La Verde Porphyry Discovery Exceeds Expectations
Highlights
- First diamond drillhole DKD032 records 529 m grading 0.41% Cu and 0.21 g/t Au from 41m to end of hole
- including 148 m grading 0.60% Cu and 0.30 g/t Au from 70 m depth
- and including 66 m grading 0.45% Cu and 0.31 g/t Au from 295 m depth
- Twin diamond drillhole DKD032 significantly extends discovery drill result from DKP002, which previously recorded 308m grading 0.5% Cu and 0.3g/t Au from 46m depth to end of hole.
- Copper-gold mineralization extended both laterally and vertically, with end of hole recording 14 m grading 0.35% Cu and 0.12 g/t Au.
- 2,700m of drilling complete, with assays pending for five diamond drillholes, all of which intersected broad widths of copper porphyry style mineralization.
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) announced a drilling update from its La Verde copper–gold (Cu-Au) discovery, located roughly 30 km south of the Company’s Costa Fuego Copper-Gold (Cu-Au) Project (“Costa Fuego” or “the Project”) planned central processing hub in Chile’s coastal Atacama region.
Phase two diamond drilling began on 22 September 2025 with one rig operating on a double-shift basis, with six drillholes now complete. This program aims to extend the initial +0.2% Cu discovery footprint of 1,000 m by 750 m by 400 m depth, while also extending the +0.3 g/t Au distribution identified during Phase one.
Initial assays from twin diamond drillhole DKD032 have exceeded expectations, delivering a standout result of 529 m grading 0.41% Cu and 0.21 g/t Au from 41m to end of hole. Importantly the new drill result:
- Confirms convergence of higher-grade Cu-Au mineralization centres at depth (Figure 2)
- Significantly expands both vertical and lateral extent of the northeastern higher-grade mineralization centre, characterised by a high gold-to-copper ratio (Figure 3)
- Materially extends the original 308 m intercept (RC hole DKP002) by a further 221 m to end of hole (570 m) (Figure 4)
These latest results have significant implications for the growth of Hot Chili’s Costa Fuego Mineral Resource base and scale of planned future operations.
DKD032 was terminated early due to mechanical issues and there are plans to re-enter the hole following completion of the Phase two program, with the final sample recording 0.53% Cu and 0.20 g/t Au. Remaining drillholes are predominantly diamond tails of Phase one RC drillholes, which like discovery drillhole DKP002 – ended in mineralization.
All six drillholes completed to date have intersected porphyry-style copper mineralization beyond the previous RC drill limit, pushing the vertical extent of the system to approximately 600 m deep with further lateral growth to the east and west. Three of the holes twinned earlier RC drilling and continued deeper, while three were drilled as diamond tails to further extend mineralization at depth.
Assay results for the remaining holes are pending, with laboratory turnaround times extended due to high seasonal sample volumes across Chile. Further results will be released to the ASX in the coming weeks.
Impact modelling by Hot Chili has outlined the potential for significant additional open pit material to be added to the front-end of Coast Fuego’s 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili’s March 2025 Pre-feasibility Study for Costa Fuego.
The Company looks forward to providing further updates on the results from drilling activities at La Verde.
This announcement is authorized 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
Table 1. New Significant Drilling Intersections from La Verde
Notes to Table 1: Significant intercepts for La Verde are calculated above a nominal cut-off grade of 0.2% Cu. Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu). Significant intersections are separated where internal dilution is greater than 30m down-hole distance. The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world.
Figure 2. NNW facing longitudinal section (A – A’) of the La Verde porphyry system showing +0.2% copper
(yellow), +0.3% copper (red), +0.4% copper (magenta) mineralization interpolants before (top) and after
(bottom) returned diamond assay results from DKD032. Weathering profile displayed as top of fresh material (black line). Returned Cu grades graphed downhole along hole traces (grey).
Figure 3. Plan view map of the La Verde porphyry system showing planned drilling compared with updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralization interpolants. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines.
1 See Page 7 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.
Figure 4. North facing cross section B – B’ (± 40m clipping) through the La Verde porphyry system showing DKD032 twin diamond drillhole and original RC drill hole DKP002. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines.
1 See Page 7 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.
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 mineralization 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 NI43-101.
Competent Person – JORC
The information in this announcement that relates to 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 mineralization 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.
Disclaimer
The information in this announcement relating to the 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’ and ‘District-Scale
Porphyry Cluster Potential Emerging at La Verde Cu-Au Discovery’ released to ASX on 26 February 2024,
19 May 2025 and 29 May 2025 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this announcement.