Freehill Mining Limited has secured options to acquire a portfolio of promising copper-gold projects in Chile, including a JORC-compliant resource at Blanco y Negro and extensive exploration potential at Joshua and Samuel. The deal features low upfront payments and milestone-based future costs, aligning with Freehill’s growth strategy supported by its cash-generating aggregates business.
- Option to acquire 100% of Blanco y Negro copper-gold deposit with JORC 2012 resource
- 75% interest option in Joshua and Samuel copper-gold projects with significant exploration upside
- Low upfront option fees totaling US$305,000 with future payments tied to permits and production
- Blanco y Negro resource: 1.5Mt at 1.4% Cu and 0.5g/t Au, open for expansion
- Growing aggregates business in Chile expected to be cash-flow positive this quarter
Freehill’s Strategic Entry into Chilean Copper-Gold Assets
Freehill Mining Limited (ASX: FHS) has announced a significant step in its growth trajectory by securing options to acquire a portfolio of copper-gold projects in Chile’s Region IV. The agreement grants Freehill the right to acquire 100% of the Blanco y Negro deposit and 75% interests in the Joshua and Samuel projects, all of which boast compelling geological credentials and near-term development potential.
Blanco y Negro: A Defined Resource with Expansion Potential
The Blanco y Negro deposit stands out with a JORC 2012 compliant Indicated and Inferred Mineral Resource Estimate of 1.5 million tonnes grading 1.4% copper and 0.5 grams per tonne gold. This equates to approximately 20,000 tonnes of copper and 24,000 ounces of gold. The deposit is hosted on granted mining leases covering 128 hectares and benefits from proximity to government-operated copper processing plants, offering logistical advantages for future operations.
Historical drilling has revealed multiple high-grade intercepts, including intervals such as 20 meters at 2.1% copper and 1 gram per tonne gold, underscoring the deposit’s quality. Importantly, mineralisation remains open to the northwest, down-dip, and down-plunge, indicating significant upside for resource expansion through targeted exploration.
Joshua and Samuel Projects: Large-Scale Porphyry Systems with Untapped Potential
Freehill’s option to acquire 75% of the Joshua and Samuel projects introduces exposure to large-scale copper-gold porphyry systems. The Joshua project, discovered by Helix Resources in 2011, covers a 6km by 3km area with multiple porphyry phases and has returned encouraging historical drill results, including a 400-meter intercept averaging 0.33% copper equivalent from surface. Only a fraction of the project has been explored, leaving extensive targets untested.
The Samuel project similarly offers a broad target area with evidence of copper-gold mineralisation, supported by recent geophysical surveys and diamond drilling. Both projects are strategically located near infrastructure and regional mining operations, enhancing their development prospects.
Capital-Light Option Agreement with Milestone-Linked Payments
The option agreement with Companario Minerals Limitada is structured to minimise Freehill’s upfront capital exposure. Initial payments total US$305,000 over six months, with subsequent payments contingent on key milestones such as permit approvals and commencement of production. The total purchase price for the projects is US$4 million, with Freehill retaining rights to acquire remaining interests in Joshua and Samuel in the future.
This milestone-based payment structure aligns well with Freehill’s strategy to manage financial risk while advancing project development and exploration.
Supporting Growth Through a Cash-Generating Aggregates Business
Alongside its copper-gold ambitions, Freehill operates an aggregates business supplying major cement and infrastructure companies in Chile. This business has demonstrated steady sales growth since October 2025, with gross sales exceeding A$300,000 in January 2026 alone. The company expects the aggregates operation to become cash-flow positive within the current quarter, providing a stable financial foundation to support its exploration and development activities.
Next Steps and Exploration Plans
Freehill plans to commence exploration at Blanco y Negro imminently, focusing on mine surveying, planning, and permitting for an initial 5,000 tonnes per month operation. Further drilling is anticipated to test extensions of the known mineralisation. For Joshua, Freehill is compiling and re-evaluating historical data to define future drilling targets and is considering partnerships to advance the project given its scale.
Negotiations are underway to engage third-party expertise to assist with exploration and development, reflecting Freehill’s pragmatic approach to leveraging external capabilities.
Bottom Line?
Freehill’s low-risk entry into Chile’s copper-gold sector, backed by a growing cash flow from aggregates, sets the stage for a potentially transformative growth phase.
Questions in the middle?
- How will Freehill prioritise exploration and development between Blanco y Negro and the larger Joshua and Samuel projects?
- What are the timelines and regulatory hurdles expected for permitting and commencing production at Blanco y Negro?
- Could Freehill’s aggregates business scale sufficiently to fund exploration without diluting shareholders?