PERTH, Australia, April 30, 2026 /CNW/ -
Highlights
$40 Million Funding to Accelerate Growth & Development of Costa Fuego
-- A$40 million private placement during the quarter received strong demand
from Australian, Canadian and overseas institutional investors, as well
as the Company's three largest shareholders (Glencore, Blue Spec and GS
Group).
-- The Company is now set to deliver strong growth and development
milestones for its Costa Fuego copper-gold (Cu-Au) project (Costa Fuego)
located in coastal Chile, including:
-- Delivery of a maiden Mineral Resource at La Verde;
-- Integration of La Verde into an expanded mine plan;
-- Completion and submission of an Environmental Impact Assessment
$(EIA)$; and
-- Continuation of Feasibility studies.
Global Engineering Firm Ausenco Appointed for Feasibility Study
Major High-Grade Extensions Continue at La Verde
-- Drilling at the Company's La Verde copper-gold (Cu-Au) porphyry discovery
in Chile accelerated during the quarter, with a second drill rig
commencing in February
-- Widest drill result to date at La Verde, confirms a major extension to
the deposits' rapidly growing high-grade core:DKD0039 recorded 725 m
grading 0.42% CuEq (0.36% Cu, 0.07 g/t Au) from 18 m depth down-hole,
including:
-- 22 m grading 0.71% CuEq (0.67% Cu, 0.03 g/t Au) from 42 m depth
-- 46 m grading 0.65% CuEq (0.54% Cu, 0.12 g/t Au) from 249 m depth
-- 51 m grading 0.62% CuEq (0.51% Cu, 0.10 g/t Au) from 433 m depth
-- 62 m grading 1.03% CuEq (0.90% Cu, 0.18 g/t Au) from 671 m depth
-- Assays pending for thirteen drill holes (seven diamond and six Reverse
Circulation (RC)).
Higher-Grade Starter Pit Emerging
-- Assay results underpin an emerging, shallow zone of higher-grade Cu-Au
mineralisation, outlining a potential higher-grade starter pit for Costa
Fuego
-- Thirteen significant drill intersections now delineate +0.6% CuEq zone
from surface to 250 m depth, demonstrating strong continuity of
higher-grade material.
-- Additional significant intersections recorded from surface this quarter,
included: DKD036 recorded 150 m grading 0.52% CuEq2 (0.37% Cu, 0.21 g/t
Au) from 30 m depth
-- Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117
m
DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38 m depth
-- Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187
m
Strong Cash Position of A$35.2M
SUMMARY OF OPERATIONAL ACTIVITIES
Major High-Grade Extensions Continue at La Verde
Phase two diamond drilling continued during the quarter at the Company's La Verde copper-gold (Cu-Au) porphyry discovery in Chile (La Verde). Drilling focused on continuing to expand the mineralised discovery footprint
Results were stronger than anticipated, with the depth extent doubling to 800 m from surface - significantly expanding the high-grade core laterally and up to surface.
A standout significant intersection of 725 m grading 0.42% CuEq(1) from 18 m depth has been recorded in diamond drill hole DKD039, which was collared on the western extent of La Verde's discovery footprint (Figure 1), and intersected multiple wide zones of +0.6% CuEq(1) mineralisation from near surface (Figure 2 and 3).
As the most significant result to date at La Verde, importantly, DKD039 achieved two key objectives:
-- Further extended near-surface higher-grade mineralisation by
approximately 60 m to the west - recording 22 m grading 0.71% CuEq1 from
42 m depth within a wider intersection of 48 m grading 0.55% CuEq (0.50%
Cu, 0.03 g/t Au) from 18 m depth, located immediately beneath shallow
gravel cover, and
-- Confirmed a significant 200 m down-dip extension of La Verde's high-grade
core - recording 61 m grading 1.03% CuEq1 (0.90% Cu, 0.18 g/t Au, 1.81g/t
Ag) from 671 m in association with high Cu/Au, A+B vein abundances >5%
and massive and disseminated chalcopyrite (Figure 2).
Continued expansion and integration of La Verde's high-grade core into Costa Fuego's resource base and mining inventory is a priority this year.
