Freehill Mining Ltd Copper Project Advances Alongside Record Sales

Strong Operational Momentum Across Aggregate Materials Business

Freehill Mining Limited (ASX: FHS) has demonstrated exceptional operational excellence across its dual-business strategy, with the Freehill Mining Ltd copper project development taking centre stage alongside record-breaking sales performance. According to the latest ASX announcement, March 2026 delivered the second-best monthly sales performance on record at $347,000 in gross sales, reflecting a 28% month-on-month increase that caps off an exceptional quarter with gross sales reaching $923,000.

The Chilean-focused mining company is simultaneously advancing mine planning and permitting for its flagship Blanco y Negro Copper Gold Project, which hosts a substantial 1.5Mt resource at 1.4% copper and 0.5g/t gold for 20,000 tonnes of copper and 24,000 ounces of gold across granted exploitation leases.

Management Commentary
"We are pleased with the sales performance for March in an environment where we still had to manage plant reliability challenges which caused more unexpected downtime. This makes the top line result all the more encouraging." – Managing Director Paul Davies

According to the announcement, Freehill's aggregate materials operations have demonstrated consistent growth momentum, with the company producing formulated aggregates (sands and gravels) for customers across cement, construction, and infrastructure sectors in Chile's Region IV.

Six-Month Sales Performance Highlights

The announcement highlighted that the improving financial performance reflects contributions from two key operational sites:

• Yerbas Buenas: Providing steady, ongoing contribution to sales
• Islón Site: Located near La Serena/Coquimbo region, showing growing contribution

Key operational developments referenced in the announcement include:

• Major processing equipment installation scheduled for the week of 16 April 2026
• Infrastructure additions expected to drive continued sales growth
• Plant reliability improvements targeting reduced downtime
• Expanded customer reach through enhanced processing capabilities

Management stated that more detailed financial data will be reported once major processing equipment is installed and running consistently. An operational update is expected to be provided within the following week.

Understanding JORC Resources: What Investors Need to Know

JORC (Joint Ore Reserves Committee) Resource Estimates represent the industry-standard classification system for reporting mineral resources and ore reserves in Australia. These estimates provide investors with confidence that reported resources meet stringent geological and technical standards.

JORC-2012 compliance offers several key advantages:

• Ensures independent geological verification by qualified professionals
• Provides standardised reporting framework for investor comparison across projects
• Reduces investment risk through verified resource confidence levels
• Enables accurate valuation of mineral assets for financing and development

The JORC system classifies resources into three confidence categories: Inferred, Indicated, and Measured, based on geological knowledge and sampling density. Higher classifications require more detailed drilling and geological understanding, providing greater certainty for development planning.

For Freehill's Blanco y Negro deposit, the JORC-2012 classification confirms 1.5 million tonnes of verified resource with 1.4% copper and 0.5g/t gold grades. This translates to substantial contained metals across granted mining concessions, providing development certainty and supporting potential financing discussions for mine construction.

Blanco y Negro Copper Project: Strategic Development Priority

The announcement confirmed that Freehill has identified the Blanco y Negro Copper Gold Project as its primary development focus. Furthermore, the Freehill Mining Ltd copper project leverages several strategic advantages that position the asset for near-term production potential.

Project Fundamentals

Strategic Development Advantages

Immediate Tenure Benefits:
The announcement highlighted that the project sits on granted mining concessions, providing immediate development rights and eliminating lengthy permitting delays that often affect exploration projects.

Operational Synergies:
According to the company, Blanco y Negro is well within trucking distance of several nearby copper operations, providing access to existing processing capacity. The historical mine benefits from established infrastructure foundations that could reduce development capital requirements.

Resource Growth Potential:
The announcement referenced that drilling and mapping have returned multiple porphyry-style and shear-hosted high-grade intercepts. Combined with the oxide-dominated resource and open continuity, management believes there is potential for further resource growth with targeted infill and down-plunge drilling if required.

Near-Term Development Timeline

The announcement stated that the company is now engaged with multiple parties for mine planning and permitting. In addition, they are targeting an initial 5,000 tonnes per month start-up operation for this Freehill Mining Ltd copper project. Several parties referenced have historical involvement with the project, potentially providing valuable development experience and operational partnerships.

