Hot Chili Confirms 2.9Mt Copper, 2.6Moz Gold at Costa Fuego
Key Takeaways
- Hot Chili's annual MROR statement confirms Indicated Mineral Resources of 2.9 million tonnes of copper and 2.6 million ounces of gold at Costa Fuego, with Probable Ore Reserves of 1.9 million tonnes of copper and 1.6 million ounces of gold — all unchanged from prior reporting and independently verified under JORC 2012.
- In September 2026, Hot Chili exercised its Purchase Option Agreement over the San Antonio mining rights, securing 100% ownership through subsidiary Frontera SpA and consolidating tenure across the four-deposit project.
- The Ore Reserve is underpinned by long-term metal prices of US$4.30/lb copper and US$2,280/oz gold — both materially above the base case Resource prices — reinforcing the economic robustness of the Reserve estimate.
- A Preliminary Feasibility Study completed in March 2025 underpins the reported Ore Reserve, with a Definitive Feasibility Study representing the next formal milestone in the development pathway.
- The La Verde porphyry discovery announced in August 2026 identified a major cluster target adjacent to the existing Costa Fuego footprint, suggesting the project's geological endowment may extend beyond the four deposits captured in the current MROR statement.
Costa Fuego’s resource base confirmed: 2.9Mt copper, 2.6Moz gold in annual update
Hot Chili Limited (ASX: HCH) has released its annual Mineral Resources and Ore Reserves (MROR) statement for the Costa Fuego Project, as at 30 June 2026. The statement confirms Indicated Mineral Resources of 2.9 million tonnes of copper, 2.6 million ounces of gold, 12.8 million ounces of silver, and 68,000 tonnes of molybdenum, with Probable Ore Reserves of 1.9 million tonnes of copper, 1.6 million ounces of gold, 8.0 million ounces of silver, and 49,000 tonnes of molybdenum.
All estimates are reported in accordance with the JORC 2012 standard and remain unchanged from prior reporting, making this a confirmation of project scale rather than a new discovery. Embedded in the announcement is a notable corporate action: Hot Chili exercised its Purchase Option Agreement over the San Antonio mining rights in September 2026, securing 100% ownership through its subsidiary Frontera SpA.
Costa Fuego comprises four deposits — Cortadera, Productora, Alice, and San Antonio — all situated at low altitude (800–1,000 m), approximately 600 km north of Santiago, Chile.
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What the numbers show: a four-deposit copper-gold system of scale
The four deposits contribute unequally to the consolidated Costa Fuego total. Cortadera is the largest contributor, with an Indicated Resource of 531 Mt, followed by Productora at 248 Mt. Alice (16 Mt Indicated) and San Antonio (3 Mt Indicated) are smaller satellite deposits that round out the project’s footprint.
The table below presents consolidated Costa Fuego totals for both Indicated Mineral Resources and Probable Ore Reserves across the four key metals, sourced directly from Tables 1 and 2 of the announcement.
| Estimate Type | Copper | Gold | Silver | Molybdenum |
|---|---|---|---|---|
| Indicated Mineral Resources | 2.9 million tonnes | 2.6 million ounces | 12.8 million ounces | 68,000 tonnes |
| Probable Ore Reserves | 1.9 million tonnes | 1.6 million ounces | 8.0 million ounces | 49,000 tonnes |
The Ore Reserve is underpinned by long-term metal prices of US$4.30/lb copper, US$2,280/oz gold, US$27/oz silver, and US$20/lb molybdenum — materially above the base case Resource prices used for the Mineral Resource Estimate, which reinforces the Reserve’s economic robustness relative to current market conditions.
What is a JORC Mineral Resource and Ore Reserve — and why does it matter?
These two terms are often used interchangeably by investors, but they mean very different things. Understanding the distinction helps you assess what a project actually represents.
A Mineral Resource is a geological estimate of mineralisation that has reasonable prospects for eventual economic extraction. It does not require mine planning or financial modelling to qualify.
An Ore Reserve is a subset of the Mineral Resource that has been demonstrated to be economically extractable, incorporating mine design, cost assumptions, and metallurgical recovery. It is a significantly higher bar.
The classification hierarchy works as follows:
- Inferred Resource — lowest confidence; too speculative for economic consideration
- Indicated Resource — sufficient confidence for preliminary economic studies
- Measured Resource — highest confidence; not present at Costa Fuego in the current statement
- Probable Ore Reserve — economically mineable, based on Indicated Resources; the Reserve category reported at Costa Fuego
- Proved Ore Reserve — highest Reserve confidence; not present at Costa Fuego in the current statement
Probable Ore Reserves are the foundation for bankable feasibility studies, project financing, and mine scheduling. They represent the portion of the resource that a company can credibly plan to mine. All MROR estimates in this statement were reviewed and approved by independent Competent Persons under JORC 2012: Ms Elizabeth Haren for the Mineral Resource Estimate, and Mr Anton von Wielligh for the Ore Reserve.
San Antonio ownership secured — tenure consolidation strengthens the project foundation
In September 2026, Hot Chili exercised the Purchase Option Agreement over the San Antonio mining rights, with 100% ownership now vested through Frontera SpA. This is a tenure consolidation event, not a new discovery, and consolidates ownership of the San Antonio deposit.
The Purchase Option Agreement includes two conditional additional payments of US$2,000,000 each, triggered if either of the following conditions is met before 1 January 2030:
- Copper averages US$5.00/lb or above for 12 consecutive months; or
- An independently estimated JORC-compliant Mineral Resource of 200 million tonnes or greater is reported within the El Fuego landholdings at applicable cut-off grades.
The copper price condition may be deferred to 31 July 2027 under the terms agreed in the public deed. Third-party mining activity at San Antonio is capped at 50,000 tonnes per annum, which constitutes less than 1% of the combined Indicated and Inferred resource at San Antonio — immaterial to overall project economics.
The transaction secures ownership of the San Antonio concessions, with Cortadera also 100% held through Frontera SpA, while Productora and Alice remain 80% owned through SMEA, an 80/20 joint venture in which Compañía Minera del Pacífico S.A (CMP) retains a 20% interest.
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A confirmed resource base in the right commodity at the right stage
Costa Fuego is one of the larger undeveloped copper-gold projects, with a Preliminary Feasibility Study (PFS) completed in March 2025 underpinning the Ore Reserve reported here. The PFS forms the technical and economic foundation for the project, with a planned Definitive Feasibility Study representing the next logical milestone in the development pathway.
Copper’s central role in electrification and the global energy transition supports sustained long-term demand, a relevant backdrop given the project’s scale. That demand context applies across the project’s four-metal profile: copper, gold, silver, and molybdenum provide commodity diversification within a single integrated system. The MROR statement confirms that resource base is intact, fully classified to JORC 2012 standard, and independently verified.
The La Verde porphyry discovery, announced in August 2026, identified a major cluster target adjacent to the existing Costa Fuego footprint, suggesting the project’s geological endowment may extend well beyond the four deposits captured in the current MROR statement.
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