Flagship Minerals (ASX:FLG) is actively reviewing data from its Pantanillo Gold Project in northern Chile, revealing opportunities to expand gold mineralization at depth. Initial assessments indicate that a significant portion of mineralization in section 10090E is not currently included in the qualifying foreign estimate (QFE), despite positive drill results. The company believes there’s potential for additional mineralization both up-dip and to the north of drillhole SR97PN-13, as well as along strike to the west.
Flagship aims to define sufficient mineral resources to support open-pit mining and heap leach processing, targeting an annual production of 100,000 ounces of gold for over a decade. The company plans to convert and increase the existing QFE to mineral resources, including validating drillhole data and conducting infill and extensional drilling. Managing Director Paul Lock stated that the company has started the process of converting the QFE to resources in accordance with the JORC code. A reduction in the cut-off grade from 0.3 grams per tonne gold to 0.15-0.3g/t gold, combined with current gold prices, is expected to increase mineral resources. The project currently hosts a QFE of 47.4 million tonnes @ 0.69g/t gold for 1.05 million ounces of gold.
