Freehill Advances Blanco y Negro with Secured Resource Model and Mine Planning

Securing the Technical Backbone for Blanco y Negro

Freehill Mining Limited (ASX:FHS) has taken a crucial step in advancing its Blanco y Negro copper-gold project in Chile by securing and thoroughly reviewing the Mineral Resource Estimate (MRE) block model. This high-resolution, auditable 3D dataset underpins all technical work, providing a confident foundation for mine planning and resource validation. The MRE confirms approximately 1.5 million tonnes of ore at around 1.4% copper and 0.5 grams per tonne gold, equating to 20,000 tonnes of contained copper and 24,000 ounces of gold within granted mining leases.

By overlaying historical drill hole data with copper grade contours, Freehill’s geological team has validated the continuity and distribution of mineralisation, identifying priority zones for follow-up drilling and development. This detailed review is a material milestone that de-risks the project and accelerates technical execution.

Strategic Location and Processing Advantages

Blanco y Negro’s proximity, about 30 kilometres, to the ENAMI SX-EW plant offers a credible, low-capital expenditure, fast-start toll-treatment route. This infrastructure advantage could significantly reduce upfront processing costs and speed up production timelines. Freehill’s existing aggregates business in the La Serena/Coquimbo region further bolsters operational capabilities by supplying experienced local teams to support permitting, mine planning, and processing decisions on copper projects.

This integration of mining and aggregates operations creates a unique synergy, leveraging cash-generating infrastructure to de-risk and expedite copper project development. The company’s recent surge in aggregate sales, including a record monthly revenue in April, underscores this operational strength and financial flexibility to back Blanco y Negro’s advancement April aggregate sales reach record.

Advancing Underground Mine Planning and Permitting

Following a site visit, Freehill is close to appointing a Chilean-based mining engineer with underground expertise to lead mine planning efforts. The company emphasises that small-scale mining operations in Chile benefit from a simpler and faster permitting pathway compared to large mines, potentially expediting development timelines.

The geological review supports a targeted approach to underground mine planning, focusing on converting existing resource upside through infill and down-plunge drilling. This approach aligns with Freehill’s strategic intent to build a medium-scale operation that capitalises on the high-quality dataset and granted tenure.

Freehill’s management highlights the project’s potential in a strengthening copper price environment, with the aggregates business providing trusted local talent to mitigate execution risks. This strategy reflects a broader trend of mining companies leveraging regional infrastructure and expertise to unlock value in near-term copper projects Freehill Mining Accelerates Aggregates Growth.

Resource Quality and Exploration Upside

The existing JORC-compliant resource spans oxide, transition, and fresh rock domains, with multiple high-grade intercepts reported historically, including 20 metres at 2.1% copper plus 1 gram per tonne gold and 30 metres at 1.44% copper. The oxide-dominated nature of the resource and open mineralisation continuity provide clear targets for resource growth through further drilling.

Freehill has reiterated that no new material information beyond prior disclosures has emerged, and the Mineral Resource Estimate has not been independently verified by the company. However, the thorough geological assessment and block model review provide a robust technical platform for advancing mine development.