endowment of Productora, Hot Chili is confident of defining numerous high priority depth extension targets.  In addition, shallow along-strike and satellite target positions will be further refined in order to outline a strategy to assess the greater potential of the project for drilling assessment in 2014.

Hot Chili considers the growth opportunities within the Productora copper project to be considerable.

The Company expects results of further RC drilling being directed towards the eastern flank of the central resource area at Productora to be received shortly.  Recent results from the eastern flank have been producing higher copper and gold grades from areas previously considered waste in the Company's Scoping Study open pit designs.