Flagship’s Pantanillo Deal Adds 1.05Moz Gold; Identifies Six New Copper Targets

Strategic Acquisition of Pantanillo Gold Project

Flagship Minerals Limited marked a significant milestone in its March 2025 quarter by entering into a binding option agreement to acquire 100% of the Pantanillo Gold Project, located in Chile's prolific Maricunga Gold Belt. The project hosts a qualifying foreign estimate (QFE) of 47.4 million tonnes at 0.69 grams per tonne gold, equating to approximately 1.05 million ounces of gold. Importantly, the mineralisation is amenable to open cut mining and heap leach processing, which typically translates to lower capital and operating costs.

Situated near major gold projects owned by industry heavyweights such as Newmont, Barrick, Kinross, and Hochschild, Pantanillo offers Flagship a foothold in a highly prospective region with over 60 million ounces of gold within a 35-kilometre radius. The project’s advanced stage, supported by over 20,000 metres of drilling and extensive feasibility work, allows Flagship to leapfrog early-stage risks and move closer to feasibility and production.

Rosario Copper Project: New Targets and Large-Scale Potential

Alongside Pantanillo, Flagship confirmed the large-scale potential of its Rosario Copper Project through a stream sediment survey that identified six new copper targets, with three classified as high priority. Elevated copper levels across the project area underscore the prospectivity of the region, and follow-up work including trenching and reverse circulation drilling is planned to advance these targets.

Strategic Repositioning Amid Lithium Market Challenges

Flagship’s management, led by Managing Director Paul Lock, outlined a strategic pivot focusing on metals with well-diversified production and consumption dynamics, specifically oxide-style gold and copper projects. This shift is driven by the prolonged suppression of lithium chemical prices, oversupply concerns, and a lack of investor appetite for lithium assets. Consequently, Flagship is reassessing its lithium holdings, including the Tama Atacama and RK Lithium Projects, to align with market realities.

The emphasis on oxide projects reflects a preference for lower capital expenditure and operating costs, positioning Flagship in the lower third of the cost curve to achieve higher margin outcomes. This approach is expected to enhance the company’s appeal to investors and reduce development risks.

Financial Position and Outlook

During the quarter, Flagship restructured its convertible notes, extending maturity dates and offering conversion options at reduced prices to improve financial flexibility. Directors also provided loans totaling A$365,000, intended for conversion to shares pending shareholder approval. The company ended the quarter with a cash balance of A$187,000, supported by a A$10 million at-the-market equity funding facility with Alpha Investment Partners.

Looking ahead, Flagship plans to commence drilling at Pantanillo in October 2025, aiming to upgrade resources and advance the project towards production. The company’s repositioning and asset acquisitions signal a clear intent to capitalize on favourable market segments within gold and copper.