Flagship Minerals has secured a valuable historical dataset from Anglo, significantly advancing its Pantanillo Gold Project towards feasibility and construction, supported by a strategic EPC partnership and a recent $4 million capital raise.
- Acquisition of Anglo’s $15-20 million exploration dataset for Pantanillo
- High-grade gold intersections and strong metallurgical recoveries de-risk project
- Strategic EPC investor Xinhai commits A$2.5 million and joins Board
- Soil anomalies suggest substantial resource expansion potential
- Post-quarter $4 million capital raise strengthens financial position
Dataset Acquisition, A Game Changer for Pantanillo
Flagship Minerals Limited has taken a decisive step forward by securing Anglo American Norte Spa’s extensive historical exploration dataset for the Pantanillo Gold Project in Chile. Valued at an estimated US$15-20 million and representing four to five years of work, this dataset includes over 32,800 metres of drilling, more than 2,100 geochemical samples, and comprehensive geophysical surveys. The acquisition, achieved for a modest initial outlay, positions Flagship to accelerate the project’s feasibility studies and advance towards construction.
Robust Exploration Results and Metallurgical Confidence
Early review of the dataset has revealed numerous high-grade gold intersections, with many drill holes ending in mineralisation within the current pit shell. Highlights include intervals exceeding 100 grams per metre and widths up to 500 metres, indicating significant resource growth potential. Complementing these findings, metallurgical testwork demonstrates rapid and high gold recoveries; over 80% after 30 days for oxide mineralisation; surpassing typical peer recoveries and reducing project risk.
Strategic Partnership Enhances Development Credibility
Flagship’s strategic partnership with Xinhai Mining Technology & Equipment Inc., a global engineering, procurement, and construction (EPC) firm, adds a critical layer of construction expertise. Xinhai’s A$2.5 million equity investment and Board representation not only bolster Flagship’s financial resources but also provide valuable operational credibility, paving the way for an expedited feasibility and development pathway.
Expanding Horizons, Soil Anomalies and Resource Upside
Further encouraging is the identification of a substantial gold-in-soil anomaly approximately 5 kilometres long and up to 1.2 kilometres wide, supported by elevated copper and molybdenum levels. This anomaly extends well beyond current drilling coverage, suggesting significant potential for resource expansion along strike and at depth. Flagship plans additional drilling to test these targets, which could materially enhance the project’s scale and longevity.
Financial Position and Corporate Outlook
Flagship closed the quarter with a modest cash balance of A$144,000 but has since strengthened its position through a strongly subscribed $4 million capital raise, including the strategic placement to Xinhai. The company maintains a disciplined expenditure profile and benefits from an available A$10 million equity facility, providing ample runway to advance Pantanillo and other projects. Meanwhile, other assets such as the Rosario Copper, Khao Soon Tungsten, and RK Lithium projects remain under review, with no field activity reported this quarter.
Bottom Line?
Flagship Minerals’ acquisition of Anglo’s dataset and strategic EPC partnership mark a pivotal shift, setting the stage for rapid resource growth and project development at Pantanillo.
Questions in the middle?
- How soon will Flagship deliver a JORC-compliant Mineral Resource Estimate for Pantanillo?
- What are the timelines and milestones for advancing feasibility and construction with Xinhai’s involvement?
- How will further drilling of the extensive soil anomaly impact the project’s scale and economics?