Funding and Assay Results Key as Hot Chili Advances La Verde and Costa Fuego Projects

Significant Discovery at La Verde

Hot Chili Limited has announced a breakthrough in its exploration program with the confirmation of La Verde as a significant copper-gold (Cu-Au) porphyry discovery. Located 30km south of the Costa Fuego processing hub in Chile's prolific Atacama region, La Verde's initial drilling results have revealed wide intersections of continuous mineralisation extending from near surface to approximately 300 metres vertical depth.

Notably, drill hole DKP002 returned 308 metres at 0.5% copper and 0.3 grams per tonne gold starting from 46 metres depth, including a higher-grade interval of 202 metres at 0.6% copper and 0.3 grams per tonne gold. These results validate historic data and highlight the potential for a large-scale deposit.

Unlocking the Domeyko Potential

This quarter marks the first unified exploration of Hot Chili’s Domeyko landholding, which encompasses La Verde and other highly prospective concessions. The company has expanded its reverse circulation (RC) drilling program, with 15 additional holes pending assay results and further drilling underway. The mineralisation footprint at La Verde is comparable in scale to Cuerpo 3 at the Cortadera deposit, which hosts a substantial portion of the Costa Fuego resource base.

Importantly, mineralisation remains open in all directions, including under shallow cover, suggesting significant upside potential. The presence of oxide mineralisation near surface and primary sulphide mineralisation at depth provides multiple extraction opportunities.

Harnessing AI for Exploration

In a strategic move to accelerate discovery, Hot Chili is integrating artificial intelligence (AI) and machine learning with its 16 years of Chilean geological expertise. This innovative approach aims to enhance targeting efficiency and reduce exploration timelines in one of the world’s top copper-producing nations.

Progress on Costa Fuego Pre-Feasibility Study

Alongside exploration success, Hot Chili is advancing the Costa Fuego copper-gold project’s pre-feasibility study (PFS), now in its final stages. Key workstreams in metallurgy, mining, infrastructure, and environmental planning have been completed, including metallurgical testwork demonstrating reduced freshwater dependency through seawater processing technologies.

The environmental impact assessment (EIA) is progressing with additional hydrogeological and geotechnical studies planned for 2025. The company continues to engage with local communities, enhancing its social licence to operate through bilingual updates and community events.

Financial Strength and Corporate Developments

Hot Chili maintains a robust financial position with A$19 million in cash and no debt as of December 31, 2024. The company spent A$4.7 million on exploration and evaluation during the quarter, including advancing the PFS and EIA. Corporate activities include the acquisition of the Dominoceros 1/20 mining lease (La Verde) under an option agreement and ongoing negotiations related to other tenements.

Additionally, Hot Chili’s subsidiary, Huasco Water, is nearing completion of its pre-feasibility study for a water supply business case, which could provide critical infrastructure and funding optionality for Costa Fuego.

Looking Ahead

With drilling ongoing and assay results pending, Hot Chili is poised to further define La Verde’s resource potential. The integration of AI-powered exploration and the nearing completion of the Costa Fuego PFS position the company well for advancing towards development decisions. Investors will be watching closely as Hot Chili continues to unlock value across its Chilean copper-gold portfolio.