Flagship Minerals (ASX:FLG) is reviewing options for its Khao Soon Tungsten Project in southern Thailand, including a full sale, a spin-out into a dedicated listed vehicle, or a joint venture with a strategic partner.
The company describes Khao Soon as non-core. It sits outside Flagship’s strategy of advancing the Isidora Gold Project in Chile and adding gold or copper opportunities with longer mine lives in established jurisdictions.
The Whipsaw Copper acquisition in Canada, announced in June, was cited as evidence of that focus.
Managing Director Paul Lock says a sale, spin-out, or joint venture would provide non-dilutionary capital for Isidora and other gold and copper initiatives.
Khao Soon is a large-scale tungsten project held by Flagship since 2014. The company has defined JORC exploration targets across five mineralised zones, totalling 22–40 million tonnes (Mt) @ 0.15–0.30% tungsten trioxide (WO3).
The largest zone, Than Pho West, carries a target of 9–14Mt @ 0.2–0.3% WO3. Last Hill is 5–10Mt @ 0.2–0.4% WO3, Target 2 is 3–7Mt @ 0.15–0.25% WO3, Than Pho Ridge is 2–4Mt @ 0.15–0.25% WO3, and Target 1 is 3–5Mt a@ 0.05–0.08% WO3.
The company cautions the exploration target is conceptual. There has been insufficient exploration to estimate a mineral resource, and it is uncertain whether further exploration will result in one.
The five zones span about 4.5km of aggregate strike length and remain open laterally and at depth.
Targets are defined by drilling and surface geochemistry to depths of up to 120m below surface. These sit adjacent to the historical Khao Soon mine, where US Geological Survey personnel reported grades of 5–12% tungsten in 1974.
Flagship holds three special prospecting licence applications covering about 26km2.
Exploration work has focused on the two applications surrounding the historical mine, with the third subject to Thai Cabinet approval because it falls within conserved forest.
Flagship Minerals is an Australian explorer and developer advancing gold and copper projects in Chile and Canada, following the divestment of its lithium assets.
Write to JC Villarba at Mining.com.au
Images: Unsplash
