Highlights
- Latest assay results have returned grades well above visual expectation in diamond drill hole DKD044,
adding to La Verde’s rise as one of Chile’s most significant new coastal copper-gold (Cu-Au) porphyry discoveries - DKD044 recorded 391.1 m grading 0.51% CuEq1 (0.42% Cu, 0.11 g/t Au) from surface, including:
o 17.8 m grading 0.68% CuEq (0.63% Cu, 0.06 g/t Au) from surface
o 40.7 m grading 0.60% CuEq (0.50% Cu, 0.12 g/t Au) from 103.3 m
o 85.4 m grading 0.61% CuEq (0.50% Cu, 0.15 g/t Au) from 160 m
o 19.7 m grading 0.70% CuEq (0.57% Cu, 0.15g/t Au) from 276.1 m - These results continue to demonstrate strong continuity of shallow, higher grade, copper-gold mineralisation,
underpinning a growing high-grade starter pit opportunity for the Company’s Costa Fuego Cu-Au project - Assay results are pending for 22 drill holes (six diamond and 16 reverse circulation) including DKD049,
DKP052, DKP053 and DKP054 which are expected to confirm significant extensions to La Verde’s high-grade core2 - Second ISO-accredited laboratory engaged to assist in accelerating assay result turnaround times
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 announcement ‘Latest Drilling Lifts Growth Potential of La Verde’s High-Grade Copper-Gold Core’, dated 5 May 2026
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) provided further positive drilling results from its La Verde Cu-Au porphyry discovery (La Verde), located 30km south of the Company’s Costa Fuego Cu-Au Project (Costa Fuego) planned central processing hub in Chile’s coastal Atacama region.
Latest Results from DKD044 Exceed Expectation
Diamond drill hole DKD044 was collared on the western side of La Verde’s high-grade core (Figure 2) and
was designed to test continuity of broad high-grade mineralisation reported by diamond drillhole
DKD039, which recorded 725m grading 0.42% CuEq from 18 m depth including 62 m grading 1.03%
CuEq (0.90% Cu, 0.18 g/t Au) from 671 m depth (see announcement dated 8 April 2026). Assay results
returned so far have recorded a strong drill intersection of 391.1 m grading 0.51% CuEq1 (0.42% Cu, 0.11
g/t Au) from surface, including:
o 17.8 m grading 0.68% CuEq (0.63% Cu, 0.06 g/t Au) from surface
o 40.7 m grading 0.60% CuEq (0.50% Cu, 0.12 g/t Au) from 103.3 m
o 85.4 m grading 0.61% CuEq (0.50% Cu, 0.15 g/t Au) from 160 m
o 19.7 m grading 0.70% CuEq (0.57% Cu, 0.15g/t Au) from 276.1 m
Mineralisation was intersected from surface, further supporting the potential for La Verde to deliver a
significant high-grade starter pit opportunity for Costa Fuego.
Assay results for DKD044 have been returned up to 493.7 m depth so far. Assay results up to end-of-hole
(493.7 m to 711.4 m) remain outstanding and are expected to be returned in the coming weeks.
Importantly, DKD044 is located approximately 150 m west of step-out diamond drill hole DKD049
(Figure 3), which visually recorded a 180 m zone of strong chalcopyrite-rich, porphyry-style copper
mineralisation from 536.7 m depth (see announcement dated 5 May 2026 and Table 2).
This drilling indicates potential for the high-grade core to widen between DKD044 and DKD049. Assay results for
DKD049 are also expected to be returned in the coming weeks.
Further Assays Confirm Shallow, Bulk Tonnage Continuity
Additional results returned for DKD042 and DKP041 have continued to confirm and expand near-surface,
bulk tonnage mineralisation as resource definition drilling continues at La Verde.
Diamond drill hole DKD042 (Figure 4), collared on the western flank of the deposit, has confirmed extension
of the high-grade core 125 m further west:
- Recording 96.4 m grading 0.40% CuEq (0.31% Cu, 0.12 g/t Au) from 11.6 m depth
o including 11.9 m grading 0.51% CuEq (0.41% Cu, 0.13 g/t Au) from 13.6 m
o and including 22.4 m grading 0.62% CuEq (0.46% Cu, 0.21 g/t Au) from 84.2 m
Reverse Circulation drill hole DKP041, an infill hole, has confirmed expansion and continuity of mineralisation
across this zone (Figure 5).
- Recording 224 m grading 0.40% CuEq (0.30% Cu, 0.10 g/t Au) from 92 m depth
o including 24 m grading 0.60% CuEq (0.49% Cu, 0.15 g/t Au) from 112 m depth
o including 46 m grading 0.50% CuEq (0.38% Cu, 0.14 g/t Au) from 216 m depth
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.
Additional ISO Accredited Assay Laboratory Engaged
Since March, delivery of assay results has increased to over 10 weeks in some cases. Hot Chili has taken
proactive measures and engaged the services of an additional ISO accredited laboratory in the region, to
ensure reporting of outstanding assay results is fast tracked and assay turnaround times are accelerated.
Drilling Operations Accelerating
Three drill rigs are in operation at La Verde, and the Company expects to continue delivering strong news
flow from drill results, ahead of a maiden Mineral Resource for La Verde and a revised Pre-feasibility for
Hot Chili’s Costa Fuego Cu-Au Project.
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 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).
Table 2. Mineral abundance details for DKD049
Figure 2. Plan view map of La Verde showing recent drill hole results DKD044, DKD042 and DKP041 and
updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants.
Drilled holes with pending assays are shown in black.
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 3. Cross section slice along DKD044 (± 75m clipping) showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants and returned assay results for DKD044.
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.
2 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.
3 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. Zoomed plan view map of La Verde showing recent drill hole results DKD044, DKD042 and DKP041, returned Cu grades shown on hole traces. Drilled holes with pending assays are shown in black.
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’ and “Latest Drilling Lifts
HG Core Potential of 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 and 5 May,
respectively, which are available to view on the Company’s website at www.hotchili.net.au/investors/investor-
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