Flagship Minerals (ASX:FLG) is undertaking an ongoing data review of the Pantanillo Gold Project in northern Chile, which has led to uncovering potential to expand gold mineralisation at depth.
The company says most of the mineralisation in section 10090E does not report into the current qualifying foreign estimate (QFE) despite “very good” results. The drillholes and interpreted mineralised zone suggests potential for additional mineralisation up-dip and to the north of drillhole SR97PN-13.
This potential also exists along strike to the west of this section. The company is aware of some reconnaissance shallow drilling completed in the prospective areas and is in discussion to secure results from this drilling and other activities at Pantanillo.
Flagship aims to define sufficient mineral resources to support considerations for project development consisting of open pit mining and heap leach processing. The company adds it is aiming to produce 100,000 ounces of gold per year for more than 10 years.
Flagship plans to conduct necessary work to convert and increase the existing QFE to mineral resources. This will include validating existing drillhole data and possible confirmatory, infill and extensional drilling as well as other supportive work.
Further, the company will conduct additional metallurgical testwork and other project studies for input into techno-economic evaluation.
Managing Director Paul Lock says Flagship has started the process of converting the QFE to resources in accordance with the JORC code.
“It is expected that an increase in the mineral resources can be achieved with a reduction in the cut-off grade from the current 0.3 grams per tonne gold to 0.15-0.3g/t gold, and incorporating the current gold price versus the price used in the QFE, which was US$1,035 per ounce,” Lock says.
“Pantanillo presents a compelling opportunity, the project is de-risked on a number of levels, including geology, geography, jurisdiction, metallurgy, and permitting precedents.”
The project hosts a QFE of 47.4 million tonnes @ 0.69g/t gold for 1.05 million ounces of gold.
Write to Aaliyah Rogan at Mining.com.au
Images: Flagship Minerals
