I think you may me missing my point mate. You have compared two companies market caps with ground in the Pilbara, DEG ~+$1B and FG1 ~$10M and quoted DEG’s Hemi project as the main reason for their significantly higher valuation. Fair enough.
There is a big difference in the amount of field work the two have conducted. DEG didn’t find Hemi by sitting in their office in Subiaco. Although they had some 2.2M Oz Au from 5 prospects they drilled prior to discovering Hemi, they didn’t actually discover Hemi until December 2019 (see DEG ann Dec 17 2019) via a wide spaced air core program.
Flynn Gold ann 7th March 2022 identifies that their Pilbara tenement E47/3888 has an expiry of 29 March 2024. Initial terms for exploration tenure in WA are for 5 years which means Flynn, or more precisely the pre-curser private company to Flynn (effectively the same thing as the vast majority of FG1 shares are owned by the same group as the pre-curser private Co and FG1 has the same Directors), had that tenement approved March 2019 – so they have had it for over 3 years now and over a year as a listed entity. Flynn had granted tenure in the Pilbara around 10 months prior to the discovery of Hemi. Flynns EL45/5055 also in the Pilbara was granted to them 12 December 2021 – some 7 months ago.
These tenements imo are highly prospective for Hemi style mineralization as Hemi is hosted within an intrusive and Flynns ground is almost all intrusive. Are they the same intrusive ? do they have a similar mineralized structure running through them ? who knows, Flynn hasn’t bothered as yet to get on the ground and find out, opting to stay in Melbourne. I wonder if any one from Flynn Gold has ever even stepped foot on any of the WA tenements yet ??
Put another way, how long do you think it takes to conduct an air core program ? obviously there are variables but a wide spaced, modest first pass program covering a few kms of strike, i would say 2 months. In fact, DEG first indicated that they had started a a regional air core program including covering Hemi in Sept qrt 2019 and they had results in the Dec Qtrly of the same year so at most this was a 5 or 6 month turn around between the start of drilling and assays resulting in the initial discovery of Hemi ( now only a few years later a substantial 7M Oz Au ore body). At this time, Flynn had had an approved tenement, as you say only ~15km or so away from this area for 10 months ! … and done nothing on it. Lets say the private company didn’t want to work on that ground until after listing, fair enough, though its now been over 12 months since FG1 has been listed which is twice the time DEG took in total to make the initial Hemi discovery.
January 4 2022 when Flynn announced the granting of EL45/5055, they also stated they planned to have “boots on the ground at the earliest opportunity”… ( ahhh what ? they had a granted tenement for near on 3 years already at this stage and its now been 12 months since listing), and also stated exploration was going to commence end of Q1 to start of Q2. I take that as March or April so two to three months out from that call…. Its now two days short of July, 6 months out from that call… I wonder what happened for them to get this so wrong ? maybe they are still waiting for the weather to clear (as they stated this is a reason for any potential delay as well, which from someone who has worked extensively in the tropics I find hilarious). So they say 2 or 3 months and its now been 6 months ? but they are “focused” on exploration “at the earliest opportunity” ??? Yes some of Flynns other WA ground is also prospective for Lithium but the same applies, its difficult progressing exploration ground to assess the potential of finding any ore body whilst sitting in a Melbourne office.
This reminds me of the level of aptitude surrounding the assay debacle from their drilling in Tasmania. I got in touch with ALS Burnie again who Flynn gold utilize for tassie sample analysis around a week prior to the release of their latest results. ALS Perth got back to me and said that apart from dealing with higher volumes industry wide which have had minimal impact, there was actually no delay or hold up in analysing Tasmanian clients samples. ALS stated that they had been prepping samples at ALS Burnie for tassie clients and sending the pulps to a number of mainland labs for analysis continuously throughout the past year. There certainly wasn’t a 6 or 7 month delay or as Flynn stated, a 3 to 4 month delay.
I noticed in the latest results from 25 May that results from BRD004 were there. It turns out the drilling of BDR004 was indicated as being completed in the Sept 2021 Qrtly and that some 1442m had been also been drilled after this hole. At their average daily drilled metre rate of 12m per day (astonishingly low efficiency and something obviously wrong there) it means BDR004 was actually out of the ground some 90 days prior, so maybe at the start of the Sept qtr. This means BDR004, which hosted a mineralized intercept was out of the ground some time around early June 2021 but assays were not returned until May 2022 – an 11 month turn around. I wonder what happened to blaming the lab for delays of 3 to 4 months ?
I want Flynn to succeed as much as anyone but have to admit, I laughed out loud at their latest preso.. title page states they have made a “ Positive Start…” ahh what ? in reality they had spent 35 -40% of their funds, taken +12 months to drill 4200m to close off one unsuccessful prospect, done a few trial lines of IP and applied for a few tenements in WA. At the time of the preso, it looks like they have 26 granted tenements in total… they have set foot on 2 of them ( maybe 3 as months ago I remember they said they did some mapping on another tassie tenement, Mangana, but still no proof of that). With the share price / value of the company down at the time 35 – 40%, and with less trading liquidity than I have seen hitting rocks in the Atacama indicating an almost total lack of market interest, how could this possibly be a “positive start” ? with the current market down turn they cant catch a single bid into 50% down ( 10 cents) at the moment !!! but a "positive start" ! i am thinking that that is a bit of a generous stretch at best ! like trying to generate some spin and turn from a dead pitch that really hasn't done much all test !
Hopefully they actually stop with the excuses and start some field work in WA at some stage soon. I noticed also they are having a think about doing an air core program in WA… at some time in 2023 ? No details of where or exactly when of course ! They have not managed to do any work on the ground in the first 6 months of the year, (one could assume after owning the tenements for so long all approvals are in place but no info on this perhaps not ??? Would be weird if you had a WA tenement for over 3 years an still not have approvals to enter the ground ! so its likely to do the weather, maybe they are thinking some time mid year… wait a fiscal second ! that would be just in time for the major holders shares to be release from escrow… conspiracy or coincidence ? one things for sure, its pretty piss poor effort so far !
Finally, I noticed on their web sites latest media release 1st June, it says “the company remains at 15 cents apiece – its original listing price “…. Did any retail investor who participated in the FG1 IPO pay 15cents, or was it 20 cents ?? 15cents was what they and their mates paid via the pre IPO con note which says a lot in my opinion. FG1 is behaving like they are still a private company with zero urgency to explore efficiently. Either that or, (and despite their advertised extensive experience), they have no ability to run a junior exploration company. I think it’s the former and things will magically change as they will ramp up closer to mid 2023 when the major holders shares become available to trade. Just my opinion from what has / hasn’t happened.
in saying all this though, even disingenuous companies in this game can get lucky. they are currently drilling (still part time) on two tasmanian prospects. I am not a fan of large low grade bulk tonnage plays myself - as costs increase, grade is king becomes even more relevant imo so hopefully they luck into something at Portland. if they have 30km of prospective gold bearing structures though, ive no idea why you wouldnt do air core or RC to find it first rather than plodding along with one DD rig doing 15 m per day... bloody hell, that could take many years and cost heaps unless they are super lucky ! anyway, heres hoping !
