Mine Life Upgrade Probability Increases with New Drill Results at Hot Chili’s La Verde Discovery

By
Duane Hope
-
Rapidly Expanding Discovery, Multiple Higher-Grade Centres Confirmed

Latest assays from phase-one Reverse Circulation (RC) drilling confirm copper-gold (Cu-Au) mineralisation now extending over 1 km in length and up to 750 m in width, from near surface

  • Higher-grade centres confirmed across the extent of the shallow oxide and sulfide discovery
  • New significant drill results include:
  • 389 m grading 0.4% Cu and 0.1 g/t Au from 4 m depth to end-of-hole (DKP030)
    • including 46 m at 0.6% Cu and 0.2 g/t Au from 238 m
    • including 34 m at 0.6% Cu and 0.2g/t Au from 322 m
  • 120 m grading 0.4% Cu and 0.1 g/t Au from 6 m depth (DKP028)
    • including 48 m at 0.5% Cu and 0.1 g/t Au from 26 m
  • And, 114m at 0.3% Cu, 0.1g/t Au from 318m depth to end-of-hole
    • including 34m at 0.4% Cu, 0.2g/t Au from 380 m to end-of-hole
  • 114 m grading 0.4% Cu from 86 m depth (DKP024)
    • including 52 m at 0.5% Cu and 0.1 g/t Au from 96 m
  • 286 m grading 0.3% Cu and 0.1 g/t Au from 4 m depth (DKP027)
    • including 154 m at 0.4% Cu, 0.1g/t Au from 44 m
  • 228 m grading 0.3% Cu and 0.2 g/t Au from 42 m depth (DKP013)
    • including 104 m at 0.4% Cu and 0.3 g/t Au from 42 m
  • 202 m grading 0.3% Cu and 0.1 g/t Au from 50 m depth (DKP017)
    • including 14 m at 0.4% Cu and 0.1 g/t Au from 96 m
    • including 16 m at 0.4% Cu and 0.1 g/t Au from 180 m
  • 138 m grading 0.3% Cu and 0.1 g/t Au from 6m depth to end-of-hole (DKP020)
    • including 24 m at 0.4% Cu and 0.1 g/t Au from 6 m
    • including 48 m at 0.4% Cu and 0.1 g/t Au from 36 m
    • including 36 m at 0.4% Cu and 0.1 g/t Au from 102 m

Open Laterally and At-Depth, Larger Cu-Au Porphyry Discovery Emerging

  • Over half of Hot Chili’s drill holes ended in significant mineralisation at the limit of RC drilling depth capability; deeper diamond drilling planned for phase 2 to extend higher grade centres at depth
  • Regulatory application for phase-two drilling access progressing
  • Exploration activity streams investigating potential for larger porphyry cluster at La Verde, further updates expected

Potential for Significant Open Pit Mine Life Addition for Costa Fuego Cu-Au Hub

Further Development Study Updates Expected for Costa Fuego and Huasco Water

                                                                  

Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or the “Company”) is pleased to report a third round of strong assay results from its 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.

The Company concluded a phase-one drilling campaign across the La Verde Cu-Au porphyry discovery on 10 April 2025, with a total of 31 RC drill holes (9,600 m) completed to date.  Following a period of delayed laboratory turnaround time, final assay results have been received and compiled.

Initial assay results from the first 12 RC drill holes at La Verde confirmed a 400 m by 550 m discovery footprint, extending from near-surface to approximately 300 m vertical depth (refer to announcement dated 11 February 2025).

Recently returned assay results have now more than doubled the initial discovery footprint, resulting in an extensive +0.2% Cu mineralisation footprint of 1,000 m by 750 m extending up to 400 m vertical depth (Figures 2 and 5) and remaining open laterally and at depth.