Higher-Grade Cu-Au Starter Pit Emerging
Diamond drilling at La Verde has continued to test the shallow up-dip potential of La Verde's high-grade core, with significant intersections returned from drill holes DKD035, DKD036, DKD037 and DKD038.
A 450 m x 400 m higher-grade, near-surface copper-gold zone has been defined by thirteen significant intersection +0.6% CuEq at La Verde (Figure 4), including most recently:
-- DKD036 recorded 150 m grading 0.52% CuEq (0.37% Cu, 0.21 g/t Au) from 30
m depth
-- Including 38 m grading 0.70% CuEq (0.55% Cu, 0.21 g/t Au) from 117
m, and
-- DKD035 recorded 220 m grading 0.47% CuEq (0.37% Cu, 0.14 g/t Au) from 38
m depth
-- Including 68 m grading 0.64% CuEq (0.52% Cu, 0.15 g/t Au) from 187
m
Similar to previous near-surface drill intersections, these latest significant results commence immediately beneath shallow gravel cover, indicating the potential for simple, cost-effective overburden removal in a future open pit development.
These results have the potential to contribute to a higher-grade starter pit for the Costa Fuego mine schedule, significantly reducing payback and positively impacting key financial metrics of Hot Chili's March 2025 Pre-Feasibility Study.
Confirming Bulk Tonnage Continuity
Further assay results reported during the quarter continue to confirm continuity of bulk tonnage mineralisation at La Verde, including:
-- DKD037 recorded 184 m grading 0.42% CuEq1 (0.32% Cu, 0.12 g/t Au) from
105 m depth
-- including 22 m grading 0.60% CuEq (0.48% Cu, 0.15 g/t Au) from 203
m
-- DKD038 recorded 221 m grading 0.37% CuEq1 (0.29% Cu, 0.11 g/t Au) from 48
m depth
-- including 45 m grading 0.51% CuEq (0.37% Cu, 0.19 g/t Au) from 53
m
Drill hole DKD037 was designed to target a gap between two higher-grade zones, with assay results now confirming expansion and continuity of mineralisation across this zone (Figure 2). The significant intersection from DKD038 also commences immediately beneath shallow gravel cover (Figure 3).
La Verde Footprint Expands Further
During the quarter the diamond drill rig also completed four diamond drill tails, extending the mineralisation footprint reached by the RC drilling in Phase 1, which ended in mineralisation.
Assay results from diamond drill tail DKP009D extended La Verde's Cu-Au mineralisation footprint along the eastern flank of the discovery in the north (Figures 1 and 3). The drill hole was a 200 m diamond tail to earlier RC drill hole DKP009 and reported 68 m grading 0.42% CuEq (0.33% Cu, 0.11 g/t Au) from 354 m depth, extending mineralisation downhole of DKP009.
Similarly, diamond drill tail DKP012D extended the mineralisation footprint along the northern flank of the discovery. The drill hole was a 284 m diamond tail to earlier RC drill hole DKP012 and reported 132 m grading 0.36% CuEq (0.26% Cu, 0.05 g/t Au) from 306 m depth extending mineralisation downhole of DKP012. Several higher-grade zones were intercepted in the tail, confirming the system is still open and mineralised to the north and will be followed up with additional drilling along the interpreted NNE-trending structural corridor (Figure 2 and 4).
DKP006D and DKP021D extended the mineralisation along the eastern flank of the discovery in the south, with DKD021D recording an additional 54 m grading 0.42% CuEq (0.34% Cu, 0.11 g/t Au) from 593 m depth, including 19 m grading 0.66% CuEq (0.51% Cu, 0.21 g/t Au) from 593 m depth.
Including the new diamond tail extensions:
-- DKP009D now records 388 m grading 0.41% CuEq (0.32% Cu, 0.12 g/t Au) from
34 m
-- DKP012D now records 394 m grading 0.46% CuEq (0.35% Cu, 0.11g/t Au) from
44 m
-- DKP021D now records 194 m grading 0.32% CuEq (0.26% Cu, 0.06 g/t Au) from
284 m
-- DKP006D now records 110 m grading 0.39% CuEq (0.27% Cu, 0.15 g/t Au) from
76 m
Diamond drilling has been instrumental in development of an early "4D litho-structural model" by the Company, with the interpretation of multiple intrusive phases optimising drill target design. Hot Chili geologists are applying the same targeting strategies that proved successful at the Company's nearby Cortadera Cu-Au porphyry Resource and anticipate these methods will continue to drive growth at La Verde.
