Environmental and Validation Challenges Loom as Flagship Targets Pantanillo Expansion
Flagship Minerals reveals promising expansions at its 1.05 million ounce Pantanillo Gold Project in Chile, with many drill holes ending in mineralisation and potential for higher-grade zones near surface. The company aims to fast-track a JORC-compliant resource estimate and advance project development.
- Ongoing data review identifies broad mineralised zones and down-dip extensions
- Many drill holes finish in mineralisation, indicating resource expansion potential
- Higher-grade gold and silver zones near surface, including Rosamaria Vein
- Plans to convert 1.05Moz foreign estimate to JORC Mineral Resource Estimate
- Targeting open pit mining with 100,000oz gold production annually for 10 years
Context and Dataset Acquisition
Flagship Minerals Limited (ASX – FLG) has provided an encouraging update on its Pantanillo Gold Project in Chile's prolific Maricunga Gold Belt. The company recently acquired an extensive exploration dataset from Anglo American Norte SpA, comprising over 700 folders and 32GB of geological, geochemical, and drilling information. This trove of data is enabling Flagship to fast-track the conversion of a previously reported 1.05 million ounce gold foreign estimate into a Mineral Resource Estimate compliant with the JORC Code (2012).
Drilling Highlights and Mineralisation Potential
The review of drillhole data reveals a mineralised corridor approximately 500 meters wide, with many drill holes ending in mineralisation rather than being terminated prematurely. Notably, broad intercepts such as 142 meters at 0.74 grams per tonne gold and 192.6 meters at 0.63 grams per tonne gold from near surface to end of hole underscore the deposit's scale. Additionally, higher-grade zones near surface have been identified, some enriched with silver, including intervals like 10 meters at 2.90 grams per tonne gold and 16 grams per tonne silver.
Strategic Implications and Next Steps
Flagship’s Managing Director, Paul Lock, emphasised the open-ended nature of higher-grade zones, particularly in the central to eastern portions of the mineralised zone, which remain attractive targets for down-dip drilling. The company plans to validate and resample existing drill core, conduct infill and confirmatory drilling, and advance metallurgical testwork to underpin a robust techno-economic assessment. The ultimate goal is to define sufficient Mineral Resources to support an open pit mining operation with heap leach processing, aiming for an annual production of 100,000 ounces of gold over at least a decade.
Environmental and Regulatory Considerations
The project area is adjacent to environmentally sensitive zones, including the Nevado Tres Cruces National Park and Ramsar wetlands, necessitating thorough environmental impact assessments and permitting processes. Flagship acknowledges these challenges and is progressing technical and permitting studies in parallel with resource development.
Exploration Upside and Broader Project Potential
Beyond Pantanillo Norte, the project hosts additional prospects such as T1 and Pantanillo Central (T2), with significant oxide and sulphide mineralisation potential. The company’s ongoing data review and planned drilling campaigns aim to unlock further resource growth, leveraging the comprehensive dataset acquired from Anglo American.
Bottom Line?
Flagship Minerals is poised to transform its Pantanillo dataset into a JORC-compliant resource, setting the stage for a potential new gold producer in Chile’s Maricunga Belt.
Questions in the middle?
- How soon can Flagship deliver the JORC Mineral Resource Estimate and what size increase is expected?
- What are the key environmental hurdles given the proximity to protected areas, and how might they impact project timelines?
- Will upcoming drilling confirm the extent and grade of the Rosamaria Vein and other higher-grade zones?
