Flynn Gold (ASX:FG1) signs Ore Purchase Agreement with Henty Gold Mine for potential Tasmania production pathway
Flynn Gold has executed a non binding Ore Purchase Agreement with Henty Gold Pty Ltd, a wholly owned subsidiary of Kaiser Reef Limited (ASX: KAU), establishing a framework and indicative commercial terms under which Henty Gold Mine may buy ore or concentrates supplied by Flynn Gold for processing through its existing gold processing facility in western Tasmania.
The agreement applies to Flynn Gold’s Tasmanian projects, with the Golden Ridge Project identified as the company’s immediate focus.
Highlights
Ore Purchase Agreement executed with Henty Gold Pty Ltd, operator of the Henty Gold Mine in Tasmania.
Agreement establishes indicative commercial terms under which Henty Gold Mine may buy ore or concentrates supplied by Flynn Gold for processing through its gold processing facility.
Flynn Gold will evaluate a potential low capex production pathway initially focused on the Golden Ridge Project.
Resource drilling, metallurgical studies and stakeholder engagement activities are planned as part of Golden Ridge development activities.
Flynn Gold has registered a Mining Lease Application for the Golden Ridge Project.
The Ore Purchase Agreement provides Flynn Gold with the opportunity to evaluate potential future processing of ore or concentrates through Henty Gold Mine’s existing gold processing facility.
The agreement is non binding and does not commit either party to enter into a definitive transaction, while the commercial terms remain confidential.
Golden Ridge is the company’s immediate focus, with Flynn Gold progressing development activities at the project.
The company has registered a Mining Lease Application for Golden Ridge, which includes a proposed processing site with grid power and all weather sealed roads nearby.
Flynn Gold Managing Director and CEO Neil Marston said the agreement represented an important milestone in the company's ambitions towards becoming a gold producer in Tasmania.
“Executing this ore purchase agreement with Kaiser Reef Limited is an important milestone in Flynn’s ambitions towards becoming a gold producer in Tasmania.”
Flynn Gold reported that initial metallurgical testwork on samples from Golden Ridge yielded over 94% gold recoveries using a similar style of leaching process as the Henty processing plant.
The company holds a few tonnes of quartz vein material collected from Golden Ridge in 2025, with some of this material planned to be provided to Kaiser Reef Limited for on site testing in the coming months.
The planned Golden Ridge activities include environmental surveys covering flora, fauna and water, resource drilling at the Brilliant and Trafalgar prospects aimed at increasing the Exploration Target and converting some of it to a Mineral Resource, metallurgical studies tailored towards potential Henty Gold Mine feed specifications, and stakeholder engagement activities.
Flynn Gold holds a portfolio of projects in Tasmania, including ten 100% owned tenements in northeast Tasmania that the company identifies as prospective for gold as well as tin and tungsten.
The company also holds the Henty silver lead zinc project on Tasmania’s west coast and the Firetower tungsten, gold and critical metals project in northern Tasmania.
Flynn Gold will continue progressing the planned Golden Ridge activities, including resource drilling, metallurgical studies and stakeholder engagement, while evaluating the potential processing pathway outlined in the Ore Purchase Agreement.