Flagship opens a new copper-gold frontier in Chile

Flagship adds a 265 square kilometre Chilean copper-gold project

Flagship Minerals Limited (ASX:FLG) has taken an option over a large copper-gold exploration package in northern Chile, giving the company management control of Fortuna Valle while deferring the decision to acquire it outright. The project spans approximately 265 square kilometres in the Coquimbo Region, between La Serena and Huasco, and contains several prospects, historical workings and a substantial archive of previous exploration.

“Fortuna Valle Copper-Gold Project – Regional Setting.”

The transaction gives Flagship the right to earn 100% of Fortuna Valle from Chilean vendor Sociedad Minera Rajo SpA over a two-year term running from November 2026 to November 2028. Flagship has paid the initial US$100,000 option fee, split between cash and shares, with the shares yet to be issued. A further US$100,000 is due in November 2027, followed by a US$1 million exercise payment in November 2028. The exercise can be made earlier, and the payments can be settled in cash or FLG shares at Flagship's election.

Historical drilling confirms copper-gold mineralisation

Fortuna Valle's appeal rests on a broad hydrothermal alteration system and multiple mineralised centres associated with monzonite and granodiorite intrusions, sheeted veins, breccias and fault structures. Flagship describes the system as potentially representing a large alkalic porphyry copper-gold system, although that interpretation remains an exploration thesis rather than a defined resource.

“Fortuna Valle Copper-Gold Project – Concessions and Geochem.”

“Fortuna Valle Copper-Gold Project – CX 6737050N.”

Caption and image © Flagship Minerals Limited. From “Fortuna Valle - District Scale Copper-Gold - Chile”, 12 Nov 2026.

Historical drilling at the San Miguel prospect produced the announcement's headline result: 22 metres at 0.37% copper and 0.38 grams per tonne gold from 26 metres in hole SLD001. The same hole also returned eight metres at 0.62% copper and 0.47g/t gold from 66 metres. Other reported intersections included 22 metres at 0.33% copper and 0.27g/t gold in SLD003, with a six-metre higher-grade interval at 0.75% copper and 0.73g/t gold.

“Fortuna Valle Copper-Gold Project – GSC Priority Targets and Drill Hole Locations.”

Those numbers are downhole lengths, not confirmed true widths. The company also cautions that historical information is incomplete: some assay results, drill collar details, geophysical data and exploration records are unavailable. No mineral resource has been estimated, and much of the concession package remains untested or only lightly drilled.

Low commitment leaves exploration work ahead

Flagship's initial program is deliberately preparatory. It plans to compile and validate historical data, extend mapping and surface geochemistry, review geophysical coverage, reinterpret the geology and rank targets before generating drill targets and seeking permits. The project has no minimum drilling or spending requirement under the option, allowing the company to decide whether to proceed after its technical review.

The structure limits immediate financial exposure, but it does not eliminate the cost of proving the opportunity. If Flagship does not make the 2027 option payment or the 2028 exercise payment, its interest falls to zero and previously paid amounts cannot be recovered. The vendor will also retain a 1% net smelter royalty, although Flagship has the right to buy it back for US$1 million.

“Isidora GOLD project (chile)”

The announcement describes the project area as approximately 265 square kilometres in most places, but approximately 300 square kilometres in its location section. That discrepancy, along with a transaction table that labels the concession-area row as the Rosario Copper Project, will need clarification as the company moves from acquisition announcement to technical due diligence.