Operational Update for Rincon Resources

RNS Number : 7525F

Gunsynd PLC

09 November 2022

 

Gunsynd plc

("Gunsynd" or the "Company")

Operational Update for Rincon Resources Limited

Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce a positive operational update for one of its investee companies, Rincon Resources Limited ("Rincon") (ASX: RCR), an ASX listed Australian gold and base metals exploration company.

The Board of Gunsynd was very pleased to see that Rincon received a preliminary high-level report from independent consultant Resource Potentials highlighting the similarities between Rincon's Pokali Prospect and an exciting new Niobium Rare Earth (REE) discovery by WA1 Resources Limited (ASX: WA1) located about 87km NW of Pokali. The Pokali target is located within Rincon's 100% owned Kiwirrkurra IOCG Project, located in the West Arunta Region of Western Australia.

As well as being used in the steel industry predominantly as a micro alloy with iron, Niobium (Nb) , along with other refractory elements such as tantalum, is also used in nickel and nickel iron superalloys, particularly for applications requiring strength and heat resistance. Uses for such superalloys include turbine blades in jet engines within the aeronautic industry, and gas turbines in the energy industry. Australia's niobium resource is confined to a small number of deposits, largely as a by-product or co-product of rare earth element (REE) or rare earth element-zirconium mineralisation in peralkaline rocks and carbonatites. Examples of these include the Mount Weld carbonatite and the Brockman deposits in Western Australia.

Rincon has reported that historical drilling and surface geochemical datasets over Pokali were interrogated however most historical activity and geological analysis was focused on IOCG-style copper mineralisation and REE assaying was limited. Therefore, Rincon will be implementing programmes to obtain new multi-element and REE data for analysis to further understand the REE potential of its Kiwirrkurra Project. Rincon has recently received a Consent to Mine endorsement and Ministerial Entry Permit for its granted tenements at the Kiwirrkurra Project, permitting on-ground exploration activities to commence. A site reconnaissance and rock-chip sampling programme will commence later this week at Pokali to investigate the potential for REE mineralisation at Pokali and other outcropping target areas to the east.

The work programme described above will be operated in conjunction with a 3,000m aircore drilling campaign and will test three priority targets along the highly prospective Hasties-Grace Trend, a major structural corridor known to host significant copper-gold mineralisation and which passes through all of Rincon's main Gold-Copper project areas, as announced on 13 October 2022. Targets to be tested with the forthcoming programme are located along strike and within 5km of Paterson Resources Limited's Grace-Bemm Deposit. 

As announced on 2 November 2022, Gunsynd's further investment of 2,165,812 shares at 8 AUD cents for a total consideration of AUD$173,265 had been approved by Rincon shareholders. Rincon intends to utilise the funds raised pursuant to the capital raising to explore its existing and proposed projects and for general working capital.

As a result, Gunsynd now holds 11,065,812 ordinary shares in Rincon representing approximately 16.37% of Rincon's issued share capital.

The Directors of Gunsynd accept responsibility for this announcement.

For further information please contact:

Gunsynd plc Hamish Harris/ Peter Ruse	[phone]
Cairn Financial Advisers LLP James Caithie / Liam Murray	[phone]
Peterhouse Capital Limited Lucy Williams	[phone]

 

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