Hot Chili shares up 8% on Cu-Au porphyry confirmation at La Verde

Hot Chili (ASX:HCH) has confirmed the presence of a significant copper-gold porphyry at its La Verde discovery in Chile, with a second round of drilling revealing broad intersections that were consistent in their mineralisation, extending across 300 metres vertically, and starting at shallow depths.

The drilling – which was reverse circulation (RC) – picked up intersections such as 320 metres at 0.3% copper (Cu) and 0.1 grams per tonne (g/t) of gold (Au) from 34 metres to end-of-hole, including 134 metres at 0.4% Cu and 0.2 g/t Au from 180 metres depth, plus 56 metres at 0.5% Cu and 0.2 g/t Au from 258 metres depth.

All this was in one hole; another yielded 200 metres at 0.4% Cu and 0.1 g/t Au from 48 metres to end-of-hole including 38 metres at 0.5% Cu and 0.2 g/t Au from 68 metres depth.

This added to previously reported results from La Verde in December, which included grades of 0.5% Cu and 0.3 g/t Au across 308 metres. This indicates the discovery is in a continual process of growth, the company said.

“La Verde is shaping up as Hot Chili’s next major copper-gold discovery, with the potential to significantly lift the scale of our Costa Fuego project,” managing director Christian Easterday said.

“With primary copper supply declining, copper and gold prices rallying, and a PFS on each of our planned businesses [copper-gold and water] nearing completion – momentum is building fast.

“Following in the footsteps of our successes at Cortadera and Productora, we’ve secured full control of La Verde after years of strategic consolidation, finally allowing us unrestricted access to test this historically overlooked porphyry system.

“Drill results have exceeded expectations, revealing a much larger porphyry system than first recognized, with broad, consistent copper-gold mineralisation extending from shallow depths and largely hidden below shallow gravel cover.”

HCH shares rose after the news, and at 10:30 AEDT, they were trading at 72.5 cents – an increase of 8.21% since the market opened.

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