Hot Chili Limited has reported a significant expansion of its high-grade copper-gold discovery at La Verde, Chile, supported by robust diamond drilling results. The company is advancing its Costa Fuego Project with promising pre-feasibility outcomes and progressing strategic partnerships.
- Diamond drilling confirms extended high-grade copper-gold mineralisation at La Verde
- La Verde discovery footprint expanded to 600m depth with strong gold-copper ratios
- Costa Fuego Project pre-feasibility study shows enhanced financial metrics
- Regulatory approvals secured for expanded drilling and environmental assessments underway
- Strategic partnering process advancing with multiple proposals under review
Expanding the High-Grade Core at La Verde
Hot Chili Limited has delivered a compelling update on its La Verde copper-gold porphyry discovery in Chile, revealing a substantial expansion of the high-grade mineralised core. Diamond drilling results from nine holes during the December quarter have extended the footprint of mineralisation to depths of up to 600 metres, with some intercepts showcasing impressive copper and gold grades. Notably, drillhole DKD032 returned 529 metres grading 0.41% copper and 0.21 grams per tonne gold, including higher-grade intervals of 148 metres at 0.60% copper and 0.30 grams per tonne gold.
This expansion confirms the convergence of higher-grade centres at depth, highlighting La Verde’s potential as a significant contributor to Hot Chili’s broader Costa Fuego Project. The discovery’s proximity; just 30 kilometres south of the planned Productora processing hub; positions it well for integration into existing infrastructure, potentially accelerating development timelines.
Advancing the Costa Fuego Pre-Feasibility Study
Alongside exploration success, Hot Chili is progressing its Costa Fuego Copper-Gold Project pre-feasibility study (PFS), which incorporates the expanded mineral resources from La Verde. The PFS, released in March 2025, indicates robust financial metrics supported by long-life mine scheduling and enhanced throughput potential. The addition of La Verde’s high-grade material is expected to materially improve project economics by providing additional pit material to the front end of the mine plan.
Environmental Impact Assessments (EIA) and regulatory approvals have advanced, with the company receiving sectoral permits in October 2025 to commence expanded drilling activities. These regulatory milestones are critical as Hot Chili moves towards a definitive feasibility study and eventual mine construction.
Strategic Partnerships and Funding Outlook
Hot Chili is actively engaging with potential partners to support the development of Costa Fuego and related projects, including Fuego and Huasco. The company has received multiple indicative and non-binding proposals and is conducting due diligence, including site visits. BMO Capital Markets has been appointed as financial adviser to assist in this strategic partnering process.
Financially, Hot Chili maintains a solid cash position of approximately A$4.6 million as of December 31, 2025, with no debt. The company also expects to recoup an additional A$1.8 million in VAT joint venture funds in early 2026. Operating expenditures remain focused on exploration and project advancement, with careful management of capital to sustain drilling and evaluation activities.
Looking Ahead
With drilling ongoing and assay results pending from recent holes, Hot Chili is poised to further delineate the La Verde deposit’s scale and grade. The company’s integrated approach; combining exploration success, rigorous feasibility studies, regulatory progress, and strategic partnerships; positions it well to unlock value from its Chilean copper-gold assets. Investors will be watching closely for updates on drilling outcomes, partnership agreements, and financing arrangements as the project advances.
Bottom Line?
Hot Chili’s expanding La Verde discovery and advancing Costa Fuego study set the stage for a pivotal growth phase, but funding and execution risks remain key watchpoints.
Questions in the middle?
- How will upcoming assay results from recent drillholes impact the resource model at La Verde?
- What terms and structure might emerge from Hot Chili’s strategic partnering process?
- How sensitive are Costa Fuego’s project economics to copper and gold price fluctuations?