REG - Gunsynd PLC - Operational Update for Rincon Resources

GunsyndAnnouncement

09/11/2022 07:00

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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     +44 (0) 78 7958 4153

 Cairn Financial Advisers LLP

 James Caithie / Liam Murray   +44 (0) 20 7213 0880

 Peterhouse Capital Limited

 Lucy Williams                 +44 (0) 20 7469 0936

 

 

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