Flynn Gold has secured a significant boost for its Tasmanian exploration efforts after receiving up to $130,000 in government grant funding through Tasmania’s Exploration Drilling Grant Initiative (EDGI). The funding will advance critical drilling programs at two of the company’s most promising prospects, marking another success story for the state’s mineral exploration sector.
The ASX-listed explorer (ASX: FG1) will use the grants to drill beneath the historic Golden Entrance mine at its Mangana gold project drilling program, alongside testing high-priority targets at its Henty South prospect. With gold prices currently trading near record highs of $3,400 per ounce, the timing couldn’t be better for Flynn Gold grant drilling 2025 activities.
Historic Golden Entrance Mine Takes Centre Stage
The bulk of Flynn’s funding will target the Golden Entrance historic mine drilling program at Mangana, where two diamond drill holes totalling 400 metres are planned. This mine produced an impressive 2,939 ounces at an extraordinary average grade of 127g/t Au (roughly 4 ounces per tonne) between 1900 and 1905, with some grades reaching 7oz/t.
Location map showing Flynn Gold’s Tasmanian projects
What makes this particularly compelling is that the zone beneath these historic workings has never been drill-tested since the mine closed over a century ago. Historical records suggest steep north-dipping ore shoots that remain open at depth, presenting what Managing Director Neil Marston describes as “a compelling opportunity to confirm continuity and delineate potentially significant high-grade gold mineralisation.”
The Golden Entrance mine sits within Tasmania’s 80-kilometre Lyndhurst-Mangana Golden Corridor in the northeast, a region characterised by tightly folded Ordovician to Devonian sediments hosting orogenic lode-style gold veins. The Mangana goldfield historically produced around 6,700 ounces between 1852 and 1910, with Golden Entrance being the richest and largest producer.
Henty South Prospect Adds Strategic Value
The remaining portion of the Tasmanian drilling grant FG1 funding will support a 500-metre diamond drill hole at the Grieves Siding prospect within the Henty South project. This target combines a gravity anomaly with an induced polarisation chargeability anomaly, located immediately north of existing zinc-lead-silver mineralisation.
Previous drilling at Grieves Siding has returned significant intersections including 16.5% zinc, 1.1% lead and 2.9g/t silver over 5.1 metres from 124 metres depth. The prospect sits within Ireland-type carbonate-hosted mineralisation, known for high grades, good lateral continuity and favourable metallurgical characteristics.
Flynn has reprocessed existing geophysical data to identify several stratabound gravity features, with the new target representing the highest priority for follow-up exploration.
Strong Gold Market Backdrop
The drilling program benefits from exceptionally strong gold market conditions. According to J.P. Morgan Research, gold prices are forecast to average $3,675 per ounce by the fourth quarter of 2025, rising toward $4,000 by mid-2026. Current prices around $3,400 per ounce represent a substantial premium to the $2,000 levels seen in early 2024.
The World Gold Council reports that Q1 2025 saw total gold demand in value terms almost match the Q4 record of $111 billion, with the quarterly average price reaching $2,860 per ounce, up 38% year-on-year. This supportive environment enhances the economics for high-grade discoveries like those targeted at Golden Entrance.
EDGI Program Drives Tasmanian Success
Flynn’s success builds on Tasmania’s strong track record through the EDGI initiative. The program has supported numerous discoveries, including. Tasmania’s mining industry generates over $2.5 billion annually and supports approximately 6,800 jobs.
Recent EDGI Round 11 awarded $497,000 across seven projects, targeting 4,000 metres of exploration drilling for tin, copper, gold, antimony and lithium across mineral-rich regions like Western Hills and Jukes North.
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Market Performance and Next Steps
Flynn Gold shares currently trade at $0.027, giving the company a market capitalisation of approximately $10.6 million. The company maintains $1.2 million in cash as of June 30, 2025, providing adequate funding for the drilling campaign alongside the government grants.
FLYNN GOLD LIMITED FG1 Overview
Before drilling commences, Flynn must complete several preparatory steps including signing grant deeds with the Department of State Growth, finalising drilling works approval from Mineral Resources Tasmania, issuing drilling contracts and completing site preparation work.
The company’s broader Tasmanian portfolio includes ten 100%-owned tenements across northeast Tasmania, highly prospective for gold, tin and tungsten, plus the Henty zinc-lead-silver project on the state’s mineral-rich west coast.
Managing Director Neil Marston expressed confidence in the drilling targets: “We are delighted to have once again received such strong support from the Tasmanian State Government through these grants, which are designed to help uncover the next generation of mineral discoveries in Tasmania.”
The drilling program represents a pivotal moment for Flynn Gold, offering the potential to unlock significant value beneath one of Tasmania’s most historically productive gold mines while advancing promising base metal targets in a supportive commodity environment.
