Can Hot Chili’s La Verde become Chile’s next copper-gold growth engine?

Hot Chili Limited (ASX: HCH, TSXV: HCH, OTCQX: HHLKF) has confirmed what it describes as a gold-rich, major copper discovery at its La Verde porphyry system in Chile, following a standout drill result that significantly expands the vertical and lateral footprint of the deposit. The newly reported twin diamond drillhole, DKD032, has delivered a 529-meter mineralised interval with consistent copper and gold grades, positioning La Verde as a high-priority satellite to the company’s flagship Costa Fuego development.

The La Verde prospect is situated approximately 30 kilometers south of the Costa Fuego central processing hub in Chile’s coastal Atacama region. Initial assays from DKD032 intersected 529 meters grading 0.41 percent copper and 0.21 grams per tonne gold from a depth of 41 meters to the end of hole. The intersection includes a high-grade zone of 148 meters grading 0.60 percent copper and 0.30 grams per tonne gold starting at 70 meters depth, as well as another 66 meters interval grading 0.45 percent copper and 0.31 grams per tonne gold from 295 meters.

These results mark a clear upgrade to the earlier reverse circulation hole DKP002, which had intersected 308 meters grading 0.5 percent copper and 0.3 grams per tonne gold from a depth of 46 meters. The new diamond hole DKD032 not only twinned DKP002 but also extended the mineralised envelope by an additional 221 meters, confirming depth continuity and grade persistence.

How is the La Verde discovery shifting the strategic value of Hot Chili’s Costa Fuego copper hub?

Hot Chili Limited is advancing a phased exploration program aimed at integrating La Verde into the broader Costa Fuego mining ecosystem. According to the company, the latest drill results have potential implications for mine planning, resource scaling, and financial optimisation. The Costa Fuego project, which already hosts a multi-decade resource plan, could see additional high-grade material from La Verde added to the front end of its 20-year mine schedule.

Impact modelling by the company suggests that La Verde could deliver significant volumes of open-pittable material with attractive copper and gold grades. The March 2025 pre-feasibility study for Costa Fuego did not include contributions from La Verde, and analysts expect a future study to reflect improved financial metrics once the satellite system is incorporated. Investors following the stock believe that Hot Chili Limited is positioning itself to emerge as one of the few ASX- and TSXV-listed firms with a dual-commodity, coastal-accessible project of substantial scale in Chile.

The company has already completed six diamond drillholes in the current phase-two campaign at La Verde, with 2,700 meters drilled to date. All six holes intersected porphyry-style copper-gold mineralisation, extending the vertical depth of the system to approximately 600 meters and continuing to push the lateral boundaries eastward and westward. The strong mineral continuity from surface to depth in DKD032 and other holes suggests that La Verde could transition from an exploration asset into a production-scale contributor within a short timeframe.

What does the DKD032 result reveal about the geological continuity and resource upside at La Verde?

Hot Chili Limited’s DKD032 drillhole is being described as a watershed moment in the delineation of the La Verde porphyry system. The hole confirmed the convergence of multiple higher-grade mineralised centres, especially in the northeast zone, which is characterised by elevated gold-to-copper ratios. The continuity of mineralisation from 41 meters to 569.9 meters, ending in mineralisation, supports the view that La Verde hosts a vertically extensive and geologically robust copper-gold system.

The final sample collected from the drillhole before it was prematurely terminated due to mechanical failure returned 0.53 percent copper and 0.20 grams per tonne gold, indicating that the system remains open at depth. Hot Chili Limited plans to re-enter the hole following the completion of the ongoing drill program to extend drilling beyond the current limit.

Three of the six completed holes were diamond tails extending earlier reverse circulation holes that had ended in mineralisation, including DKP002. The remaining three were designed as twin holes to test and confirm earlier structural models. Each of these intersected substantial porphyry mineralisation and further strengthened confidence in the system’s scale and grade.

The assays from DKD032 contribute to a more detailed understanding of the porphyry body’s geometry, aiding in the interpretation of the system’s economic viability. Grade shell interpolants for +0.2 percent, +0.3 percent, and +0.4 percent copper have been updated in light of the new assays, showing a visibly larger and more coherent mineralised domain, which aligns well with early-stage conceptual open-pit designs modeled at copper prices of US$3.50/lb and US$6.00/lb.

Why does La Verde matter in the context of Chile’s copper supply chain and investor outlook?

