La Verde Drillhole DKP005D Extends Copper-Gold Mineralisation by Over 70m

Expanding the Higher-Grade Core

Hot Chili Limited has reported significant progress in its exploration efforts at the La Verde copper-gold discovery, located just 30 kilometers south of its flagship Costa Fuego project in Chile’s Atacama region. Recent diamond drilling has visually confirmed wide intersections of copper porphyry-style mineralisation starting near surface, outlining a potentially substantial expansion of the deposit’s higher-grade core.

Notably, the diamond drillhole DKP005D, a 200-meter extension of a previous reverse circulation hole, delivered promising results including 47 meters grading 0.57% copper and 0.12 grams per tonne gold, followed by 28 meters at 0.49% copper and 0.15 grams per tonne gold. These results extend the known mineralisation along the eastern flank of La Verde, reinforcing the prospect of a more robust starter pit.

Implications for Costa Fuego’s Development

The emergence of a higher-grade starter pit at La Verde could materially enhance the front-end economics of the Costa Fuego project, which is planned as a 20-year mine schedule. Hot Chili’s Managing Director, Christian Easterday, highlighted that this development could be a “game changer” for the scale and economic viability of the project, which is already positioned as a low-risk, coastal copper-gold contender in the Huasco Region and Vicuña District.

Key advantages include the deposit’s low elevation, access to near-surface mineralisation, secured rights to non-continental water supplies, and relatively low capital intensity. These factors collectively mitigate many of the challenges faced by other high-Andean mining operations nearby.

Ongoing Drilling and Assay Results

To date, eight diamond drillholes have intersected broad widths of copper porphyry mineralisation, with assay results pending for six of these holes. The company has completed approximately 2,900 meters of drilling in this phase, aiming to further delineate and expand the mineralised footprint at La Verde.

Additional drillholes, such as DKD035 and DKD036, have visually confirmed strong mineralisation from surface to significant depths, supporting the continuity of the higher-grade core. These results build on previous drilling that reported intervals like 529 meters at 0.41% copper and 0.21 grams per tonne gold, including a higher-grade section of 148 meters at 0.60% copper and 0.30 grams per tonne gold.

Technical Rigor and Forward Outlook

Hot Chili’s exploration and reporting adhere to rigorous standards, including compliance with the JORC Code and National Instrument 43-101. The company has implemented comprehensive quality control measures, including certified reference materials, blanks, and field duplicates, to ensure data integrity.

While the current results are encouraging, the company cautions that visual estimates of mineralisation are not substitutes for laboratory assays, and the conceptual open pit shells presented remain exploratory. Further assay results and drilling updates are anticipated to refine resource models and support future economic assessments.