This scale of operation would represent a significant step-up for Freehill from its current aggregate materials business. Consequently, it could potentially deliver substantial cash flow if copper prices remain supportive.

Dual-Strategy Investment Thesis: Cash Generation Meets Growth Potential

Freehill's strategic positioning combines immediate cash generation through its expanding aggregates business with medium-term copper production potential, creating a compelling investment proposition across multiple value drivers.

Cash-Generating Foundation

• Proven revenue growth: 60% quarterly increase demonstrates operational scalability
• Infrastructure investment: Major processing equipment additions scheduled to drive margin expansion
• Market positioning: Serving essential infrastructure sectors in Chilean economy
• Operational leverage: Plant reliability improvements targeting reduced downtime costs

Copper Development Upside

• Resource certainty: JORC-2012 compliant resource provides development confidence
• Strategic location: Proximity to existing copper operations reduces development risk
• Granted tenure: Immediate mining rights eliminate regulatory uncertainty
• Growth potential: Open-pit potential with expansion opportunities through additional drilling

Geographic Advantages

All operations are concentrated in Chile's Region IV, providing:

• Operational synergies between aggregate and copper activities
• Established local presence and relationships
• Shared infrastructure and logistics networks
• Regional expertise in mining operations

According to Chairman Ben Jarvis, "The steady improvement in the performance of the aggregates business is pleasing and we can now see a clear pathway to a scaled-up operation with healthy margins. This operation underpins our plans for developing our portfolio of copper projects in the same region where we see considerable opportunity to establish another cash generating business line in relatively short order."

Investment Monitoring Considerations for Freehill Mining

Freehill Mining represents a dual-strategy opportunity combining proven operational cash flow with substantial copper development potential in one of the world's premier mining jurisdictions. However, the Freehill Mining Ltd copper project development requires careful monitoring of several key factors.

Key Investment Tracking Factors

Immediate Cash Generation Performance
The aggregate business has delivered record quarterly performance with 60% growth, demonstrating scalable operations. Furthermore, infrastructure investments are expected to drive margin expansion as processing capabilities increase.

Near-Term Copper Production Potential
Granted mining concessions provide immediate development rights for the 5,000 tonnes per month initial production target. For instance, proximity to existing copper operations reduces development risk compared to greenfield projects.

Strategic Asset Portfolio Quality
The 20,000 tonnes contained copper and 24,000 ounces contained gold provide substantial development options. Additionally, multiple copper-gold projects across the Region IV portfolio offer resource expansion potential through targeted drilling programmes.

Operational Excellence Indicators
Management has demonstrated ability to scale operations and improve financial performance. However, strategic infrastructure investments are driving operational efficiency improvements, supported by experienced management with proven Chilean mining expertise.

Key Takeaway
Freehill Mining has positioned itself as a unique dual-strategy opportunity in Chilean mining, combining immediate cash generation from a rapidly growing aggregates business with substantial near-term copper production potential. With record sales performance and advancing copper development plans, the company offers investors exposure to both operational cash flow and resource development upside.

Upcoming Catalysts to Monitor

• Equipment installation updates following major processing infrastructure additions
• Detailed financial reporting once processing infrastructure reaches consistent operation
• Mine planning and permitting progress for Blanco y Negro development
• Resource expansion drilling results and potential reserve upgrades

The announcement indicates that shareholders can expect more regular operational updates across both business lines as the company scales its operations and advances development planning for its copper projects. Consequently, the Freehill Mining Ltd copper project represents a significant opportunity for shareholders to benefit from both immediate cash generation and long-term copper development potential.

Could Freehill Mining Be Your Next Dual-Strategy Mining Investment?

With record-breaking aggregate sales performance and a substantial copper-gold project advancing towards production, Freehill Mining presents a unique combination of immediate cash generation and copper development potential. To explore how this Chilean-focused mining company's dual-business approach could fit into your investment portfolio, and to access detailed information about the Blanco y Negro Copper Gold Project and expanding aggregate operations, visit Freehill Mining's investor hub for comprehensive project updates, financial reports, and development timelines.