#Australia #Hot Chili #Costa Fuego #Perth #Copper Gold

Hot Chili Limited Quarterly Report Overview

Hot Chili Limited, based in Australia, has recently published its quarterly report for the period ending March 31, 2026. This report highlights several significant developments that will aid the advancement of the Costa Fuego copper-gold project, particularly the La Verde discovery located in coastal Chile. This quarter, the company secured a remarkable $40 million in funding thanks to robust interest from institutional investors within Australia, Canada, and other regions. Major shareholders including Glencore, Blue Spec, and GS Group contributed substantially to this funding, demonstrating confidence in Hot Chili's growth trajectory.

Notable Drill Results and Resource Expansion

The report reveals that drilling operations at La Verde's copper-gold porphyry deposit have intensified, with a second rig initiated operations in February. The standout discovery during this quarter involved a drill hole designated DKD039, which reported a significant depth of 725 meters grading 0.42% Copper Equivalent (CuEq). Within this drill, multiple intersections have showcased exceptional grades, including a 62 meter interval at 1.03% CuEq, underscoring the high-grade core's rapid expansion.

Further analysis of drill hole DKD036 revealed 150 meters at 0.52% CuEq, while DKD035 produced 220 meters at 0.47% CuEq, with several intervals reaching beyond 0.6% CuEq. These findings indicate a higher-grade starter pit is emerging, offering the potential for cost-effective mining operations that could significantly reduce the project’s payback period.

Appointments and Strategic Developments

In light of these promising results, Hot Chili has appointed the global engineering firm Ausenco to conduct the Feasibility Study for Costa Fuego, leveraging their expertise from the nearby Mantoverde project. The aim is to establish a maiden Mineral Resource estimate for La Verde, to incorporate it into an expanded mine plan, and to prepare for the submission of an Environmental Impact Assessment (EIA).

Strong Financial Health

As of March 31, 2026, Hot Chili maintains a solid cash position with A$35.2 million, showcasing prudent financial management without incurring debt. Operational expenditures during the quarter were focused on drilling and corporate costs, positioning the company for future growth. Cash inflows from the recent funding round will support ongoing exploration efforts and are directed toward achieving critical milestones within the Costa Fuego project.

Future Prospects and Goals

Looking ahead, the company's immediate goals involve enhancing the understanding of the La Verde mineralization footprint through continued drilling, leading to more thorough resource definition. The identification of near-surface higher-grade zones will be pivotal in generating a robust mineral resource estimate and fulfilling the company's commitments to stakeholders. With strong assay results promising connectivity and depth continuities, Hot Chili is well-positioned to navigate the possibilities of the burgeoning copper supply landscape amid increasing global demand.

In summary, the latest developments at Hot Chili not only reflect a robust operational strategy but also symbolize a commitment to sustainable and responsible mining practices as they progress in their endeavors. The Costa Fuego project stands as one of the few significant copper projects not dominated by major mining companies, showcasing immense potential in contributing to the world's copper supply in the years to come.