Glencore takes a 9.9% position in Hot Chili Limited
If you recall Hot Chili’s property is a not dissimilar situation to the ADL, just some distance to the north, proven Copper / Moly porphyries, etc. Only a few years ago when copper was $2.00 more or less they tried to turn it into a “high grade gold” story but failed. They then returned to the copper content of the deposit and the rise in copper prices has helped them raise capital and move forward. Glencore’s investment is a big step forward.
Hot Chili has been mentioned recently by Rick Rule in an interview. They are trying to increase the resource size and tie together two slightly separated porphyry deposits. There are concerns about grades as the copper grades are more along the 0.5% lines instead of a more desirable 1.0%.
If you follow how much drilling, reports, work etc. have been done by Hot Chili over quite a few years you get a sense of how long it takes and how hard it is to move a major copper deposit forward toward construction via investment by majors. The ADL has a long long way to go on the copper front. If they have the high grade gold they think they do I think bootstrapping via gold production will turn out to be a good choice.