Environmental and Financing Hurdles Loom as Flagship Advances Pantanillo Gold Project

A Game-Changing Dataset Acquisition

Flagship Minerals Limited (ASX – FLG) has taken a significant step forward in its pursuit of gold production with the acquisition and initial review of an extensive dataset from Anglo American Norte SpA. The Pantanillo Gold Project in Chile, situated in the prolific Maricunga Gold Belt, now benefits from over 700 files containing more than 10,000 documents, alongside an impressive 100 tonnes of drill core, pulps, and samples. This trove of information provides Flagship with a robust foundation to validate and expand upon a previously reported 1.05 million ounce foreign gold estimate.

Exceptional Drill Intercepts Confirm Scale and Grade

Re-examination of the drill data reveals multiple broad intervals of gold mineralisation, with some intercepts stretching beyond 300 meters at grades exceeding 0.5 grams per tonne. Noteworthy highlights include 116 meters at 1.5 g/t and 142 meters at 1.13 g/t gold, underscoring the deposit's potential as a large-scale oxide system amenable to heap leach processing. The top 20 drill intersections average an impressive 205 meters at 0.65 g/t gold, reinforcing the project's scale and grade continuity.

Towards a JORC-Compliant Mineral Resource

Flagship is now focused on converting the qualifying foreign estimate, originally reported under Canadian NI 43-101 standards, into a Mineral Resource Estimate compliant with the JORC Code (2012 Edition). This process involves rigorous validation of drillhole data, re-sampling of core where necessary, and updated geological modelling. The company anticipates that leveraging the comprehensive dataset and applying updated cut-off grades and economic parameters will enable resource growth without the immediate need for additional drilling.

Strategic Development and Production Outlook

The Pantanillo project strategy targets open pit mining combined with heap leach processing, aiming to produce approximately 100,000 ounces of gold annually over a decade. Metallurgical testwork supports the feasibility of heap leach recovery, with gold recoveries estimated at 75% for oxide material. Flagship is concurrently advancing technical studies and environmental permitting, mindful of the project's proximity to environmentally sensitive areas such as the Nevado Tres Cruces National Park and Ramsar sites.

Funding and Next Steps

To support the next phase of resource conversion and project development, Flagship is in discussions to raise approximately $3 million through an equity placement. This capital will underpin further technical validation, metallurgical testing, and potential infill drilling. The company’s Managing Director, Paul Lock, emphasised the transformative nature of the Anglo dataset acquisition, positioning Flagship well amid rising global gold prices and increasing investor interest in advanced-stage gold projects.