Flagship Minerals (ASX:FLG) is expanding into Chile’s Maricunga Gold Belt through the acquisition of the Pantanillo Gold Project. The junior explorer secured a binding five-year option agreement, paying an initial US$100,000 and committing to staged payments totaling US$1.4 million over four years, with a final $11 million payment to acquire 100% ownership. Pantanillo boasts a foreign resource estimate of 47.4 million tonnes @ 0.69 grams per tonne gold, containing 1.05 million ounces, compliant under Canada’s NI 43-101 standards.
The Maricunga Gold Belt, known for hosting major gold deposits, includes Newmont and Barrick Gold’s Norte Abierto joint venture, Kinross Gold’s Maricunga operation, and Hochschild Mining’s Volcan Project. Flagship aims to convert the Pantanillo resource into a JORC-compliant resource, conduct confirmatory drilling and metallurgical testing, and expand the resource. Managing Director Paul Lock emphasized the project’s strategic location and advanced stage, highlighting the potential for low-cost production. The company aims for an aspirational target of around 100,000 ounces of gold annually over a 10-year period using open pit mining and heap leaching, with a placement planned to raise funds by the end of April.
