Pantanillo Gold Project Hosts 1.05Moz at 0.69g/t Au, Drilling Extends Mineralisation

Context and Significance

Flagship Minerals Limited has provided a compelling update on its Pantanillo Gold Project, located in the prolific Maricunga Gold Belt of Northern Chile. The company’s recent data review confirms the scale and extension potential of gold mineralisation within the project, which currently hosts a qualifying foreign estimate (QFE) of 47.4 million tonnes at 0.69 grams per tonne gold, equating to approximately 1.05 million ounces of gold. This QFE, constrained by a 2010 pit shell, is set to be upgraded to Mineral Resources reported under the JORC Code, a critical step for advancing the project towards development.

Drilling Highlights and Mineralisation Potential

Recent drilling results underscore the project's robust potential. Notably, diamond drillhole ARDDHPN-02 intersected a remarkable 440 metres grading 0.49 g/t Au from 260 metres depth, with a higher-grade 160-metre interval averaging 0.70 g/t Au. These intersections represent the deepest mineralisation encountered to date and remain open both up and down dip. Additionally, mineralisation is open along strike and near surface, particularly in the northwestern sections of the deposit, suggesting significant upside beyond the current resource envelope.

Strategic Pathway to JORC Resource Upgrade

Flagship is actively progressing the conversion of the QFE to a JORC-compliant Mineral Resource. This process involves rigorous validation of historical drill data, potential infill and extensional drilling, and supplementary metallurgical testwork. The company anticipates that lowering the cutoff grade from 0.3 g/t to a range between 0.15 and 0.3 g/t Au, combined with current gold price considerations, could materially increase the resource size. The recent permitting success of RIO2’s Fenix Gold Project, located in analogous geological and jurisdictional settings, further de-risks Pantanillo’s pathway to resource certification and eventual development.

Project De-risking and Development Outlook

Flagship’s Managing Director, Paul Lock, emphasised the project’s de-risked status across multiple fronts including geology, geography, metallurgy, and permitting precedents. Pantanillo’s mineralisation is predominantly oxide and amenable to heap leach processing, a cost-effective extraction method. The company’s strategy targets defining sufficient Mineral Resources to support open pit mining and heap leach processing, aiming for an annual production of 100,000 ounces of gold over a decade or more. This production profile aligns with regional benchmarks such as RIO2’s Fenix project, which is advancing towards construction.

Exploration Upside Beyond Current Resources

Beyond the main deposit, Flagship has identified exploration potential across the broader 110-kilometre project area, including prospects like Pantanillo Central, Quebrada Pantanillo, and Oro 52. The presence of alteration minerals such as alunite, typically associated with gold-bearing porphyry systems, hints at further sulphide mineralisation targets beneath post-mineral cover. The company plans to leverage geophysical techniques, including magnetics and induced polarization, to refine these targets for future drilling campaigns.