Hot Chili (ASX:HCH) said drilling results from its La Verde copper-gold porphyry discovery in Chile look likely to contribute a higher-grade starter pit to the Costa Fuego project, according to a Monday Australian bourse filing.

Drilling encountered intercepts of 150 meters at 0.5% grade of copper-equivalent, including 0.4% grade of copper and 0.2 grams per tonne (g/t) grade of gold from 30 meters of depth, as well as 220 meters at 0.5% grade of copper-equivalent, including 0.4% grade of copper, 0.1 g/t grade of gold, from 38 meters of depth, the filing said. One of the drill holes also recorded a visual intersection of strong copper porphyry-style mineralization.

The results add to nine previously recorded drill intersections, which define a higher-grade, near-surface copper-gold zone of 400 meters by 400 meters.

Hot Chili's shares fell past 5% in recent trading on Monday.