Hot Chili Confirms La Verde as Significant Cu-Au Porphyry Discovery
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au
@hotchiliIR
Contact
Mr Christian Easterday
Managing Director
@hotchililimited
ASX: HCH
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Highlights
Hot Chili Confirms La Verde as Significant Cu-Au Porphyry Discovery
• Drill results returned wide intersections of continuous copper-gold mineralisation from near surface
to approximately 300m vertical depth including:
o 308m of 0.5% Cu, and 0.3g/t from 46m (to end-of-hole) (DKP002)
including 202m of 0.6% Cu and 0.3g/t Au from 70m depth
o 174m of 0.4% Cu and 0.1g/t Au from 36m depth (DKP001), 120m NW of DKP002
Unlocking La Verde’s Full Potential
• First-ever unified exploration of these highly prospective concessions
• 15 more RC drill results pending, with the program now expanded
AI-Powered Exploration Advantage
• Hot Chili has commenced preparation to aggressively leverage Artificial Intelligence (AI) combined
with Machine Learning and 16 years of Chilean expertise to fast-track discovery in the world’s top
copper-producing nation.
Costa Fuego Cu-Au Pre-feasibility Study (PFS): Final Stages Underway
Huasco Water – Water Supply PFS: Nearing Completion
Environmental Impact Assessment Progressing
Strong Financials: A$19M Cash
Quarterly Report
Period Ending 31 December 2024
2
ASX: HCH
TSXV: HCH
OTCQX: HHLKF
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au
@hotchiliIR
@hotchililimited
Drilling operations continuing at La Verde, located 30km south of Costa Fuego in coastal Chile
Cautionary Statement – JORC Code (2012)
The Preliminary Economic Assessment referred to in this Report is equivalent to a Scoping Study under JORC Code (2012) reporting
guidelines. It has been undertaken for the purpose of initial evaluation of a potential development of the Costa Fuego Copper Project in Chile.
It is a preliminary technical and economic study of the potential viability of the Costa Fuego Coppe r Project. The PEA outcomes, production
target and forecast financial information referred to in the Report are based on low level technical and economic assessments that are
insufficient to support estimation of Ore Reserves. The PEA is presented in US dollars to an accuracy level of +/ - 35%. While each of the
modifying factors was considered and applied, there is no certainty of eventual conversion to Ore Reserves or that the production target itself
will be realised. Further exploration and evaluation and appropriate studies are required before Hot Chili will be in a position to estimate any
Ore Reserves or to provide any assurance of any economic development case. Given the uncertainties involved, investors should not make
any investment decisions based solely on the results of the PEA.
Of the Mineral Resources scheduled for extraction in the PEA production plan, approximately 9 9% are classified as Indicated and 1% as
Inferred. The Company has concluded that it has reasonable grounds for disclosing a production target which includes a small amount of
Inferred Mineral Resources, as permitted under the JORC Code. There is a low level of geological confidence associated with Inferred Mineral
Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the
production target itself will be realised. The viability of the development scenario envisaged in the PEA does not depend on the inclusion of
Inferred Mineral Resources. However, it is reasonably expected that the ma jority of Inferred Mineral Resources could be upgraded to
Measured or Indicated Mineral Resource with continued drilling.
The Mineral Resources underpinning the production target in the PEA have been prepared by a competent person in accordance with the
requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 31 March 2022.
The Mineral Resource Estimate update released in February 2024 does not materially change the Mineral Resource inventory that formed
the basis of the 2023 PEA, and no new scientific or technical information has been developed that would materially affect the outcome of the
2023 PEA and, therefore, the results and conclusions of the 2023 PEA are considered current and have been restated for this Report.
To achieve the outcomes indicated in the PEA, including reaching Definitive Feasibility Study (“DFS”) , mine construction and production
stages, funding in the order of US$1.10 Billion will be required, including pre-production and working capital and assumed financing charges.
Investors should note that that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key
assumptions is that the funding for the Project will be available when required and on acceptable terms. It is also possible that such funding
may only be available on terms that may be dilutive to, or otherwise affect the value of, Hot Chili’s existing shares. It is also possible that Hot
Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper
Project and/or Huasco Water , sale of further royalties and/or streaming rights, sale of non-committed offtake rights, and sale of non -core
assets.
This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward -looking
statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However,
a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking
statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PEA.
