Core photo from DKD039 (709m downhole) showing vein-hosted and disseminated chalcopyrite (~3%) and pyrite (~2%) mineralization in strongly veined tonalite host rock, assay results expected April 2026(1) (CNW Group/Hot Chili Limited)
Highlights
- Near-surface, higher-grade drill results continue at the La Verde copper-gold porphyry discovery, outlining a potential higher-grade starter pit for the Company’s Costa Fuego copper-gold project, located in Chile’s coastal range
- DKD036 recorded 150 m grading 0.52% CuEq 2 (0.37% Cu, 0.21 g/t Au) from 30 m depth
- Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117 m
- DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 m depth
- Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187 m
- Latest results add to nine previously recorded significant drill intersections, which underpin a rapidly emerging, shallow zone of higher-grade copper-gold mineralization at La Verde
- Strong chalcopyrite-rich, copper porphyry style mineralization visually recorded over approximately 150m downhole width in current drillhole DKD039, significantly expanding La Verde’s high-grade core at depth
- Double-shift diamond drilling continuing, second drill rig (Reverse Circulation (“RC”)) expected to begin soon
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) announced stronger drill results from its La Verde copper–gold (Cu-Au) porphyry discovery, located 30 km south of the Company’s Costa Fuego Cu-Au Project (“Costa Fuego” or “the Project”) planned central processing hub in Chile’s coastal Atacama region.
Significant intersections returned from drillholes DKD035 and DKD036 add to nine previously recorded significant drill intersections drillholes (Figures 2 to 4), which define a 400 mx 400 m higher-grade, near-surface copper-gold zone. These results look likely to contribute a higher-grade starter pit to the Costa Fuego open pit mine schedule, significantly reducing payback and positively impacting key financial metrics of Hot Chili’s March 2025 Pre-Feasibility Study (“PFS”). Latest results include:
- DKD036 recorded 150 m grading 0.52% CuEq 1 (0.37% Cu, 0.21 g/t Au) from 30 m depth
- Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117 m , and
- DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 m depth
- Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187 m
Similar to previous near-surface drill intersections, these latest significant results begin immediately beneath shallow gravel cover, indicating the potential for simple, cost-effective overburden removal in a future higher-grade starter pit development.
Importantly, latest results from DKD0035 and DKD0036 are located up-dip from previously reported DKD032 drilling intersection, which recorded 148 m grading 0.82% CuEq (0.60% Cu, 0.30 g/t Au) from 70 m depth.
In addition, current drillhole DKD039 (Figures 2 to 4), has recorded a visual intersection of strong copper porphyry-style mineralization. Chalcopyrite abundance within the 580 m to 730 m interval is estimated to average greater than 1% (Table 2), with several intervals recording chalcopyrite abundance above 3%.
This latest visual mineralization significantly expands La Verde’s high-grade core, with assay results expected to be returned in April 2026.
Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyzes 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.
New results from two additional diamond tail extensions (DKP006D and DKP021D) of earlier RC drillholes also expanded La Verdes’ +0.4% Cu mineralized footprint laterally toward the east (Figure 2).
DKP021D recorded an additional 54 m grading 0.42% CuEq (0.34% Cu, 0.11 g/t Au) from 593 m depth, including 19 m grading 0.66% CuEq (0.51% Cu, 0.21 g/t Au) from 593 m depth. The original RC drillhole recorded 80 m grading 0.3% CuEq (0.3% Cu, 0.1 g/t Au) from 234 m, and 46 m grading 0.3% CuEq (0.3% Cu, 0.1 g/t Au) from 324 m.
| Assumptions |
| 1 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per ton × 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. Ag(g/t). |
Latest results have provided confidence to expand Hot Chili’s Phase two drill program, with a second drillrig expected to begin shortly.
Initial metallurgical testwork for La Verde, also using seawater, indicates similar recoveries to those recorded at Costa Fuego 1 . Sample selection for further metallurgical testwork is underway and assay results are outstanding for five diamond drillholes, including DKD039.
The Company looks forward to providing further updates as assays results are received.
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 calculated above a nominal cut-off grade of 0.20% Cu. Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.20% Cu). Significant intersections are separated where internal dilution is greater than 30m down-hole distance. The selection of 0.20% 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.
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. DKD039 mineral abundance details
Notes to Table 2: cp = chalcopyrite, py = pyrite, mo = molybdenite. 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 planned and returned drilling compared with updated +0.2%
copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq2
1 See Page 9 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. Plan view slice at 1050 m, clipped to +/- 100 m (surface is ~1150 mRL). Significant intersections are shown for the entire drillhole, where available. Eleven drill intersections inform the high-grade core within 200 m of surface. Drillholes with pending assays are shown in black. Updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants included, drillhole intervals bolded by >0.6% 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 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. NNW facing longitudinal section of the La Verde porphyry system showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Drillhole intervals are coloured by CuEq1. Completed drillholes pending assays, including DKD039, are shown as black traces.
Currently planned but not yet drilled holes are shown as white traces.
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 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).
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 NI43-101.
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’ and ‘Rapid Growth of High Grade Core Continues at La Verde’ released to ASX on 26 February
2024, 19 May 2025, 29 May 2025, 27 November 2025, 10 December 2025 and 20 January 2026, respectively,
which are available to view on the Company’s website at www.hotchili.net.au/investors/investorcentre/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.