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Highlights
- Hot Chili Ltd is set to acquire La Verde copper mine in Chile.
- La Verde is strategically located near Hot Chili’s Costa Fuego project.
- Initial drilling confirms promising copper mineralization in La Verde.
Hot Chili Ltd (ASX:HCH) is making a strategic addition to its Costa Fuego copper-gold project in Chile by acquiring the historic La Verde open-pit copper mine. The La Verde site, situated around 30 kilometers south of Costa Fuego in the Atacama region, is positioned within the renowned Domeyko mining district, a location rich in mining history and resources.
The La Verde mine spans a strike length of approximately 800 meters with widths up to 200 meters and depths reaching 15 meters. The site features porphyry copper oxide mineralization that has been exploited historically through private operations. However, despite its resource potential, La Verde has seen minimal exploration activity, with limited drilling focused mainly on surrounding areas rather than the main mineralized zone.
Hot Chili recently signed a three-year Option Agreement to acquire La Verde, marking a significant milestone as it will be the first time this resource has been controlled by a single entity. This acquisition complements the company’s consolidated landholding in the Domeyko mining district, positioning Hot Chili to explore and develop the area comprehensively.
Since April, Hot Chili has been conducting an extensive exploration program across its Domeyko holdings. Activities include soil geochemistry analysis, mapping, and magnetics surveys, all contributing to a thorough understanding of the district’s potential. This exploration program has recently been extended to cover La Verde as part of Hot Chili’s due diligence before formalizing the Option Agreement.
In late October, Hot Chili commenced an initial drilling campaign at La Verde, aiming to gain a clearer picture of its copper mineralization. The first phase includes 11 reverse circulation (RC) drill holes totaling approximately 4,000 meters. Two drill holes, covering a combined 800 meters, have already been completed, revealing wide intersections of porphyry-style copper mineralization based on visual assessments. Assay results are expected to provide further insight into the potential resource.
Currently, Hot Chili Ltd is trading at 83.5 cents on the ASX, reflecting a 0.6% increase since market opening. This acquisition aligns with the company’s broader goal of expanding its Costa Fuego project footprint in the Atacama region, bringing a potentially valuable copper resource under its control for the first time.
The integration of La Verde could position Hot Chili to capitalize on the copper-rich Domeyko district, providing a promising boost to the company’s existing portfolio in Chile.