3
ASX: HCH
TSXV: HCH
OTCQX: HHLKF
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au
@hotchiliIR
@hotchililimited
SUMMARY OF OPERATIONAL ACTIVITIES
Hot Chili Expands Drilling at La Verde, Confirming Significant Cu-Au Porphyry Discovery
Hot Chili recommenced drilling in October 2024 at its new La Verde Cu -Au porphyry project, 30km south of Costa
Fuego’s planned processing hub in Chile’s Atacama region. This marks the first unified exploration of the Domeyko
landholding, unlocking a large, untapped Cu-Au porphyry target.
Drilling Highlights
Thirteen drill holes completed ( 3,820.5m), during the quarter, an additional 4 drill holes ( 1,453m) completed in January
2025 to date – 15 holes pending assay results.
• First two holes confirm significant mineralization and higher-grade zones.
• Drill Hole DKP001 (validating historic results)
o 174m @ 0.4% Cu, 0.1g/t Au from 36m, including:
o 26m @ 0.5% Cu, 0.1g/t Au from 96m
o 22m @ 0.6% Cu, 0.2g/t Au from 144m
• Drill Hole DKP002 (120m SE of DKP001 – identifying higher-grade zone)
o 308m @ 0.5% Cu, 0.3g/t Au from 46m (to end-of-hole), including:
o 202m @ 0.6% Cu, 0.3g/t Au from 70m, or
o 100m @ 0.7% Cu, 0.3g/t Au from 118m
Rapidly Emerging Cu-Au Porphyry System
Recent drilling confirms La Verde’s potential as a significant copper-gold discovery, extending the porphyry system 400m
NE of the historic open pit—a large step-out given the pit’s 200m x 400m footprint.
• La Verde’s footprint is comparable to Cuerpo 3 at Cortadera, which hosts approximately 70% of Cortadera’s
531Mt Indicated and 149Mt Inferred resources (see announcement dated 26th February 2024)
• Higher grade zones under shallow cover:
o Oxide mineralisation (copper limonite & chalcocite) extends to ~80m depth.
o Primary sulphide mineralisation (chalcopyrite & pyrite) continues at depth.
• System Remains Open: mineralisation is open in all directions, with further potential under cover.
• Incorporating AI powered exploration with machine learning and over 16 years of local geological expertise to
fast track discoveries.
Next Steps
Hot Chili has expanded its first-pass RC drilling program, now targeting completion by late February 2025.
4
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TSXV: HCH
OTCQX: HHLKF
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au
@hotchiliIR
@hotchililimited
Drilling underway across the La Verde copper-gold porphyry discovery with historical copper oxide pit in
the background – November 2024
5
ASX: HCH
TSXV: HCH
OTCQX: HHLKF
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au
@hotchiliIR
@hotchililimited
Figure 1. Plan view map of the La Verde porphyry system showing the significant intercepts of DKP001 and
DKP002 compared to historic drill collars, open pit extent (white), in pit geological mapping, +1% A+B vein
footprint from mapping and drillholes (blue) and logged copper mineralisation footprint from historic logging
(yellow).
6
ASX: HCH
TSXV: HCH
OTCQX: HHLKF
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au
@hotchiliIR
@hotchililimited
Figure 2. Plan view (Left) map of La Verde showing the +1% A+B vein footprint from mapping and drillholes (blue)
and strong copper mineralisation footprint (light pink) relative to the copper mineralisation footprint from historic
logging (yellow) with the recently acquired ground magnetic su rvey reduced to the pole (RTP). Plan view (Right)
map of Cuerpo 3 at Cortadera showing the +1% A+B vein footprint (from drillholes) relative to the +0.1% copper
(yellow), +0.4% copper (light pink) and +0.6% copper (dark pink) interpolants with the ground m agnetics survey
reduced to pole (RTP). Black arrows and distances indicate the length and width of +1% A+B vein footprints.
