Freehill Mining Advances Blanco y Negro Copper-Gold Project with Key Milestone

Freehill Mining Advances Blanco y Negro Copper-Gold Project with Key Technical Milestone

Freehill Mining Limited (ASX: FHS) has confirmed meaningful progress at its Blanco y Negro Copper-Gold project in Chile, securing the project's Mineral Resource Estimate (MRE) block model and completing a comprehensive geological review. This Freehill Mining Blanco y Negro copper gold project update fast-tracks the path to underground mine planning and positions the company to move rapidly toward a low-capital production scenario in one of the world's most established copper-producing jurisdictions.

What's Happened and Why It Matters

At the core of this update is a deceptively important technical step: Freehill's consulting geologist has sourced and thoroughly reviewed the historical geological data underpinning Blanco y Negro, including the project's three-dimensional resource block model. This model describes copper grades, rock types, and physical properties across the entire deposit — and its availability in-house now gives the technical team the foundation needed to move directly into mine planning.

The project itself hosts a JORC 2012-compliant Mineral Resource Estimate of approximately 1.5 million tonnes at ~1.4% copper and 0.5 g/t gold, containing an estimated 20,000 tonnes of copper and 24,000 ounces of gold. That resource sits on 128 hectares of granted mining leases — meaning tenure is already secured, removing one of the most common early-stage delays in mining development.

The geological review produced three key technical outputs:

1. A plan map overlaying historical drill hole collars and traces on copper grade contours from the block model — confirming past drilling locations and showing modelled grade distribution across the project area
2. A long-section view (looking west) showing drill hole intersections coloured by a combined grade-and-thickness metric, identifying higher-value zones and continuity of mineralisation along strike and down dip
3. A representative cross-section through the deposit comparing block model grade distribution against drill hole assays — providing confidence in local grade estimation and domain boundaries

Together, these outputs verify the integrity of the existing dataset and give the team a clear technical baseline from which to plan underground mine development.

Blanco y Negro by the Numbers

High-Grade Drilling Intercepts Demonstrate Quality Mineralisation

One of the standout features of Blanco y Negro is the quality of historical drill intersections, which point to genuine high-grade zones within the broader resource. Key intercepts include:

• 20m @ 2.1% Cu + 1 g/t Au, including 4.5m @ 3.5% Cu and 1.6 g/t Au
• 30m @ 1.44% Cu, including 4m @ 5.7% Cu and 0.9 g/t Au
• 38m @ 1.0% Cu and 0.3 g/t Au, including 6m @ 2.3% Cu and 7m @ 2.1% Cu

These intersections reflect porphyry-style and shear-hosted mineralisation — two well-understood deposit styles common in Chilean copper geology. Furthermore, the oxide-dominated character of the resource and the open continuity of mineralisation at depth, as highlighted in the long-section view, support the potential for further resource growth through targeted infill and down-plunge drilling.

"The existing resource at Blanco y Negro, together with our comprehensive compilation and updating of the historical data and block model, ideally positions Freehill to advance the project rapidly. By capitalising on the substantial past investment and high-quality dataset already in place, we can focus near-term work on underground mine planning and securing low-capex processing options that focus on utilising third party infrastructure." — Managing Director Paul Davies

Understanding the Block Model: A Key Concept for Investors

What Is a Resource Block Model?

A resource block model is a three-dimensional digital representation of a mineral deposit. The underground volume of the deposit is divided into thousands of individual "blocks," each assigned estimated values for grade (metal concentration), rock type, density, and other physical properties. These estimates are derived from drill hole assay data using statistical and geostatistical methods.

Why Does It Matter?

The block model is the single most important technical dataset in mining — it underpins everything from resource estimation and mine planning to financial modelling and feasibility studies. Without a reliable block model, a company cannot accurately determine which parts of the deposit are worth mining, in what sequence, or at what cost.

For Freehill, having sourced and validated the Blanco y Negro block model, the team can now move directly into underground mine design — consequently skipping the time and cost that would otherwise be required to rebuild this foundational dataset from scratch. This is a genuine acceleration in the project timeline.

Glossary of Key Terms

A Low-Capex Processing Route Already Within Reach

One of the most commercially compelling aspects of Blanco y Negro is its proximity to existing infrastructure. The project sits approximately 30 kilometres from ENAMI's SX-EW processing plant — a state-owned copper processing facility that has historically provided toll-treatment services to smaller Chilean copper producers.

This proximity creates a credible, low-capital-intensity route to production. Rather than spending years and significant capital building a processing facility on site, Freehill could potentially truck ore or concentrate to ENAMI's facility for processing — dramatically compressing the timeline and upfront cost to first copper production.

