Freehill Mining Ltd
- ASX Code: FHS
- Market Cap: $6,099,780
Freehill Mining Appoints Veteran Chilean Engineer to Advance Blanco y Negro Toward Production
Freehill Mining (ASX: FHS) has taken a significant step forward as Freehill Mining appoints Marco Meneses to fast track Blanco y Negro copper gold project development. Meneses, a Chilean Civil Mining Engineer, brings more than 30 years of operational experience across major and mid-tier mining companies in Chile and South America, positioning Freehill to accelerate the project's transition from exploration into production planning.
The appointment arrives as the Chilean government has signalled its intent to raise the monthly processing threshold for small-scale mining operations from 5,000 tonnes to 10,000 tonnes, with legislation expected to progress in November. Freehill has described this development as providing added impetus to fast-track Blanco y Negro into production.
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An Established Resource With Defined Tenure
Blanco y Negro hosts a Mineral Resource Estimate reported in accordance with the JORC Code 2012 of approximately 1.5 million tonnes at 1.4% copper and 0.5 g/t gold, comprising an estimated 20,000 tonnes of contained copper and 24,000 ounces of gold.
| Metal | Contained Quantity |
|---|---|
| Copper | ~20,000 tonnes |
| Gold | ~24,000 ounces |
The resource is reported across oxide, transition, and fresh rock domains and sits on 128 hectares of granted mining leases, giving Freehill secured tenure over the project area. Furthermore, the granted concessions also provide local trucking and capacity advantages relevant to future mining operations.
Drilling and mapping conducted to date have returned a series of intercepts described by the company as porphyry-style and shear-hosted, including:
- 20m at 2.1% Cu and 1 g/t Au, including 4.5m at 3.5% Cu and 1.6 g/t Au
- 30m at 1.44% Cu, including 4m at 5.7% Cu and 0.9 g/t Au
- 38m at 1% Cu and 0.3 g/t Au, including 6m at 2.3% Cu and 7m at 2.1% Cu
The project is located approximately 30 kilometres from ENAMI's SX-EW processing plant, a proximity that underpins Freehill's proposed toll-treatment strategy. In addition, the company has confirmed it is assessing other third-party processing plants as alternatives.
Meneses Brings a Track Record Across Major and Growth-Stage Operators
Marco Antonio Meneses Cortes is a Civil Mining Engineer with more than three decades of experience in underground mining, mine development, processing operations, and performance optimisation across Chile and internationally. His career has included senior operational and management roles at Goldcorp, Barrick, Coeur d'Alene Mines, Endeavour Silver, and Phelps Dodge, where he led mine planning, production, processing, cost control, productivity improvement, and project development.
He has also held senior positions at smaller, growth-focused operators including Trident Minerals, Minera Florida, and Compañía Minera Michilla, giving him direct experience applying disciplined operating practices to developing mining projects of Blanco y Negro's scale.
According to the announcement, Meneses will advance mining design work, tunnel cross sections, production planning, ventilation design, geo-mechanical studies to validate the proposed mining method, and economic evaluation. He has already conducted a site visit, reviewed geological data including the resource block model, and defined the location of the initial adit proposed for underground mining operations.
Managing Director Paul Davies commented: "We are very pleased to have Marco join Freehill at an important stage in the planned development of Blanco y Negro. His extensive operational experience in Chile and familiarity with permitting, local stakeholders, and mining practices will be instrumental in bringing into production and operating a successful mining operation. With the anticipated increase in processing thresholds for small-scale miners in Chile, and with the favourable copper price, there has never been a better time to accelerate this project. Marco's appointment ensures we have the leadership required to capitalise on these favourable conditions."
Why the Chilean Legislative Development Matters
Under the current regulatory framework, small-scale mining operations in Chile are capped at 5,000 tonnes per month of processing throughput. Freehill has stated that the Chilean government has signalled intent to raise this threshold to 10,000 tonnes per month, with legislation anticipated to progress in November.
If enacted, the company believes this would provide a regulatory framework to permit a materially larger mining operation at Blanco y Negro without requiring the more complex approval pathway associated with large-scale mine classification. Freehill has said the change is designed to modernise and expand capacity within Chile's small-scale mining sector broadly, rather than representing any project-specific approval or designation for Blanco y Negro.
For a project pursuing a toll-treatment model, an increased permitted tonnage could consequently support improved project economics by enabling a larger volume of ore to be delivered for processing each month, subject to permitting and operational readiness.