(1) Copper Equivalent (CuEq) reported for the drill hole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde -- Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
Development Studies Progressing
Global engineering firm Ausenco -- with offices in Chile and Australia -- has been appointed as the lead engineering group to progress the Feasibility Study for the Costa Fuego project. The appointment follows a review of major engineering groups in Chile, with Ausenco's impressive execution of engineering, procurement, construction and ramp-up of the nearby, similar-scale, coastal project Mantoverde, a key factor in the decision.
(1) See Page 23 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. (2) Copper Equivalent (CuEq) reported for the drill hole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde -- Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). Figure 2. Cross section slice along DKD039 (+/- 75m clipping) showing +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants and returned assay results for DKD039, DKP012D, DKD037, DKP009D(1) . Returned Cu grades shown on hole traces. (1) Copper Equivalent (CuEq) reported for the drill hole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde -- Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). (1) Copper Equivalent (CuEq) reported for the drill hole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde -- Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t). (1) Copper Equivalent (CuEq) reported for the drill hole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde -- Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
Table 1. Drill Holes Completed for La Verde in Quarter 1 2026
Prospect Hole ID North East RL Depth Azi. Dip Results
Significant
result
returned Q4
La Verde DKP009D 6,786,075 324,552 1,152 555.3 131 -60 2025
Significant
result
returned Q4
DKP012D 6,785,977 324,839 1,192 590.7 300 -60 2025
Significant
result
returned Q4
DKD039 6,785,723 324,420 1,150 840 54 -60 2025
Results
DKD040 6,785,901 324,629 1,139 381 60 -59 Pending
Results
DKP041 6,785,786 324,561 1,124 390 54 -70 Pending
Results
DKD042 6,785,902 324,635 1,140 258.1 299 -70 Pending
Results
DKP043 6,785,848 324,593 1,130 342 104 -56 Pending
Results
DKD044 6,785,738 324,508 1,131 711.4 71 -65 Pending
Results
DKP045D 6,785,944 324,410 1,109 306 61 -60 Pending
Results
DKP046 6,786,015 324,591 1,153 184 230 -59 Pending
Results
DKP047 6,785,882 324,380 1,090 60 70 -65 Pending
Results
DKP048D 6,785,847 324,740 1,151 300 80 -62 Pending
Results
DKD049 6,785,852 324,600 1,126 779.9 80 -62 Pending
Results
DKP050 6,785,739 324,625 1,127 354 75 -60 Pending
Table 2. Significant Drilling Intersections from La Verde in Quarter 1 2026
Hole ID Coordinates Azi. Dip Hole Intersection Interval Copper Gold Silver Molyb.
Depth
North East RL From To (m) (% Cu) (g/t Au) (ppm Ag) (ppm Mo)
DKD033 6,785,775 324,785 1,132 274 -60 543 3 498 495 0.38 0.10 0.7 27
Incl 202 239 37 0.51 0.13 1.2 43
Incl 289 412 123 0.50 0.13 0.7 39
&
Incl 521 543 22 0.18 0.04 0.3 75
DKD034 6,785,839 324,433 1,096 99 -59 714 194 620 426 0.37 0.08 0.7 32
Incl 426 533 107 0.46 0.10 1.0 23
Incl 566 618 52 0.50 0.08 1.0 50
&
Incl 679 714 35 0.27 0.06 0.7 183
DKD035 6,786,027 324,596 1,153 80 -60 278.5 38 258 220 0.47 0.37 0.14 0.65
Incl 121 153 32 0.56 0.41 0.20 0.68
&
Incl 187 255 68 0.64 0.52 0.15 0.88
Or
Incl 187 207 20 0.76 0.61 0.21 1.05
DKD036 6,786,029 324,597 1,153 130 -54 371.9 30 180 150 0.52 0.37 0.21 0.86
Incl 117 155 38 0.70 0.55 0.21 1.31
238 371 133 0.42 0.33 0.12 0.46
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