Hot Rock Ltd awarded 3 geothermal concessions in Chile

Alexander Richter 27 Jan 2010

In a release by the company, Australian “Hot Rock Limited (“HRL”) (ASX code HRL) advises that its wholly owned subsidiary, Hot Rock Chile S.A., has been formally awarded three volcanic geothermal concessions in Chile by the Chile Ministry of Mining. The locations of these areas cover a total of 1,650 km2.

The concessions are Galo within the Santiago Metropolitan region, Santa Sonia, located in Region VII, and Santa Antonia located in region VIII.

In commenting on these awards, HRL’s Executive Chairman Dr Mark Elliott noted that “with some 300 volcanoes the geothermal power potential of Chile is fantastic. This combined with a high in-country demand for renewable power and the high quality of the business environment in Chile presents an
excellent investment case for HRL to extend its activities into international high temperature volcanic geothermal developments in parallel with its large hot sedimentary aquifer geothermal (HSA) projects in the Otway Basin in Victoria, Australia”.

He further noted that “the awards of these concessions were made in the face of intense competition from other international developers and this reflects well on the very successful establishment of Hot Rock Chile SA in 2009 and the confidence placed by the Chile Ministry of Mines on HRL’s capabilities in geothermal exploration and development”.

HRL is now commencing detailed field exploration surveys at these three prospects. These will include over the first 12 months detailed geological and geochemical work leading to magneto telluric (MT) resistivity surveys to delineate geothermal system boundaries, followed by multi-disciplinary hydro geological modelling, resource assessment and ranking of prospects against resource potential, location and market criteria. Exploration well drilling and flow testing and post drilling detailed resource evaluation will be undertaken during the second year.

“With the convergence of the need for new power generation in Chile, a rapidly growing appreciation by the Chile government for the value of indigenous renewable energy sources, the quantity and quality of geothermal prospects in Chile, a power market price structure that is able to meet directly the cost of geothermal power development and a high quality and stable business environment, HRL is confident of achieving considerable success in Chile in parallel with its substantial forward geothermal development program in Australia. Both will add significantly to shareholder value” said Dr Elliott.”

Source: Company release