Hot Chili Accelerates Drilling at La Verde to Boost Copper-Gold Resource
Hot Chili Ltd (ASX:HCH) is intensifying its drilling efforts at the La Verde copper-gold discovery in coastal Chile, aiming to deliver a maiden resource estimate before the end of the year. The company is focused on defining the higher-grade core of the La Verde deposit, which could significantly enhance the early years of the Costa Fuego mine plan. Recent drilling results have shown promising intersections of copper-gold mineralization at shallow depths, with mineralization continuing at greater depths as well.
The push to accelerate drilling comes amid a challenging backdrop for Chilean copper production, which has hit multi-year lows due to aging mines and operational difficulties. Fresh disruptions, including labor tensions at major mines like Escondida and Codelco, have added to the supply constraints. This has heightened interest in new low-altitude supply sources like La Verde, which benefits from simpler logistics and lower operating costs compared to high-Andes projects.
Hot Chili is working towards a revised pre-feasibility study for Costa Fuego that incorporates La Verde, with a formal environmental impact assessment submission planned for the June quarter of next year. The company's dual listing in Toronto and over-the-counter trading in the United States may provide broader funding options as it progresses towards development. Despite a softer week for copper prices due to weakness in China's industrial sector and elevated energy costs, the physical market remains supported by falling inventories in Shanghai-monitored warehouses.
Hot Chili's shares have been volatile, reflecting broader market sentiment and the exploration-stage nature of the company. However, defining a resource at La Verde is crucial for improving the company's profile and attracting capital in a competitive funding environment.