PERTH, AUSTRALIA (By Hot Chili, 30.Jul.2026, Words: 300) — Drilling at Hot Chili‘s La Verde copper-gold (Cu-Au) porphyry deposit in coastal Chile continued during the quarter, with a third drill rig commencing in May.
La Verde is one of Chile’s most significant new coastal Cu-Au porphyry discoveries and is fast-shaping as a cornerstone asset for the company’s coastal range Costa Fuego copper-gold (Cu-Au) project.
Standout results reported during the quarter included:
- DKD044 recorded 391.1 m grading 0.51% CuEq¹ (0.42% Cu, 0.11 g/t Au) from surface, including:
- 17.8 m grading 0.68% CuEq (0.63% Cu, 0.06 g/t Au) from surface
- 40.7 m grading 0.60% CuEq (0.50% Cu, 0.12 g/t Au) from 103.3 m
- 85.4 m grading 0.61% CuEq (0.50% Cu, 0.15 g/t Au) from 160 m
- 19.7 m grading 0.70% CuEq (0.57% Cu, 0.15g/t Au) from 276.1 m
- DKP053 recorded 250 m grading 0.50% CuEq (0.39% Cu, 0.14g/t Au) from 64 m depth, including
- 36 m grading 0.72% CuEq (0.59% Cu, 0.18g/t Au) from 82 m
- DKP054 recorded 124 m grading 0.46% CuEq (0.40% Cu, 0.07g/t Au) from 42 m depth, including
- 26 m grading 0.71% CuEq (0.63% Cu, 0.10g/t Au) from 58 m
- DKP058 recorded 108 m grading 0.54% CuEq (0.45% Cu, 0.11 g/t Au) from 24 m depth, including
- 32 m grading 0.60% CuEq (0.52% Cu, 0.12 g/t Au) from 24 m
- DKD049 recorded 213 m grading 0.44% CuEq (0.38% Cu, 0.07g/t Au) from 504 m depth, including
- 57.3 m grading 0.60% CuEq (0.51% Cu, 0.10 g/t Au) from 535.8 m
- DKP028D recorded 258.9 m grading 0.42% CuEq (0.33% Cu, 0.09 g/t Au) from 358 m, including
- 27.4 m grading 0.76% CuEq (0.63% Cu, 0.16 g/t Au) from 499.5 m
- Assays pending for 21 drillholes (three DD, three DD tails and 15 RC) and second accredited laboratory now operating at full capacity – significantly improving Hot Chili’s assay turnaround times
Hot Chili Secures $15mn Via Amendment Agreement with OR Royalties
- La Verde, a pre-resource asset, is now added to OR’s royalty footprint for $15mn in funding
- OR royalty “look-through” value has doubled, given its equivalence to a 1.12% CuEq1 NSR royalty across payable metals for a total consideration of $30mn (following additional $15mn amendment agreement), and Hot Chili’s current market capitalisation of approximately US$230 million
- Change of Control Royalty Buyback terms aligned with ongoing strategic partnering process
SUMMARY OF OPERATIONAL ACTIVITIES
Higher-Grade Starter Pit Firming as a Standout Feature of La Verde
The Company’s ongoing focus on shallow infill and step-out drilling across the up-dip extension of La Verde’s high-grade core, continued to deliver more outstanding results from Reverse Circulation (RC) drill holes DKP053, DKP054, DKP056, and DKP058 during the quarter.
Numerous drilling intersections returned across the up-dip portion of La Verde’s high-grade core, all contain broad zones of higher-grade (+0.7% CuEq) mineralisation from shallow depths. Importantly, assay results are pending for nearby up-dip drillhole DKP052.
These ongoing shallow RC drill results further expand the footprint of near-surface, higher-grade mineralisation and continue to strengthen the scale and continuity of a significant, near-surface, enrichment zone – capable of delivering a higher-grade starter pit opportunity for Costa Fuego.
Expansion Drilling Delivering Continued Success
Diamond (DD) drilling assay results for step-out holes DKD044, DKD049 and DKP028D also confirmed additional bulk tonnage extensions and delivered further expansion of La Verde’s high-grade core during the quarter.
Assay results from DKD044 returned a significant intersection of 391 m grading 0.51% CuEq (0.42% Cu, 0.11g/t Au) from surface, (Figure 1), including several higher-grade intervals, confirming broad and continuous high-grade copper-gold mineralisation on the western side of the high-grade core
DD hole DKD049 was designed as a 175 m step-out from DKD039 – which recorded the highest-grade and widest drilling intersection to date at La Verde (725 m grading 0.42% CuEq (0.36% Cu, 0.07 g/t Au from 18m depth). Results from DKD049 confirm a significant expansion of La Verde’s eastern flank at depth.
DKP028D successfully extended a previous RC drillhole (which ended in mineralisation), recording a further 200m down-hole of mineralisation across La Verde’s western flank.
Advancing Toward Maiden Mineral Resource and Pre-Feasibility Study (PFS) Integration
Hydrogeological, geotechnical, metallurgical, mine engineering and environmental workstreams are all advancing well toward full integration of La Verde into the company’s Costa Fuego production hub. Additional mineralogical analysis activities were also carried out during the quarter, including Terraspec data collection and drill core scanning using LithologyIQ’s hyperspectral instrument.
A maiden Mineral Resource Estimate (MRE) for La Verde is expected to be released later this year followed by a revised PFS for Costa Fuego and then finally culminating in the formal submission of an Environmental Impact Assessment for Costa Fuego in Q2CY 2027.
The company expects that La Verde’s rapid integration will be transformative for Costa Fuego’s financial metrics and global standing, already ranked amongst the world’s top five by-scale, independent copper developments, not controlled by a major mining company.
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NOTE 1: CuEq considers assumed commodity prices and average metallurgical recoveries from test work.
NOTE 2: $15mn (approximately A$21.4mn)
