Hot Chili Limited has reported further strong near-surface copper-gold drill results at its La Verde porphyry discovery in Chile, reinforcing the potential for a higher-grade starter pit within the Costa Fuego project. Visual mineralisation from deeper drilling suggests significant expansion of the high-grade core, with assays pending.
- Significant copper-gold intersections from drillholes DKD035 and DKD036 near surface
- Visual evidence of strong chalcopyrite mineralisation in deep drillhole DKD039
- Potential for a higher-grade starter pit to improve Costa Fuego project economics
- Second drill rig to commence, expanding Phase two drilling program
- Metallurgical testwork indicates promising recoveries using seawater
Continued Momentum at La Verde
Hot Chili Limited (ASX, HCH) has delivered another tranche of encouraging drill results from its La Verde copper-gold porphyry discovery, located within the broader Costa Fuego project in Chile's Atacama coastal range. The latest assays, notably from drillholes DKD035 and DKD036, reveal substantial near-surface copper equivalent grades over wide intervals, underscoring the potential for a higher-grade starter pit that could enhance the project's financial metrics.
Drillhole DKD036 returned 150 metres grading 0.52% copper equivalent starting from just 30 metres below surface, including a higher-grade 38-metre section at 0.70% CuEq. Similarly, DKD035 intersected 220 metres at 0.47% CuEq from 38 metres depth, with a 68-metre segment grading 0.64% CuEq. These results build on nine previously reported significant intersections, collectively delineating a 400 by 400-metre zone of elevated copper-gold mineralisation close to surface.
Deep Drilling Expands High-Grade Core
Beyond the near surface, visual logging from the deep diamond drillhole DKD039 has revealed strong chalcopyrite-rich mineralisation over approximately 150 metres downhole, with some intervals exhibiting chalcopyrite abundance exceeding 3%. Although assay results for this hole are pending and expected in April 2026, the visual evidence points to a significant expansion of La Verde's high-grade core at depth.
This deeper mineralisation could add considerable value to the project, potentially extending the mine life or increasing throughput at the planned central processing hub. The company is advancing its drilling program with a second rig soon to commence reverse circulation drilling, aiming to further define and expand the mineralised footprint.
Implications for Costa Fuego Project Economics
The near-surface nature of these higher-grade intersections is particularly noteworthy. The mineralisation lies immediately beneath shallow gravel cover, suggesting relatively straightforward and cost-effective overburden removal for a starter pit. This could accelerate early production and improve payback periods, positively influencing the economics outlined in Hot Chili's March 2025 Pre-Feasibility Study.
Complementing the drilling success, initial metallurgical testwork using seawater has indicated recoveries comparable to those achieved at Costa Fuego, supporting the project's sustainability credentials and operational feasibility. Further metallurgical testing is underway to refine these findings.
Ongoing Exploration and Next Steps
Hot Chili continues to integrate these results into its broader exploration and development strategy. The company is conducting detailed geological mapping, additional soil geochemistry, and twin drilling to validate historical data. The expanding drill program and pending assay results will be critical in updating resource models and advancing economic studies.
As the La Verde discovery evolves, it remains a key pillar in Hot Chili's vision to develop a district-scale copper-gold operation in Chile. Investors and stakeholders will be watching closely for the April assay release and subsequent updates on drilling progress and feasibility assessments.
Bottom Line?
With high-grade zones expanding both near surface and at depth, La Verde is shaping up as a cornerstone asset that could reshape Costa Fuego’s development trajectory.
Questions in the middle?
- What will the April assay results from the deep drillhole DKD039 reveal about the high-grade core expansion?
- How will the new drilling data influence the upcoming resource estimates and feasibility studies?
- What are the timelines and regulatory hurdles for advancing the higher-grade starter pit development?