Hot Chili Limited has reported significant drill results from its La Verde porphyry discovery in Chile, including a standout 725-metre intersection grading 0.42% copper equivalent and a 62-metre high-grade core extension at 1.03% CuEq. These results confirm a major down-dip extension of the high-grade core and near-surface mineralisation, supporting development plans for the Costa Fuego project.
- Diamond drill hole DKD039 intersected 725m at 0.42% CuEq from 18m depth
- High-grade core extended 200m down-dip with 62m at 1.03% CuEq from 671m depth
- Near-surface higher-grade mineralisation expanded, aiding potential starter pit design
- Two drill rigs operational with a third planned to accelerate drilling
- Assay results pending for eleven additional drill holes
Significant Drill Results Expand La Verde’s Mineralisation
Hot Chili Limited (ASX:HCH) has announced a major extension to the high-grade core of its La Verde copper-gold porphyry discovery, part of the Costa Fuego project in Chile’s Atacama region. The standout result comes from diamond drill hole DKD039, which intersected 725 metres grading 0.42% copper equivalent (CuEq) from just 18 metres down-hole. Within this broad interval, a high-grade zone of 62 metres at 1.03% CuEq was recorded from 671 metres depth, marking the widest high-grade intersection to date at La Verde.
This drilling confirms a significant 200-metre down-dip extension of the deposit’s high-grade core, a development that could materially impact the resource base and mining inventory for Costa Fuego. Additionally, near-surface mineralisation was extended approximately 60 metres to the west, with 22 metres grading 0.71% CuEq from 42 metres depth, which supports the potential for a higher-grade starter pit requiring relatively shallow overburden removal.
Ongoing Drilling and Resource Expansion
Alongside DKD039, infill diamond drill holes DKD037 and DKD038 have confirmed continuity of bulk tonnage mineralisation, with intersections such as 184 metres at 0.42% CuEq and 221 metres at 0.37% CuEq respectively. Diamond drill tail extensions DKP009D and DKP012D have further expanded the mineralised footprint along the eastern and northern flanks of La Verde, with intervals of 68 metres at 0.42% CuEq and 132 metres at 0.36% CuEq respectively. These results indicate the system remains open to the north and will be subject to further drilling along the interpreted structural corridor.
Drilling operations are accelerating with two rigs currently active, a diamond rig operating double shifts and a reverse circulation rig on single shifts, with a third rig planned for mobilisation in May. Assay results remain pending for eleven drill holes, including four diamond and seven reverse circulation holes, which will provide further clarity on the deposit’s extent and grade distribution.
Context and Implications for Costa Fuego
La Verde is located approximately 30 kilometres south of the planned central processing hub for Costa Fuego, Hot Chili’s flagship copper-gold project. The recent drill results reinforce the potential for La Verde to contribute significantly to Costa Fuego’s resource base and support the development of a higher-grade starter pit, which could improve project economics.
Managing Director Christian Easterday highlighted the importance of these results, stating that DKD039 delivered the most significant drill intersection to date at La Verde, confirming both near-surface higher-grade mineralisation and a major down-dip extension of the high-grade core. The company’s focus remains on accelerating drilling to define and integrate La Verde’s mineralisation into the broader Costa Fuego mining inventory during 2026.
These developments follow Hot Chili’s earlier announcements, including a major La Verde discovery boosting Costa Fuego’s copper potential and recent expansions of the high-grade core at La Verde. The company’s ongoing drilling and exploration efforts continue to build on this foundation, with further assay results awaited.
Technical and Reporting Details
The copper equivalent grades reported use metal prices of US$4.50 per pound for copper and US$3,150 per ounce for gold, among others, with recoveries based on testwork using Cortadera as a proxy. The reported intersections include internal dilution up to 30 metres where the overall weighted average grade remains above the 0.2% Cu cut-off, aligned with marginal economic thresholds for bulk tonnage copper deposits.
Hot Chili’s drilling program employs both diamond and reverse circulation methods, with detailed geological logging and quality control procedures in place. The company has also conducted geophysical surveys and surface geochemical sampling to support exploration targeting and resource definition.
Bottom Line?
Hot Chili’s latest drilling results at La Verde underscore ongoing resource growth potential, but pending assays and further studies will be critical to confirm economic viability and inform project development.
Questions in the middle?
- How will the pending assay results from eleven drill holes influence the overall resource estimate at La Verde?
- What are the next steps for integrating La Verde’s expanded mineralisation into Costa Fuego’s development plans?
- How might fluctuations in metal prices affect the economic assumptions underpinning the conceptual open pit shells?