PERTH, Australia - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ('Hot Chili' or the 'Company') is pleased to announce further strong drill results from its La Verde copper-gold (Cu-Au) porphyry discovery, located 30 km south of the Company's Costa Fuego Cu-Au Project ('Costa Fuego' or 'the Project') planned central processing hub in Chile's coastal Atacama region.
Significant intersections returned from drillholes DKD035 and DKD036 add to nine previously recorded significant drill intersections drillholes, which define a 400 m x 400 m higher-grade, near-surface copper-gold zone. These results look likely to contribute a higher-grade starter pit to the Costa Fuego open pit mine schedule, significantly reducing payback and positively impacting key financial metrics of Hot Chili's March 2025 Pre-Feasibility Study ('PFS'). Latest results include:
DKD036 recorded 150 m grading 0.52% CuEq1 (0.37% Cu, 0.21 g/t Au) from 30 m depth Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117 m, and DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 m depth
Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187 m Similar to previous near-surface drill intersections, these latest significant results commence immediately beneath shallow gravel cover, indicating the potential for simple, cost-effective overburden removal in a future higher-grade starter pit development.
Importantly, latest results from DKD0035 and DKD0036 are located up-dip from previously reported DKD032 drilling intersection, which recorded 148 m grading 0.82% CuEq (0.60% Cu, 0.30 g/t Au) from 70 m depth.
In addition, current drillhole DKD039, has recorded a visual intersection of strong copper porphyry-style mineralisation. Chalcopyrite abundance within the 580 m to 730 m interval is estimated to average greater than 1% with several intervals recording chalcopyrite abundance above 3%.
This latest visual mineralisation significantly expands La Verde's high-grade core, with assay results expected to be returned in April 2026.
Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Assay results are pending and will be reported in accordance with the JORC Code (2012) and National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
New results from two additional diamond tail extensions (DKP006D and DKP021D) of earlier RC drillholes also expanded La Verdes' +0.4% Cu mineralised footprint laterally toward the east.
DKP021D recorded an additional 54 m grading 0.42% CuEq (0.34% Cu, 0.11 g/t Au) from 593 m depth, including 19 m grading 0.66% CuEq (0.51% Cu, 0.21 g/t Au) from 593 m depth. The original RC drillhole recorded 80 m grading 0.3% CuEq (0.3% Cu, 0.1 g/t Au) from 234 m, and 46 m grading 0.3% CuEq (0.3% Cu, 0.1 g/t Au) from 324 m.
Latest results have provided confidence to expand Hot Chili's Phase two drill program, with a second drillrig expected to commence shortly.
Initial metallurgical testwork for La Verde, also using seawater, indicate similar recoveries to those recorded at Costa Fuego1. Sample selection for further metallurgical testwork is underway and assay results are outstanding for five diamond drillholes, including DKD039.
The Company looks forward to providing further updates as assays results are received.
This announcement is authorised by the Board of Directors for release to ASX and TSXV. For more information please contact:
Contact:
Christian Easterday
Tel: +61 8 9315 9009
Managing Director & CEO - Hot Chili
Email: admin@hotchili.net.au
Carol Marinkovich
Tel: +61 8 9315 9009
Company Secretary - Hot Chili
Email: cosec@hotchili.net.au
Graham Farrell
Email: graham@hotchili.net.au
Investor & Public Relations
Forward Looking Statements
This announcement contains certain statements that are 'forward-looking information' within the meaning of Canadian securities legislation and Australian securities legislation (each, a 'forward-looking statement'). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this announcement should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words 'estimate', 'expansion', 'expectations', likely', 'may', 'plan', 'potential', 'project', 'reinforce', 'large-scale', 'could', 'should', 'will', 'would', variants of these words and similar expressions are intended to identify forward-looking statements.
The forward-looking statements within this announcement are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this announcement.
In this announcement, forward-looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory applications and approvals; the timing and results of future economic studies and the Company's future exploration and other business plans.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: the ability of drilling and other exploration activities to accurately predict mineralisation; operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources or mineral reserves of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.
Although the forward-looking statements contained in this announcement are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
For additional information with respect to these and other factors and assumptions underlying the forward- looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.
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