La Verde is part of a broader copper exploration resurgence in Chile, as global markets face tightening copper supply due to rising demand from clean energy, electric vehicles, and grid expansion. The coastal location of La Verde, combined with its proximity to Hot Chili Limited’s processing hub, road and port access, and dual metal endowment, strengthens its attractiveness as a development-ready opportunity.

For institutional investors seeking medium-term exposure to scalable copper projects, La Verde’s potential inclusion into Costa Fuego’s development plan represents a near-term catalyst. The discovery may also help Hot Chili Limited attract joint venture interest, strategic investments, or offtake arrangements, particularly from groups seeking long-life copper-gold supply with infrastructure advantages.

Market observers note that dual-listed exploration firms in Chile rarely combine porphyry scale, gold credits, and brownfield access in one package. The intersection of these vectors at La Verde positions Hot Chili Limited to become a possible acquisition target or strategic partner candidate for larger mining groups with underweight copper exposure.

Investor sentiment around the company has remained constructive through 2025, particularly after the release of its Costa Fuego pre-feasibility study. With La Verde now adding potentially high-margin, open-pittable tonnes to the development profile, analysts expect upward revisions in the project’s net present value in subsequent feasibility assessments. Pending assays from five more diamond drillholes may further reinforce these expectations.

What next steps are expected in the La Verde drilling and resource definition campaign?

Hot Chili Limited began phase-two drilling at La Verde on 22 September 2025 using a single rig operating on double shifts. The aim of this campaign is to expand the initial discovery footprint of 1,000 meters by 750 meters by 400 meters depth. The company also seeks to extend the +0.3 grams per tonne gold distribution that was first identified in phase one.

While DKD032 results have exceeded expectations, further drill results are expected in the coming weeks. The company has flagged laboratory delays due to high sample volumes across Chile but has committed to releasing assay data to the Australian Securities Exchange and the TSX Venture Exchange as it becomes available.

Hot Chili Limited has also indicated that the conceptual pit shells developed for La Verde, based on copper prices of US$3.50/lb and US$6.00/lb, will serve as guidance tools in modelling the near-surface resource additions. The mineralised volume continues to grow eastward and westward, with three-dimensional geophysical and geochemical modeling ongoing to refine future drilling targets.

While La Verde is not yet part of Hot Chili Limited’s mineral resource base, its contribution could become material in the upcoming resource update cycle. The company has not committed to a timeline for that update but has stated that the integration of La Verde data into the Costa Fuego development model is a priority for 2026.

How do analysts view the long-term upside of La Verde and its role in Hot Chili Limited’s growth strategy?

Analysts tracking copper equities on the ASX and TSXV view Hot Chili Limited’s dual strategy of expanding Costa Fuego while simultaneously de-risking satellite zones like La Verde as a disciplined approach to value creation. With Costa Fuego’s mine life already modeled at two decades, the addition of La Verde could allow for high-grade starter pits, lower unit costs, and faster capital recovery.

The geological characteristics of La Verde, including strong vertical mineralisation, consistent copper-gold ratios, and minimal overburden, align well with the development priorities of large-cap copper miners. Some believe that La Verde may ultimately warrant standalone development consideration if deeper drilling confirms high-grade centres beyond the current 600-meter depth limit.

The possibility of a re-rating for Hot Chili Limited may hinge on several catalysts, including assay results from the remaining drillholes, a revised mineral resource estimate, or strategic funding tied to La Verde’s development. For now, the market will be watching closely to see how the company continues to de-risk and scale the discovery zone.

Key takeaways from Hot Chili Limited’s La Verde copper-gold drilling update

• Hot Chili Limited confirmed a major copper-gold discovery at La Verde with a 529-meter intercept grading 0.41 percent copper and 0.21 grams per tonne gold from drillhole DKD032.

• The new results extend the previous RC discovery hole by 221 meters and confirm a deeper, larger porphyry system.

• All six diamond drillholes completed in phase two intersected porphyry-style mineralisation, expanding the system to 600 meters in depth.

• Pending assays from five more drillholes may significantly increase the defined footprint and resource upside of the La Verde system.

• La Verde is expected to contribute open-pit material to Hot Chili Limited’s 20-year Costa Fuego mine schedule, potentially improving overall project economics.

• The final sample from DKD032, which ended in mineralisation, indicates further downhole potential yet to be explored.

• The company plans to re-enter DKD032 and continue exploration drilling into 2026 with updated modeling to refine resource boundaries.