{"id":31636,"date":"2025-07-30T10:00:55","date_gmt":"2025-07-30T14:00:55","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=31636"},"modified":"2025-09-07T13:45:39","modified_gmt":"2025-09-07T17:45:39","slug":"hot-chili-releases-q2-operational-update-in-discussions-with-potential-partners","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/hot-chili-releases-q2-operational-update-in-discussions-with-potential-partners\/","title":{"rendered":"Hot Chili Releases Q2 Operational Update &#8211; In Discussions with Potential Partners"},"content":{"rendered":"<h3>Highlights<\/h3>\n<h4><strong>Latest Drill Results Double La Verde Porphyry Discovery Footprint<\/strong><\/h4>\n<p>\u2022 Completion of phase-one Reverse Circulation (\u201cRC\u201d) 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.<br \/>\n\u2022 Discovery remains open laterally and at depth, with over half of Hot Chili\u2019s drill holes ending in mineralization.<br \/>\n\u2022 Significant intercepts from latest drill results included:<br \/>\n\u2022 <strong>389 m grading 0.4% Cu and 0.1 g\/t Au from 4 m depth to end-of-hole (DKP030)<\/strong><br \/>\n\u25aa including 46 m at 0.6% Cu and 0.2 g\/t Au from 238 m<br \/>\n\u25aa including 34 m at 0.6% Cu and 0.2g\/t Au from 322 m<br \/>\n\u2022 <strong>286 m grading 0.3% Cu and 0.1 g\/t Au from 4 m depth (DKP027)<\/strong><br \/>\n\u25aa including 154 m at 0.4% Cu, 0.1g\/t Au from 44 m<\/p>\n<h4><strong>District-Scale Porphyry Cluster Potential Emerging at La Verde<\/strong><\/h4>\n<p>\u2022 Geophysical and surface geochemical Programs identify a cluster of three large targets adjacent to the La Verde porphyry discovery.<br \/>\n\u2022 Phase-two expansion drilling of La Verde and first drilling across adjacent porphyry targets awaiting access approval.<\/p>\n<h4><strong>Projects Registered for Priority Status by Chilean Ministry of Economy<\/strong><\/h4>\n<p>\u2022 Costa Fuego Copper-Gold Project and Huasco Water Project fulfilled key requirements to be considered in the Chilean government&#8217;s list of strategic investment projects for the country to expedite through streamlined administrative approval processing.<\/p>\n<h4><strong>Hot Chili Adds Mine-Build Credentials with Key Appointments<\/strong><\/h4>\n<p>\u2022 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.<br \/>\n\u2022 Well regarded Chilean mining executive and project director for several of Chile\u2019s largest mine developments, Mr. Alberto Cerda, has been appointed to the executive role of Project Director.<\/p>\n<h4><strong>Strategic Partnering Process Advancing<\/strong><\/h4>\n<p>\u2022 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 &amp; A$2.0M in Returns Expected (VAT reimbursements)<\/p>\n<h3><strong>SUMMARY OF OPERATIONAL ACTIVITIES<\/strong><\/h3>\n<h4><strong>La Verde Exploration Update<\/strong><\/h4>\n<p><strong>Rapidly Expanding Discovery, Multiple Higher-Grade Centres Confirmed<\/strong><\/p>\n<p>The phase-one RC drilling program across the La Verde copper-gold porphyry discovery (\u201cLa Verde\u201d), located 30km south of the Company\u2019s Costa Fuego Copper-Gold Project (\u201cCosta Fuego\u201d), was completed on 8 April 2025<br \/>\nwith a total of 31 RC drillholes for 9,630 m drilled. Final results from the phase-one drill program reported during the quarter confirm:<\/p>\n<p>\u2022 Three higher-grade centres defined by multiple intersections (refer Figure 1)<br \/>\n\u2022 Shallow copper-gold (Cu-Au) mineralization extending over 1 km in length and up to 750 m in width (refer Figure 2).<br \/>\n\u2022 The La Verde discovery remains open laterally and at depth with over half of Hot Chili\u2019s drilling ending in mineralization (at depth of RC drill capability).<\/p>\n<p>Significant drill results reported during the quarter included:<\/p>\n<p><strong>\u2022 389 m grading 0.4% Cu and 0.1 g\/t Au from 4 m depth to end-of-hole (DKP030)<\/strong><\/p>\n<p>\u25aa including 46 m at 0.6% Cu and 0.2 g\/t Au from 238 m<br \/>\n\u25aa including 34 m at 0.6% Cu and 0.2g\/t Au from 322m<\/p>\n<p><strong>\u2022 120 m grading 0.4% Cu and 0.1 g\/t Au from 6 m depth (DKP028)<\/strong><\/p>\n<p>\u25aa 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<br \/>\n\u25aa including 34m at 0.4% Cu, 0.2g\/t Au from 380 m to end-of-hole<\/p>\n<p><strong>\u2022 114 m grading 0.4% Cu from 86 m depth (DKP024)<\/strong><\/p>\n<p>\u25aa including 52 m at 0.5% Cu and 0.1 g\/t Au from 96 m<\/p>\n<p><strong>\u2022 286 m grading 0.3% Cu and 0.1 g\/t Au from 4 m depth (DKP027)<\/strong><\/p>\n<p>\u25aa including 154 m at 0.4% Cu, 0.1g\/t Au from 44 m<\/p>\n<p><strong>\u2022 228 m grading 0.3% Cu and 0.2 g\/t Au from 42 m depth (DKP013)<\/strong><\/p>\n<p>\u25aa including 104 m at 0.4% Cu and 0.3 g\/t Au from 42 m<\/p>\n<p><strong>\u2022 202 m grading 0.3% Cu and 0.1 g\/t Au from 50 m depth (DKP017)<\/strong><\/p>\n<p>\u25aa including 14 m at 0.4% Cu and 0.1 g\/t Au from 96 m<br \/>\n\u25aa including 16 m at 0.4% Cu and 0.1 g\/t Au from 180 m<\/p>\n<p><strong>\u2022 138 m grading 0.3% Cu and 0.1 g\/t Au from 6m depth to end-of-hole (DKP020)<\/strong><\/p>\n<p>\u25aa including 24 m at 0.4% Cu and 0.1 g\/t Au from 6 m<br \/>\n\u25aa including 48 m at 0.4% Cu and 0.1 g\/t Au from 36 m<br \/>\n\u25aa including 36 m at 0.4% Cu and 0.1 g\/t Au from 102 m<\/p>\n<p>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.