Two drill rigs in operation at the La Verde porphyry discovery, Cost Fuego copper-gold project, coastal Chile
Highlights
- Latest results from ongoing drilling across the Company’s La Verde copper-gold (Cu-Au) discovery in Chile
confirm a major extension to the deposit’s rapidly growing high-grade core - DKD039 returned the widest drill result recorded to date, intersecting 725 m grading 0.42% CuEq (0.36%
Cu, 0.07 g/t Au) from 18 m depth down-hole, including:
o 22 m grading 0.71% CuEq (0.67% Cu, 0.03 g/t Au) from 42 m depth
o 46 m grading 0.65% CuEq (0.54% Cu, 0.12 g/t Au) from 249 m depth
o 51 m grading 0.62% CuEq (0.51% Cu, 0.10 g/t Au) from 433 m depth
o 62 m grading 1.03% CuEq (0.90% Cu, 0.18 g/t Au) from 671 m depth - The shallow result of 22 m grading 0.71% CuEq from 42 m, further expands the extent of an emerging
higher-grade starter pit for the Company’s Costa Fuego Cu-Au Project - The deeper result of 61 m grading 1.03% CuEq from 670 m, significantly extends La Verde’s high-grade
core by approximately 200 m down-dip - Drilling operations accelerating with two drill rigs on site (Diamond (double shift) and Reverse Circulation
(RC, single shift)) and a third drill rig planned to be mobilised in May - Assay results pending for eleven drill holes (four diamond and seven RC)
1 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
Hot Chili’s Managing Director Mr. Christian Easterday commented:
“We are very pleased to deliver the most significant drill result to date from our La Verde copper-gold
porphyry discovery in Chile. Drill hole DKD039 recorded 725 m grading 0.42% CuEq from 18 m depth – the widest significant drill intersection so far at La Verde. Most importantly, it has confirmed a major 200 m down-dip extension to the high-grade core of the deposit, recording 62 m grading 1.03% CuEq from 671 m depth – also the widest high-grade intersection recorded to date.
With two drill rigs now in operation and a third planned, the Company is focused on accelerating its
definition of a potential higher-grade starter pit for Costa Fuego, as well as continued expansion and
integration of La Verde’s high-grade core into Costa Fuego’s resource base and mining inventory this year”.
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) provided a drilling update from its La Verde Cu-Au porphyry discovery (La Verde), located 30 km south of the Company’s Costa Fuego Cu-Au Project planned central processing hub in Chile’s coastal Atacama region.
Diamond Drill Hole DKD039 – Most Significant Result to Date at La Verde
A standout significant intersection of 725 m grading 0.42% CuEq1 from 18 m depth has been recorded
in diamond drill hole DKD039, along with several other significant drill results across La Verde.
Drill hole DKD039 was collared on the western extent of La Verde’s discovery footprint (Figure 2), and
intersected multiple wide zones of +0.6%CuEq1 mineralization from near surface (Figure 3 and 4).
Importantly, DKD039 achieved two key objectives:
- Further extended near-surface higher-grade mineralization by approximately 60m to the
west – recording 22 m grading 0.71% CuEq1 from 42 m depth within a wider intersection of 48 m
grading 0.55% CuEq (0.50% Cu, 0.03 g/t Au) from 18 m depth, located immediately beneath shallow
gravel cover, and
- Confirmed a significant 200 m down-dip extension of La Verde’s high-grade core – recording 61
m grading 1.03% CuEq1 (0.90% Cu, 0.18 g/t Au, 1.81g/t Ag) from 671 m in association with high
Cu/Au, A+B vein abundances >5% and massive and disseminated chalcopyrite (Figure 5).
Infill Diamond Drill holes DKD037 and DKD038 – Confirm Continuity
Further results received from additional diamond drill holes (collared from surface) continue to confirm
continuity of bulk tonnage mineralization, including: - DKD037 recorded 184 m grading 0.42% CuEq1 (0.32% Cu, 0.12 g/t Au) from 105 m depth
o including 27 m grading 0.60% CuEq (0.48% Cu, 0.15 g/t Au) from 203 m - DKD038 recorded 221 m grading 0.37% CuEq1 (0.29% Cu, 0.11 g/t Au) from 48 m depth
o including 45 m grading 0.51% CuEq (0.37% Cu, 0.19 g/t Au) from 53 m
1 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t)
Drill hole DKD037 was designed to target a gap between two higher-grade zones, with assay results now
confirming expansion and continuity of mineralization across this zone (Figure 2).
Similar to drill hole DKD039, the significant intersection from DKD038 also commences immediately
beneath shallow gravel cover, suggesting a large part of the potential higher-grade starter pit will only
require simple, cost-effective, shallow overburden removal (Figure 4).
Diamond Drill Tail Extensions DKP009D and DKP012D – Continue to Expand Footprint
Latest assay results from diamond drill tail DKP009D also extended La Verde’s Cu-Au mineralization
footprint along the eastern flank of the discovery (Figures 2 and 4). The drillhole was a 200 m diamond tail
to earlier RC drillhole DKP009 and reported 68 m grading 0.42% CuEq (0.33% Cu, 0.11 g/t Au) from 354
m depth extending mineralization downhole of DKP009.
