Hot Chili says multiple higher-grade centers confirmed in Chile

PERTH, AUSTRALIA (By Hot Chili, 29.Jul.2025, Words: 1,042) — The phase-1 RC drilling program across the La Verde copper-gold porphyry discovery, located 30km south of Hot Chili Limited‘s Costa Fuego copper-gold project, was completed on 8 Apr. 2025 with a total of 31 RC drillholes for 9,630m drilled.

RELATED: Hot Chili says Costa Fuego and Huasco projects registered for priority status by Chilean ministry of economy

Final results from the phase-one drill program reported during the second-quarter 2025 (2Q:25) confirm:

  • 3 higher-grade centres defined by multiple intersections
  • Shallow copper-gold (Cu-Au) mineralization extending over 1km in length and up to 750m 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 mineralisation (at depth of RC drill capability).
Figure 2. 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. 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. (CNW Group/Hot Chili Limited)
Figure 2. 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. 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. (CNW Group/Hot Chili Limited)

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
  • 228m 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.

Figure 3. Plan view showing the La Verde +0.2% Cu mineralisation interpolant in relation to regional magnetic 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-the-pole (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. (CNW Group/Hot Chili Limited)
Figure 4. Long section view A – A’ facing north-west showing the La Verde +0.2% (yellow) and +0.3% copper (red) 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. (CNW Group/Hot Chili Limited)

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.

In addition to the geophysical data, the company has also completed 3D geochemical probability modelling using an extensive regional soil geochemistry program.

This work has outlined three priority porphyry targets 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.

Mineral Resource Statement – Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024) (CNW Group/Hot Chili Limited)
Ore Reserve Statement – Costa Fuego Combined Ore Reserve (Effective Date 27 March 2025) (CNW Group/Hot Chili Limited)

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 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.

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