Flagship Minerals (ASX: FLG) has welcomed approval of the ENAPAC Ruta Este desalination pipeline, describing it as a landmark step toward securing a permanent, high-volume water supply for projects across Chile’s Maricunga Gold Belt, including the company’s advanced Pantanillo gold project (1.05Moz).
The company says the decision substantially reduces a key development risk at Pantanillo and provides a clearer pathway to production. Pantanillo is being advanced as a heap-leach project targeting around 100,000 ounces of gold per annum.
Key points
- Stage-three approval for ENAPAC: The US$1.5 billion, solar-powered ENAPAC project is designed to deliver 1,750 litres per second of desalinated water to the Maricunga Belt.
- First multi-client pipeline in the Atacama: ENAPAC’s Ruta Este line will operate on a shared-access basis, a first for the region.
- Water security for Pantanillo: The approval supports Flagship’s development plans and reduces a material permitting and infrastructure risk.
- Engagement underway: Flagship has commenced discussions with ENAPAC parent Agua-sol regarding potential access arrangements.
The timing aligns with Flagship’s pivot to formalise its resource base and de-risk the project ahead of the next phase of studies. The company plans to convert its foreign resource estimate (QFE) to a JORC-compliant Mineral Resource and to initiate technical and environmental workstreams ahead of drilling and feasibility activities targeted for 2026.
Flagship characterised the decision as a positive development not just for Pantanillo but for the broader district.
“This is an important milestone for all projects in the Maricunga Gold Belt, providing an important pathway for a permanent high volume water solution. For Flagship and its Pantanillo Gold Project, the ENAPAC Ruta Este approval mitigates a key risk factor of the Project, and is a timely outcome as Flagship is updating and expanding the existing QFE into a Mineral Resource Estimate and is positioning to begin baseline studies for its Environmental Impact Statement,” Flagship Minerals managing director Paul Lock said.
With water access historically a limiting factor for new production in northern Chile, the ENAPAC approval introduces a shared infrastructure solution that could accelerate project schedules and lower execution risk across the belt. For Flagship, the focus now turns to finalising access terms, advancing its JORC conversion and commencing baseline environmental and technical studies to support the planned 2026 drilling and feasibility programs.