Flynn Gold advances Henty pathway as Tasmanian drilling gathers pace

Henty Processing Pathway Takes Shape

Flynn Gold Limited (ASX:FG1) has put a potential low-capital route to Tasmanian gold production on the table, but the company’s immediate financial position remains tight. Its non-binding Ore Purchase Agreement with Henty Gold Pty Ltd, a subsidiary of Kaiser Reef Limited (ASX:KAU), establishes a framework for Henty Gold Mine to assess buying ore or concentrates from Flynn’s Tasmanian projects for processing at its existing facility.

“Location of Flynn Gold tenements in Tasmania.”

The agreement does not commit either party to a definitive transaction, and its commercial terms remain confidential. A 3.7-tonne bulk sample from Golden Ridge has since been delivered to Henty for processing testwork, with results pending. The outcome should provide an early indication of whether the proposed pathway can move beyond a framework and into a more defined development option.

Golden Ridge Drilling Moves Towards Resource Definition

At the Brilliant prospect, trenching outlined near-surface gold anomalies over more than 110 metres of strike, with mineralisation open to the north-east. Highlighted results included 33 metres at 0.56 grams per tonne gold, including 11 metres at 1.04g/t, while other trenches returned intervals of 20 to 32 metres at grades ranging from 0.34g/t to 0.60g/t.

“Brilliant Prospect – Recent Trenching Results and Drilling Plan.”

“Brilliant Cross-Section”

Caption and image © Flynn Gold Limited. From “September 2026 Quarterly Activities Report and Appendix 5B”, 30 Oct 2026.

Flynn has begun a 21-hole, approximately 2,500-metre drilling campaign at Brilliant to test the trenching, extend the mineralisation along strike and at depth, and collect information for a maiden Mineral Resource Estimate. The work is also being assessed against the potential Henty processing route, an exploration-to-development thread that was outlined in the Henty processing framework earlier in September.

Metallurgical results from the Trafalgar prospect provided another favourable but preliminary signal. Thirty-five low- to medium-grade samples returned average gold extraction of 94%, with individual results ranging from 88% to 97%. The company cautioned that the LeachWELL testing used intensive conditions and an 85% passing 75-micron grind, so further work is needed to establish recoveries under potential commercial carbon-in-pulp or carbon-in-leach conditions.

Firetower Intersections Extend Polymetallic System

Firetower delivered the quarter’s most striking drilling numbers. Hole 2019FTD003E intersected 12.95 metres at 2.24g/t gold, 0.46% tungsten trioxide, 0.18% copper, 0.23% cobalt and 7.22g/t silver from 156.9 metres, including a 0.73-metre interval at 11.95g/t gold and 2.29% WO3. Nearby hole 2019FTD014E returned 9.64 metres at 2.49g/t gold, 0.29% WO3 and 0.52% copper from 200.13 metres.

“Long Section A-A’: Firetower F300 Zone”

“Firetower Drill Hole Plan”

Caption and image © Flynn Gold Limited. From “September 2026 Quarterly Activities Report and Appendix 5B”, 30 Oct 2026.

Flynn’s revised interpretation divides the mineralisation into two structural trends: the northwest-trending, polymetallic F300 Zone and the broadly east-west F90 Zone, which is more predominantly gold-bearing. The F300 Zone remains open to the north-west and at depth, while planned metallurgical work and geological modelling are intended to support a maiden resource estimate. A project-wide reinterpretation of historical geophysical data across a six-kilometre corridor is expected in the fourth quarter of 2026.

Rights Issue Eases, But Does Not Erase, Funding Risk

Flynn raised A$1.5 million before costs through a one-for-three renounceable rights issue, issuing 99,999,998 shares and 50,000,032 options. The raise was directed towards Golden Ridge resource drilling and the Firetower resource work, following earlier coverage of the completed A$1.5 million raise.

That capital arrived after the reporting period. At 30 September, Flynn held A$409,000 in cash after spending A$872,000 on exploration and evaluation, A$122,000 on employee costs and A$255,000 on administration and corporate costs. On the quarter’s reported cash usage, the Appendix 5B calculated only 0.4 quarters of funding. Flynn said it expects to continue operating on the basis of the rights issue proceeds and access to its ATM facility, which remains subject to its terms and the participation of Dolphin Corporate Investments.

The next hard evidence will come from the Henty bulk-sample testwork, Brilliant drilling and Firetower metallurgy. Until those results arrive, Flynn has a growing set of exploration signals and a freshly replenished balance sheet, but not yet a binding processing agreement, a maiden resource or a demonstrated commercial recovery profile.