Flagship’s New Copper Targets at Rosario Signal Exploration Upside and Risks

Exploration Breakthrough at Rosario

Flagship Minerals Limited (ASX: FLG) has announced promising results from a recent stream sediment survey at its Rosario Copper Project in Chile’s Central Copper Belt. The survey has successfully delineated six new copper targets, three of which have been designated as high priority, underscoring the project's significant exploration potential.

Located strategically between Copiapo and Antofagasta and just 10km north of Codelco’s historic El Salvador mine, the Rosario project benefits from a rich geological setting. The stream sediment sampling, a cost-effective method for vectoring towards mineralisation, was conducted across ephemeral gullies in the semi-arid Atacama Desert, yielding copper values ranging from 57ppm to 184ppm. Values above 90ppm were considered anomalous and prospective.

Survey Methodology and Results

The program collected 31 stream sediment samples sieved to -0.8mm and analysed using a handheld XRF analyser, providing rapid geochemical data. The survey confirmed the presence of elevated copper levels over a broad area, including the Rosario East Trend (RET), which served as a test bed for the methodology. Notably, copper anomalies were detected up to 700m west of known mineralisation zones, validating the survey’s effectiveness.

Among the six anomalies identified, Anomalies 2, 4, and 5 stand out as high priority targets. These areas either extend known mineralised trends or represent entirely new prospective zones with unknown copper sources. Much of these catchments are covered by surficial gravels, indicating the need for further detailed exploration.

Strategic Expansion and Next Steps

Flagship has recently expanded its Rosario project footprint from 25km² to 86km² through new exploration concession applications, enhancing the scope for discovery. The company plans to undertake follow-up fieldwork including rock chip sampling, additional stream sediment sampling, and trenching, particularly targeting the high priority anomalies.

Importantly, Flagship is advancing towards a first phase reverse circulation (RC) drilling program of approximately 2000m focused initially on the RET. Drilling is anticipated to commence between mid to late March 2025, pending finalisation of contracts with drilling contractors.

Implications for Flagship and the Market

These results reinforce Flagship Minerals’ strategy of leveraging low-cost, effective exploration techniques to unlock value in strategically located copper projects. The identification of multiple new targets within a well-endowed copper belt bodes well for the company’s resource growth ambitions and potential future production.

Managing Director Paul Lock emphasised the confidence in the stream sediment method, citing its prior success in identifying drill-ready targets. The company’s approach aligns with its commitment to responsible exploration with community and environmental considerations at the forefront.