La Verde Emerging as Hot Chili's Cornerstone Asset

Hot Chili Limited (HCH) has released new reverse circulation (RC) and diamond drill (DD) results from its La Verde porphyry copper-gold discovery, which is part of the Costa Fuego project in Chile.

The company highlighted shallow RC drilling targeting near-surface enrichment, with hole DKP053 returning 250 m @ 0.50% CuEq (0.39% Cu, 0.14 g/t Au) from 64 m. Other notable RC intercepts included DKP054 with 124 m @ 0.46% CuEq, DKP056 with 90 m @ 0.45% CuEq, and DKP058 with 108 m @ 0.54% CuEq.

Deep step-out DD drilling also produced significant intersections. Hole DKD049 intersected 213 m @ 0.44% CuEq (0.38% Cu, 0.07 g/t Au) from 504 m, including a higher-grade interval of 57.3 m @ 0.60% CuEq. Additionally, the tail section of hole DKP028D returned 258.9 m @ 0.42% CuEq from 358 m, including 27.4 m @ 0.76% CuEq.

Assay turnaround times are improving following the engagement of a second laboratory, with 21 holes currently pending results. Hot Chili expects to release a maiden Mineral Resource Estimate (MRE) for La Verde later in 2026. Copper equivalent (CuEq) grades were calculated using disclosed prices and recoveries, with a 0.20% Cu cutoff.

Hot Chili Limited (HCH) is an advanced explorer and developer with a large Inferred and Indicated resource at Costa Fuego totaling 798 Mt at 0.45% CuEq, alongside a Pre-Feasibility Study (PFS). The La Verde project is currently pre-resource, with its maiden Mineral Resource Estimate (MRE) awaited. The latest drill holes are not a discovery and do not materially change the deposit-scale picture. They confirm that a near-surface blanket of greater than 0.4% CuEq mineralization exists, which could support a starter pit, a scenario already outlined in the March 2025 PFS and earlier drilling.

The stock had fallen from $2.05 in mid-June to $1.49 on July 27, six days before the release. The prior release on July 7 regarding US$15M in royalty funding was received negatively, with the stock dropping from $1.94 to $1.66. The drill results on July 28 might be viewed as routine or modestly positive. The news likely arrests the decline but does not contain a standout hole that would re-rate the stock. The market has already priced in the La Verde potential based on the blockbuster DKD039, DKD032, and other earlier highlights; these latest holes are in-line and may even be seen as slightly lower grade than earlier highlights.

For a producer or developer, a drill result that does not convert resources or change mine life is rarely material. La Verde’s maiden MRE will be the actual material event.

Hot Chili Limited is a copper-gold developer with the 100%-owned Costa Fuego project in Chile’s Atacama region. The project hosts an indicated resource of 798 Mt @ 0.45% CuEq (2.91 Mt Cu, 2.64 moz Au) and a PFS showing a post-tax NPV (6%) of US$1.2 billion, 19% IRR. A 20-year mine life with average annual production of 95 kt Cu is planned.

The new La Verde porphyry discovery, 30 km south, has no resource yet but multiple long intercepts (best 725 m @ 0.42% CuEq) suggest a material addition. The company has A$35.2 million cash (no debt) after a A$40 million placement in Feb 2026. Major shareholders include Glencore (7.5%) and institutional funds.