Flagship moves to lock up big Chilean gold project

Like many of the greatest gold mines in Chile, Pantanillo is a porphyry depot with a thick layer of oxide above a sulphide base, says flagship.

A publicly available technical study available and preliminary in 2009 of a perforation program of 20,500 m by a previous owner, Fortune Valley Resources, developed a conceptual shell of 1000 m for 700m and 300 m depth.

At the time, Fortune Valley said that the pit contained 78 million tons of classification materials of 0.6 grams per ton (g/t). Using a ratio of 1.62 strips and a recovery rate of 85 %, the deposit was able to host 1.48 mate of yellow metal.

A preliminary economic evaluation of 2012 managed by the next owner, the Orosur Mining listed in Canadian, using a slightly higher degree of cut, concluded that the deposit hosts a recovery rate of 47.4 m oxide and mixed, classifying 0.69 g/t gold for 1.05 m in gold before taking into account for a similar recovery rate.

The Orosur report established that the mineral was suitable for a simple low -cost mining. Since 46 % of the resource is classified as a oxide and 52 % as a mixed mineral, the material would also be susceptible to accumulating the processing of the limbing, potentially increasing its recovery rates.

Mineralization is open of decrease and along the strike, with a strong potential through the 110 square kilometers of the company.

Pantanillo’s inventory is currently classified as an estimate of qualifying foreign resources, which, although acceptable in Canadian jurisdictions pursuant to the country’s relevant standards, is not yet applicable for Asx Jorc compliance.

To bring the resource to scratch with the Australian regulatory requirements, some of the perforation programs of the first year of flagships will be used to convert and increase the existing external estimate on a standard compliant with Jorc.

Further works will then be undertaken to explore for new mineralized areas and grow the base of hand resources in the hand with metallurgical tests.

The CEO of Punta Paul Lock’s minerals said: The Maricunga gold belt is a prolific gold belt, with larger oxide gold projects. What attracts us to Pantanillo is the advanced phase of the project. Pantanillo is risked, it has all the merits of a strategically well -set project, it has the potential to be a low -cost head -to -length lesser operation and positions the flagship well in the current price environment. “

A stone’s throw from Pantanillo, the Fenix ​​Gold project of Rio2 listed in TSX is currently under construction. The project is an excellent example of the enormous low -cost production potential for oxide developments in the region.

The Gold Fenix ​​project hosts 4.8 m ounces of a head of head of 0.38 g/t gold foreseen for processing using a large-scale-uncoiled head of Heap limbing not often used to extract yellow metal from large deposits.

When Rio2 completes its construction phase US $ 127 million ($ 200 million), it is expected that its mine produces 82,000 ounces of gold in 17 years and will take place at a US $ 1237 all-in-in-in-in-in-the-bass support cost.

Using a conservative intake for US $ 2000 gold prices (an $ 3333) for ONCIA, the Fenix ​​Gold project has a current net value (NPV) of 380 million dollars ($ 633 million) net of taxes.

Factor-in The Roaring Gold Price and Rio2’s NPV for the project comes out at almost $ 1 billion ($ 1.666 billion).

These compelling numbers highlight how large a leading opportunity is in hand in his nearby Pantanillo project.

One of the main reasons for his appeal is his key position in the highly coveted and rich golden maricunga belt. The corridor houses more than 65 m of golden ounces and has some significant residents, including the spectacular Norteo abierto gold mine from 27 m-ounces of NewMont-Barrick, 40 kilometers south-west of the flagship ground.

The Maricunga Gold project of 10.7 m ounces of Kinross is another huge 25 km deposit to the west of Pantanillo, while the Volcan Gold Project Monster from 11 m-otce in Hochschild is even closer, just 10 km north-west of Pantanillo.

The proximity of the project to the key of transport and energy infrastructure to support these main mining operations will also prove to be useful in keeping the flagship operating costs low.

At the end of last year, the flagship changed its name to reflect in a more accurate way its strategic vision of guaranteeing high -margin mineral activities and rich in infrastructure in a part of the world with consolidated mineral laws.

The move to put the foot on Pantanillo seems to be firmly in line with that vision.

With an aggressive plan of exploration and development in progress and an impregnated gold price, the bettors are likely to keep the progress of flagships while the company moves towards unlocking the entire value of this promising resource.

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