Productora is initially expected to produce 120,000-150,000 mt/year of copper at an operating cost of $1.20-1.50/lb, Easterday told an investor seminar in Melbourne.
Development of the project hinges on Hot Chili securing an infrastructure agreement with its project partner, Chilean iron ore producer Compania Minera del Pacifico or CMP, which Easterday said was expected by mid-year.
Productora, located 15 km (9 miles) south of the city of Vallenar, lies within CMP’s existing coastal infrastructure that includes rail and facilities at Huasco port, 40 km away.
The project also has a magnetite resource, which Easterday said Hot Chili had two letters of intent in place with CMP to develop.
The two companies were currently in talks to finalize a magnetite offtake deal that would see product trucked to CMP’s pellet plant near Huasco port, he said, adding he could not provide volume details while the talks were ongoing.
Hot Chili has three other copper projects in Chile in the exploration stage; Bandera, Frontera and Los Mantos.