Flagship’s Pantanillo Project Nears JORC Resource with $2.5M Strategic Investment
Flagship Minerals has completed a $2.5 million strategic investment from Xinhai, accelerating progress on its Pantanillo Gold Project in Chile with key milestones including a JORC resource update and environmental studies underway.
- Received second $1.25M tranche from Xinhai, completing $2.5M investment
- JORC-compliant Mineral Resource Estimate targeted for Q1 2026
- Environmental baseline studies commenced for streamlined Chilean permitting
- Metallurgical testwork underway at Xinhai’s Chinese facilities
- Convertible notes reduced by ~75%, $4.2M placement completed
Strategic Investment and Partnership Strengthen Pantanillo
Flagship Minerals Limited has secured the second tranche of A$1.25 million from its strategic partner, global EPC company Xinhai, completing a total $2.5 million investment commitment. This funding follows successful on-site due diligence and reflects a strong endorsement of the Pantanillo Gold Project’s potential in Chile. Beyond capital, the partnership brings deep technical collaboration, with Xinhai’s team actively supporting metallurgical testwork and project development.
Progress Towards JORC-Compliant Resource
The company is advancing towards a JORC-compliant Mineral Resource Estimate (MRE), with leading Chilean consultants Bmining appointed to update and potentially expand the current 1.05 million ounce gold estimate. Compilation and modelling of historical and recent data are well underway, targeting release of the updated resource in the first quarter of 2026. Early indications suggest the Main Zone hosts near-surface, bulk-tonnage mineralisation, which could underpin an open-pit heap leach operation.
Environmental and Community Foundations
Flagship has commenced baseline environmental studies through the appointment of Ambiental y Sectorial (AyS), a respected Chilean environmental consultancy. These studies are a critical step towards submitting an Environmental Impact Assessment (EIA) in early 2027, aligning with Chile’s streamlined permitting regime. Concurrently, the company has strengthened community relations by appointing a dedicated Community Relations Manager, ensuring ongoing engagement with local stakeholders and government authorities.
Metallurgical Testing and Operational Readiness
Metallurgical testwork is progressing at Xinhai’s facilities in China, focusing on gold recovery optimisation through heap leach and potential dump leach processes. Flagship has prepared a substantial bulk sample representing oxide, mixed, and sulphide mineralisation for these tests. The project benefits from favourable historical metallurgical results, with gold recoveries exceeding 80% in previous studies, supporting the feasibility of cost-effective processing routes.
Financial Discipline and Corporate Developments
During the quarter, Flagship materially reduced its convertible notes by approximately 75% through conversions, improving its capital structure. The company also completed a successful $4.2 million placement, including $2.5 million from Xinhai, bolstering its cash position to A$2.06 million at quarter-end. Looking ahead, Flagship plans to initiate targeted drilling programs in 2026 to support resource growth and technical studies, alongside key Board and management appointments to guide the transition from exploration to development.
Bottom Line?
With funding secured and multiple technical milestones advancing, Flagship Minerals is poised to transform Pantanillo from promising exploration to a viable gold development.
Questions in the middle?
- Will the upcoming JORC resource update confirm a significant increase in gold ounces?
- How will metallurgical test results influence the final processing strategy and project economics?
- What timeline can investors expect for environmental approvals and potential construction commencement?
