Hot Chili's shares rise on target discovery

12th October 2015 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The ASX share price of junior Hot Chili Resources rose by 20% on Monday, after the company revealed four additional large copper porphyry targets at its flagship Productora project, in Chile.

The results from a geophysical survey indicated that the targets were likely the source of a 6.5-km-long copper porphyry footprint previously identified at Productora.

MD Christian Easterday said on Monday that the latest results were considered exceptionally promising as they could lead to a significant increase in the copper inventory and, therefore, the production rate and mine life at Productora.

“Targets of these sizes have strong potential to transform Productora into a tier one project of global significance. The impact this breakthrough could have on the project’s economics and mine life is substantial,” he noted.

He added that planning was now under way to drill the four targets identified.

Hot Chili was in the midst of a prefeasibility study for Productora, which would be completed before the end of the year. Further drilling results at the targets would be included in the 2016 definitive feasibility study, ahead of a decision to mine.

The company's shares were trading at a high of 12c apiece on Monday, up from a low of 10.5c a share.