Table 1 - Drill Holes Completed for Costa Fuego in Quarter 4 2024
Prospect Hole ID North East RL Depth Azimuth Dip Results
La Verde DKP001 6786082 324551 1153 390 90 -60 See Table 2
La Verde DKP002 6785976 324837 1192 354 270 -60 See Table 2
La Verde DKP003 6785971 324840 1192 282 118 -60 Pending
La Verde DKP004 6785836 324423 1095 120 90 -60 Pending
La Verde DKP005 6785789 324564 1124 248 90 -60 Pending
La Verde DKP006 6785721 324727 1131 199.5 110 -60 Pending
La Verde DKP007 6785854 324742 1147 204 270 -60 Pending
La Verde DKP008 6785855 324748 1147 324 7 -60 Pending
La Verde DKP009 6786075 324552 1153 354 130 -60 Pending
La Verde DKP010 6785849 324737 1148 276 210 -60 Pending
La Verde DKP011 6786097 324436 1226 326 90 -60 Pending
La Verde DKP012 6785969 324839 1202 306 300 -60 Pending
La Verde DKP013 6785967 324834 1202 437 245 -60 Pending
7
ASX: HCH
TSXV: HCH
OTCQX: HHLKF
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au
@hotchiliIR
@hotchililimited
Table 2 – Significant Intersections returned for Costa Fuego in Quarter 4 2024
Hole ID
Coordinates
Azim. Dip Hole Depth
Intersection Interval Copper Gold Silver Molyb.
North East RL From To (m) (% Cu) (g/t Au) (ppm Ag) (ppm Mo)
DKP0001 6786079 324546 1153 89 -59 390 28 390 362 0.3 0.1 0.5 33
Or 36 210 174 0.4 0.1 0.6 24
Incl 40 82 42 0.4 0.1 0.5 10
Or Incl 72 82 10 0.6 0.1 0.3 10
And incl 96 122 26 0.5 0.1 0.9 20
And incl 144 166 22 0.6 0.2 0.7 49
And incl 248 272 24 0.4 0.1 1.0 54
DKP0002 6785967 324835 1202 270 -60 354 46 354 308 0.5 0.3 0.6 11
Incl 70 272 202 0.6 0.3 0.6 14
Incl 76 90 14 0.8 0.4 0.3 6
And incl 118 218 100 0.7 0.3 0.8 15
And incl 178 198 20 0.8 0.4 1.0 11
Or Incl 186 190 4 0.9 0.5 1.0 11
Costa Fuego Cu-Au Pre-feasibility Study (PFS): Final Stages Underway
During the December 2024 quarter, Hot Chili completed key workstreams for Costa Fuego’s PFS and Environmental
Impact Assessment (EIA), achieving milestones in metallurgy, mining, infrastructure, and environmental planning.
Metallurgy
• Finalized metallurgical testwork using Nova Mineralis Novaminore® technology, which leverages saline water
and regulated irrigation cycles for enhanced chalcopyrite recovery.
• Demonstrated reduced freshwater dependency, aligning with Costa Fuego’s planned seawater processing.
• Results informed predictive models for copper recovery and acid consumption, optimizing the mine schedule.
Figure 3. Novaminore® 1 m Column Leaching Test on Productora Oxide material
8
ASX: HCH
TSXV: HCH
OTCQX: HHLKF
Hot Chili Limited ACN 130 955 725
First Floor, 768 Canning Highway, Applecross, Western Australia 6153
PO Box 1725, Applecross, Western Australia 6953
P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au
@hotchiliIR
@hotchililimited
Mining
• Mine scheduling finali sed using advanced software, incorporating feed from four open pits (Productora,
Cortadera, Alice, and San Antonio) and an underground block cave at Cortadera.
• Multiple schedule iterations prioritized low pre-start capital, fast payback, and optimized production rates.
• Initial capital and operating cost estimations were completed, with further optimization underway for inclusion in
the PFS financial model.
Infrastructure
• Finalized site layout, including placement of heap/dump leach pads, waste dumps, stockpiles, mill site, tailings
storage, and support buildings.
• Integrated surface water management systems, including diversion channels and dewatering infrastructure.
• Ongoing road optimization to align with the mining schedule.
Environment
• Advanced EIA preparation with additional hydrogeological and geotechnical investigations planned for 2025.
• Completed collection of 122 rock samples for acid rock drainage (ARD) and metal leaching (ML) tests to inform
long-term infrastructure and mine closure planning.
• Conducted baseline environmental studies and integrated results into design decisions.
EIA Preparations and Social Licence to Operate
Hot Chili is preparing its EIA for Costa Fuego ahead of planned submission in 2025. During the quarter, the
Company’s environmental team made several advances, including:
• Expanded community communication with bilingual digital updates and public events in Vallenar, including
presentations and information booths.
• Continued support for local at-risk children, celebrating Christmas with communities in Vallenar and Freirina.
Both events were well attended and received, and additional information booths and presentations are planned
for the townships of Huasco and Freirina in the first quarter of 2025.