- Step-out drilling has confirmed the discovery of a second porphyry centre – La Verde South –
near-doubling the growth potential of the La Verde copper-gold porphyry discovery. - The Company’s rapidly emerging cornerstone asset is located 30 km south of its Costa Fuego
copper-gold (Cu-Au) Project, located on Chile’s coastal range at low elevation. - First step-out Reverse Circulation (RC) drill hole DKP084, located approximately 250 m to the south
of La Verde’s +0.4% Cu mineralisation footprint, has delivered:- 148 m grading 0/44% CuEq1 (0.39% Cu, 0.07g/t Au) from 36 m
- Including 44m grading 0.56% CuEq (0.50% Cu, 0.06 g/t Au) from 138 m
- 148 m grading 0/44% CuEq1 (0.39% Cu, 0.07g/t Au) from 36 m
- First step-out Diamond (DD) drill hole DKD100, located a further 100 m to the south of DKP084, has
visually recorded a 307 m down-hole interval of copper porphyry-style mineralisation3. Diamond
drilling is continuing in mineralisation at 347 m and is currently planned to a depth of 500 m. - The maiden La Verde Mineral Resource Estimate (MRE), revised Costa Fuego Pre-Feasibility Study
(PFS) and preparation of an Environmental Impact Assessment (EIA) submission all remain on track. - Four drill rigs operating at La Verde, with assay results pending for 25 drill holes (6 southern stepout and 19 resource definition drill holes).
________________________________________________________________________________________________________________________
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 See Page 9 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.
3 Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Assay results are pending and will be reported in accordance with the JORC Code (2012) and National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Sampling methodologies are described in the attached JORC Table 1.
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) announced the discovery of a second porphyry centre at its La Verde Cu-Au deposit (La Verde), located 30 km south of the planned central processing hub for the Company’s Costa Fuego Cu-Au Project (Costa Fuego) in Chile’s coastal Atacama region.
First step-out drilling has unlocked significant growth potential, with near-surface higher-grade copper
mineralization immediately south of, and along strike, from La Verde.
Long section view with locations of DKP084 and DKD100, relative to the La Verde porphyry copper-gold discovery
Christian Easterday, Managing Director of Hot Chili, said:
“We are very pleased with the results of our first step-out drilling to the south of La Verde. Drilling has
confirmed a second porphyry centre, concealed beneath shallow Atacama gravels, with the potential to be
of similar scale to La Verde.
These initial results provide yet another boost to Hot Chili’s growth plans for its Costa Fuego copper hub in Chile.
Costa Fuego is already one of the top five independent copper developments by scale. The upcoming
addition of a maiden MRE for La Verde, and now confirmation of a much larger discovery than first
recognized, is a game changer for the Company.”
First RC Step-out Drilling Delivers Broad Extension of Shallow Oxide Footprint
Step-out drill hole DKP084 was collared along strike, approximately 250 m south of La Verde’s existing
+0.4% Cu mineralisation footprint, which has been defined by over 40,000 m of RC and DD drilling to date.
DKP084 returned a significant intersection of 148 m grading 0.44% CuEq (0.39% Cu, 0.07 g/t Au) from 36
m, including 44 m grading 0.56% CuEq (0.50% Cu, 0.06 g/t Au) from 138 m.
DKP084 was designed to follow-up and test for extensions south of previously reported RC drill hole
DKP024, which recorded 114 m grading 0.4% CuEq (0.4% Cu) from 86 m, including 52 m grading 0.5%
CuEq (0.5% Cu, 0.1 g/t Au) from 96 m (see announcement dated 19 May 2025).
The intersection in DKP084 is primarily oxide copper porphyry-style mineralization, commencing
immediately below shallow gravel cover.
First DD Step-out Drill Hole Confirms Second Porphyry Centre at La Verde South
Building on the initial RC drill results from DKP024 and DKP084, Hot Chili mobilized a diamond drill rig to
test the potential for higher-grade copper porphyry-style sulphide mineralization below the wide zone of
oxide mineralization.
Diamond drill hole DKD100 was collared a further 100 m to the south of DKP084, and like DKP084, has
visually recorded a wide zone of strong copper porphyry-style oxide mineralization (associated with copper
clays, malachite and black copper oxide mineralogy) between 40 m and 172 m down hole depth.
Significantly, below this oxide zone, DKD100 has also visually recorded a wide zone of strong porphyrystyle sulphide mineralisation (associated with disseminated chalcopyrite and porphyry-style A, B and C
veining) between 172 m and 347 m down hole depth (current depth of hole). DKD100 is continuing and
currently planned to a depth of 500 m.
Drilling is continuing with two drill rigs (one DD and one RC) testing La Verde South, while the remaining
two drill rigs (one DD and one RC) continue infill drilling La Verde ahead of the Company’s planned
completion of a maiden MRE.
Core photo from DKD100 (259 – 261 m downhole) with vein-hosted and disseminated chalcopyrite (2%) and pyrite (4%) mineralisation in strongly veined tonalite host rock1
1 Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Assay results are pending and will be reported in accordance with the JORC Code (2012) and National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Sampling methodologies are described in the attached JORC Table 1.
Further drill results are expected to be released shortly from La Verde and the newly discovered La Verde
South porphyry centre.
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
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 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).
Table 2. Mineral abundance details for DKD100
Notes to Table 2: cp = chalcopyrite, py = pyrite, mo = molybdenite, oc = copper oxide/s, lu = copper limonites, cc = chalcocite, ccu = clay with copper oxides, cy = clay, co = chrysocolla, ma = malachite, ne = neotocite, sp = sphalerite.
Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.
Assay results are pending and will be reported in accordance with the JORC Code (2012) and National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Sampling methodologies are described in the attached JORC Table 1.
Figure 2. Plan view map of La Verde showing recent drill hole result and +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants prior to inclusion of DKP084. Drilled holes with pending assays are shown in black.
1 See Page 9 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).
3 Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Assay results are pending and will be reported in accordance with the JORC Code (2012) and National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Sampling methodologies are described in the attached JORC Table 1.
Figure 3. Plan view slice at 950 mRL (+- 150 m) with La Verde showing geological model. Collar locations for existing drillholes (black outline where assays have been received, red outline where assays are pending) and planned drillholes (blue outline) are included.
1 See Page 9 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).
3 Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Assay results are pending and will be reported in accordance with the JORC Code (2012) and National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Sampling methodologies are described in the attached JORC Table 1.
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.
Hot Chili is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer