Environmental and Funding Challenges Loom as Flagship Advances Pantanillo Gold Resource

Context and Dataset Review

Flagship Minerals Limited (ASX, FLG) has announced promising developments at its Pantanillo Gold Project in Chile, following an extensive review of a recently acquired drill dataset from Anglo American Norte SpA. The dataset, comprising over 180 drill holes and more than 30,000 metres of drilling, has revealed a mineralised zone approximately 500 metres wide with compelling down dip gold mineralisation opportunities. Notably, many drill holes terminate in mineralisation, indicating potential for further resource expansion.

The review supports the fast-tracking of converting the existing 1.05 million ounce foreign gold estimate; previously reported under Canadian NI 43-101 standards; into a Mineral Resource Estimate compliant with the JORC Code (2012). This conversion is a critical step for Flagship to advance the project towards development.

Significant Drill Intercepts and Resource Potential

Highlighted drill results include broad intercepts such as 109.5 metres at 1.18 grams per tonne gold from 148 metres depth, and 177.9 metres at 0.66 grams per tonne gold from 18 metres depth, among others. These substantial widths and grades, combined with the fact that many holes end in mineralisation, underscore the potential for significant mineral resource growth, particularly down dip and along strike.

Flagship’s Managing Director, Paul Lock, emphasised the quality of the Anglo dataset and the encouraging nature of the results, noting that the project exhibits characteristics of a large, scalable heap leach opportunity. The mineralisation style and extent suggest the potential for a long-life operation producing approximately 100,000 ounces of gold annually over at least a decade.

Strategic Development and Next Steps

Flagship’s immediate focus is on validating and expanding the existing resource through confirmatory and infill drilling, re-sampling of drill core, and metallurgical testwork to underpin a robust techno-economic assessment. The company is also advancing environmental and permitting studies, mindful of the project’s proximity to environmentally sensitive areas such as the Nevado Tres Cruces National Park and Ramsar sites.

To support these activities, Flagship is preparing an equity placement expected in April to raise approximately $3 million. This funding will enable the company to complete the critical work required to convert the qualifying foreign estimate into a JORC-compliant Mineral Resource and progress towards defining Ore Reserves.

Broader Exploration Upside

Beyond the Pantanillo Norte deposit, the project area includes additional prospects such as T1 and Pantanillo Central (T2), which present further exploration potential for both oxide and higher-grade sulphide mineralisation. The extensive dataset and historical drilling provide a strong foundation for ongoing exploration and resource growth.

Flagship’s methodical approach to data validation and resource estimation, combined with the scale and quality of mineralisation identified, positions the Pantanillo Gold Project as a significant asset within the Maricunga Gold Belt.