Flagship Minerals Nears JORC Resource Update as Chile Permitting Accelerates

JORC Resource Update Approaches at Pantanillo

Flagship Minerals Limited (ASX:FLG) is preparing to release a JORC (2012) compliant Mineral Resource Estimate (MRE) for its 100%-owned Pantanillo Gold Project in Chile, with publication targeted for early May 2026. The updated MRE will replace the previous ~1.05Moz gold foreign estimate with a technically robust, independently validated resource incorporating extensive historical and recent drilling data. Interim metallurgical test results on sulphide mineralisation have been positive, enabling inclusion of these zones in the MRE update.

The MRE process, led by Bmining Desarrollo e Innovacion Para La Minera SpA, is in its final validation stages, despite some delays due to additional data requests and physical drill core analysis. Flagship anticipates the updated resource will better define the scale and development potential of Pantanillo, potentially expanding the resource footprint without immediate drilling.

Environmental and Permitting Advances Align with Chile Policy Shift

Environmental baseline studies for Pantanillo are progressing well under the guidance of Ambiental Y Sectorial SpA, a respected environmental consultancy in the Atacama region. The company aims to submit a full Environmental Impact Assessment (EIA) by early 2027, aligning with its feasibility and permitting timeline under Chile’s evolving regulatory framework.

On April 22, the Chilean Government announced proposed legislation designed to accelerate mining project approvals through streamlined permitting processes and supportive tax and labour incentives. Flagship views these policy changes as a positive backdrop for advancing Pantanillo, particularly given the project’s location in the established Maricunga Belt mining district.

Metallurgical Testing and Technical Work Support Development Pathway

Flagship’s metallurgical test work, conducted in partnership with Chinese EPC specialist Xinhai, continues to deliver results consistent with historical recoveries. Interim sulphide testing has yielded encouraging outcomes, supporting the inclusion of sulphide mineralisation in ongoing development studies and the upcoming MRE update. This work is critical to defining processing flowsheets and early-stage development parameters for the envisaged open-pit, heap leach gold operation.

Complementing these technical efforts, recent ASTER remote sensing analysis has confirmed an extensive alteration footprint across the Pantanillo district, with multiple zones measuring 4-5km long and up to 2km wide. This reinforces the potential for a district-scale mineral system beyond the current resource base, echoing findings from earlier surveys that flagged significant exploration upside massive gold alteration zones.

Corporate Strengthening and Capital Management

Flagship’s balance sheet was bolstered post-quarter with the full extinguishment of convertible notes, simplifying its capital structure. During the quarter, the company raised approximately A$1.4 million through option exercises, ending March 2026 with cash reserves of A$1.7 million. This follows a disciplined capital management approach amid ongoing exploration and technical expenditure.

Enhancing its leadership, Flagship appointed John Zhang, a non-executive director representing strategic shareholder Xinhai, bringing expertise in engineering, processing, and project delivery. Eduardo Cisternas joined as Principal Geologist in Chile, adding over two decades of regional experience including senior roles at BHP. These appointments aim to strengthen execution capabilities as Pantanillo moves toward feasibility and construction phases secures full $2.5M Xinhai backing.

Other Projects Remain on Hold or Under Review

Flagship’s other assets saw limited activity during the quarter. The Rosario Copper Project awaits results from a planned trenching program to determine next steps. The Khao Soon Tungsten Project and RK Lithium Project had no field work, with the latter subject to early-stage sale discussions following an informal offer. These projects remain secondary to the company’s focus on advancing Pantanillo’s development.