Noticias

Hot Chili opens door to high-grade starter pit at La Verde copper-gold discovery

• Hot Chili is lining up a potential starter pit at its La Verde discovery in Chile
• Shallow, high-grade copper adds to upside for one of the world’s largest undeveloped copper projects
• Assays due in April for hole which struck thick chalcopyrite mineralisation

Special Report: Drill hits show Hot Chili has the potential to frontload returns from one of the world’s top undeveloped copper projects, with results from La Verde discovery opening the window to a high-grade starter pit.

Porphyry copper mines tend to deliver solid returns over a long period of time – lower in grade but large in tonnage and predictable compared to higher-grade VMS systems.

But a high-grade starter pit can ensure capital costs get paid off early, bringing forward returns for shareholders so the cream can be enjoyed earlier.

La Verde is 30km south of Hot Chili’s (ASX:HCH) Costa Fuego in Chile, already regarded as one of the world’s few large-scale copper developments with a pre-feasibility study showing it would produce 95,000t of copper and 48,000oz of gold annually over 14 years.

That’s from the Productora and Cortadera deposits, but La Verde’s shallow, high grades present a transformational opportunity ahead of bankable studies.

The most recent hits included:

• 150m at 0.52% copper equivalent (0.37% Cu, 0.21g/t Au) from just 30m, including 38m at 0.7% CuEq (0.55% Cu, 0.21g/t Au) from 117m (DKD036); and
• 220m at 0.47% CuEq (0.37% Cu, 0.14g/t Au) from 38m, including 68m at 0.64% CuEq (0.52% Cu, 0.15g/t Au) from 187m (DKD035).

They add to nine previously recorded significant drill intersections underpinning a shallow zone of high-grade copper-gold mineralisation at La Verde, with another 150m of chalcopyrite (copper sulphide) rich mineralisation in ongoing drill hole DKD039.

More from HCH: Hot Chili pockets $40m to accelerate drilling at La Verde

Growing confidence

A second rig, which will be a reverse circulation drill rig, is expected to commence soon as double shift diamond drilling continues.

Such is the confidence imbued by recent results.

Not only are the grades strong, but the shallow nature of the drill results lend well to the starter pit concept. They occur immediately beneath shallow cover and sit up dip of a previous intersection that hit a wide 148m grading 0.82% CuEq from 70m.

The near surface location of the mineralisation means less overburden to remove ahead of mining – a key capital expense known as pre-stripping. The less the better.

There also appears to be continuity, with chalcopyrite abundance in hole DKD039 between 580m and 730m deep estimated to average greater than 1%, with several intervals hosting chalcopyrite abundance above 3%.

Assay results for those visually identified intervals are due in April.

La Verde’s +0.4% copper footprint has also been extended laterally to the east with two diamond tail extensions in holes DKP006D and DKP021D, the latter of which recorded an additional 54m grading 0.42% CuEq (0.34% Cu, 0.11g/t Au) from 593m depth, including 19 m grading 0.66% CuEq (0.51% Cu, 0.21g/t Au) from 593 m depth.

Initial metallurgical testwork for La Verde, also using seawater, indicated similar recoveries to those recorded at Costa Fuego, the company said.

Sample selection for further metallurgical testwork is underway with assays still pending for five holes.

Copper markets have real steam behind them, with demand pushed to record highs due to AI, data centre buildouts and electrification, with a lack of supply response from existing mines pushing prices to record levels near US$13,000/t.

That puts projects like Costa Fuego front and centre of the industry’s future, as the world cries out for mines that can make a dent in imposing forecast deficits.