Flagship Minerals Moves to Fast-Track JORC Compliance for Pantanillo Gold Project in Chile

Flagship Minerals (ASX:FLG) is aiming to fast-track conversion to JORC compliance of the current mineral resource estimate (MRE) for its Pantanillo gold project in Chile with a major review of historical data and drill core.

The company recently acquired a dataset for Pantanillo from Anglo American Norte, through which it has identified a large oxide system, while re-cutting drill core has confirmed multiple intersections of 100 grams per metre and above.

The data comprised 700 files with more than 10,000 documents, and Flagship is continuing to study the core, pulps and samples it previously obtained from the project.

Multiple High-Grade Intercepts

The review has so far identified multiple long runs of high-grade intercepts in oxide material, including 116m at 1.5 grams per tonne gold and 142m at 1.13g/t gold, along with several intersections 300m or more in length grading at greater than 0.50g/t gold.

The drillhole database contains 183 holes for a total 30,370m of drilling and 18,865 assayed samples across nearly 29,850m—mostly from Pantanillo Norte, which has an unqualified resource of 1.05 million ounces at 0.69g/t gold.

Flagship plans to use this drillhole data and other supporting information to prepare the new MRE for Pantanillo Norte, and has also acquired approximately 14,000m of diamond drill core from 48 holes drilled at the deposit.

Project Development Strategy

Flagship’s strategy for Pantanillo is consists of open-pit mining and heap-leach processing with target production of 100,000oz of gold per year for at least 10 years.

While its initial focus is on producing the compliant MRE, Flagship is confident the Pantanillo deposit has significant additional exploration potential for both oxide and higher-grade sulphide mineralisation, particularly along strike to the north and south of Pantanillo Norte and the large alterations zones to the northwest at T1 and Pantanillo Central.

The company acquired Pantanillo – which sits in the Maricunga Gold Belt in the country’s north – via an option agreement in April 2025.

Fast-Tracked Conversion

Managing director Paul Lock said obtaining the historical dataset was a game-changer for Flagship.

“With the full dataset in hand, we’re now in a strong position to fast-track conversion […] and, with adjusted cut-off grades and updated economics, we expect to bring in additional ounces without additional drilling,” Mr Lock said.

“At a time when global interest in gold is rising and with gold breaking US$3,600/oz, Flagship is positioned very well with an advanced gold project located in a neighbourhood demonstrating low capital intensity and all-in sustaining cost outcomes.”