Hot Chili uncovers a second growth centre at La Verde

La Verde South adds a second porphyry centre

Hot Chili Limited (ASX:HCH) has confirmed a second porphyry centre south of its La Verde copper-gold discovery in Chile, giving the company another potential growth zone within its broader Costa Fuego development. RC hole DKP084 returned 148 metres at 0.44% copper equivalent from 36 metres, including 44 metres at 0.56% CuEq from 138 metres.

The result came from a hole collared about 250 metres south of La Verde’s existing plus-0.4% CuEq mineralisation footprint. A nearby diamond hole, DKD100, visually recorded 307 metres of porphyry-style copper mineralisation and was still in mineralisation at 347 metres while drilling continued towards a planned 500-metre depth. Those visual observations remain provisional: laboratory assays are required before the grade and economic significance of the interval can be assessed.

The latest update builds on the La Verde South drilling results, which reported the same broad RC intersection and pending assays from the deeper diamond hole. Hot Chili now has four rigs operating, with assays outstanding from 25 holes, comprising 19 infill holes and six step-out holes.

Maiden resource remains the key conversion test

La Verde has accumulated more than 40,000 metres of RC and diamond drilling across a footprint described as 1,400 metres by 800 metres by 800 metres, open in all directions. Hot Chili says 15 holes have recorded significant intercepts above 0.7% CuEq, while near-surface mineralisation could provide a potential low-strip, early-feed opportunity for Costa Fuego.

That remains an exploration proposition rather than a defined mine plan. La Verde does not yet have a Mineral Resource, and the company’s presentation says its planned maiden estimate will depend on further drilling, assay results and sufficient drill density. Previous La Verde drilling extensions had already strengthened the case for a broad, shallow mineralised system, but the outstanding assays and resource work are what must translate that geological story into a mineable inventory.

Costa Fuego retains a substantial development case

The wider Costa Fuego project is still anchored by the March 2025 pre-feasibility study, which outlined a post-tax NPV8% of US$1.20 billion, a 19% post-tax internal rate of return and US$1.27 billion in start-up capital. The study envisaged primary production of 116,000 tonnes of CuEq a year for 14 years, within a 20-year project life, using a long-term copper price assumption of US$4.30 a pound.

Hot Chili says La Verde could support a future expansion of Costa Fuego towards or beyond 150,000 tonnes of copper a year, but explicitly identifies that figure as growth potential rather than a production target from the existing PFS. The company is targeting an environmental impact assessment submission in the second quarter of 2027, a final investment decision in 2029 and first production in 2031.

Water infrastructure adds a second strategic thread

Alongside the mine, Hot Chili is advancing Huasco Water, an 80%-owned water business built around permitted seawater access in the Huasco Valley. Its water supply PFS contemplated an initial 500 litres-per-second seawater supply to Costa Fuego, with later expansion stages potentially reaching 2,300 litres per second across the valley. The Stage 1 case reported a post-tax NPV8% of US$122 million and construction capital of US$151 million, while the larger expansion case carried substantially greater capital requirements and depends on regional demand.

The immediate investment question is therefore less about another impressive drill intersection than about conversion. Pending assays, the maiden La Verde resource and an updated Costa Fuego study will determine how much of the discovery can be incorporated into the project’s economics before permitting and financing decisions become more consequential.