Flagship Minerals Pantanillo Gold Project Reveals Massive Chilean System

Flagship Minerals Uncovers Massive Gold System at Chilean Project

Flagship Minerals Limited (ASX: FLG) has delivered compelling evidence of a large-scale gold system at its Pantanillo Gold Project in Chile's renowned Maricunga Gold Belt. Advanced satellite imagery analysis has revealed extensive alteration zones spanning over 40km², with characteristics matching the region's most successful gold deposits.

The ASTER remote sensing study identified two substantial alteration zones exceeding 5km in length and up to 2km wide, accompanied by five complementary 1-2km zones. These findings validate the Pantanillo Gold Project potential as a significant epithermal-porphyry gold system, similar to neighbouring deposits that have collectively produced over 65 million ounces of gold.

Maricunga Gold Belt: World-Class Proven Territory

The Pantanillo Gold Project by Flagship Minerals Ltd sits in prime real estate within the Maricunga Gold Belt, surrounded by tier-one operations that demonstrate the region's exceptional gold endowment:

The region's proven economic viability was recently demonstrated by Rio2's Fenix project, which achieved first gold pour in January 2026 after completing construction on time and on budget at approximately US$117 million. Furthermore, with an estimated All-In Sustaining Cost of US$1,237 per ounce, Fenix would rank in the bottom quartile of Australian gold producer costs.

"The ASTER results indicate the potential scale of the Pantanillo project, with two substantial zones of alteration >5km in length and up to 2km wide accompanied by five complimentary 1-2km alteration zones. The results provide important targeting information and will be incorporated into the current dataset and used in future exploration initiatives post the QFE update into a Mineral Resource Estimate currently underway," stated Managing Director Paul Lock.

Understanding ASTER Technology: Advanced Satellite Analysis for Gold Exploration

ASTER (Advanced Spaceborne Thermal Emission and Reflection Radiometer) represents cutting-edge satellite technology that can detect specific minerals from space. For gold explorers, it's particularly valuable because it identifies alteration minerals that form predictable patterns around major gold deposits.

Key minerals ASTER can detect include:

• Alunite and kaolinite (advanced clay-rich alteration zones)
• Sericite (mica-rich alteration)
• Silica alteration (dense quartz zones, massive silica replacement)
• Iron oxides (rust-coloured minerals like hematite, jarosite, goethite)

These minerals typically form zonation patterns around epithermal-porphyry gold systems, with outer mica-rich zones transitioning to inner clay and sulfate zones near the core mineralisation. Consequently, this makes ASTER particularly effective in the Andes, where arid conditions and excellent geological exposure enhance the technology's capabilities.

Why This Matters for Investors

ASTER analysis can identify large-scale gold systems before expensive drilling programmes begin, providing cost-effective regional targeting that significantly improves exploration success rates. The technology essentially acts as a geological mapping tool from space, detecting mineral signatures invisible to the naked eye but characteristic of major gold systems.

What Makes Pantanillo's ASTER Signature So Impressive?

The study revealed striking similarities between Pantanillo Gold Project by Flagship Minerals Ltd alteration signature and established deposits throughout the Maricunga Belt. However, the scale of alteration at Pantanillo suggests a system of exceptional magnitude.

Primary Alteration Zones:

• Pantanillo NW to Central corridor: 4-5km length, up to 2km width
• Quebrada Pantanillo area: Similar scale and intensity
• Secondary targets: Oro52, Pantanillo South, and Pantanillo SW

The alteration mineralogy shows generally coincident alunite-kaolinite zones with outboard sericitic alteration, striking NW-SE in alignment with regional structural controls. Moreover, multiple target points have been identified within these zones, particularly in embayments and circular features that often indicate mineralised centres.

Regional validation comes from ASTER analysis across the broader Maricunga Belt, which confirmed that Pantanillo's signatures match the scale and mineral associations of neighbouring multi-million ounce deposits. In addition, the company conducted comparative analysis showing that Pantanillo's ASTER responses are similar in scale and mineral associations to Norte Abierto (Caspiche and Cerro Casale), Lobo-Marte (Lobo and Marte) and La Coipa deposits.