<\/p>\n<p>Baseline studies for a second Environmental Impact Assessment (\u201cEIA\u201d) are ongoing to ensure timely integration of La Verde into Costa Fuego\u2019s potential future mine plan.<\/p>\n<h4><strong>District-Scale Porphyry Cluster Potential Emerging at La Verde<\/strong><\/h4>\n<p>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.<\/p>\n<p>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).<\/p>\n<p>In addition to the geophysical data, the Company has also completed 3D geochemical probability modelling using an extensive regional soil geochemistry program (Figure 4).<\/p>\n<p>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.<\/p>\n<figure id=\"attachment_31637\" aria-describedby=\"caption-attachment-31637\" style=\"width: 1027px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-31637\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.-1.png\" alt=\"\" width=\"1027\" height=\"934\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.-1.png 1027w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.-1-300x273.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.-1-1024x931.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.-1-768x698.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.-1-696x633.png 696w\" sizes=\"auto, (max-width: 1027px) 100vw, 1027px\" \/><figcaption id=\"caption-attachment-31637\" class=\"wp-caption-text\">Figure 1. Oblique long-section of La Verde Cu-Au porphyry discovery (facing 335 azimuth +35 plunge) outlining<br \/>the size potential of the emerging higher-grade centres and the broader copper mineralization model, which remains<br \/>open in all directions. Copper interpolants displayed as 3D meshes, drillholes displayed as thin black traces. For<br \/>full details of the drilling intercepts and assay results to date, refer to the Company&#8217;s announcement &#8220;Hot Chili<br \/>Announces Latest Drill Results for La Verde&#8221; dated 19 May 2025.<\/figcaption><\/figure>\n<figure id=\"attachment_31638\" aria-describedby=\"caption-attachment-31638\" style=\"width: 946px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-31638\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.2.png\" alt=\"\" width=\"946\" height=\"984\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.2.png 946w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.2-288x300.png 288w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.2-768x799.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.2-696x724.png 696w\" sizes=\"auto, (max-width: 946px) 100vw, 946px\" \/><figcaption id=\"caption-attachment-31638\" class=\"wp-caption-text\">Figure 2. Plan view slice at 950 RL (\u00b1 50 m clipping) of tonalitic (pink polygon) and dioritic porphyry (red polygon)<br \/>intrusions compared to the footprint of the +0.2% Copper interpolant (yellow outline). Returned Cu grades graphed<br \/>downhole. For full details of the drilling intercepts and assay results to date, refer to the Company&#8217;s announcement<br \/>&#8220;Hot Chili Announces Latest Drill Results for La Verde&#8221; dated 19 May 2025.<\/figcaption><\/figure>\n<figure id=\"attachment_31639\" aria-describedby=\"caption-attachment-31639\" style=\"width: 1011px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-31639\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.3.png\" alt=\"\" width=\"1011\" height=\"507\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.3.png 1011w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.3-300x150.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.3-768x385.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.3-696x349.png 696w\" sizes=\"auto, (max-width: 1011px) 100vw, 1011px\" \/><figcaption id=\"caption-attachment-31639\" class=\"wp-caption-text\">Figure 3. Plan view showing the La Verde +0.2% Cu mineralization interpolant in relation to regional magnetic<br \/>destruction footprint (red dashed), local magnetic low features (white dashed), weakly magnetic anomalies (white<br \/>line) and Fathom 3D geochemical probability models (purple isosurfaces). Left \u2013 shown overlain on reduced-to-thepole (RTP) ground magnetics and the 3D magnetic inversion model (sliced at 850 RL, displayed as blocks, filtered<br \/>for Magnetic Susceptibility &gt; 0.014). Right \u2013 shown in relation to mapped gravel cover, interpreted regional<br \/>structures and soil sample coverage. A &#8211; A&#8217; indicates the position of long section in Figure 4.<\/figcaption><\/figure>\n<figure id=\"attachment_31640\" aria-describedby=\"caption-attachment-31640\" style=\"width: 1011px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-31640\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.4.png\" alt=\"\" width=\"1011\" height=\"475\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.4.png 1011w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.4-300x141.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.4-768x361.