Similarly, diamond drill tail DKP012D extended La Verde’s Cu-Au mineralization footprint along the
northern flank of the discovery. The drillhole was a 284 m diamond tail to earlier RC drillhole DKP012 and
reported 132 m grading 0.36% CuEq (0.26% Cu, 0.05 g/t Au) from 306 m depth extending mineralization
downhole of DKP012. Several higher-grade zones were intercepted in the tail, confirming the system is still
open and mineralized to the north and will be followed up with additional drilling along the interpreted NNEtrending structural corridor (Figure 2 and 4).
Including the new diamond tail extensions:
- DKP009D now records 388 m grading 0.41% CuEq (0.32% Cu, 0.12 g/t Au) from 34 m
- DKP012D now records 394 m grading 0.46% CuEq (0.35% Cu, 0.11g/t Au) from 44 m
Assay results are outstanding for four diamond and seven RC drillholes and the Company looks forward to
providing further updates as results are received.
This announcement is authorized by the Board of Directors for release to ASX and TSXV.
1 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile
Table 1. New significant drilling intersections from La Verde
Notes to Table 1: Significant intercepts for La Verde are reported above a nominal cut-off grade of 0.20% Cu. Reported intersections may include internal dilution (intervals below 0.20% Cu), including zones exceeding 30 m downhole width, where the overall weighted average grade of the intersection remains above the cut-off grade. Significant intersections are separated where zones of internal dilution result in discrete intervals that do not meet the reporting criteria. The selection of a 0.20% Cu cut-off grade is aligned with a marginal economic cut-off for bulk tonnage polymetallic copper deposits of comparable grade in Chile and globally. Significant intersection widths (interval) have been rounded to the nearest metre.
1 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralization style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
Figure 2. Plan view map of La Verde showing returned diamond drilling compared with updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Drilled holes with pending assays are shown in black. Position of A – A’ cross section (Figure 3) and B – B’ long section (Figure 4) annotated in black. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq2.
1 See Page 10 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
2 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralization style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
Figure 3. Cross section slice along DKD039 (± 75m clipping) showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralization interpolants and returned assay results for DKD039, DKP012D, DKD037, DKP009D. Returned Cu grades shown on hole traces.
1 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralization style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
Figure 4. NNW facing longitudinal section of the La Verde porphyry system showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta)
mineralization interpolants. Returned Cu grades shown on hole traces. Drilled holes with pending assays are shown in black.
1 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralization style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t)
Figure 5. Core photos for DKD039 showing high-grade zone of 19.6 m grading 1.51% CuEq (1.30% Cu, 0.29g/t Au, 2.26g/t Ag) from 693.1 m within the broader high-grade zone 61.5m grading 1.03% CuEq (0.90% Cu, 0.18g/t Au) from 670.7 m.
Qualifying Statements
Conceptual Open Pit Shells
Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the ‘Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). They are
based on completed exploration activities reported in the announcement released 19 May 2025 (‘Hot Chili
Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint’).
The conceptual open pit shells were generated using copper (Cu) prices of US$3.50/lb Cu and US$6.00/lb
Cu on a series of nested Cu grade shells. Other input parameters informing the conceptual open-pit shells
(pit slope angles, mining cost, processing cost, etc.) were derived from values reported in the March 2025
Costa Fuego Pre-feasibility Study and are considered appropriate for the style of mineralisation encountered
at the La Verde Cu-Au porphyry discovery.
Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been
insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further
exploration will result in the estimation of a Mineral Resource.
Further exploration activities are detailed in this announcement and include (but may not necessarily be
limited to) a program of diamond drillholes aiming to extend the mineralized footprint at La Verde. Drilling
commenced on 22 September 2025, with the length of the program dependent on a number of considerations
including (but not limited to) the results of the exploration activities and regulatory applications and approvals.
Qualified Person – NI 43-101
The technical information in this announcement has been reviewed and approved by Mr. Christian Easterday,
MAIG, Hot Chili’s Managing Director and a qualified person within the meaning of National Instrument 43-101
– Standards of Disclosure for Mineral Projects.
Competent Person – JORC
The information in this announcement that relates to Exploration Results and Exploration Targets for the La
Verde project is based upon information compiled by Mr Christian Easterday, the Managing Director and a
full-time employee of Hot Chili Limited, who is a Member of the Australasian Institute of Geoscientists (AIG).
Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits
under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined
in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’ (JORC Code). Mr Easterday consents to the inclusion in this announcement of the matters
based on their information in the form and context in which it appears.
The information in this announcement relating to previously reported Exploration Results for La Verde was
previously reported in the Company’s announcements ‘Hot Chili Confirms Major Cu-Au Porphyry Discovery
at La Verde’, ’Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint’,
‘District-Scale Porphyry Cluster Potential Emerging at La Verde Cu-Au Discovery’, ‘First Diamond Drillhole
Confirms Gold-Rich Major Copper Discovery in Coastal Chile’, ‘Near-Surface Higher-Grade Core Confirmed
at La Verde’, ‘Rapid Growth of High Grade Core Continues at La Verde’ and ‘Shallow High Grade Results
Continue at La Verde’ released to ASX on 26 February 2024, 19 May 2025, 29 May 2025, 27 November
2025, 10 December 2025, 20 January 2026 and 16 February 2026, respectively, which are available to view
on the Company’s website at www.hotchili.net.au/investors/investor-centre/market-announcements. The
Company confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcements.
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