Hot Chili Unveils Massive High-Grade Expansion at La Verde Copper-Gold Discovery

A Breakthrough in Chile’s Copper-Gold Landscape

Hot Chili Limited has delivered a compelling update from its La Verde copper-gold porphyry discovery, located just 30 kilometres south of the company’s flagship Costa Fuego project in Chile’s Atacama region. The latest diamond drilling results reveal a rapidly expanding high-grade core, with wide intervals of copper and gold mineralisation starting from near surface.

The standout result comes from drillhole DKD033, which recorded an impressive 495 metres grading 0.38% copper and 0.10 grams per tonne gold starting at just 3 metres depth. Within this, a substantial 123-metre section graded 0.50% copper and 0.13 grams per tonne gold, extending the previously known mineralised zone by over 100 metres. Similarly, DKD034 returned 426 metres at 0.37% copper and 0.08 grams per tonne gold, including higher-grade intervals of 220 metres at 0.43% copper and 0.10 grams per tonne gold.

Strategic Implications for Costa Fuego

These results are more than just numbers; they underscore La Verde’s potential to add significant open-pit material to the front end of Costa Fuego’s mine schedule. Hot Chili’s March 2025 Pre-feasibility Study already outlined a 20-year mine life, but the expanding footprint at La Verde could materially enhance the project’s scale and financial metrics. With copper and gold prices currently well above the assumptions used in the study, the leverage to rising commodity prices is particularly attractive.

Managing Director Christian Easterday emphasised the strategic significance, noting that La Verde is one of a limited number of large-scale, near-term copper projects globally. He highlighted that for every 10 US cents per pound increase in copper price above US$4.30, the project’s net present value could increase by approximately US$100 million, amplifying Hot Chili’s exposure to the commodity’s bullish outlook.

Ongoing Exploration and Future Prospects

Drilling activities resumed in January 2026 after a short break, with six additional diamond drillhole assays pending. Early visual assessments from holes DKD035 and DKD036 suggest wide zones of strong copper porphyry mineralisation near surface, which could further expand the resource base. The company is also considering re-entry into some of the recent holes to deepen understanding of the mineralisation.

Hot Chili’s geological team is applying advanced litho-structural modelling techniques, building on successful strategies used at the nearby Cortadera deposit. This approach aims to optimise drill targeting and accelerate resource growth at La Verde.

Balancing Optimism with Caution

While the results are promising, Hot Chili cautions that assay results for several holes remain outstanding, and historical drilling data has limitations in verification. The company also reminds investors that forward-looking statements depend on commodity prices, operational factors, and regulatory approvals, all of which carry inherent risks.

Nonetheless, the expanding high-grade core at La Verde positions Hot Chili well to capitalise on the robust copper and gold markets, potentially reshaping the economic outlook for Costa Fuego and the broader Domeyko project.