Hot Chili Ltd (ASX:HCH) has intersected mineralisation which represents a significant copper-gold discovery proximal to the central hub of its Costa Fuego copper-gold project in Chile.

The company has been progressing a 4,000 metre drilling program at the La Verde porphyry copper-gold target, and results from the first two holes have shown an intersection of 202 metres at 0.6% copper and 0.3 grams per tonne (g/t) from 70 metres depth.

This was found within a broader intersection measuring 308 metres, with a copper grade of 0.5%, in addition to gold grading 0.3g/t from 46 metres depth to end of hole.

La Verde’s overall parameters are impressive, with a porphyry footprint measuring approximately 850 metres by 700 metres, making it comparable to Hot Chili’s higher-grade Cortadera Cuerpo 3 copper-gold porphyry, which is found 30 kilometres to the north.

Historically, an open pit mine on the site was previously exploited by private interests for shallow porphyry copper-style oxide mineralisation, although drill testing at depth and outside the central lease was limited.

Hot Chili has completed 12 reverse circulation (RC) holes – for a total of 3,150 metres – at La Verde, with the first two drilled to validate historic intercepts, and test the interpreted northern extension of the porphyry from the previously exploited open pit.

The company is progressing a prefeasibility study (PFS) at Costa Fuego – located in Chile’s Atacama region – set for completion in the first quarter of 2025.

Hot Chili shares rose on the news, and at 10:30 AEDT, they were trading at 72 cents – an increase of 5.88% since the market opened.

Join the discussion: See what HotCopper users are saying about Hot Chili and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.