The alunite-kaolinite-sericite ASTER signatures from all of these deposits show striking similarities, pointing to the scale of these mineralising systems and providing high confidence targeting for future exploration programmes.

Strategic Development Pathway

Flagship has outlined a systematic approach to advance Pantanillo toward potential development. The company's strategy focuses on defining sufficient oxide gold resources suitable for low-cost open pit mining and heap leach processing – the same approach successfully employed throughout the Maricunga Belt.

Immediate Priorities (2026):

1. Convert QFE to JORC-compliant resource: Updating the existing 1.05Moz Au foreign estimate to meet Australian reporting standards
2. Advance metallurgical testing: Critical for heap leach processing optimisation
3. Extensional drilling programme: Planned for early 2026 to support resource upgrade

Integration Strategy:

• Combine ASTER results with existing drilling, geochemical, and geophysical datasets
• Conduct field validation of ASTER anomalies through alteration mapping
• Prioritise drill targets for future programmes across the 110km² tenure

This development model has been validated by Rio2's recently commissioned Fenix operation, which demonstrates the commercial viability of heap leach processing in the region.

Investment Thesis: Scale Meets Opportunity

Flagship Minerals presents a compelling investment opportunity built on several key advantages. Furthermore, the combination of proven district geology and significant exploration upside creates an attractive risk-reward profile.

Proven District: The Maricunga Gold Belt's 65+ million ounce endowment provides unparalleled validation of the region's gold potential. The district hosts numerous tier-one operations within a 45km radius of Pantanillo.

Project Scale: The 40km² alteration footprint suggests a system of significant magnitude, with the poorly tested nature of much of this area offering substantial exploration upside. For instance, the ASTER study has identified multiple target areas that remain largely unexplored.

Development Model: The surface-starting oxide mineralisation aligns perfectly with the region's proven low-cost, heap leach processing model, as demonstrated by Rio2's recently commissioned Fenix operation with All-In Sustaining Costs of US$1,237 per ounce.

Strategic Positioning: Located in the central part of the Maricunga Belt, Pantanillo sits directly between established operations, benefiting from existing infrastructure and proven metallurgy. The project is amenable to low-cost, low-strip open cut mining and heap or dump leach processing.

Why Should Investors Follow Flagship Minerals?

The ASTER results have positioned Flagship as a company with genuine discovery potential in one of South America's most prolific gold districts. However, several factors make this particularly compelling for investors seeking exposure to potential resource growth.

Near-term Catalysts:

• JORC resource update expected through 2026
• Extensional drilling programme commencing early 2026
• Metallurgical advancement supporting project economics

Exploration Upside: The identification of multiple new targets across largely untested terrain provides substantial scope for resource growth beyond the current 1.05Moz Au foreign estimate. In addition, the ASTER analysis has highlighted the potential for obscured or blind mineralisation beneath altered lithocaps or thin unaltered cover rocks, consistent with regional models.

Regional Context: With major operators like Kinross, Barrick/Newmont, and Rio2 actively developing projects in the immediate vicinity, Flagship benefits from proven infrastructure, established processing routes, and demonstrated project economics.

Technical Validation and Operational Advantages

The strong correlation between Pantanillo's ASTER signature and neighbouring multi-million ounce deposits provides high-confidence targeting for future exploration programmes. Consequently, the alteration footprint covering in excess of 40km² remains poorly tested, suggesting significant exploration potential.

Operational Advantages: Pantanillo's surface-starting oxide mineralisation and established regional metallurgy provide a clear development pathway. The deposit is over 850m long and between 200-600m wide, remaining open along strike and down-dip, with mineralisation hosted in weathered and altered andesitic porphyry with sheeted and stockwork quartz veins.

Flagship Minerals has unveiled compelling evidence of a large-scale gold system in Chile's premier gold district. With systematic development planning, multiple exploration targets, and strong regional validation, the company offers investors exposure to significant discovery potential in a proven, low-cost operating environment. The upcoming JORC resource conversion and 2026 drilling programme represent clear catalysts for value creation at the Pantanillo Gold Project by Flagship Minerals Ltd.

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