Flagship Acquires 33,000m Drilling Data to Boost Pantanillo Gold Resource

A Strategic Dataset Acquisition

Flagship Minerals Limited has taken a significant step forward in its pursuit of developing the Pantanillo Gold Project in Chile by entering into a binding agreement to acquire a substantial historical exploration dataset from Anglo American Norte SpA. This dataset encompasses nearly 33,000 metres of drilling data, including almost 14,000 metres of diamond core, alongside over 2,000 rock, soil, and stream sediment samples, as well as ground magnetic survey data.

The value of this dataset is considerable, with Flagship estimating that replicating the data through fresh exploration would cost between US$15 million and US$20 million (A$23-31 million) and take four to five years. By securing this trove of information, Flagship gains a critical advantage in accelerating its resource definition and project development timeline.

Unlocking Resource Potential Without Immediate Drilling

One of the most compelling aspects of this acquisition is the potential to convert the existing 1.05 million ounce gold qualifying foreign estimate into a JORC-compliant Mineral Resource Estimate. The current estimate, based on previous drilling programs by Anglo American, Kinross Gold, and Orosur Mining, did not incorporate approximately 12,000 metres of drilling now included in the dataset. Early reviews suggest these additional drill holes intersect mineralisation, indicating a strong possibility to expand the known resource without the need for immediate new drilling.

Flagship plans to leverage the diamond core for re-sampling, metallurgical testing, and geochemical analysis to validate and enhance the resource model. This approach could significantly increase the project's gold inventory and provide a more robust foundation for feasibility studies.

Advancing Towards Development

Beyond resource estimation, the dataset enables Flagship to fast-track metallurgical testwork and technical studies essential for evaluating the feasibility of an open pit mining operation with heap leach processing. The company aims to produce approximately 100,000 ounces of gold annually over a decade, a target supported by the extensive exploration data now at its disposal.

Moreover, Flagship will assess seven high-priority exploration targets within the broader 110 square kilometre project area, including prospects with oxide and higher-grade sulphide mineralisation potential. The integration of magnetic survey data will further refine exploration models and target generation.

Favourable Deal Structure and Next Steps

The transaction is structured with minimal upfront cost, featuring an initial payment of US$100,000 followed by staged instalments totaling US$750,000 over two years. A final payment of US$1 million is contingent on Flagship exercising its option to acquire the Pantanillo project by April 2030. This back-ended payment structure preserves capital for advancing the project and limits dilution for shareholders.

Flagship is preparing to convert the foreign estimate into a JORC-compliant resource and advance technical and permitting studies in parallel. The company is also considering an equity raise to fund these initial phases, signaling a proactive approach to unlocking Pantanillo's value.