View looking SW across the La Verde copper-gold porphyry discovery – showing collar locations of seven step-out drill holes relative to discovery hole DKP002 and historic copper oxide open pit area. (CNW Group/Hot Chili Limited)
Highlights
Drilling Coverage at La Verde Doubled and Continuing to Expand
First-pass drill coverage now extends across an area measuring 1,000 m by 550 m: 27 reverse circulation ("RC") holes for 8,162 m drilled to date
Assay results pending for fifteen drill holes: Assay turnaround time from laboratories slower than usual due to peak summer drilling season in the high Andes
Shallow porphyry mineralisation remains open in all directions: Drilling planned to continue
Deeper diamond drill testing being planned: 8 of 12 drill RC holes reported to date recorded significant mineralisation to end-of-hole
Development Studies Update
Pre-Feasibility Studies (PFS) for Costa Fuego and Huasco Water in final stages of completion
PERTH, Australia, March 19, 2025 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to provide an update on continuing drilling operations at the La Verde copper-gold porphyry discovery ("La Verde"), located approximately 30km south of the Company's Costa Fuego Copper-Gold Project ("Costa Fuego" or "the Project") planned central processing hub at low elevation in the coastal range of the Atacama region, Chile.
The Company previously reported a 400 m by 550 m discovery footprint at the La Verde, extending from shallow depth to approximately 300 m vertically, confirmed by assay results from the first 12 RC drill holes, which all recorded broad zones copper-gold porphyry mineralisation (refer to announcement dated February 11, 2025). Eight of these holes recorded significant mineralisation to end-of-hole, as displayed in figures 2 to 4.
Hot Chili is continuing to undertake systematic step-out drilling at La Verde with 27 RC drill holes (for 8,162 m) completed to date, including seven drill holes to the south of the initial discovery footprint testing potential for "blind" extensions below gravel cover. Surface gravels obscure the underlying geology and appear to be limited to 10 - 15 m vertical thickness in the southern extent of drilling as displayed on page 1 of this announcement.
Drill coverage has more than doubled since mid-February 2025 with first pass drilling extended across an area measuring 1,000 m by 550 m and tested to the depth of RC drilling capability (up to 350 m vertical) as displayed in figure 3. Assay results for fifteen holes are pending.
RC drilling is expected to continue, and the Company is planning an initial phase of diamond drilling to test below broad, higher-grade, copper-gold zones intersected by Hot Chili's drilling and which remain open at depth.
The Company has experienced delays in turn-around time for drill assay results from regional laboratories due to peak summer drilling season in the high Andes. This is expected to moderate over the coming months moving into winter season.
The Company looks forward to releasing further exploration updates and assay results as they become available.
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile (CNW Group/Hot Chili Limited)
Figure 2. Plan view map of the La Verde porphyry system showing significant intercepts compared to recent drill hole collars (yellow circles), planned drill collars (white circles) historic drill collars (black circles), +1% A+B vein footprint from mapping and drillholes (blue outline) and copper mineralisation interpolants from returned assay results. For full details of the drilling intercepts and assay results to date, refer to the Company's announcement "Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde" dated February 11, 2025. (CNW Group/Hot Chili Limited)
Figure 3. Plan view slice at 950 RL (± 50 m clipping) of modelled tonalitic (pink polygon) and dioritic porphyry (red polygon) intrusions. Returned Cu grades graphed downhole. Area currently being drill tested is outlined by the dashed blue box. For full details of the drilling intercepts and assay results to date, refer to the Company's announcement "Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde" dated February 11, 2025. (CNW Group/Hot Chili Limited)
Figure 4. NNW facing longitudinal section (A - A’) of the La Verde porphyry system showing significant intercepts compared to the modelled tonalitic (pink) and dioritic (red) porphyry intrusions interpreted from down hole geological logging. Weathering profile displayed as base of oxide (red line) and top of fresh (green line) material. Returned Cu grades graphed downhole along hole traces (grey). Area currently being tested outlined by the dashed blue box. Recent drill hole collars highlighted with yellow circles. For full details of the drilling intercepts and assay results to date, refer to the Company's announcement "Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde" dated February 11, 2025. (CNW Group/Hot Chili Limited)
Qualifying Statements
Qualified Person – NI 43-101
The technical information in this announcement has been reviewed and approved by Mr. Christian Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Competent Person – JORC
The information in this announcement that relates to Exploration Results for the La Verde project is based upon information compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, who is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Easterday consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this announcement.
Forward-Looking Statements
Statements in this announcement that are not historical facts are "forward-looking statements" or "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation. The use of any of the words "anticipate", "expect", "imminent", "opportunity", "planned", "potential", "projected", "upcoming", "would be", "should be", "will", variants of these words and similar expressions are intended to identify forward-looking statements.
In this announcement, forward-looking information includes, but is not limited to: the Company's plans with respect to continued drilling and drill testing; the anticipated timeline for receiving assay results and completion of the PFS for the Costa Fuego and Huasco Water projects; the timing prospects, and projections related to the Company's business and projects and the anticipated success thereof.
In preparing the forward-looking information herein, the Company has applied several material assumptions, including, but not limited to assumptions: that the Company's ongoing drilling, economic studies (including the Costa Fuego PFS and the PFS-level study for the Huasco Water joint venture project) and other programs will proceed as planned and that the results thereof will be consistent with the Company's expectations; that the Company will have, or will be able to obtain, sufficient funding to finance the foregoing; that the foregoing will be funded and completed on the expected timeline; that all requisite information, including assay results, will be available in a timely manner; that the current exploration, development, environmental and other objectives concerning the Costa Fuego Project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold and copper will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for planned activities on the Costa Fuego Project will be obtained in a timely manner and on acceptable terms; that permitting and operations costs will not materially increase; the continuity of the price of gold, copper and other metals, economic and political conditions and operations; that drilling and related equipment will be available as required and on reasonable terms; the continuity of tax rates and operating costs; and the assumptions set out in the technical report titled "Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update" dated 8 April 2024, with an effective date of 26 February 2024 (the "Technical Report"), a copy of which is available on the Company's profile on SEDAR+ at www.sedarplus.ca, in the Company's public filings with the Australian Securities Exchange (ASX) and the Company's Canadian public disclosure record.
Factors that could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this announcement, include, among others: operational risks and contractual obligations; the industry-wide risks and project-specific risks identified in the Technical Report and the Company's public filings; changes in exploration programs based upon results of exploration; sovereign risks associated with the Company's operations in Chile; recruitment and retention of qualified and/or key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices, currency and exchange rates; market volatility and economic conditions; ability to exploit successful discoveries and retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; changes in estimated mineral resources or unexpected variations in quantity of mineralized material, grade, or recovery rates; the nature of mineral exploration and mining and uncertainty of commercial viability; the Company's lack of operating revenues; risks related to governmental regulations, the ability to obtain necessary licenses and permits, prior unregistered agreements, transfers or claims and other defects in title to mineral projects; risks to employee health and safety or disruption to operations in the event of an outbreak of disease; estimates used in budgeting and economic analyses proving to be incorrect; risks that necessary financing will be unavailable when needed; and other risks and uncertainties described elsewhere in this announcement and in the Company's public filings with the ASX and the Company's Canadian public disclosure record.
Although the Company has attempted to identify important factors that could cause actual results to vary materially from those projected in such forward-looking information, there can be no assurance that forward-looking information will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking information.
The forward-looking information in this news release is based on plans, expectations, and estimates of management as at the date hereof and the Company undertakes no obligation to update such forward-looking information, other than as required by applicable law.
