Flagship Minerals (ASX:FLG) announces the acquisition of the Whipsaw Copper Project in British Columbia.
The acquisition involves an option agreement worth $6.5 million over two years, comprising $4 million in cash and $2.5 million in cash or shares at the company’s election.
The agreement includes a 2% net smelter return, with Flagship having the option to purchase half the royalty for $3 million.
An additional milestone payment of $5 million becomes payable upon declaration of a 300 million tonne mineral resource at 0.40% copper-equivalent grade.
Whipsaw is a large-scale porphyry copper project located approximately 17km west of Hudbay’s Copper Mountain Mine and around 160km east of Vancouver.
Historical drilling, geological mapping, soil geochemistry, and geophysical surveys support a JORC-compliant exploration target across a mineralised system, which extends approximately 3.7km in strike length and up to 1.2km in width.
The system hosts mineralisation dominated by copper alongside accessory molybdenum and minor silver and gold.
Flagship Managing Director Paul Lock says the company is “extremely pleased” with the acquisition, noting that it positions Flagship “with a drill supported exploration target of 0.51 billion tonnes to 1.02 billion tonnes @ 0.2% to 0.4% copper-equivalent.”
“Importantly, Whipsaw complements our strategy of advancing the 2.1-million-ounce Isidora Gold Project in Chile while building a pipeline of quality development opportunities capable of delivering long-term shareholder value,” Lock says.
He adds that the company is evaluating a potential spin-out of Whipsaw into a standalone ASX-listed copper vehicle.
As part of advancing Whipsaw towards potential mineral resource classification, Flagship is proposing a 15-hole diamond drilling program totalling approximately 4,500m.
Drilling will test the geological assumptions underpinning the exploration target and provide critical information on grade distribution, mineralisation style, alteration patterns, and lithological relationships within the intrusion system.
Flagship Minerals is an exploration and development company focused on critical metals required for electrification, including gold, copper, and lithium, with core projects in Chile, Canada, and Thailand.
Write to Paula Fabe at Mining.com.au
Images: Flagship Minerals
