Water Pipeline Approval Mitigates Major Risk for Flagship’s Pantanillo Gold Project
Flagship Minerals has achieved a critical milestone with the approval of the ENAPAC Ruta Este desalination pipeline, securing a sustainable water supply for its Pantanillo Gold Project in Chile’s Maricunga Gold Belt. This development significantly reduces a major operational risk as the company advances its resource upgrade and project studies.
- ENAPAC Ruta Este pipeline approved, delivering desalinated water to Maricunga Gold Belt
- Flagship progressing to convert 1.05Moz Au foreign estimate to JORC-compliant Mineral Resource
- Pipeline provides a sustainable, solar-powered water supply critical for mining operations
- Flagship plans further drilling and techno-economic studies to support project development
- Water security mitigates key risk for Pantanillo Gold Project’s future production
A Vital Step for Water Security in the Atacama
Flagship Minerals Limited (ASX, FLG) has announced a significant breakthrough for its Pantanillo Gold Project with the Environmental Impact Study approval for the ENAPAC Ruta Este pipeline. This third stage of a large-scale, solar-powered desalination and pumping project will deliver a reliable, sustainable water supply to the Maricunga Gold Belt, a region known for its rich gold deposits but challenged by scarce water resources.
The ENAPAC project, valued at US$1.5 billion, is designed to pump 1,750 litres per second of desalinated water from the coast inland, serving multiple mining operations and other users. Its renewable energy-driven infrastructure marks a pioneering approach to water security in one of the world’s driest mining regions.
Mitigating a Critical Risk for Pantanillo
Water availability is a fundamental constraint for mining projects in the Atacama. For Flagship, the approval of the ENAPAC Ruta Este pipeline is more than just infrastructure news; it directly addresses a key operational risk for its 1.05 million ounce gold project. The pipeline’s multi-client model allows Flagship to secure water without the need for costly, less sustainable alternatives such as trucking, which currently adds approximately US$200 per ounce to production costs.
Managing Director Paul Lock emphasised the importance of this milestone, noting that it provides a permanent, high-volume water solution just as Flagship prepares to upgrade its resource estimate to JORC standards and commence baseline environmental studies. This alignment of infrastructure and project development timelines bodes well for advancing Pantanillo towards production.
Advancing Resource Definition and Project Planning
Flagship is actively working to convert its current foreign estimate of 1.05 million ounces of gold into a Mineral Resource Estimate compliant with the JORC Code. This process involves validating existing drill data, conducting additional sampling and infill drilling, and expanding the resource base where possible. The company anticipates an updated resource statement in 2026, supported by ongoing metallurgical testwork and techno-economic assessments.
The goal is to underpin a project capable of producing 100,000 ounces of gold annually over at least a decade, using open pit mining and heap leach processing methods. The secured water supply from ENAPAC is a cornerstone for these plans, enabling more predictable operational costs and environmental management.
A Model for Sustainable Mining in Chile
The ENAPAC desalination system represents one of the first multi-client water infrastructure projects in Chile’s Atacama region, powered predominantly by photovoltaic energy. Its success could set a precedent for sustainable resource development in arid mining districts worldwide. For Flagship and other miners in the Maricunga Gold Belt, this project offers a pathway to balance resource extraction with environmental stewardship.
Flagship’s engagement with ENAPAC’s parent company Agua-sol signals a collaborative approach to securing water resources, which will be critical as the company advances its permitting and development milestones.
Bottom Line?
With water security now addressed, Flagship Minerals is poised to accelerate its resource upgrade and move closer to unlocking Pantanillo’s full potential.
Questions in the middle?
- How soon will Flagship finalize the JORC-compliant Mineral Resource Estimate?
- What commercial arrangements will Flagship secure for water access from the ENAPAC pipeline?
- How will the sustainable water supply impact Pantanillo’s production costs and timelines?
