Hot Chili Limited (ASX:HCH): La Verde Drilling Shapes the Costa Fuego Development Plan

Aditi Sarkar

28 October 2026 03:07 PM AEDT

Hot Chili Limited (ASX:HCH): La Verde Drilling Shapes the Costa Fuego Development Plan

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Highlights

La Verde exploration is being assessed alongside the planned Costa Fuego copper-gold development in Chile.
A reported diamond-drill intercept at La Verde included 725 m at 0.42% CuEq from 18 m.
October drilling updates described further shallow copper-gold mineralisation.
A maiden La Verde Mineral Resource Estimate remained a stated 2026 objective.
Project studies and environmental assessment remain separate steps from potential mine development.

Hot Chili Limited (ASX:HCH) is an Australian copper-gold exploration and development company focused on coastal Chile. Its principal development project, Costa Fuego, is not yet an operating mine. It is assessing La Verde as potential processing feed. Results reported during 2026 have expanded the geological evidence, but the scale, economic viability and mine-planning implications of La Verde still require formal assessment.

La Verde Drill Results Add Geological Detail

During April 2026, Hot Chili (ASX:HCH) reported that drill hole DKD039 intersected 725 m grading 0.42% copper equivalent (CuEq) from 18 m depth. The interval included 62 m at 1.03% CuEq from 671 m depth. These are downhole intersections rather than estimates of mineable ore; they do not alone establish the width, tonnage or economics of a deposit.

Subsequent drilling sought to define the distribution and continuity of copper-gold mineralisation. In its 8 October 2026 announcement, Hot Chili (ASX:HCH) described additional shallow intersections and continued resource modelling at La Verde. The company stated that the work could help assess potential higher-grade, near-surface feed within a future Costa Fuego mine plan. Such a scenario depends on resource estimation and further engineering work.

The 19 October 2026 company announcement reported a second porphyry discovery at La Verde. This broadened the exploration picture beyond the previously established mineralised footprint. Exploration results remain distinct from a Mineral Resource, Ore Reserve or demonstrated commercial development case.

Funding and the Broader Costa Fuego Programme

In February 2026, Hot Chili (ASX:HCH) announced an A$40 million placement comprising 24,242,425 new fully paid ordinary shares at A$1.65 per share. The funding was intended to support exploration at La Verde, engineering activities and the wider Costa Fuego development programme. The financing issued new shares.

Costa Fuego combines multiple copper-gold deposits in Chile and is being developed around a planned central processing facility. Hot Chili (ASX:HCH) also has an interest in Huasco Water, a business linked to seawater infrastructure. Water supply, engineering design, permitting and project funding are relevant to the progression from a study-stage project towards construction. None of these steps means that production has commenced.

What Remains Unresolved

The company’s October 2026 disclosure identified a maiden Mineral Resource Estimate for La Verde as a goal for later in the year. It also outlined the possibility of examining La Verde within a revised Costa Fuego pre-feasibility study. The company explicitly cautioned that no Mineral Resource or Ore Reserve had yet been estimated for La Verde and that the discovery was not included in an economic study. Accordingly, inclusion in any future mine plan, or an improvement in project economics, is uncertain.

A further stated milestone was formal submission of the Costa Fuego Environmental Impact Assessment in the second quarter of 2027. The timetable is a company objective rather than a completed regulatory approval. Outcomes will depend on geological interpretation, technical studies, environmental review and available financing. Copper and gold prices can also affect study assumptions without altering the reported drill assays themselves.

Key Insights

For Hot Chili (ASX:HCH), La Verde provides additional geological information that may influence how Costa Fuego is designed and sequenced. The 2026 drilling and financing announcements document progress in exploration and project preparation, while the absence of a La Verde resource estimate leaves its development contribution unconfirmed. The distinction between drilling intersections, estimated resources, engineered mine plans and permitted operations remains central to understanding the company’s position.

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