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Fig.4-696x327.png 696w\" sizes=\"auto, (max-width: 1011px) 100vw, 1011px\" \/><figcaption id=\"caption-attachment-31640\" class=\"wp-caption-text\">Figure 4. Long section view A &#8211; A\u2019 facing north-west showing the La Verde +0.2% (yellow) and +0.3% copper (red)<br \/>mineralisation interpolants in comparison to the 3D magnetic inversion model (displayed as blocks, filtered for<br \/>Magnetic Susceptibility &gt; 0.014) and 3D geochemical target at La Verde North-East. Local circular magnetic low<br \/>features are outlined (white dashed line) and locations where shallow weakly magnetic anomalies extend to the<br \/>surface are marked with blue arrows. Position of 850 RL depth shown for 3D magnetic inversion model slice in<br \/>Figure 3.<\/figcaption><\/figure>\n<h4><strong>Table 1 &#8211; Drill Holes Completed for Costa Fuego in Quarter 2 2025<\/strong><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-31641\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table1.png\" alt=\"\" width=\"1056\" height=\"100\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table1.png 1056w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table1-300x28.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table1-1024x97.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table1-768x73.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table1-696x66.png 696w\" sizes=\"auto, (max-width: 1056px) 100vw, 1056px\" \/><\/p>\n<h4><strong>Table 2 \u2013 Significant Intersections returned for Costa Fuego in Quarter 2 2025<\/strong><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-31642\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2a.png\" alt=\"\" width=\"966\" height=\"1039\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2a.png 966w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2a-279x300.png 279w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2a-952x1024.png 952w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2a-768x826.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2a-696x749.png 696w\" sizes=\"auto, (max-width: 966px) 100vw, 966px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-31643\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2b.png\" alt=\"\" width=\"859\" height=\"962\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2b.png 859w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2b-268x300.png 268w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2b-768x860.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2025\/07\/HCH-PR-07-29-2025-Table2b-696x779.png 696w\" sizes=\"auto, (max-width: 859px) 100vw, 859px\" \/><\/p>\n<h3>SUMMARY OF CORPORATE ACTIVITIES<\/h3>\n<h4><strong>Strategic Partnering Process<\/strong><\/h4>\n<p>Following completion of the Pre-feasibility Studies (\u201cPFS\u201d) for Costa Fuego and Huasco Water, Hot Chili initiated asset-level strategic partnering processes (\u201cPartnering Process&#8221;) to introduce one or more qualified partners with the financial, technical and operational capability to assist in funding and delivering each project.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>Hot Chili has appointed BMO Capital Markets as its financial adviser in connection with the Partnering Process.<\/p>\n<h3>Cash Position and Capital Structure Changes<\/h3>\n<p>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.<\/p>\n<p>The operating expenditure for quarter ended 30 June 2025 included payments for exploration and evaluation of A$3.3 million.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>The investing expenditure for quarter ended 30 June 2025 included the recoup of joint venture expenditure from CMP for A$2.7 million.<\/p>\n<p>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.<\/p>\n<p>In addition, the Company has various other funding opportunities available should they be required, including royalties, streaming and equity funding.<\/p>\n<p><strong>The following summarises the Company&#8217;s securities on issue:<\/strong><br \/>\n\u2022 153,375,654 ordinary fully paid shares<br \/>\n\u2022 1,914,000 options at AUD $1.50 expiring 24 July 2026<br \/>\n\u2022 1,587,875 service rights<br \/>\n\u2022 2,321,742 performance rights<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hot Chili releases an operational update through June 30th 2025. Partner negotiations ongoing.<\/p>\n","protected":false},"author":30,"featured_media":27484,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2430,56,2558],"tags":[2383,2359,2463,2323,2382,2196,2527,2519,2459,2418,2353],"class_list":{"0":"post-31636","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-energy-transition-metals","8":"category-featured","9":"category-selected","10":"tag-asx-hch","11":"tag-chile-copper","12":"tag-chile-copper-demand","13":"tag-hot-chili","14":"tag-hot-chili-ltd","15":"tag-investing-in-copper","16":"tag-investing-in-copper-miners","17":"tag-investing-in-small-cap-miners","18":"tag-junior-copper-miners","19":"tag-otcqb-hhlkf","20":"tag-tsxv-hch"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hot Chili Releases Q2 Operational Update - In Discussions with Potential Partners | Capital 10X<\/title>\n<meta name=\"description\" content=\"Hot Chili releases an operational update through June 30th 2025. 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