Announcement • Apr 10
Hot Chili Limited Confirms Major High-Grade Extension At La Verde
Hot Chili Limited provided a drilling update from its La Verde Cu-Au porphyry discovery (La Verde), located 30 km south of the Company's Costa Fuego Cu-Au Project planned central processing hub in Chile's coastal Atacama region. Latest results from ongoing drilling across the Company's La Verde copper-gold (Cu-Au) discovery in Chile confirm a major extension to the deposit's rapidly growing high-grade core. DKD039 returned the widest drill result recorded to date, intersecting 725 m grading 0.42% CuEq (0.36% Cu, 0.07 g/t Au) from 18 m depth down-hole, including: 22 m grading 0.71% CuEq (0.67% Cu, 0.03 g/t Au) from 42 m depth; 46 m grading 0.65% CuEq (0.54% Cu, 0.12 g/t Au) from 249 m depth; 51 m grading 0.62% CuEq (0.51% Cu, 0.10 g/t Au) from 433 m depth; 62 m grading 1.03% CuEq (0.90% Cu, 0.18 g/t Au) from 671 m depth. The shallow result of 22 m grading 0.71% CuEq from 42 m, further expands the extent of an emerging higher-grade starter pit for the Company's Costa Fuego Cu-Au Project. The deeper result of 61 m grading 1.03% CuEq from 670 m, significantly extends La Verde's high-grade core by approximately 200 m down-dip. Drilling operations accelerating with two drill rigs on site (Diamond (double shift) and Reverse Circulation (RC, single shift)) and a third drill rig planned to be mobilised in May. Assay results pending for eleven drill holes (four diamond and seven RC). Diamond Drill Hole DKD039 was collared on the western extent of La Verde's discovery footprint and intersected multiple wide zones of +0.6%CuEq mineralisation from near surface. DKD039 achieved two key objectives: further extended near-surface higher-grade mineralisation by approximately 60m to the west - recording 22 m grading 0.71% CuEq from 42 m depth within a wider intersection of 48 m grading 0.55% CuEq (0.50% Cu, 0.03 g/t Au) from 18 m depth, located immediately beneath shallow gravel cover; confirmed a significant 200 m down-dip extension of La Verde's high-grade core - recording 61 m grading 1.03% CuEq (0.90% Cu, 0.18 g/t Au, 1.81g/t Ag) from 671 m in association with high Cu/Au, A+B vein abundances >5% and massive and disseminated chalcopyrite. Infill Diamond Drill holes DKD037 and DKD038 continue to confirm continuity of bulk tonnage mineralisation, including: DKD037 recorded 184 m grading 0.42% CuEq (0.32% Cu, 0.12 g/t Au) from 105 m depth, including 27 m grading 0.60% CuEq (0.48% Cu, 0.15 g/t Au) from 203 m; DKD038 recorded 221 m grading 0.37% CuEq (0.29% Cu, 0.11 g/t Au) from 48 m depth, including 45 m grading 0.51% CuEq (0.37% Cu, 0.19 g/t Au) from 53 m. Drill hole DKD037 was designed to target a gap between two higher-grade zones, with assay results now confirming expansion and continuity of mineralisation across this zone. Similar to drill hole DKD039, the significant intersection from DKD038 also commences immediately beneath shallow gravel cover, suggesting a large part of the potential higher-grade starter pit will only require simple, cost-effective, shallow overburden removal. Latest assay results from diamond drill tail DKP009D also extended La Verde's Cu-Au mineralisation footprint along the eastern flank of the discovery. The drillhole was a 200 m diamond tail to earlier RC drillhole DKP009 and reported 68 m grading 0.42% CuEq (0.33% Cu, 0.11 g/t Au) from 354 m depth extending mineralisation downhole of DKP009. Similarly, diamond drill tail DKP012D extended La Verde's Cu-Au mineralisation footprint along the northern flank of the discovery. The drillhole was a 284 m diamond tail to earlier RC drillhole DKP012 and reported 132 m grading 0.36% CuEq (0.26% Cu, 0.05 g/t Au) from 306 m depth extending mineralisation downhole of DKP012. Several higher-grade zones were intercepted in the tail, confirming the system is still open and mineralised to the north and will be followed up with additional drilling along the interpreted NNE-trending structural corridor. Including the new diamond tail extensions: DKP009D now records 388 m grading 0.41% CuEq (0.32% Cu, 0.12 g/t Au) from 34 m; DKP012D now records 394 m grading 0.46% CuEq (0.35% Cu, 0.11g/t Au) from 44 m. Assay results are outstanding for four diamond and seven RC drillholes and the Company looks forward to providing further updates as results are received. Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). They are based on completed exploration activities reported in the announcement released 19 May 2025 ('Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint'). The conceptual open pit shells were generated using copper (Cu) prices of USD 3.50/lb Cu and USD 6.00/lb Cu on a series of nested Cu grade shells. Other input parameters informing the conceptual open-pit shells (pit slope angles, mining cost, processing cost, etc.) were derived from values reported in the March 2025 Costa Fuego Pre-feasibility Study and are considered appropriate for the style of mineralisation encountered at the La Verde Cu-Au porphyry discovery. Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Further exploration activities are detailed in this announcement and include (but may not necessarily be limited to) a program of diamond drillholes aiming to extend the mineralised footprint at La Verde. Drilling commenced on 22 September 2025, with the length of the program dependent on a number of considerations including (but not limited to) the results of the exploration activities and regulatory applications and approvals. The technical information in this announcement has been reviewed and approved by Mr. Christian Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The information in this announcement that relates to Exploration Results and Exploration Targets for the La Verde project is based upon information compiled by Mr. Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, who is a Member of the Australasian Institute of Geoscientists (AIG). Mr. Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr. Easterday consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.