A$3.33 million loss and 26.2m at 12.00 g/t Au shape Fin’s 2026

Cabin Lake delivers strong first-pass drilling

Fin Resources Limited (ASX:FIN) has found the kind of early exploration result junior gold companies need to keep a story alive: every one of its eight maiden diamond holes at the Cabin Lake Gold Project returned gold mineralisation. The standout results came from the Arrow prospect, where hole CL-26-001 intersected 26.2 metres at 12.00 grams per tonne gold from 14.9 metres, while CL-26-002 returned 7.8 metres at 18.20 g/t Au from 12.7 metres.

The company says the results confirmed broad, shallow, sulphide-hosted mineralisation beneath glacial cover and supported continuity within the Bugow Iron Formation. Beaver and Andrew South also returned mineralised intervals, including 6.0 metres at 2.75 g/t Au at Beaver and 2.0 metres at 4.92 g/t Au plus 7.0 metres at 1.46 g/t Au at Andrew South. Those intersections are exploration results, not a mineral resource or an economic assessment, and the annual report notes that the information had already been disclosed to the market.

Fourteen targets widen the exploration pipeline

Fin’s geophysical work has added scale to the campaign. Surface induced polarisation surveys identified 10 new priority targets, while ground magnetics highlighted another four areas associated with demagnetised banded iron formation. The company’s interpretation links elevated IP chargeability and demagnetised BIF zones with the gold mineralisation encountered so far, although the new targets remain untested.

The project acquisition was completed in February 2026, and the initial drilling also satisfied Cabin Lake’s Stage 1 acquisition milestone: a drill intercept of at least 20 metres grading above 2 g/t Au. That triggered the issue of 13,148,789 shares to the vendor. The remaining milestones are materially more demanding, requiring a JORC-compliant resource of at least 250,000 ounces at a grade above 2 g/t Au, followed by a pre-feasibility study with a project NPV above A$50 million under the specified gold-price assumption.

Loss widens as exploration spending accelerates

The operational progress came with a considerably heavier financial cost. Fin reported a net loss of A$3.33 million for the year, against A$612,418 a year earlier. The result included a A$2.32 million impairment charge, comprising A$218,680 against McKenzie Springs and A$2.11 million against Mt Tremblant after the company prioritised Cabin Lake.

Cash used in exploration reached A$4.29 million, while operating activities consumed a further A$548,506. Fin ended 30 June with A$743,357 in cash and A$5.54 million in total assets, including A$4.40 million of capitalised exploration and evaluation expenditure. The balance sheet is therefore carrying a larger exploration asset at the same time as the company acknowledges that its projects do not yet generate operating revenue.

Auditor highlights dependence on future funding

BDO Audit issued an unmodified audit opinion but drew attention to a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern. Fin’s directors said the company depends on raising additional capital to fund planned exploration and corporate overheads over the next 12 months, while the auditor noted that the company’s ability to raise money will be affected by exploration success and market conditions.

That risk was partly addressed after year-end through a A$1.7 million placement at A$0.004 a share. The raise involved 425 million shares, with one free-attaching option for each share subscribed. The second tranche was issued on 23 September, but the approved options had not been issued as at the date of the annual report. The financing provides funding capacity, but it also adds a substantial layer of equity and potential option dilution to a company that had 1.48 billion ordinary shares on issue at 30 June.

Summer drilling sets the next test

Fin commenced a further summer program in July, followed by drilling in mid-August targeting the 10 IP targets and four magnetic targets. The campaign is expected to comprise about 15 diamond holes for 1,500 metres and is also intended to satisfy a minimum drilling commitment attached to the Cabin Lake acquisition. The company says the initial program had already met a cumulative 500 gram-metre gold threshold that requires an additional A$1 million of drilling expenditure within the relevant period.

The next meaningful test is whether the untested geophysical anomalies produce repeatable mineralisation at useful widths and grades, rather than isolated high-grade hits. Until drilling advances the project toward the Stage 2 resource milestone, Cabin Lake remains a promising but unproven exploration asset - and Fin’s cash needs mean the market will be assessing each result alongside the next funding requirement.