Core photo from DKD049 (541 m downhole) showing vein-hosted and disseminated chalcopyrite and pyrite mineralization in strongly A-B veined tonalite host rock. Broad 180 m down-hole visual drill intersection represents a significant 175 m step-out to La Verde’s high-grade core along its eastern flank, assay results expected May 2026[1] (CNW Group/Hot Chili Limited)
Highlights
- Latest drill results from the Company’s La Verde copper-gold (Cu-Au) discovery in coastal Chile continue to boost expectations, with several significant intersections of strong mineralization visually1 confirmed across key extensions:
- Eastern Flank – Broad 180 m zone of chalcopyrite-rich, porphyry-style copper mineralization, significantly extends the width of La Verde’s high-grade core (DKD049)
- Higher-Grade Starter Pit – Three wide visual drill intersections of strong porphyry-style mineralization from near-surface, add further up-dip continuity to La Verde’s high-grade core (DKP052, DKP053 and DKP054 recording widths of 205m, 256m and 129m respectively)
- Latest assay results from DKD040 confirm better-than-expected mineralization in an area previously interpreted as lower grade from earlier first-pass Reverse Circulation (RC) drilling:
- 86.6 m grading 0.45% CuEq2 (0.34% Cu, 0.15 g/t Au) from 4.4 m depth
- 163.9 m grading 0.43% CuEq (0.34% Cu, 0.11 g/t Au) from 185.2 m depth
- Assay results pending for 14 drill holes (eight diamond and six RC), third drill rig expected to commence in coming week
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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 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).
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) provided another positive drilling update from its La Verde Cu-Au porphyry discovery (La Verde), located 30km south of the Company’s Costa Fuego Cu-Au Project planned central processing hub in Chile’s coastal Atacama region.
Results to date confirm continued growth of the deposit’s high-grade core and increasing confidence in
continuity of higher grade near-surface mineralization.
Significant Expansion of High-Grade Core Across Eastern Flank
Strong chalcopyrite-rich, porphyry-style copper mineralization has been visually1
recorded over approximately 180 m downhole in recently completed drill hole DKD049, significantly expanding La Verde’s higher-grade core, at depth, along its eastern flank (Figure 2 and Figure 4).
Importantly, the diamond hole was a 175 m step-out hole from previously interpreted mineralization.
Results from DKD039, which recorded the highest-grade, widest intersection to date at La Verde, now
combined with the visual observations from DKD049, have materially extended the higher-grade core to
the east. The Company is currently focusing diamond drilling on testing further up-dip continuity of the
eastern flank to the high-grade core (Figure 5).
Assay results are expected to be returned for DKD049 in late May 2026.
Higher-Grade Starter Pit Potential – Another Three RC Holes Strengthen Continuity
Reverse Circulation drilling has commenced on the up-dip extensions to La Verde’s high-grade core, with
the first three drill holes (DKP052, DKP053 and DKP054) collared in the centre of the potential highergrade starter pit, beneath the location of an existing historical waste dump (Figure 2). All three drill holes recorded wide visual1
intersections of strong porphyry-style mineralization from near-surface.
Consistent oxide mineralisation (copper limonites and green copper oxides) was reported from logging
within and immediately beneath the waste dump, likely expanding the higher-grade, gold-rich core towards
surface. The drill holes also extended the chalcopyrite-rich, porphyry-style copper mineralisation laterally
from previous interpretations, suggesting the +0.4% CuEq footprint is still open in all directions.
Assay results are expected to be returned DKP052, DKP053 and DKP054 in June 2026.
Diamond Drilling Confirms Better-Than-Expected Mineralization
Diamond drillhole DKD040 was collared within La Verde’s central high-grade core (Figure 2) and
intersected multiple broad zones of +0.5% CuEq2 mineralisation from 4 m depth as it drilled towards the
north-east, through an area previously interpreted to be lower grade (Figures 3 and 5).
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1Visual 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 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).
DKD040 recorded better-than-expected results across a previously interpreted lower-grade area, limiting
the influence of earlier first-pass RC results drilled on sub-optimal orientation. This has expanded the nearsurface, gold-rich high-grade core, returning 16.7 m @ 0.60% CuEq1 (0.45% Cu, 0.20 g/t Au) from 12 m,
within a broader intersection of 86.6 m @ 0.45% CuEq (0.34% Cu, 0.15 g/t Au) from 4.4 m, immediately
beneath shallow gravel cover (Figure 3).
DKD040 also confirmed a significant ~70 m expansion of La Verde’s higher-grade core beneath the eastern
flank, returning 163.9 m grading 0.43% CuEq (0.34% Cu, 0.11 g/t Au) from 185.2 m, including a higher
grade, gold-rich zone of 20 m at 0.60% CuEq (0.43 Cu%, 0.23 g/t Au) from 206 m.
Assay results are outstanding for eight diamond and six RC drill holes, and the Company look forward to
providing further updates as results are received.
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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).
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 DKD049, DKP052, DKP053 and DKP054
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. 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.
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 DKD040 and several previously returned higher-grade significant intersections compared with 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 12 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 LaVerde – 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. Cross section slice along DKD040 (± 75m clipping) showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralization interpolants and returned assay results for DKD040. Returned Cu grades shown on hole traces. Results reported including CuEq1 .
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).
Figure 4. Cross section slice along DKD049 (± 75m clipping) showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralization interpolants. Returned Cu grades shown on hole traces. Previous results reported by CuEq1, visual estimate from DKD049 shown2.
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)
2Visual 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 5. NNW facing longitudinal section of the La Verde porphyry system showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralization interpolants, recent drill hole result DKD040 and several previously returned higher-grade significant intercepts. Returned Cu grades shown on hole traces. Drilled holes with pending assays shown in black. Results reported by CuEq1, drill holes displaying visual estimates noted2
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)
2 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
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 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).
Hot Chili is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.