Highlights
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First drill hole (DKP001) at La Verde intersects intercepts 174m grading 0.4% copper (Cu), 0.1g/t gold (Au) from 36m depth
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Second drill hole (DKP002), located 120m southeast of DKP001, recorded 308m grading 0.5% Cu and 0.3g/t Au from 46m depth to end of hole
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including 202m grading 0.6% Cu, 0.3g/t Au from 70m depth
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which includes 100m grading 0.7% Cu, 0.3g/t Au from 118m depth
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Results for 10 more drill holes pending and drill program expanded to 6,000m
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La Verde’s porphyry footprint, measures approximately 850m by 700m; comparable to Hot Chili’s higher-grade Cortadera Cuerpo 3 copper-gold porphyry, located 30km north
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Costa Fuego Copper-Gold Project Pre-feasibility Study (PFS) and Huasco Water PFS advancing towards release in Q1, 2025
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Treasury of approximately A$25.7 million as of 30 September 2024
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) confirms a significant copper-gold discovery, located approximately 30km south of the Company’s Costa Fuego Copper-Gold Project’s (“Costa Fuego” or “the Project”) planned central processing hub in the coastal range of the Atacama region, Chile.
Assay results for the first two drill holes of a 4,000m drill program being undertaken across the recently secured La Verde porphyry copper-gold target have returned a wide drilling intersection of 202m grading 0.6% Cu, 0.3g/t Au from 70m depth within a broader intersection of 308m grading 0.5% Cu and 0.3g/t Au from 46m depth to end of hole.
La Verde is part of Hot Chili’s recent consolidation of the Domeyko landholding where the Company earlier executed the La Verde Option Agreement (see announcement dated 11th November 2024), which for the first time consolidated and provided access to drill test a large potential porphyry copper target footprint.
The historical La Verde open pit mine was previously exploited by private interests for shallow porphyry copper-style oxide mineralization with limited drill testing outside the central lease or to depth.
A total of twelve RC drill holes for approximately 3,150m are complete with results returned for the first two Reverse Circulation (RC) holes of the first-pass drill program. The first two drill holes (DKP001 and DKP002) were designed to (1) validate historic drilling intercepts, and (2) test the interpreted northern extension of the porphyry from the previously exploited open pit, respectively.
Drill hole DKP001 was successful in validating the most notable copper intercept from historic exploration drill results, returning a broad significant intersection containing multiple higher-grade zones:
DKP001 returned 174m grading 0.4% Cu, 0.1g/t Au from 36m depth
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including 10m grading 0.6% Cu, 0.1g/t Au from 72m, and
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including 26m grading 0.5% Cu, 0.1g/t Au from 96m, and
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including 22m grading 0.6% Cu, 0.2g/t Au from 144m
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Drill hole DKP002 was located approximately 120m southeast of DKP001, with assay results returning a drill intersection, that exceeded the Company’s expectations and suggests potential for a higher- grade copper-gold zone within the La Verde porphyry:
A total of 308m grading 0.5% Cu, 0.3 g/t Au from 46m depth
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including 202m grading 0.6% Cu, 0.3 g/t Au from 70m depth,
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which includes 100m grading 0.7% Cu, 0.3 g/t Au from 118m depth
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These consistent higher-grade results confirm the extension of the porphyry system almost 400m to the north-east of the open pit, a significant step out considering the existing pit measures approximately 200m x 400m. The higher-grade mineralization is also located immediately beneath a gravel cover sequence which obscures the ultimate extent of the porphyry system. Oxide mineralization is associated with copper clays and chalcocite up to approximately 80m vertical depth from surface with the primary sulphide mineralization associated with chalcopyrite and pyrite.
Mineralization appears to be open in all directions and where the system remains under cover.
Assay results are pending for ten RC drill holes, for which visual logging confirmed porphyry-style mineralization associated with A- and B-type porphyry veining. Preliminary geological modelling indicates a +1% A + B vein footprint of ~850 m by ~700 m (refer to Figure 3a), based on detailed surface mapping and downhole logging.
The La Verde footprint is comparable to the +1% A + B vein footprint at Cuerpo 3 (1,000m by 750m) at the Company’s Cortadera porphyry copper-gold deposit, located 30km to the north (refer to Figure 3b). Cuerpo 3 is the largest of Cortadera’s three porphyries, a cornerstone to Costa Fuego’s Indicated mineral resource base of 798Mt grading 0.45% CuEq for 3.6Mt Cu and 3.0Moz Au1 and Inferred2 mineral resource of 203Mt grading 0.31% CuEq for 0.5Mt Cu and 0.4Moz Au.
The Company is particularly pleased with the high gold to copper ratio returned in drill hole DKP002 with additional results pending.
Hot Chili has expanded the first-pass RC drill program with an additional 2,000m planned, now expected to be complete in late January 2025.
Hot Chili has a strong balance sheet with A$25.7 million in cash (as of 30 September 2024) and continues to advance two key development milestones planned for release in the first quarter of 2025 – Costa Fuego PFS and Water Supply Business Case Study PFS.
The Company looks forward to providing further updates as additional drill results are returned and exploration drilling activities progress at La Verde.
Figure 1
Figure 2
Figure 3
Figure 3b (Right) Plan view map of Cuerpo 3 at Cortadera showing the +1% A+B vein footprint (from drillholes) relative to the +0.1% copper (yellow), +0.4% copper (light pink) and +0.6% copper (dark pink) interpolants with the ground magnetics survey reduced to the pole (RTP). Black arrows and distances indicate the length and width of +1% A+B vein footprints. (CNW Group/Hot Chili Limited)
Mineral Resource Statement