Understanding the Toll-Treatment Model
What Is Toll Treatment?
Toll treatment is an arrangement where a mining company delivers ore to a third-party processing facility in exchange for a processing fee, rather than constructing its own plant. In Freehill's case, the nearby facility under consideration is ENAMI's SX-EW plant, located approximately 30 kilometres from Blanco y Negro.
Why Does This Matter for a Junior Developer?
Processing infrastructure typically represents one of the largest capital costs in bringing a mining project into production. However, a toll-treatment arrangement can reduce the upfront capital required, potentially shortening the time between mining commencement and the generation of revenue from metal sales.
Key Terms Explained
- SX-EW (Solvent Extraction – Electrowinning): A hydrometallurgical process used to recover copper from leach solutions, producing high-purity copper cathode.
- Adit: A horizontal or near-horizontal tunnel driven into a hillside to provide access to an underground ore deposit.
- Mineral Resource Estimate (MRE): A JORC-compliant estimate of the tonnage and grade of mineralisation identified within a deposit.
- JORC Code: The Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves, the industry standard for resource reporting used in Australia.
- SERNAGEOMIN: Chile's National Geology and Mining Service, the regulatory authority responsible for mining permits and safety oversight in Chile.
- Porphyry: A style of copper mineralisation associated with large intrusive rock bodies, often producing bulk-tonnage, disseminated copper deposits.
Eight-Point Work Program to Guide Near-Term Development
With Meneses now engaged, Freehill has outlined a staged work program covering the technical and regulatory steps the company intends to progress toward production.
| # | Work stream | Focus |
|---|---|---|
| 1 | Permitting and approvals schedule | Optimised for the updated regulatory environment |
| 2 | Underground mine planning | Engineering studies supporting mine design |
| 3 | Waste rock dump design | Environmental and operational planning |
| 4 | Explosives storage facility | Design and approval process |
| 5 | SERNAGEOMIN submission | Project submission plan and corresponding approval |
| 6 | Equipment and infrastructure | Assessment of mining equipment and contractor requirements |
| 7 | Metallurgical and toll-treatment studies | Advancing assessments with ENAMI |
| 8 | Project implementation plan | Timeline development toward operations |
Freehill has stated it will provide further updates as material milestones under this program are achieved.
Exploration Upside Beyond the Current Resource
Geological maps included in the announcement show drill hole collars and pierce points overlaid on copper grade contours derived from the resource block model. According to Freehill, these maps highlight the potential continuation of mineralisation toward the north-west of the currently defined resource, suggesting scope for the resource footprint to expand pending further drilling.
Cross-sectional data presented in the announcement also illustrates the distribution of oxide, transition, and primary mineralisation zones across the deposit, informing the mine planning work now being undertaken by Meneses.
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What Investors Should Monitor Going Forward
Several elements from this announcement carry direct relevance for investors tracking Freehill's progress toward production at Blanco y Negro. In particular, the following near-term milestones deserve close attention:
- November 2026: Expected progression of Chilean legislation to raise the small-scale processing threshold to 10,000 tonnes per month.
- Ongoing: SERNAGEOMIN submission and approval process for the underground mining operation.
- Ongoing: Toll-treatment assessments with ENAMI, alongside evaluation of alternative third-party processing plants.
- Near-term: Outputs from underground mine planning and engineering studies, including tunnel design, ventilation planning, and geo-mechanical work.
Key takeaway: Freehill Mining appoints Marco Meneses to fast track Blanco y Negro copper gold project development, bringing an experienced Chilean mining engineer to lead technical and permitting work alongside an anticipated regulatory change that could expand the project's permitted processing scope. The company has outlined a defined eight-point work program and continues to assess a toll-treatment pathway via ENAMI's nearby SX-EW facility, with further updates expected as milestones are achieved.
Ready to Follow Freehill Mining's Path to Production at Blanco y Negro?
With an experienced Chilean mining engineer now on board, a defined eight-point development work program underway, and a potential regulatory uplift on the horizon, Freehill Mining (ASX: FHS) is positioning Blanco y Negro for a tangible transition toward production. Investors seeking to understand the full scope of the project, the company's strategy, and how the toll-treatment model could shape project economics should head directly to the source. Visit Freehill Mining's official website to explore the latest updates, announcements, and investment information surrounding FHS and the Blanco y Negro copper-gold project.
