Flagship Minerals Limited (ASX: FLG) has secured a binding agreement with Anglo American Norte SpA to acquire a substantial exploration dataset for the Pantanillo Gold Project in Chile, positioning the company to accelerate project development and expand resources without immediate drilling.
The package includes 32,827 metres of drilling across 148 holes, nearly 14,000 metres of diamond core, 2,151 geochemical samples, ground magnetic survey data, and a large volume of technical reports. Flagship estimates it would take four to five years and US$15–20 million (A$23–31 million) to replicate the dataset.
“This is an exceptional milestone. The Anglo dataset gives us access to all historical drilling at Pantanillo – almost 33,000 metres across 148 holes – of which over 12,000 metres was previously unavailable and therefore not included in the current foreign estimate of 1.05 million ounces gold,” managing director Paul Lock said.
Drill core to support re-sampling, metallurgical studies and geochemical testwork
The drill core stored in Copiapó will support re-sampling, metallurgical studies and geochemical testwork, while the additional data is expected to accelerate the conversion of the current qualifying foreign estimate (QFE) into a Mineral Resource Estimate compliant with the JORC Code (2012).
Lock added that the newly available dataset would allow the company to fast-track feasibility work and evaluation of seven high-priority exploration targets. “Importantly, we estimate the dataset would cost up to A$31 million and take four to five years to recreate. Securing the data with back-ended terms is another highly strategic win for Flagship and its shareholders.”
Transaction structure
The transaction is structured with minimal upfront cost, beginning with a US$100,000 payment, followed by US$250,000 and US$500,000 instalments over two years. A final US$1 million payment will only be due if Flagship elects to acquire Pantanillo before April 2030.
Flagship’s strategy for Pantanillo is to build sufficient resources to support an open-pit, heap-leach operation producing about 100,000 ounces of gold annually over a 10-year period. Initial work will focus on validating drill data, re-sampling core, and advancing metallurgical studies, alongside broader exploration across the 110 square kilometre project area.
The company expects to report additional results from the newly acquired drillhole data once its review is complete, with the aim of significantly increasing the gold inventory