Highlights
Latest Drill Results Double La Verde Porphyry Discovery Footprint
• Completion of phase-one Reverse Circulation (“RC”) drilling program confirms significant copper-gold (Cu-Au) discovery, with mineralization extending over 1 km in length and up to 750 m in width from near surface.
• Discovery remains open laterally and at depth, with over half of Hot Chili’s drill holes ending in mineralization.
• Significant intercepts from latest drill results included:
• 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
• 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
District-Scale Porphyry Cluster Potential Emerging at La Verde
• Geophysical and surface geochemical Programs identify a cluster of three large targets adjacent to the La Verde porphyry discovery.
• Phase-two expansion drilling of La Verde and first drilling across adjacent porphyry targets awaiting access approval.
Projects Registered for Priority Status by Chilean Ministry of Economy
• Costa Fuego Copper-Gold Project and Huasco Water Project fulfilled key requirements to be considered in the Chilean government’s list of strategic investment projects for the country to expedite through streamlined administrative approval processing.
Hot Chili Adds Mine-Build Credentials with Key Appointments
• High profile Australian mining executive and former Gold Fields executive vice president Mr. Stuart Mathews appointed to the Board of Directors in the role of Non-Executive Chair.
• Well regarded Chilean mining executive and project director for several of Chile’s largest mine developments, Mr. Alberto Cerda, has been appointed to the executive role of Project Director.
Strategic Partnering Process Advancing
• Ongoing strategic partnering process to secure qualified partners to support funding and delivery of Costa Fuego and Huasco Water, with BMO Capital Markets appointed as financial advisor. A$5.2M Cash & A$2.0M in Returns Expected (VAT reimbursements)
SUMMARY OF OPERATIONAL ACTIVITIES
La Verde Exploration Update
Rapidly Expanding Discovery, Multiple Higher-Grade Centres Confirmed
The phase-one RC drilling program across the La Verde copper-gold porphyry discovery (“La Verde”), located 30km south of the Company’s Costa Fuego Copper-Gold Project (“Costa Fuego”), was completed on 8 April 2025
with a total of 31 RC drillholes for 9,630 m drilled. Final results from the phase-one drill program reported during the quarter confirm:
• Three higher-grade centres defined by multiple intersections (refer Figure 1)
• Shallow copper-gold (Cu-Au) mineralization extending over 1 km in length and up to 750 m in width (refer Figure 2).
• The La Verde discovery remains open laterally and at depth with over half of Hot Chili’s drilling ending in mineralization (at depth of RC drill capability).
Significant drill results reported during the quarter included:
• 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 322m
• 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
The Company is planning to commence diamond drilling planned for phase two to extend higher grade centres at depth. Regulatory application for phase-two drilling access has been submitted and is progressing.
Baseline studies for a second Environmental Impact Assessment (“EIA”) are ongoing to ensure timely integration of La Verde into Costa Fuego’s potential future mine plan.
District-Scale Porphyry Cluster Potential Emerging at La Verde
Regional exploration activities reported during the quarter have identified multiple look-alike magnetic features adjacent to La Verde highlight potential for a broader district-scale porphyry system. The integration of a 3D magnetic inversion model from ground magnetic data shows a spatial correlation between the mineralized tonalitic porphyry intrusion and a NNE-SSW trending weakly magnetic anomaly over La Verde.
This magnetic anomaly sits within a localized circular magnetic-low feature. This relationship has been used to identify three additional circular magnetic-low features (lookalike targets) adjacent to La Verde, all of which are well-positioned at the intersection point of major regional structures (Figure 3).
In addition to the geophysical data, the Company has also completed 3D geochemical probability modelling using an extensive regional soil geochemistry program (Figure 4).
This work has outlined three priority porphyry targets as outlined in Figure 3, with two of these porphyry targets concealed under shallow gravel cover (blind exploration opportunity). Regulatory applications for access clearing are being progressed across these new target areas adjacent to La Verde.
the size potential of the emerging higher-grade centres and the broader copper mineralization model, which remains
open in all directions. Copper interpolants displayed as 3D meshes, drillholes displayed as thin black traces. For
full details of the drilling intercepts and assay results to date, refer to the Company’s announcement “Hot Chili
Announces Latest Drill Results for La Verde” dated 19 May 2025.
intrusions compared to the footprint of the +0.2% Copper interpolant (yellow outline). Returned Cu grades graphed
downhole. For full details of the drilling intercepts and assay results to date, refer to the Company’s announcement
“Hot Chili Announces Latest Drill Results for La Verde” dated 19 May 2025.
destruction footprint (red dashed), local magnetic low features (white dashed), weakly magnetic anomalies (white
line) and Fathom 3D geochemical probability models (purple isosurfaces). Left – shown overlain on reduced-to-thepole (RTP) ground magnetics and the 3D magnetic inversion model (sliced at 850 RL, displayed as blocks, filtered
for Magnetic Susceptibility > 0.014). Right – shown in relation to mapped gravel cover, interpreted regional
structures and soil sample coverage. A – A’ indicates the position of long section in Figure 4.
mineralisation interpolants in comparison to the 3D magnetic inversion model (displayed as blocks, filtered for
Magnetic Susceptibility > 0.014) and 3D geochemical target at La Verde North-East. Local circular magnetic low
features are outlined (white dashed line) and locations where shallow weakly magnetic anomalies extend to the
surface are marked with blue arrows. Position of 850 RL depth shown for 3D magnetic inversion model slice in
Figure 3.
Table 1 – Drill Holes Completed for Costa Fuego in Quarter 2 2025
Table 2 – Significant Intersections returned for Costa Fuego in Quarter 2 2025
SUMMARY OF CORPORATE ACTIVITIES
Strategic Partnering Process
Following completion of the Pre-feasibility Studies (“PFS”) for Costa Fuego and Huasco Water, Hot Chili initiated asset-level strategic partnering processes (“Partnering Process”) to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering each project.
The Partnering Process is ongoing, and the Company confirms it is currently assessing several non-binding, indicative, incomplete and conditional proposals. The Partnering Process may result in a range of possible transactions for the projects.
Investors are cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement. The Company will keep the market updated in accordance with its continuous disclosure obligations.
Hot Chili has appointed BMO Capital Markets as its financial adviser in connection with the Partnering Process.
Cash Position and Capital Structure Changes
As of 30 June 2025, the Company had cash of A$5.2 million and no debt. In addition, a further A$2.0M of inbound funds are expected over the coming quarter through government VAT reimbursements.
The operating expenditure for quarter ended 30 June 2025 included payments for exploration and evaluation of A$3.3 million.
Included in this amount was A$1.6 million related to the final invoices for the competition of the Costa Fuego and Huasco Water Pre-feasibility Studies, initial activities related to the optimization of the two-studies, and the advancement of the EIA.
A total of A$1.7 million was spent on exploration activities across La Verde and southern landholdings included in the Domeyko project, with phase-one drilling activities at La Verde having been completed on 10 April 2025.
The investing expenditure for quarter ended 30 June 2025 included the recoup of joint venture expenditure from CMP for A$2.7 million.
The Company is continuing discussions related to potential renegotiation of forthcoming Option payments in Q4 and is advancing potential strategic funding discussions (Partnering Process) as detailed above.
In addition, the Company has various other funding opportunities available should they be required, including royalties, streaming and equity funding.
The following summarises the Company’s securities on issue:
• 153,375,654 ordinary fully paid shares
• 1,914,000 options at AUD $1.50 expiring 24 July 2026
• 1,587,875 service rights
• 2,321,742 performance rights
Hot Chili Limited is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.
