Flagship’s Pantanillo Project Faces EIA Hurdles Despite Strategic Funding Boost
Flagship Minerals has received a second $1.25 million funding tranche from strategic partner Xinhai following completion of due diligence at the Pantanillo Gold Project. Environmental baseline studies are underway, and a JORC-compliant Mineral Resource Estimate is expected soon.
- Xinhai completes due diligence and provides second $1.25M funding tranche
- Strategic board appointment of Xinhai representative John Zhang planned
- Environmental baseline studies initiated with EIA submission targeted for early 2027
- JORC Mineral Resource Estimate conversion of 1.05Moz gold resource underway
- Metallurgical testwork and drilling planned to support feasibility in 2026
Strategic Partnership Strengthened
Flagship Minerals Limited has taken a significant step forward in advancing its Pantanillo Gold Project in Chile with the completion of due diligence by global minerals engineering firm Xinhai Mining Technology & Equipment Inc. This milestone has triggered the second tranche of $1.25 million in funding from Xinhai, reinforcing the strategic partnership between the two companies. The investment not only provides capital but also brings Xinhai’s extensive expertise in mineral processing, engineering, and mine construction to Flagship’s board, with John Zhang, a seasoned industry professional, set to join in January 2026.
Environmental Progress and Regulatory Pathway
Flagship has appointed Ambiental Y Sectorial SpA, a respected environmental consultancy with a strong track record in the Atacama region, to conduct the Environmental Impact Assessment (EIA) for Pantanillo. Baseline environmental studies have commenced, aligning with Flagship’s timeline to submit the EIA by early 2027. This is a crucial step in navigating Chile’s streamlined approvals framework and securing the necessary social license to operate, with community relations managed by Alejandra Tapia, who brings valuable experience from the Lundin Group.
Resource Conversion and Project Development
Flagship is progressing the conversion of a 1.05 million ounce gold resource estimate, currently reported under foreign standards (NI 43-101), into a JORC Code 2012-compliant Mineral Resource Estimate (MRE). This update, being prepared by Chilean consultants Bmining Desarrollo e Innovacion Para La Minera SpA, is expected within the next 3 to 6 weeks and will provide a more robust foundation for project evaluation. The company is also preparing for further drilling and metallurgical testwork in 2026 to refine the resource and support feasibility studies.
Looking Ahead
With Xinhai’s backing and technical input, Flagship is well-positioned to accelerate the feasibility, funding, and construction phases of Pantanillo. The project’s location in the prolific Maricunga Gold Belt and its substantial oxide gold resource underpin its potential as a future open-pit, heap leach operation. While challenges remain, including the successful completion of the EIA and resource validation, the recent developments mark a clear trajectory toward production readiness.
Bottom Line?
Flagship’s strengthened partnership with Xinhai and advancing resource and environmental milestones set the stage for a pivotal 2026.
Questions in the middle?
- Will the JORC Mineral Resource Estimate confirm or expand the current 1.05Moz gold resource?
- How will Xinhai’s board involvement influence Flagship’s project timelines and financing options?
- What are the key risks and potential delays associated with the Environmental Impact Assessment process?
