Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) announced that diamond drilling has commenced at the La Verde copper-gold (Cu-Au) discovery, located approximately 30km south of the Company’s Costa Fuego Cu-Au Project (“Costa Fuego” or “the Project”) planned central processing hub at low elevation in the coastal range of the Atacama region, Chile.
Diamond drilling commenced on 22 September 2025 with one drill rig in operation on a double-shift basis.
This second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery.
Phase-two drilling follows the success of the Company’s first-pass reverse circulation (RC) drill program,
which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up
to 400 m vertical depth.
Importantly, over half of Hot Chili’s first pass drill holes ended in significant mineralization at the capacity
of RC drilling, leaving the porphyry discovery open at depth and laterally.
To date, three spatially distinct higher-grade centres have been confirmed from near surface (refer
announcement dated 19 May 2025). Phase-two diamond drilling will target depth extension to these highgrade centres.
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.
Regulatory applications for further drill access at La Verde are currently in the final stages of approval and
will provide access to test lateral extensions to the discovery footprint, as well as several nearby “look-alike”
targets.
The Company looks forward to providing further updates on the results from drilling activities at La Verde.
Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile
Figure 2. Plan view map of the La Verde porphyry system showing planned drilling compared with +0.2%
copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralisation interpolants from Phase 1
drilling.
Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. A – A’ indicates position of long section in Figure 3. B – B’ and C – C’ indicate the position of cross sections in Figure 4. D – D’ and E – E’ indicate the position of cross sections in Figure 5.
Figure 3. NNW facing longitudinal section (A – A’) of the La Verde porphyry system showing planned diamond drill hole traces, and planned RC collars compared to +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralization interpolants from returned assay results.
Weathering profile displayed as top of fresh material (black line). Returned Cu grades graphed downhole along hole traces (grey). Conceptual open pit shells¹ displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines.
Figure 4. (Top) North facing cross section B – B’ (± 75m clipping), (Bottom) and North facing cross section
C-C’ (± 75m clipping) through the La Verde porphyry system showing planned diamond and RC drill holes
compared to +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralization interpolants
from returned assay results.
Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines.
Figure 5. (Top) North facing cross section D – D’, (Bottom) and NNW facing cross section E – E’ through
the La Verde porphyry system showing planned diamond and RC drill holes compared to +0.2% copper
(yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralization interpolants from returned assay
results.
Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines.
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 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 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.
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.
Hot Chili is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.