Hot Chili hits more shallow copper-gold paydirt in Chile
Hot Chili (ASX: HCH) has continued to expand its La Verde copper-gold porphyry discovery in coastal Chile, with a fresh batch of drill results confirming broad zones of shallow mineralisation just 30 kilometres south of its planned processing hub at the giant Costa Fuego project.
Headlining the latest reverse circulation (RC) assays is a stellar 188-metre intersection grading 0.56 per cent copper equivalent from just 24m downhole. Comprising 0.44 per cent copper and 0.16g/t gold, the result represents a deeper extension of a previously reported 132-metre run, proving that the project’s high-grade zone continues to grow at depth.
Step-out drilling also hit a massive 240-metre run grading 0.43 per cent copper equivalent from 36m, which includes a higher-grade core of 54m assaying 0.60 per cent copper equivalent from 46m.
Further highlighting expansion of mineralisation on the the eastern flank, another hole returned a partial intercept of 112m at 0.47 per cent copper equivalent from 42m, sweetened significantly by a 26-metre section grading a solid 0.70 per cent copper equivalent from 62m. Notably, assays for the first 42m of this hole are still pending. The hole was collared from the same platform as a previous one, which delivered an impressive 182m at 0.60 per cent copper equivalent. M, a combination management says the combination builds strong confidence in the system’s overall coherence and continuity.
Another hole bored out a hefty 158m at 0.36 per cent copper equivalent from surface, anchored by an 18-metre internal zone grading 0.58 per cent copper equivalent from 132m.
With more than 35,000m metres of RC and diamond drilling now deep in the database, Hot Chili is rapidly refining its geological models ahead of a maiden mineral resource estimate targeted for later this year. The bigger opportunity lies in the potential to feed higher-grade, near-surface ore from an open pit at La Verde into the broader Costa Fuego mine plan, with the company now assessing its inclusion in a revised pre-feasibility study (PFS).
While La Verde does not yet host an official mineral resource, that looks likely to change before year's end, given the sheer thickness of these new shallow intercepts, which paints an increasingly compelling picture. Backed by a premier copper jurisdiction and with assays for another 25 drillholes still pending, Hot Chili is assembling all the hallmarks of a significant new South American discovery.
The timing seems impeccable. The new data comes against a decidedly bullish backdrop for the red metal, which currently trades at near-all-time highs of US$6.7 (A$9.61) per pound. Recognising the seismic shift in supply and demand, Chile’s own copper commission, Cochilco, recently lifted its own average copper price forecast for 2026 to US$5.55 (A$7.97) per pound, citing firm global demand and tight structural supply. Given Chile accounts for an estimated 22 per cent of global mined output, any credible new development in the country holds immediate strategic relevance.
The longer-term supply challenge is even more acute. Tier-1 miner BHP estimates that more than 2.5 million tonnes of new mine supply will be required by 2030 just to keep the market balanced, with annual demand potentially breaching 50 million tonnes by 2050.
Hot Chili’s drilling at La Verde appears to be carving out exactly the kind of near-surface, coherent mineralised system that could help fill that gap, potentially supporting a low-strip-ratio open pit during the early years of Costa Fuego’s current 20-year mine plan.
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