Hot Chili Confirms Major Copper & Gold Discovery at La Verde Property

Highlights

Rapidly Emerging Major Copper-Gold Porphyry Discovery
New drill results from an additional ten Reverse Circulation (RC) drill holes confirm La Verde as a major copper-gold porphyry discovery in low elevation coastal Chile, with broad, consistently mineralized intersections extending over 300 m vertically, commencing at shallow depths.
Multiple new significant drill intersections underpin rapidly growing oxide and sulphide discovery.
- 320 m grading 0.3% Cu and 0.1 g/t Au from 34 m to end-of-hole (DKP009)
  - including 134 m at 0.4% Cu and 0.2 g/t Au from 180 m depth
  - including 56 m at 0.5% Cu and 0.2 g/t Au from 258 m depth
- 200 m grading 0.4% Cu and 0.1 g/t Au from 48 m to end-of-hole (DKP005)
  - including 38 m at 0.5% Cu and 0.2 g/t Au from 68 m depth
- 172 m grading 0.4% Cu and 0.2 g/t Au from 48 m (DKP012)
  - including 20 m at 0.5% Cu and 0.2 g/t Au from 62 m depth
- and 78 m grading 0.5% Cu and 0.1 g/t Au from 228 m to end-of-hole
  - including 32 m at 0.6% Cu and 0.2 g/t Au from 232 m depth
- 135.5 m grading 0.3% Cu and 0.1 g/t Au from 64 m to end-of-hole (DKP006)
  - including 62 m at 0.4% Cu and 0.2 g/t Au from 124 m depth
  - which included 26 m at 0.5% Cu and 0.3g/t Au from 124 m depth
- 32 m grading 0.4% Cu from surface (DKP011)
- 80 m grading 0.3% Cu and 0.1 g/t Au from 8 m depth (DKP004)
  - including 34 m at 0.4% Cu from 8 m depth

La Verde Discovery Keeps Growing – Large Scale Appeal

New drill results reinforce La Verde’s potential scale, adding to the strong results reported on 18 December 2024:
- 308 m grading 0.5% Cu, 0.3 g/t Au from 46 m to end-of-hole (DKP002)
  - including 202 m at 0.6% Cu, 0.3g/t Au from 70 m depth
  - which included 100 m at 0.7% Cu and 0.3g/t Au from 118 m depth
- 362 m grading 0.3% Cu, 0.1g/t Au from 28m to end-of-hole (DKP001)
  - including 174 m at 0.4% Cu and 0.1 g/t Au from 36 m depth
  - which included 22 m at 0.6% Cu, 0.2g/t Au from 144 m depth
Open at depth – 8 of 12 drill RC holes to date ended in significant mineralisation at end-of-hole
Open laterally – step-out drilling underway to potentially double footprint (currently 550 m x 400 m)
More results coming – assays pending for seven additional holes; deeper diamond drilling planned

Projects Advancing Toward Development Decision

Pre-Feasibility Studies (PFS) for Costa Fuego and Huasco Water nearing completion
A$19 million in cash as of 31 December 2024

Drilling continues to expand the La Verde Cu-Au porphyry discovery – now 550m by 400m and open in all directions

La Verde is shaping up as Hot Chili’s next major copper-gold discovery, with the potential to significantly lift the scale of our Costa Fuego project. With primary copper supply declining, copper and gold prices rallying, and a PFS on each of our planned businesses (copper-gold and water) nearing completion – momentum is building fast.

Following in the footsteps of our successes at Cortadera and Productora, we’ve secured full control of La Verde after years of strategic consolidation, finally allowing us unrestricted access to test this historically overlooked porphyry system.

Drill results have exceeded expectations, revealing a much larger porphyry system than first recognized, with broad, consistent copper-gold mineralization extending from shallow depths and largely hidden below shallow gravel cover.

This discovery has all the signs of becoming our third bulk-tonnage, copper-gold deposit, and is open in all directions and growing fast. We’re also preparing to deploy AI-powered exploration to fast-track our nearby exploration growth pipeline, leveraging 16 years of expertise in Chile.

With La Verde’s scale potential and the Costa Fuego copper-gold hub expanding, we’re at a major inflection point in Hot Chili’s growth story.Christian Easterday, Managing Director & CEO, Hot Chili Ltd.

Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) reported a second round of strong assay results from its La Verde copper-gold discovery, located approximately 30km south of the Company’s Costa Fuego Copper-Gold Project (“Costa Fuego” or “the Project”) planned central processing hub at low elevation in the coastal range of the Atacama region, Chile.

Hot Chili has now completed 19 RC drill holes (5,700 m) at La Verde, with assay results from 12 holes reported so far confirming a major copper-gold porphyry discovery in Chile’s coastal range.

Drilling Confirms Scale & Growth Potential

Wide, shallow mineralization – current discovery footprint extends 550 m by 400 m and remains open in all directions.
Deeper potential remains untapped – Mineralization commences from shallow depths, extends to more than 300m below surface, and 8 of 12 drill holes reported to date end in mineralization at the limit of RC drilling depth capability.
Gravel cover masking potentially much larger porphyry system – step-out drilling underway.
Potential below the historical oxide copper open pit untested – drill testing yet to commence.
Major discovery in its infancy – every drill hole has intersected porphyry-style, copper-gold mineralisation (refer to Table 1 for details on significant intercepts).

What’s Next?

More results coming – assays pending for seven additional RC holes, with geological logging confirming the presence of porphyry host-rock featuring porphyry-style A- and B-type veining in each of the pending drill holes.
Diamond drilling being planned – targeting potential for deeper, higher-grade zones intersected at depth and to test potential for +1km vertical depth extent, typical of other recent major porphyry discoveries, such as Hot Chili’s neighbouring Cortadera discovery, BHP/Lundin Mining’s Filo del Sol discovery, ATEX Resources Valeriano discovery, and AMSA/Barrick’s Encierro discovery.
Regular drilling news flow – the Company will continue to provide updates as new drill results are received and exploration at La Verde advances.

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.