The oxide-dominated character of the resource is particularly relevant here: oxide copper ores are well-suited to SX-EW processing, making this pathway technically aligned with the deposit's mineralogy.

The Aggregates Business: An Underappreciated Strategic Asset

Freehill is not simply a greenfield explorer. The company operates a cash-generating aggregates business with two plants in the La Serena/Coquimbo region — the same region where Blanco y Negro is located. This business processes and supplies construction materials to the cement and infrastructure sectors.

That might seem unrelated to copper development at first glance; however, the strategic overlap is meaningful:

• Experienced local teams: The aggregates operation employs qualified personnel familiar with Chilean mining and construction regulations, who can support permitting and mine planning work at Blanco y Negro
• Regional networks: Existing relationships with local contractors, regulators, and infrastructure providers reduce execution risk and cost at the copper project
• Cash generation: The aggregates business provides an operational cash flow base, reducing reliance on capital markets to fund early-stage project advancement

This dual-business model is relatively unusual for a company of Freehill's size — and it meaningfully reduces the execution risk typically associated with early-stage copper project development.

"It is evident that Blanco y Negro has great potential and represents a highly valuable near-term development opportunity. The Board is encouraged by the progress of our operations in Chile. Our management and operations team there have the capability to scale our aggregates business and to build out a viable copper operation by leveraging our growing regional networks." — Non-Executive Chairman Ben Jarvis

What Comes Next: Near-Term Catalysts to Watch

The Freehill Mining Blanco y Negro copper gold project update has clearly articulated the next steps in advancing the project. In addition, investors should monitor the following developments:

The imminent appointment of a qualified underground mining engineer is a particularly near-term catalyst — one that will trigger the formal commencement of mine planning and set the stage for a permitting application.

The Investment Case: Why Blanco y Negro Deserves Attention

Freehill's Blanco y Negro project combines several attributes that are difficult to find together in a single small-cap copper opportunity:

1. Resource already in place
A JORC 2012-compliant MRE of ~1.5Mt at ~1.4% Cu and 0.5 g/t Au provides an established starting point. The technical team is not starting from scratch — they are building on a validated resource with a verified block model.

2. Granted tenure
The project sits on 128 hectares of granted mining leases. Land access and tenure security are often the most time-consuming hurdles in early-stage mining — and they are already resolved here.

3. Low-capex processing pathway
The ~30 km proximity to ENAMI's SX-EW plant represents a potential toll-treatment route that could bring first production forward without the need for significant upfront capital expenditure.

4. High-grade mineralisation with upside
Historical drill intercepts including 20m @ 2.1% Cu + 1 g/t Au and 30m @ 1.44% Cu demonstrate genuine high-grade zones. Open mineralisation at depth, furthermore, points to resource growth potential.

5. Operational leverage from aggregates
The existing cash-generating aggregates business provides both financial support and operational capability — a unique competitive advantage for advancing a copper project in the region.

6. Copper price environment
The broader copper market continues to be supported by structural demand from electrification, energy transition, and global infrastructure investment — a macro backdrop that strengthens the commercial case for bringing new copper supply online.

Why Investors Should Keep Freehill on Their Radar

Freehill Mining occupies an interesting position in the small-cap resources space. It is not simply an exploration company waiting on drill results — it has an existing resource, granted tenure, a credible processing pathway, operational cash flow from aggregates, and a technical team now positioned to commence formal mine planning.

The completion of the geological review and block model acquisition may appear incremental on the surface, but it represents a genuine de-risking event. The company now has everything it needs to move into the engineering and permitting phase without delay.

With the underground mining engineer appointment imminent and a mine planning workstream set to follow, the next several months are likely to bring a series of concrete, value-building announcements for those tracking this Freehill Mining Blanco y Negro copper gold project update closely.

Freehill Mining has positioned itself as a credible near-term copper developer in Chile, with a verified JORC resource, granted mining leases, a potential low-capex toll-treatment route, and a cash-generating aggregates business providing operational and financial support. With underground mine planning set to commence and a strengthening copper price environment, investors should keep a close eye on developments at Blanco y Negro over the months ahead.

Ready to Dig Deeper Into Freehill Mining's Copper-Gold Opportunity?

Freehill Mining (ASX: FHS) is advancing the Blanco y Negro Copper-Gold Project in Chile with a verified JORC 2012-compliant resource, granted mining leases, a credible low-capex processing pathway, and underground mine planning set to commence imminently. With a cash-generating aggregates business providing operational support and a series of near-term catalysts on the horizon, this is a company worth watching closely. Visit freehillmining.com to learn more about the company and its projects.