Flagship Minerals Limited (ASX:FLG) has announced the acquisition via option agreement of a 100% interest in the Fortuna Valle Copper-Gold Project, a district-scale exploration project located in the Coquimbo Region of northern Chile, situated between La Serena and Huasco.

Key Points

  • Flagship Minerals has entered an option agreement to acquire a 100% interest in the Fortuna Valle Copper-Gold Project in Chile's Coquimbo Region
  • The project covers a large concession package of approximately 300 km² within the Coastal Cordillera metallogenic belt
  • Scout drilling confirmed an intrusive-related copper-gold system with assays returning up to 22m @ 0.37% Cu and 0.38g/t Au from 26m
  • The project contains multiple prospect centres including Cerro Blanco, Las Hermanas, Chinchillón, San Miguel and Perseverencia
  • The company intends to undertake a comprehensive technical review of historical exploration data and develop a phased exploration strategy

Fortuna Valle Project Location and Access

The Fortuna Valle Copper-Gold Project is located within the Coastal Cordillera of Chile, centred approximately 15km east of Ruta 5, the major north-south highway in Chile. The city of La Serena is situated approximately 50km to the southwest of the project, and the village of La Higuera is approximately 12km to the west. Access to the project from Ruta 5 is via well-formed gravel roads and other vehicular tracks. The project benefits from year-round access for exploration activities, with major electricity transmission lines traversing the project area and connection to the Chilean grid.

Historical Exploration and Drilling Results

Previous exploration at Fortuna Valle includes geological mapping, geochemical sampling, trenching, ground magnetics and diamond drilling. Historical exploration has identified a large-scale copper-gold hydrothermal system with mineralisation recognised across multiple prospect areas. Copper-gold mineralisation is associated with monzonite and granodiorite intrusions, sheeted vein systems, hydrothermal breccias and extensive alteration zones. Scout drilling confirmed the presence of an intrusive-related copper-gold system, with assays returning up to 22m @ 0.37% Cu and 0.38g/t Au from 26m depth. The company noted that numerous untested and partially tested exploration targets remain across the project area.

Regional Geological Setting and Infrastructure

The Coastal Cordillera mineral belt hosts a diverse range of mineral systems including IOCG, iron oxide-apatite, manto copper deposits, porphyry copper-gold systems, epithermal gold-silver deposits and structurally controlled copper-gold systems. A defining geological feature of the belt is the Atacama Fault System, a crustal-scale structure that has exerted fundamental control on magmatism, hydrothermal fluid flow and ore deposition. The broader region contains several mineral deposits and mining operations, including the Carmen de Andacollo copper-gold mine, Los Pelambres and El Romeral. The project area provides access to a skilled workforce, mining services, ports, power infrastructure and transport networks, according to the filing.