Importantly, multiple distinct higher-grade centres have been confirmed from near surface (Figures 2, 3 and 5).  Assessment of each of these higher-grade centres indicates:

  1. North-East (NE) Higher-Grade Centre
    • Located approximately 180 m to the north-east of the historical shallow copper oxide open pit
    • Higher-grade Cu-Au zone defined in six RC drill holes
    • Current dimensions: 180 m strike by 280 m width by 320 m in vertical extent
    • Remains open along strike to the north-east (beneath shallow gravel cover) and at depth
  2. South-east (SE) Higher-Grade Centre
    • Located approximately 70 m to the south-east of the historical shallow copper oxide open pit
    • High-grade Cu-Au zone defined by nine RC drill holes
    • Current dimensions: 320 m strike by 340 m width by 400 m in vertical extent
    • Remains open to the west beneath the open pit, to the east (beneath shallow gravel cover), and at depth
  3. South-west (SW) Higher-Grade Centre
    • Located 310 m to the south of the historic open pit
    • High grade Cu-Au zone defined by two RC drill holes
    • Current dimensions: 90 m strike by 120 m width by 260 m in vertical extent
    • Remains open to the south (beneath shallow gravel cover) and at depth

The extent of mineralisation beneath the existing La Verde open pit remains untested at this stage, due to limitations of RC drilling through clay altered structures.

The Company is reviewing multi-element assay results to enhance understanding of the La Verde discovery, validate geological interpretations, and guide four-dimensional modelling and future drilling plans.

Three-dimensional magnetic inversion modelling has revealed a NNE-SSE trending weak magnetic anomaly aligned with the tonalitic porphyry intrusion (Figure 4). This relationship is guiding the evaluation of regional geophysical and geochemical assessments to identify extensions of the La Verde system and new porphyry targets within the broader magnetic destruction zone (Figure 6).

Regulatory applications for further drill access at La Verde are advancing, with phase-two drilling (RC and diamond drilling) planned to commence once approvals are received.

The Company looks forward to providing further updates, including advancements in exploration understanding of La Verde’s growth potential, as well as various development study activities related to the current Pre-Feasibility Study optimisation phase for its Costa Fuego and Huasco Water projects.

Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile

Figure 2. Oblique long-section of La Verde Cu-Au porphyry discovery (facing 335 azimuth +35 plunge) outlining the size potential of the emerging higher-grade centres and the broader copper mineralisation model, which remains open in all directions. Copper interpolants displayed as 3D meshes, drillholes displayed as thin black traces.

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. For previously released significant intercepts see announcement dated 18th December 2024 and 11th February 2025.

Figure 3. Plan view map of the La Verde porphyry system showing significant intercepts compared with +0.1% copper (light blue outline), +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralisation interpolants from returned assay results. A – A’ indicates position of long section in Figure 4.

Figure 4. Plan view slice at 950 RL (± 50 m clipping) of tonalitic (pink polygon) and dioritic porphyry (red polygon) intrusions compared to the footprint of the +0.2% Copper interpolant (yellow outline). Returned Cu grades graphed downhole.

Figure 5. NNW facing longitudinal section (A – A’) of the La Verde porphyry system showing significant intercepts compared to +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (Magenta) mineralisation interpolants from returned assay results. Weathering profile displayed as top of fresh material (black line). Returned Cu grades graphed downhole along hole traces (grey).

Figure 6. La Verde porphyry intrusions and +0.2% Cu interpolant (yellow line) from Phase 1 drilling displayed in relation to the interpreted regional magnetic destruction footprint of La Verde porphyry system (dashed red line) and local La Verde magnetic low feature (dashed blue line) defined from ground magnetic survey (RTP) and the 3D magnetic inversion model. 3D inversion model shown on left hand side (displayed as blocks & sliced at 950 RL), and extent of gravel cover displayed on right hand side.

Hot Chili Limited is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.

Duane Hope
Duane Hope is a Partner at Capital 10X, he brings over 15 years of communications and research experience to the firm. His research and writing have appeared in publications for North American, European and Asian audiences.

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