Drilling at the La Verde porphyry discovery in coastal Chile continues to transform standout
intersections into a coherent, well-defined mineralised system, ahead of the maiden Mineral
Resource Estimate (MRE).
The latest results further define the scale, grade and continuity of near-surface higher-grade
copper-gold mineralisation, supporting the Company’s objective of integrating La Verde into the
Costa Fuego copper-gold (Cu-Au) Project, located on Chile’s coastal range at low elevation.
Significant intersections include:
- DKP075 recorded 188 m grading 0.56% CuEq1
(0.44% Cu, 0.16 g/t Au) from 24 m (updated)
o And 29 m grading 0.50% CuEq (0.39% Cu, 0.15 g/t Au) from 304 m to end of hole - DKP067 recorded 112 m grading 0.47% CuEq (0.40% Cu, 0.10 g/t Au) from 42 m (partial)
o Including 26 m grading 0.70% CuEq (0.59% Cu, 0.14 g/t Au) from 62 m - DKP078 recorded 240 m grading 0.43% CuEq (0.30% Cu, 0.17 g/t Au) from 36 m
o Including 54 m grading 0.60% CuEq (0.41% Cu, 0.26 g/t Au) from 46 m
o And including 42 m grading 0.50% CuEq (0.36% Cu, 0.20 g/t Au) from 188 m
Assays from 25 drillholes (three Diamond, one Diamond tail and 21 Reverse Circulation) remain
pending, with the focus at La Verde on rapid completion of the maiden MRE and integration into - the revised Costa Fuego Pre-Feasibility Study (PFS).
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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 Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) announced continued high-grade drill results from its La Verde Cu-Au porphyry discovery (La Verde), located 30 km south of the Company’s Costa Fuego Cu-Au Project (Costa Fuego) planned central processing hub
in Chile’s coastal Atacama region.
Higher-Grade Enrichment Zone Displays Strong Continuity
Reverse Circulation (RC) drilling continues to target near-surface, higher-grade mineralisation, with latest
results defining further mineralisation from shallow depths. The success of this drilling continues to inform
a coherent, higher-grade near-surface zone that could support low-strip-ratio open pit mining during the
early years of the current Costa Fuego Project 20-year mine plan.
Final assay results for RC drillhole DKP075 have been added to the previously reported intersection of 132
m grading 0.57% CuEq (0.45% Cu, 0.16 g/t Au) from 24 m depth (see announcement dated 7 September
2026). This intersection has been extended to 188 m grading 0.56% CuEq (0.44% Cu, 0.16 g/t Au) from
24 m, increasing the depth of the high-grade zone (Figures 3 & 5).
RC drillhole DKP078 was collared within La Verde’s high-grade core and drilled at a different orientation to
previously completed drill holes completed. DKP078 returned 240 m grading 0.43% CuEq (0.30% Cu,
0.17 g/t Au) from 36 m depth, including 54 m grading 0.60% CuEq (0.41% Cu, 0.26 g/t Au) from 46 m
and 42 m grading 0.50% CuEq (0.36% Cu, 0.20 g/t Au) from 188 m.
Importantly, the results support the current geological interpretation at La Verde, developed following over
35,000 m of RC and Diamond (DD) drilling, ahead of the maiden MRE (Figures 3 & 5).
Further Confidence in Expanding Eastern Flank
Results from RC drill hole DKP067 further expanded the lateral extent of mineralisation along La Verde’s
eastern flank. The drillhole, reported as a partial result, returned 112 m grading 0.47% CuEq (0.40% Cu,
0.10 g/t Au) from 42 m, including 26 m grading 0.70% CuEq (0.59% Cu, 0.14 g/t Au) from 62 m.
DKP067 was collared from the same drill platform as previously reported RC drill hole DKP058, which
returned 182 m grading 0.60% CuEq (0.52% Cu, 0.12 g/t Au) from 24 m (see announcement dated 24
August 2026). The strong results provide further confidence in the continuity of copper-gold mineralisation
along La Verde’s eastern flank (Figures 3 & 4). Results for the first 42 m of DKP067 remain outstanding
and will be reported when returned.
La Verde Maiden MRE Modelling Well Advanced
Drilling and resource development are progressing in parallel at La Verde, with ongoing results being
incorporated into geological and mineralisation models that continue to refine the understanding of the
porphyry system. The Company is targeting completion of a maiden MRE for La Verde later this year,
which is intended to allow potential higher-grade, near-surface open pit feed from La Verde to be evaluated
for inclusion in the Costa Fuego mine plan. Integration of La Verde into a revised Costa Fuego Pre-Feasibility Study (PFS) is expected to have a material impact on the economic metrics of the Costa Fuego Project, ahead of formal submission of the Costa Fuego Environmental Impact Assessment (EIA) in Q2 2027.
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1 If a Mineral Resource is estimated, the Company intends to evaluate whether La Verde can be incorporated into a revised Costa Fuego PreFeasibility Study. There is currently no Mineral Resource or Mineral Reserve at La Verde, no economic study has been completed that includes La Verde, and there is no certainty that La Verde will be included in any future mine plan or that its inclusion would improve the economics of the Costa Fuego Project.
Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile
1asl = above sea level
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.
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).
2 DKP081 was abandoned due to mechanical issues, and was redrilled as DKP082
Figure 2. Plan view map of La Verde showing recent drill hole results and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants.
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, an 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 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 3. Long-section slice (A – A’) showing recent drill hole results and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants.
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 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 4. Cross section slice (B – B’) showing recent drill hole results DKP067 and DKP072 (± 75m clipping) and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants.
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 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 5. Cross section slice (C – C’) showing drill hole results for DKP075 and DKP078 (± 75m clipping) and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants.
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 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).
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 mineralised 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. For further information, please refer to the Company’s
technical report titled “Costa Fuego Project, NI 43-101 Technical Report Preliminary Feasibility Study”, with
an effective date of 27 March 2025, a copy of which is available for review under the Company’s issuer profile
on SEDAR+ (www.sedarplus.ca).
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’, ‘Shallow High Grade Results
Continue at La Verde’, ‘Hot Chili Confirms Major High-Grade Extension at La Verde’, ‘Latest Drilling Lifts HG
Core Potential of La Verde’, ‘Strong Copper-Gold Results Continue at La Verde’, ‘La Verde Emerging as
Cornerstone Asset for HCH’, ‘Hot Chili Delivers More Copper-Gold at La Verde’, and ‘HG Enrichment Zone
Extends 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, 16 February 2026, 8 April 2026, 5 May 2026, 16 June 2026, 28 July
2026, 24 August 2026, and 7 September 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.
Hot Chili is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.