Flynn Gold doubles down at Tasmanian gold assets following ASX debut

Flynn Gold Ltd (ASX:FG1) entered a new era last week: it rang the virtual bell and joined the ASX’s registrar as a public exploration company. The ASX newcomer is currently working across Tasmania’s lucrative-yet-underexplored north-eastern gold pocket at the same time as it solidifies its holding within WA’s Pilbara region. With one drilling campaign in Tasmania already underway and further exploration to follow, the rest of 2021 is shaping up to be a busy season for Flynn. So, with all eyes on the local share market’s newest explorer, the questions on investors’ lips are: what’s on the horizon for Flynn Gold? and what differentiates it from its peers? The ASX debut Flynn Gold joined the local exchange last Thursday, trading under the ticker ‘FG1’ FG1’s listing follows an oversubscribed $10 million initial public offering (IPO), which saw 50 million shares issued at 20 cents each, generating a $19 million market capitalisation on its debut. Flynn Gold executive director Sam Garrett said the float was a few years in the making but was supported by ongoing exploration at the company’s Tasmanian gold assets. “In about 2019, we made the decision to go public … 2020 was a difficult year on the markets and we had some COVID, but we got the ball rolling with our initial drill campaigns at the Portland Gold Project in Northeast Tasmania. “Last year's two drilling programs were co-funded by the Tasmanian Government and successfully led us into the IPO event. “It’s been quite a journey … it’s a great time for us to now be a fully funded listed entity.” Australia-focused explorer Prior to its ASX debut, Flynn Gold’s team has been actively searching for gold since 2016 — the company now holds ground in emerging gold camps in Tasmania and Western Australia. Flynn Gold holds ground in WA’s highly prospective Pilbara region. Within the Pilbara region, Flynn’s landholding spans 448 square kilometres - six tenements and applications that lie in close proximity to De Grey Mining Limited’s (ASX:DEG) (OTCMKTS:DGMLF) (FRA:DGD) landmark Hemi gold discovery. Commenting on Flynn Gold’s successful neighbour, Garrett said: “One of the encouraging things about Hemi is that it appears to be, for the district, a new style of mineralisation that is associated with intrusive bodies. “That gives shareholders in Flynn hope that we’ll be able to discover similar types of younger intrusives within our group of tenements. “We would definitely like to be drilling by the middle of next year, subject to more of those tenements being granted.” Meanwhile, across Bass Strait, Flynn boasts seven granted tenements and a 1,134-square-kilometre landholding in northeast Tasmania. This region is of particular interest to the gold explorer: the island of Tasmania is, after all, one of the most mineralised places on the planet. A lucrative gold hotspot Flynn’s focus is founded on evidence the underexplored region is analogous to the Victorian Goldfields. Historically, the region has produced just 2.7 million gold ounces, but it bears striking similarities to Victorian projects that lie along the Western Lachlan Orogen. Northeast Tasmania: Mathinna Beds Geology and mineralisation analogous to Victorian Goldfields. Flynn isn’t the only mining entity that sees Tasmania’s potential: in 2019, the Fraser Institute’s Annual Survey of Mining Companies saw Tasmania reach its best global ranking in almost 15 years, climbing to 22nd place on the ladder. And last year, Mining Journal’s World Risk Report awarded Tasmania an AA investment risk rating. The state was also deemed Australia’s second-lowest risk mining jurisdiction in the same report. What’s key, however, to Flynn Gold’s position is its early-mover advantage in a largely ignored region. Thanks to this, Garrett believes Flynn is primed to effectively explore this promising space. “We believe we have a competitive advantage. We’ve had the time to select our targets, particularly in northeast Tasmania. “We have the benefit of having deposit style optionality - by that I mean we’re not just shooting for one target type. “We’ve got the very real option of testing or exploring for both orogenic-style gold deposits, for which Victoria is famous, as well as targeting intrusive-related gold systems.” Table highlights the differences in exploration expenditure and gold exploration between Victoria and Tasmania, as well as both region’s geological similarities. Campaigns in Tasmania Specifically, two priority targets will form the basis of Flynn’s gold exploration campaign in the near term. The first, its flagship Golden Ridge Project, is a bulk tonnage gold deposit target. Flynn has identified over 8 kilometres of mineralised strike at the precious metals asset, which has seen limited exploration coverage so far. To remedy this, a drilling campaign is already underway at Flynn’s Brilliant prospect - a high-priority gold target nestled within the Golden Ridge Project. Around 4,100 metres of drilling over 16 holes is planned at Brilliant, with first assays anticipated in the next four to six weeks. Flynn is also intrigued by its Portland Gold Project, a high-grade, ‘Fosterville-style’ gold mineralisation target with more than 20 kilometres of cumulative strike potential. Last year, the explorer completed maiden diamond drilling campaigns at the project’s Windy Ridge and Grand Flaneur targets — programs co-funded by the Tasmanian Government. A drill rig at Flynn Gold’s Tasmanian assets. When asked what differentiated Flynn from its peer group, Garrett highlighted the company’s holistic approach to exploration in Tasmania. “We’ve lived and worked in the Tasmanian jurisdiction for a long time. I’m from Tasmania. Our exploration manager is from Tasmania and based near Launceston … we have a proven good relationship with the Tasmanian Government, which supports us as junior explorers with drilling grants. “And then we have a great team of young, eager geologists — again, all Tasmanians or Tasmanian graduates. “We’re highly invested in the Tasmanian story.” What’s next? Even though it’s just listed on the ASX, Flynn’s leadership team has already prepared for the explorer’s next chapter. Commenting on Flynn’s near-term targets, the executive director said: “Within the next six to 12 months, we would like to complete the drilling at Brilliant, to have defined new drilling targets in the Golden Ridge system and to start expanding our understanding and knowledge of the mineralisation system along strike at Trafalgar.” Garrett and the team also have further exploration slated for the Portland Project after drilling took place last year. “The system at Portland is large — it’s going to require a lot of work to pull that system apart. We expect to be delivering a lot of news.” All in all, as it doubles down ahead of a busy exploration season, Garrett maintains Flynn is well funded for the next two years. “We’ve got a focused exploration program, excellent targets and a wonderful team to help us reach our goals … we’re really looking forward to what all those things will deliver for us over the next two to five years.”