Diamond Drilling Commences at La Verde Cu-Au Porphyry Discovery

Rhea-AI Summary

Hot Chili Limited (OTCQX: HHLKF) has initiated diamond drilling at its La Verde copper-gold discovery in Chile's Atacama region, located 30km south of the Costa Fuego Project's planned processing hub. The phase-two drilling program, which commenced on September 22, 2025, follows successful initial reverse circulation drilling that confirmed a significant discovery footprint measuring 1,000m by 750m with +0.2% Cu mineralization extending to 400m depth.

The drilling aims to expand three identified high-grade centers, with previous drilling ending in mineralization. Impact modeling suggests potential for additional open pit material to enhance the Costa Fuego's 20-year mine schedule. Regulatory approvals for further drill access are in final stages, which will enable testing of lateral extensions and nearby targets.

Positive

• Discovery footprint confirms significant mineralization zone of 1,000m x 750m with +0.2% Cu
• Three distinct higher-grade centers identified from near surface
• Potential to enhance Costa Fuego's 20-year mine schedule with additional open pit material
• Mineralization remains open at depth and laterally, indicating growth potential

Negative

• Regulatory approvals still pending for further drill access
• Insufficient exploration to estimate Mineral Resource within target area
• Results dependent on future exploration success

PERTH, Australia, Sept. 25, 2025 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce that diamond drilling has commenced at the La Verde copper-gold (Cu-Au) discovery, located approximately 30km south of the Company's Costa Fuego Cu-Au Project ("Costa Fuego" or "the Project") planned central processing hub at low elevation in the coastal range of the Atacama region, Chile.

Diamond drilling commenced on 22 September 2025 with one drill rig in operation on a double-shift basis. This second phase of drilling at La Verde aims to significantly expand the initial shallow porphyry discovery.

Phase-two drilling follows the success of the Company's first-pass reverse circulation (RC) drill program, which confirmed a significant +0.2% Cu discovery footprint measuring 1,000 m by 750 m and extending up to 400 m vertical depth. 

Importantly, over half of Hot Chili's first pass drill holes ended in significant mineralisation at the capacity of RC drilling, leaving the porphyry discovery open at depth and laterally.

To date, three spatially distinct higher-grade centres have been confirmed from near surface (refer announcement dated 19 May 2025).  Phase-two diamond drilling will target depth extension to these high-grade centres.

Impact modelling by Hot Chili has outlined the potential for significant additional open pit material to be added to the front-end of Coast Fuego's 20 year mine schedule, providing both mine life growth and materially enhanced financial metrics to Hot Chili's March 2025 Pre-feasibility Study for Costa Fuego.

Regulatory applications for further drill access at La Verde are currently in the final stages of approval and will provide access to test lateral extensions to the discovery footprint, as well as several nearby "look-alike" targets.

The Company looks forward to providing further updates on the results from drilling activities at La Verde.  

This announcement is authorised by the Board of Directors for release to ASX and TSXV.

For more information please contact:

Christian Easterday Managing Director & CEO – Hot Chili	Tel:       +61 8 9315 9009 Email:   admin@hotchili.net.au
Carol Marinkovich Company Secretary – Hot Chili	Tel:       +61 8 9315 9009 Email:   cosec@hotchili.net.au
Graham Farrell Investor & Public Relations	Email:   graham@hotchili.net.au

or visit Hot Chili's website at www.hotchili.net.au

1 See Page 8 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Qualifying Statements

Conceptual Open Pit Shells

Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). They are based on completed exploration activities reported in the announcement released 19 May 2025 ('Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint').

The conceptual open pit shells were generated using copper (Cu) prices of US$3.50/lb Cu  and US$6.00/lb Cu on a series of nested Cu grade shells. Other input parameters informing the conceptual open-pit shells (pit slope angles, mining cost, processing cost, etc.) were derived from values reported in the March 2025 Costa Fuego Pre-feasibility Study and are considered appropriate for the style of mineralisation encountered at the La Verde Cu-Au porphyry discovery.

Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Further exploration activities are detailed in this announcement and include (but may not necessarily be limited to) a program of diamond drillholes aiming to extend the mineralised footprint at La Verde. Drilling commenced on 22 September 2025, with the length of the program dependent on a number of considerations including (but not limited to) the results of the exploration activities and regulatory applications and approvals.

Qualified Person – NI 43-101

The technical information in this announcement has been reviewed and approved by Mr. Christian Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of NI43-101.

Competent Person – JORC

The information in this announcement that relates to Exploration Targets for the La Verde project is based upon information compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, who is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Easterday consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.

Disclaimer

The information in this announcement relating to the Exploration Results for La Verde was previously reported in the Company's announcements 'Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde', 'Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint' and 'District-Scale Porphyry Cluster Potential Emerging at La Verde Cu-Au Discovery' released to ASX on 26 February 2024, 19 May 2025 and 29 May 2025 respectively, which are available to view on the Company's website at www.hotchili.net.au/investors/investor-centre/market-announcements. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this announcement.

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", "expectations", "may", "plan", "potential", "project", "reinforce", "unlock", "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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SOURCE Hot Chili Limited

FAQ

What is the size of Hot Chili's (HHLKF) La Verde copper-gold discovery footprint?

The La Verde discovery footprint measures 1,000 meters by 750 meters with +0.2% Cu mineralization extending to 400 meters vertical depth.

When did Hot Chili begin diamond drilling at La Verde?

Hot Chili commenced diamond drilling at La Verde on September 22, 2025, operating one drill rig on a double-shift basis.

How many high-grade centers has Hot Chili identified at La Verde?

Hot Chili has confirmed three spatially distinct higher-grade centers from near surface at the La Verde discovery.

How could the La Verde discovery impact Hot Chili's Costa Fuego project?

The La Verde discovery could add significant open pit material to the front-end of Costa Fuego's 20-year mine schedule, potentially enhancing both mine life and financial metrics from the March 2025 Pre-feasibility Study.

What is the location of Hot Chili's La Verde discovery in relation to Costa Fuego?

The La Verde copper-gold discovery is located approximately 30km south of Hot Chili's Costa Fuego Project's planned central processing hub in Chile's Atacama region.