Flagship keeps its banner flying in Tier-1 copper hotspot

• Rosario copper option extended to October 2028 with a reduced final exercise payment
• The Chilean project hosts three prospective copper trends over about 15km
• Isidora gold milestones will determine the timing of Rosario fieldwork

Special Report:Flagship Minerals has secured more time to advance its prospective Rosario copper project in Chile, agreeing to extend its purchase option to October 2028 while cutting the final exercise payment from US$2 million to US$1 million.

Flagship Minerals (ASX:FLG) has struck the revised deal with Sociedad Minera Rajo SpA, preserving a pathway to 100% ownership of the Rosario copper project, as it prioritises development work at its Isidora gold project – also in Chile.

The agreement locks in an October 2028 expiry, a year beyond the previous scheduled date. It also introduces a 1% net smelter return royalty, which Flagship may buy back for US$1 million.

“The updated Rosario Option Agreement reflects the strength of the relationship that we have built with Sociedad Minera Rajo SpA, the counterparty to this agreement,” Flagship managing director Paul Lock said.

More time to test Rosario’s copper potential

Rosario sits next to Codelco’s El Salvador copper mine in northern Chile, in an established mining district with road access and nearby processing and transport infrastructure.

The concession package of around 63km², comprising granted and application ground, contains three prospective copper trends with a combined strike length of about 15km.

Earlier rock-chip sampling returned grades exceeding 8.9% copper while Flagship has interpreted prospective zones ranging from 20m to 200m in width.

The project sits roughly 100km from a copper processing plant and 130km from the nearest port. Flagship sees potential for an oxide copper development, subject to exploration and technical work.

Under the revised deal, an October 2026 option payment of US$100,000 has been paid and a further US$100,000 is due in October 2027. The US$1 million exercise payment falls due in October 2028.

Flagship can also elect to make the option payments and exercise payment in cash or shares.

Next on Rosario’s proposed work list is trenching along the Rosario East trend. Depending on those results, Flagship intends to drill-test for oxide copper mineralisation and then undertake metallurgical testwork.

Isidora remains first in line

Lock has made it clear that work at Rosario will be sequenced after key milestones at Isidora, reflecting Flagship’s intention to concentrate its efforts where they can produce the greatest near-term benefit.

“Flagship plans to conduct further work at Rosario once key milestones have been achieved at Isidora, ensuring the Company’s capital is applied where the most value per dollar spend will be generated,” he said.

Isidora already hosts a resource of 115.2 million tonnes at 0.56g/t gold for 2.093 million ounces, with approximately 91% in the measured and indicated categories.

Flagship has been progressing metallurgical studies, exploration and environmental work aimed at advancing the project towards development.

Rosario adds a potential Chilean copper growth path alongside Whipsaw in British Columbia, where Flagship holds an option to acquire the project and has outlined an exploration target supported by historical drilling, geochemistry and geophysics.

The International Energy Agency’s 2026 Global Critical Minerals Outlook expects copper demand to grow by around 7 million tonnes to 2040 and projects a 25% mine-supply gap relative to primary copper requirements in 2035 under its stated-policies scenario, based on the announced project pipeline.

For Flagship, the longer Rosario option keeps another early-stage copper opportunity within reach while Isidora takes the lead.

Lock sees the two copper projects as complementary to a strategy of targeting gold and copper opportunities with potential scale in established mining jurisdictions.

“Both Rosario and Whipsaw achieve this, providing Flagship with exposure to one of the strongest long-term commodity themes in the market,” he said.

This article was developed in collaboration with Flagship Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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