Rapid Growth of High Grade Core Continues at La Verde
High-Grade Drilling Success at La Verde Provides Essential Economic Buffer for Borderline 19% IRR Costa Fuego Project
The news release dated January 20, 2026, reports further high-grade drilling results from the La Verde copper-gold discovery in Chile. Key intercepts include 495m at 0.38% Cu and 0.10 g/t Au (DKD033) and 426m at 0.37% Cu and 0.08 g/t Au (DKD034). These results are significant due to their wide, near-surface nature. The company notes that drilling recommenced on January 12, 2026, following the Christmas break, and results from six additional diamond drillholes are currently pending. Management characterizes La Verde as a "major discovery" with the potential to significantly enhance the scale and economics of the flagship Costa Fuego project.
The news is Material - Positive because it consistently validates the existence of a high-grade "core" at La Verde that was not included in the March 2025 Pre-Feasibility Study (PFS). - Economic Enhancement: The March 2025 PFS delivered a Post-Tax IRR of 19%. In the mining industry, a sub-20% IRR for a large-scale project is often considered "marginal" or "borderline" regarding bankability. The consistent width (400m+) and grade (0.37-0.41% Cu) at La Verde provide a potential high-grade "starter pit" which could front-load cash flows and significantly increase that IRR. - Resource Growth: These results confirm the expansion of mineralization both laterally and at depth. Since the Costa Fuego processing hub is planned just 30km away, La Verde represents a low-CAPEX satellite addition to the mine life. - Copper Price Leverage: The company highlights a USD $100 million NPV increase for every US$0.10/lb rise in copper prices above US$4.30/lb. With current drilling confirming better grades than the current reserve average (0.37% Cu), the project’s sensitivity to price becomes a tailwind rather than a survival necessity.
Hot Chili Limited is developing the Costa Fuego Copper-Gold Project in the coastal range of the Atacama Region, Chile. - Flagship Project: Costa Fuego, a hub-and-spoke development consisting of the Cortadera, Productora, Alice, and San Antonio deposits. - Infrastructure Advantage: Low elevation (800m), 60km from a port, and possesses secured water rights (Huasco Water project). - Economics: 20-year mine life, 95ktpa Cu production, US$1.38/lb C1 cash costs.